There is this saying that keeps doing the rounds – your car defines your personality. Well, going by these standards, you might definitely want to consider purchasing the perfect vehicle and let it define your personality. With a car loan from DBS, you will be on track almost immediately!
DBS is one of the largest banks in Singapore and offers a wide array of banking products and services. Consumer banking, retail banking, corporate banking and wealth management are amongst its most prominent service offerings. Under the consumer banking vertical, the bank offers loans, credit cards, investment options, savings options and more.
If you are looking for a car loan to finance the purchase of your new car, DBS might well be your ideal option, as the bank offers affordable interest rates and flexible tenures. That’s not all, even if you are looking to purchase a used car, DBS Bank’s used car loan will be immensely resourceful.
Let us go ahead and look at what you can expect from DBS Bank as far as applying for your car loan and the interest rates on your loan are concerned.
The tables below show the monthly instalment that you will have to pay based on the loan tenure and the interest rate applied and the maximum amount that you can borrow and the estimated purchase price of the car:
We have taken the promotional interest rate (2.28% p.a.) in the table below and considered the loan amount to be S$10,000.
Car Instalment Calculator
|Tenure (years)||Applied Interest Rate (AIR % p.a.)||Effective Interest Rate (EIR % p.a.)||Monthly Instalment|
We have taken the promotional interest rate in the table above.
You will enjoy an interest of 2.28% p.a. (Effective Interest Rate 4.29% p.a. over a period of seven years) on your loan, if you apply online. This offer is applicable only until 31 January 2019.
Here is an example as to how much you will be able to save based on a loan amount of S$80,000 over a seven-year tenure.
|Interest Rate||Total Interest Payable||You Save|
|Apply Car Loan Online||2.28%||S$12,768||S$2,800|
|Non-online Car Loan||2.78%||S$15,568|
To redeem this promotion, you must visit the DBS car loan page and click on the ‘Sign Me Up’ button. You will have to fill in the details online and send it with all the necessary documents that include insurance cover note, LTA vehicle registration details, and the Hire Purchase Agreement. This promotion is applicable only for the purchase of a used car.
There are basically two types of Car Loans that DBS offers:
Here are some things you should know about DBS Bank’s New Car Loan:
Are you thinking of applying for a used car loan from DBS? Here is exactly what you need to know.
DBS provides car loans for foreigners as well. If you are a foreigner and wish to apply for a DBS Car Loan, you will be required to submit your income and identity documents along with your passport and work permit.
In order to apply for a car loan from DBS, the following eligibility parameters need to be met:
With a DBS car loan, you will have to pay an early redemption fee if you settle the loan before the tenure expires. The amount applicable is described in the section below. In addition, you will have to pay a late payment fee that ranges between 3% p.a. - 5% p.a., plus the average prime rate of DBS, OCBC, and UOB on any amount overdue.
You can apply for the DBS car loan by visiting the official DBS 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 documents. Once you upload your documents, an executive from DBS will get in touch with you and help you take your loan application forward. He/she will also verify the authenticity of the information you’ve provided and subsequently process your loan application.
Once your application is processed, it will be reviewed by the bank’s credit team and will be approved if your application meets the bank’s internal credit norms.
The DBS Car Loan Calculator lets you calculate your monthly payments towards your car loan by entering details including your down payment, loan amount needed and loan tenure. You can enter all these details and the calculator will indicate the amount you’d be paying on a monthly basis through your loan tenure. Note that your monthly payments will remain fixed throughout your loan tenure.
If you wish to sell your car or if you are planning to settle your loan early, you will have to pay off your entire loan amount before you can transfer the ownership to the buyer. In addition to the unsettled instalments, you will have to pay the various fees and charges applicable if you redeem your car loan early. Here is a step-by-step procedure involved:
Loan amount = S$80,000
Loan tenure = 4 years originally
Interest rate = 3% p.a.
Total amount owed = (S$80,000 + S$9,600) = S$89,600
Instalments already paid (for 24 months) = (S$89,600/48) x 24 = S$44,800
Unsettled instalment amount = S$89,600 - S$44,800 = S$44,800
The formula applicable to compute the interest rebate will be as follows:
(n[n+1] ÷ N[N+1]) × Total Terms Changes
Here, Total Terms Changes is the total interest payable, N is the original loan period in months, n is the unexpired loan tenure in months.
Based on the situation mentioned above, the interest rebate based on the remaining 24 months will be
(24[24+1] ÷ 48[48+1]) × S$9,600 = S$2,449 (rounded off from S$2,448.97)
20% bank fee = S$2,449 x 20% = S$490 (rounded off from S$489.8)
The balance that you must pay at the time of redeeming your loan prematurely would be
= Unsettled instalment amount - 80% of interest rebate + 1% of the financed amount
= S$44,800 – (S$2,449 - S$490) + S$800
The final amount that you must pay might not be the same if you got a rebate for your loan, so verify with your bank on the precise loan redemption amount payable.
Choosing DBS to finance the purchase of your vehicle comes with a host of features and benefits indeed. Let us look at the most prominent features and benefits that you can enjoy:
If you have opted for a 7-year loan tenure, refinancing with any bank will not allow for a tenure of 7 years again. If you decide to refinance your loan after a 3-year period, you will have to make repayments through the remainder of your 7-year tenure.Q. Are repayments fixed throughout the tenure of the loan?
Car loan interest rates are fixed interest rates. Repayments, thus, remain fixed throughout the tenure of the loan.Q. Is it possible to get a car loan with a low credit score?
Yes, it is. The vehicle itself acts as collateral. Car loans are secured loans, so as long as your credit score meets the minimum criteria in accordance with the bank’s internal norms, your loan application will get approved.Q. Is the interest rate calculated on AIR or EIR?
Car loan interest rates are calculated in accordance with the Effective Interest Rate. The Effective Interest Rate takes into consideration your payments over the course of your tenure and calculates your interest payments for the remainder of your tenure.Q. Can you pre-close your car loan with DBS?
Yes, you can. Depending on how soon you wish to pre-close your loan, you will have to pay pre-closure charges as may hold applicable.