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DBS Car Loan Review: Singapore's Least Expensive Car Loan?

DBS offers the cheapest loans for used cars in Singapore.

DBS Car Loan Review: Singapore's Least Expensive Car Loan?

DBS offers the cheapest loans for used cars in Singapore.


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Interest Rate
Maximum Principal
Maximum Term


  • Good for used vehicle purchases
  • Hassle-free application when you log in via digibank and/or Singpass.


  • Online application only
  • Not the best for financing a used car older than 9 years

DBS charges the lowest interest rates for car loans for used cars, making it the an affordable option for Singaporeans seeking to finance their purchase of a pre-owned vehicle. This rate is much cheaper than other car loans available in Singapore, and can save borrowers of hundreds of dollars over the course of a loan compared to other financing options. To make their pre-owned car loans even more competitive, DBS is currently offering a promotion that gives borrowers a rebate for 6 months worth of interest costs. This promotion can save most borrowers With that said, the bank's new car loan rates are less competitive, at 3.28% p.a.

Summary of DBS Car Loans
Cheapest Used Car Loan Rate: 2.68% for online applicants
Maximum Loan Amount: Up to 60% or 70% of vehicle price
Loan Tenure: 1 to 7 Years

Table of Contents

What Makes DBS's Car Loans Stand Out to Borrowers

DBS charges an interest rate of 2.68% for used car loans. This is the lowest rate offered in Singapore, making it a great choice for many car owners. Additionally, DBS is offering a 6 month interest rebate for those purchasing a pre-owned vehicles. In order to be eligible, applicants must apply for a a loan of at least S$10,000 and a tenure of at least 3 years.

Duration (Years)Flat RateEIRMonthly PaymentTotal Interest Cost
Assuming loan of S$70,000

With that said, DBS is not the best choice for new car financing, as its loans for these vehicles charge a higher interest rate (3.28%) For more details about these rates and the cost of borrowing from DBS, click the toggle below.

Duration (Years)Flat RateEIRMonthly PaymentTotal Interest Cost
Assuming loan of S$70,000

Aside from its low interest rates, the bank offers very similar terms to other lenders due to MAS regulations on car lending. For example, DBS and others offer maximum loan amounts of 60% or 70% of the car price, depending on the car's value, and a maximum loan tenure of 7 years. Please note that DBS does not offer car loans for the purchase of used cars that are more than 10 years old, and it charges 3.28% for loans for used cars that are more than 9 years old. With that said, DBS's used car loans are by far the cheapest in Singapore for most applicants.

Who Can Apply: Eligibility Criteria

PROMO: Get 1.68% interest for green cars
Consider this if you require a car loan to purchase a used car
  • Interest Rate
    • 3.28%
    • Maximum Principal
      • Up to 60% or 70% of car price
      • Maximum Term
        • 7 years

        Applicants must be at least 21 years old in order to be eligible for DBS's car loans. Additionally, The bank requires that Singaporean Citizens and Permanent Residents have monthly incomes of at least S$2,000, while foreigners residing in Singapore must earn at least S$4,000. DBS offers loans as small as S$10,000 and as large as 60% or 70% depending on the vehicle's price.

        Maximum Loan Principal

        Vehicle's Open Market ValueMaximum Loan
        S$20,000 or less70% of the purchase price or valuation price, whichever is lower
        Greater than S$20,00060% of the purchase price or valuation price, whichever is lower

        Other Charges and Fees

        DBS does not list any fees associated with its car loan products online. However, other car lenders in Singapore typically charge fees for late payments and for completely repaying a loan before the end of its tenure. It is important to understand the fees of each car loan before applying, as these fees can impact the total cost of owning your car.

        How to Apply: Application Process

        Individuals interested in DBS's car loans must apply online in order to be eligible for DBS's lowest interest rates. Applicants are required to provide documents proving their employment and income, as well as documents that detail their other financial commitments. Finally, applicants must submit their Vehicle Sales Agreement, if applicable.

        Examples of Proof of Income Documents:

        • Computerised Payslip
        • CPF Contribution History
        • IRAS Notice of Assessment

        Read Also:

        Stephen Lee

        Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.