• Car Loan BYTES FROM OUR KITCHEN

    UOB Car Loan

    Whether you need a car for commuting to work or as a means to fulfil a long-term goal of owning a dream car, purchasing the perfect vehicle to suit your needs is a must. With a car loan from UOB, you’re one step closer to owning your vehicle. UOB is one of the largest banks in Singapore and offers a wide array of banking products and services. Its banking products and solutions cater to a wide range of customers across consumer banking, retail banking, and corporate banking. UOB even offers wealth management services. Under its consumer banking vertical, UOB offers current accounts, savings accounts, credit cards, investment options, and loans, among others.If you are looking for a car loan to finance the purchase of your new car, UOB can be your ideal option, as the bank offers affordable interest rates and flexible tenures. UOB even offers financing for the purchase of a used car. Let us go ahead and look at what you can expect from UOB Bank as far as applying for your car loan and the interest rates on your loan are concerned.


    UOB Bank Car Loan DetailsUpdated on 21 Feb 2019

    UOB Car Loan Interest Rate 2019

    The interest rates applicable on the three different types of UOB car loans are as follows:

    New Car Used Car (10 years and under)
    Loan Period (years) Interest rate (p.a.%) Effective rate (p.a.%) Interest rate (p.a.%) Effective rate (p.a.%)
    1 2.78 6.03 2.98 6.46
    2 2.78 5.72 2.98 6.12
    3 2.78 5.59 2.98 5.98
    4 2.78 5.5 2.98 5.88
    5 2.78 5.43 2.98 5.81
    6 2.78 5.37 2.98 5.74
    7 2.78 5.32 2.98 5.68

    The rates shown above are subject to change without any prior notice.

    UOB HP50 Car Loan

    New Car Used Car (10 years and under)
    Loan period (years) Interest rate (p.a.%) Effective rate (p.a.%) Interest rate (p.a.%) Effective rate (p.a.%)
    1 2.78 6.03 2.98 6.46
    2 2.78 5.72 2.98 6.12
    3 2.78 5.59 2.98 5.98
    4 2.78 5.5 2.98 5.88
    5 2.78 5.43 2.98 5.81
    6 2.78 5.37 2.98 5.74
    7 2.78 5.32 2.98 5.68

    The rates shown above are subject to change without any prior notice.

    UOB COE Car Loan

    COE Car (> 10 years to 11 years)
    Loan period Interest rate (p.a.%) Effective rate (p.a.%)
    1 3.25 7.04
    2 3.25 6.67
    3 3.25 6.51
    4 3.25 6.4
    5 3.25 6.31
    6 3.25 6.23
    7 3.25 6.17

    Note: The rates shown in the tables above are subject to change without any prior notice.


    UOB Car Loan Calculator

    The tables below show the monthly instalments that you will have to pay based on the loan tenure, the interest rate applicable, the maximum amount that you can borrow, and the estimated purchase price of the car:

    We have taken the purchase price of the car to be S$30,000 and the down payment to be S$10,000, so the loan amount is S$20,000.

    Tenure (years) Applied Interest Rate (AIR % p.a.) Effective Interest Rate (EIR % p.a.) Monthly Instalment
    1 3.65 7.9 S$1,728
    2 3.65 7.47 S$895
    3 3.65 7.28 S$617
    4 3.65 7.15 S$478
    5 3.65 7.05 S$395
    6 3.65 6.96 S$339
    7 3.65 6.88 S$299

    Types of UOB Car Loans

    Based on New/Used Car

    There are two types of car loans based on new/used car that UOB offers:

    • New Car Loan
    • Used Car Loan

    UOB New Car Loan:

    Uob Car Loan

    Choosing UOB to finance the purchase of your vehicle comes with a host of features and benefits which are as follows:

    • The UOB New Car Loan is intended for the purchase of a new car.
    • The maximum loan amount one can apply for is dependent on the vehicle’s Open Market Value . The price of the car and its OMV will decide the amount you can borrow with the maximum amount being 70% of the cost of the vehicle.
    • The UOB HP50 loan allows you to reduce your monthly instalments by half to enjoy greater financial freedom. The borrower will have to pay the remainder of the loan on their final instalment.
    • The tenure for the UOB HP50 is 7 years.

    UOB Used Car Loan

    • The maximum loan amount available is dependent on the OMV. A maximum of 70% finance can be taken for vehicles with an OMV less than S$20,000 and a maximum loan amount of 60% if the OMV is greater than S$20,000.
    • The tenures can stretch from 1 year to 7 years for used car loans.

    Based on the Car Loan Product

    There are three car loan products offered by UOB - UOB Hire Purchase Car Loan, UOB HP50 Car Loan, and UOB COE Car Loan. Let’s take a look through all the three loan products from UOB.

