You can settle an existing car loan by refinancing your car with a different bank or with a different package within the same bank. One of the most important reasons to refinance your car is to save thousands of dollars in your monthly payments. If you are not satisfied with the rate of interest you have been offered for your car loan, or if you have found another option where you have been offered a better rate of interest, car refinancing is the right path for you. Many banks and financial institutions across the world today are on a mission to attract new customers by offering car refinancing at promotional ‘teaser’ rate structures and longer loan tenures that significantly decrease your monthly payments on your car loan. The process of refinancing itself has been shortened to a great extent to make the experience much more convenient and friendly.
Features of OCBC Car Refinancing
- You can receive up to 100% financing of your outstanding balance
- Flexible repayment tenures offered with repayment up to 7 year tenure plans
- Fixed rate of interest offered – 2.08% per annum. However, your Effective Interest Rate will differ depending on your loan tenure.
OCBC Car Refinancing Interest Rates
The following table illustrates the applied rates of interest as well as the effective rate of interest for each tenure:
Year 1 – S$25,929.74
Year 2 – S$0
Year 1 – S$34,720.10
Year 2 – S$17,633.18
Year 3 – S$0
Year 1 – S$39,221.10
Year 2 – S$26,560.6
Year 3 – S$13,486.41
Year 4 – S$0
Year 1 – S$42,005.35
Year 2 – S$32,001.17
Year 3 – S$21,665.55
Year 4 – S$10,998.49
Year 5 – S$0
Year 1 – S$43,931.13
Year 2 – S$35,698.83
Year 3 – S$27,189.57
Year 4 – S$18,403.36
Year 5 – S$9,340.20
Year 6 – S$0
Year 1 – S$45,366.26
Year 2 – S$38,399.92
Year 3 – S$31,195.73
Year 4 – S$23,753.68
Year 5 – S$16,073.77
Year 6 – S$8,156.02
Year 7 – S$0
OCBC Car Refinancing Process
- The first step is to reassess and calculate your current interest rate that you are paying for your car loan. You may be paying a higher rate of interest and may want to know how much you can save if you refinance. You can speak to OCBC representatives who will help you determine how much you can save with OCBC Car Refinancing.
- The second step includes transferring the financing of your car to OCBC wherein OCBC will pay your current car loan and will refinance your car based on a new agreement and terms and conditions.
- Once you have your new package in place, you can start making your monthly payments at a revised lower rate of interest with OCBC.
Documents required for OCBC Car Refinancing Application Process
- Hire Purchase Agreement
- Full and final settlement amount for your current finance.
- Identity Document
- Income statements – this includes computerized pay slips, CPF contributions made for the last 6 months and income tax notice of assessment.
- Your application filled out with complete details
- If you are foreigner, you will need to provide your work permit
OCBC Car Refinancing Application Process
- Step into the bank with the aforementioned documents and you can discuss with the OCBC representative regarding the following –
You will hear the final word on your application within 24 hours. If your application has been approved, OCBC will also appoint you a credit agent who will further assist you with your car financing process.
Your credit agent will then contact you and request for a meeting with the documents for you to sign. You will need to sign the Hire Purchase Agreement and the Customer Assignment – this is for transferring your current Hire Purchase Agreement.
You will need to pay the administration fee (if applicable) and your first month’s installment in this meeting.
Once this meeting has been successfully completed, the settlement for your existing loan will be made within 3 days. You will get updates on the progress of the settlement from your credit agent.
You will receive your New Hire Purchase Agreement from OCBC via an email. Your due date and installment amount will be mentioned on this document.
You will start making your monthly payments.
- your interest savings
- your new interest rate structure that OCBC can offer you
- your loan amount
- your loan tenure
OCBC Car Refinancing Payment Methods
- You can setup your monthly payments conveniently using GIRO – This will debit your account with the instalment due every month. If you do not have sufficient funds in your account, you will be given the option to reject making the payment via GIRO. You will be charged a fee for this. You can find the application for GIRO on the OCBC website. You will need to download the form, fill in the required details and then you can mail this to OCBC to successfully set this up.
- You can make the payment via a cheque by depositing it into any of the OCBC cheque deposit boxes.
- You can directly visit your nearest bank branch and make a cash payment.
Applying for OCBC Car Refinancing
- You can complete the online enquiry form where you have to provide your contact details. Once you submit the enquiry form, an OCBC representative will get in touch with you to start the process. The online enquiry form can be found on the OCBC website.
- You can call the OCBC hotline number between 9:00 a.m. and 5:00 p.m. on all weekdays excluding public holidays and start the process yourself.
OCBC Car Refinancing Eligibility Criteria
- You must at least be 21 years old
- This facility is available to Singaporean citizens, Singaporean Permanent Residents and Foreigners.
- If you have a current car financing with another bank for a minimum of 6 months, where you have been you will be charged an interest rate of 2.40%p.a. or more.
Terms and Conditions
- Your new financing period will be calculated by subtracting the financed period with your current lender/ financier from the repayment tenure of 7 years.
- For further details on OCBC Car Refinancing or for information on the Terms and Conditions, please feel free to contact OCBC bank.