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Owning a car, be it a minivan or a sports car can either be a result of pure necessity, or as a result of fulfilling a long term goal. Regardless of what your reason for purchasing a car may be, it is a serious financial commitment and requires a large sum of cash to purchase. Not everyone is lucky enough to have enough savings lying around to go buy a car, and even if they did, dipping entirely into your savings for the entire cost of the car is not a wise financial move. Here’s where car loans can come to the rescue and with POSB car loans, you’re one step closer to owning your vehicle.
POSB is one of the oldest banks in Singapore to still be in operation. It was established as the Post Office Savings Bank and is operating as a subsidiary of DBS after DBS acquired it in 1998. The main goal of the bank is to provide low cost yet effective banking solutions. The bank still provides banking products to children, full-time students under 21 years and full-time National servicemen free of cost. Under its consumer banking vertical, POSB offers credit cards, investment options, savings options and loans among others.
If you are looking for a car loan, POSB with its affordable interest rates and flexible tenures can be your ideal option to finance the purchase of your new car. POSB even offers loans for purchasing used cars.
Let us go ahead and look at what you can expect from POSB as far as applying for your car loan and the interest rates on your loan are concerned.
Terms and Conditions: The promotional offer is only valid for car loans with tenures of over two years.
There are basically two types of Car Loans that POSB offers:
Here are some things you should know about POSB New Car Loan:
Here is what you need to know if you’re applying for a used car loan from POSB:
Choosing POSB to finance the purchase of your vehicle comes with a host of features and benefits which are as follows:
The car loan interest rates start at an applicable interest rate (AIR) of 2.78% p.a. Borrowers can contact the bank to learn more about the interest rates. Borrowers can also use the car loan calculator available on the POSB website to estimate their monthly instalment amount.
In order to apply for a car loan from POSB, the following eligibility parameters need to be met:
You can apply for the POSB car loan by visiting the POSB website and downloading 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.
The following are the documents that applicants need to submit in order to initiate their car loan application.
A. The loan amount depends on the OMV or open market value of the car. If the OMV is less than or equal to S$20,000, then the maximum loan amount is up to 705 of the purchase price of the car. If the OMV of the car is greater than S$20,000, the maximum loan amount available is 60% of the purchase price of the car.
A. The open market value (OMV) of a used motor vehicle is adjusted according to the age of the car. This is don’t to determine the corresponding loan-to-value (LTV) ratio permissible. A method of straight-line depreciation is adopted to derive an OMV which in turn is used to determine the LTV ratio.
A. The interest for the six months is credited to the borrower’s loan servicing account. The amount will be credited within one month from date of loan disbursement.