DBS charges the lowest interest rates for car loans for new and used cars (2.28%), making it the most affordable option for Singaporeans seeking to finance their purchase of a 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.
|Summary of DBS Car Loans|
|Lowest Interest Rate: 2.28% for online applicants|
|Maximum Loan Amount: Up to 60% or 70% of vehicle price|
|Loan Tenure: 1 to 7 Years|
|Promotion: S$50 in CapitaVouchers to online applicants|
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What Makes DBS's Car Loans Stand Out to Borrowers
DBS offers an interest rate of 2.28% for its car loans to individuals that apply online. This is the lowest rate offered for both new and used car loans in Singapore, making DBS the most affordable option for those that require financing in order to purchase a vehicle. It is also worth noting that DBS is currently offering a S$50 in CapitaVouchers to online applicants. Aside from its low interest rate, 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.
Total Cost of DBS's Loans For New & Used Cars
|Duration (Years)||Flat Rate||Monthly Payment||Total Interest Cost|
Despite its very low interest rate, there are a few drawbacks of DBS's car loans. First of all, the bank charges a higher interest rate to borrowers that do not apply online. These individuals are charged 2.78% annually. Additionally, DBS does not offer car loans for the purchase of used cars that are more than 10 years old, and it charges 2.78% for loans for used cars that are more than 9 years old. However, for those that are able to apply online, DBS's car loans are significantly cheaper than those of other banks.
Who Can Apply: Eligibility Criteria
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 Value||Maximum Loan|
|S$20,000 or less||70% of the purchase price or valuation price, whichever is lower|
|Greater than S$20,000||60% 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