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.

    You’re probably eligible for an UOB Bank Car Loan if you are

    UOB Bank Car Loan Minimum Age

    Atleast 21 years old

    UOB Bank Car Loan Maximum Age

    Above 21 years

    UOB Bank Car Loan Eligible Employment Type

    Salaried or self-employed
    with regular income

    UOB Bank Car Loan Minimum Income

    Earn more than the minimum
    income required

    Your UOB Bank Car Loan amount eligibility is based on these factors

    UOB Bank Car Loan Minimum Salary

    No Info

    UOB Bank Car Loan Maximum Loan to Value

    Maximum Loan up to 70%

    UOB Bank Car Loan EMI

    EMIs of other loans lower
    your eligibility

    Increase your eligible UOB Bank Car Loan amount by these steps

    UOB Bank Car Loan Payoff Outstanding Credit Card Bills

    Pay off your credit card bills

    UOB Bank Car Loan Maximum Tenure

    Choose longer tenure loan up to 7 years

    Documentation needed to apply for an UOB Bank Car Loan

    • 1. For New Passenger Vehicle: Sales/Purchase Order from supplier
    • 2.For Used Passenger Vehicle: Copy of Registration/COE Card
    • 3. Latest Income Documents (Income Tax Notice of Assessment, IR8A Form, pay slip, etc) Photocopy of identity card/passport

    UOB Bank Car Loan DetailsUpdated on 22 Aug 2018

    UOB Bank Car Loan Details
    Interest Rate 3.250 p.a.*, EIR - 6.170- 7.040%*
    Margin of Finance up to 70% of the purchase price or the Bank's valuation
    Loan Tenure upto 7 years
    Guarantor Requirement Guarantor Required

    Types of UOB Car Loans

    There are basically two types of Car Loans that UOB offers:

    • New Car Loan
    • Used Car Loan

    UOB New Car Loan:

    This loan can further be divided into two types with one being the UOB HP50 Car Loan and the other being the UOB Normal HP Car Loan. Here are some things you should know about UOB’s New Car Loan:

    • 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 loan and the normal UOB New Car Loan is 7 years.

    UOB Used Car Loan

    Here is what you need to know if you’re applying for a used car loan from UOB:

    • 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.

    UOB Car Loan Features and Benefits

    Uob Car Loan

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

    • 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 New Car Loan Interest Rates:

    Tenure of your car loan Applied Interest Rate (AIR) Effective interest rate (EIR)
    1 year 3.25% p.a. 7.040% p.a.
    2 years 3.25% p.a. 6.670% p.a.
    3 years 3.25% p.a. 6.510% p.a.
    4 years 3.25% p.a. 6.4% p.a.
    5 years 3.25% p.a. 6.31% p.a.
    6 years 3.25% p.a. 6.230% p.a.
    7 years 3.25% p.a. 6.170% p.a.

    UOB Used Car Loan Interest Rates:

    Tenure of your car loan Applied Interest Rate (AIR) Effective interest rate (EIR)
    1 year 3.875% p.a. 8.390% p.a.
    2 years 3.875% p.a. 7.920% p.a.
    3 years 3.875% p.a. 7.720% p.a.
    4 years 3.875% p.a. 7.580% p.a.
    5 years 3.875% p.a. 7.460% p.a.
    6 years 3.875% p.a. 7.360% p.a.
    7 years 3.875% p.a. 7.270% p.a.

    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.

    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.

    Documents to be submitted for UOB Car Loan:

    The following are the documents that applicants need to submit in order to initiate their car loan application. This is applicable for both new cars as well as used cars.

    • Your fully completed application form.
    • Proof of identity – front and back copy of your NRIC.
    • Income documents such as latest payslips, IRA8 form, Income Tax (Notice of Assessment).
    • 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.

    UOB Car Loan Frequently Asked Questions

    1. When do the remainder of the instalments under the HP50 loan plan have to be paid?
    2. 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.

    3. Can the UOB HP50 loan be taken for used cars? No. The HP50 loan is available only for new cars.
    4. What is the maximum loan amount I can get under the HP50 car loan? 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.
    5. What is the maximum LTV one can get?
    6. 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%.

    7. Are the interest rates the same for used and new car loans?
    8. No. The interest rates for used car loans are slightly higher.

    News About UOB Car Loan

    • United Overseas Bank Presents Rising Fintech Companies with Alternative Funding

      Fintech startup companies are emerging rapidly in Southeast Asia. They are the driving force behind the growth of digital economy in the region and are bringing disruptive ideas to the market. However, their innovativeness is also the main reason for their failure to raise funds through traditional means.

      They are unable to generate funds because they don’t produce consistent cash flow and don’t have established business models. UOB realizes this fact and has decided to provide them with alternative options to raise money.

      According to Janet Young, head of digitalization at UOB, with enough funds, startups can scale up their businesses in the early phases of growth. UOB is also offering trained commercial bankers to guide startups on different types of financing for which they are eligible and also provide support afterwards.

      The two alternative options through which UOB is helping startups raise money are:

        1. Equity Crowdfunding: Through equity crowdfunding, startups can look for small amounts from several accredited investors in return for equity.

        2. Venture Debt: Venture debt enables startups to raise money without pledging collateral or diluting their stake in the company.

      UOB has already partnered successfully with startups like PayKey and CardUp, and is keen on associating with more.

      27th November 2017

    • UOB announces its third quarter results

      Singapore based United Overseas Bank UOB announced a 12% rise in its profit for Q3. The net earnings have risen to S$883 million, mainly because of a robust commission income and net interest income.

      UOB’s shares have risen 21% this year. The growth was somewhat offset by greater operating outlays and lower trading income. The net interest income has however improved by 15% to S$1.41 billion, which has largely been driven by loan growth and higher net interest margin.

      Let us take a look at some of the other highlights of the results:

        • Commission income and fee grew 12% to S$551 million from the previous year.

        • Fee income from United Overseas Bank’s wealth-management operations grew 40% to S$143 million during the third quarter.

        • Net interest income grew 14.6% to S$1.41 billion, from S$1.23 billion last year.

        • New non-performing assets pushed UOB’s total Non-Performing Assets to S$3.92 billion during the third quarter.

        • Higher third-quarter profit was registered on account of improved wealth-management fees and interest income.

        • The loan-to-deposit ratio remained strong at 85.8%.

      The bank’s CEO said that Q3 was the best quarter yet, driven by higher revenues from the bank’s diversified banking franchise.

      09th November 2017

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