    UOB Hire Purchase Car Loan

    • Get a loan up to 70% of the purchase price or in accordance with the bank’s valuation, the lower of the two.
    • Enjoy lower rates of interest on the amount borrowed for purchase of new cars as well as used cars.
    • This loan is characterised by faster processing as well as approval time.
    • You can get this loan for an extensive nexus of dealers when you plan to purchase a new or used car.
    • You can choose a maximum tenure of 7 years.
    • The monthly repayments remain fixed throughout the loan tenure.

    UOB HP50 Car Loan

    • This plan provides you with more financial stability by allowing you to split you monthly instalments into halves. You enjoy the convenience of paying half the value of your monthly instalments for 59 consecutive months.
    • In the 60th month, you can redeem your vehicle by repaying the final instalment amount. Alternately, you can also trade the car at the existing market price so that you can plan for your next car.
    • In the 60th month, you also have the option to enter a sell and lease back arrangement with the dealer. This option is however, strictly limited to new passenger vehicles. In this case the minimum loan amount stands at S$50,000 and you can borrow up to S$400,000.

    UOB COE Car Loan

    • With this loan, you can enjoy ownership of the car without having to spend any significant price on purchase of a new car.
    • You can enjoy competitive rates of interest on tenures of up to 7 years when you want financing for your car. However, if the COE revalidation is of 3 years, you can choose a maximum tenure of five years. On the other hand, if the revalidated COE is for 10 years, you can choose the maximum tenure of 7 years. Furthermore, the tenure chosen must not be beyond the period of COE maturity.
    • Repayments can be made in the form of fixed monthly instalments for this loan.
    • The maximum loan amount is 70% of the purchase price or in accordance with the bank’s valuation, depending on whichever is lower.
    • The loan amount is usually processed and approved fast for this loan.
    • Borrow from an extensive network of dealers under this car loan.

    UOB Car Loan Eligibility Parameters

    In order to apply for a car loan from UOB, the following eligibility parameters need to be met:

      • The car loan applicant has to be over 21 years of age.
      • The applicant must meet the minimum income criteria set by the bank in order to qualify for both used and new car loans.
      • The applicant has to be a Singaporean citizen, a Permanent Resident or a Foreigner.
      • A local guarantor is required if the applicant is a non-resident individual.

    Documentation needed to apply for an UOB Bank Car Loan

      • Your fully completed application form.
      • Proof of identity – front and back copy of your NRIC.
      • For New Passenger Vehicle: Sales/Purchase Order from supplier
      • For Used Passenger Vehicle: Copy of Registration/COE Card
      • Latest Income Documents (Income Tax Notice of Assessment, IR8A Form, pay slip, etc) and Photocopy of identity card/passport
      • Foreigners are required to submit their relevant documents including employer letter obtained from the employer, and employment pass. Their guarantors are also required to submit proof of identity and income documents.
      • Applicants should also provide sales purchase agreement from the car distributor.

    How to apply for the UOB Car Loan:

    You can apply for the UOB car loan by visiting the UOB website and filling out the online application form. Once you fill out the online application form, you will also have the provision of uploading your supporting documents. Upon successful submission, the bank will begin processing the application, and if all eligibility criteria and credit norms set by the bank are met, the application will be approved.


    UOB Car Loan Features and Benefits

    • Whether you’re purchasing a new or used car, UOB offers loans for both types of cars.
    • The UOB HP50 loan halves your monthly instalments and allows you to pay the balance on your final instalment. Doing so gives you more room to meet other financial commitments.
    • UOB offers tenures that stretch from 1 year to 7 years. Depending on the vehicle you wish to purchase and the amount you wish to borrow, you can select a tenure of your choice.
    • UOB offers up to 70% financing of the vehicle’s OMV.
    • UOB car loans allow you to trade your car at the prevailing market price for your next car at your dealership.

    UOB Hotline

    You can contact UOB on 1800-388-2121 if you have any further enquiries regarding the same.


    FAQ's

    Q. When do the remainder of the instalments under the HP50 loan plan have to be paid?

    A. The plan works such that your monthly instalments are halved for all but one instalment in your tenure. The last instalment is when the bulk of the loan has to be paid. For example: If the loan amount to be paid is S$100,000 at an interest rate of 3.50%, and tenure chosen is 5 years, then the total interest plus principal that needs to be paid within 60 months is S$996 per month for 59 months and S$58,736 on the 60th month instalment.

    Q. Can the UOB HP50 loan be taken for used cars?

    A. Yes. The HP50 loan is available only for both new and used cars.

    Q. What is the maximum loan amount I can get under the HP50 car loan?

    A. The maximum loan amount you can get under the HP50 car loan is S$400,000. The minimum loan amount you can apply for is S$50,000.

    Q. What is the maximum LTV one can get?

    A. The maximum LTV one can get is 60% if the OMV of the car is greater than S$20,000. If the OMV is lesser than S$20,000, the maximum LTV available is 70%.

    Q. Are the interest rates the same for used and new car loans?

    A. No. The interest rates for used car loans are slightly higher.

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