Hong Leong Finance is a good backup option to Singapore's cheapest car loans, as the bank offers loans that charge lower than average interest rates. Therefore, if you are unable to obtain the cheapest possible car loans in Singapore, it is worth considering Hong Leong as an alternative.
|Summary of Hong Leong Finance Car Loans|
|Competitive New & Used Car Loan Interest Rates: 2.48% & 2.78%|
|Loan Tenure: 1 to 7 years|
|Maximum Loan Amount: Up to 60% or 70% of vehicle price|
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What Makes Hong Leong Finance's Car Loans Stand Out to Borrowers
Hong Leong Finance does not offer the cheapest car loans in Singapore. However, it is still a great backup option because it's interest rates for new and used car loans are cheaper than most loans on the market, at 2.48% and 2.78%, respectively. Therefore, if you are not able to obtain a cheaper car loan, you may want to consider Hong Leong Finance as it will be a relatively inexpensive financing option compared to many other lenders in Singapore.
Total Cost of Hong Leong Finance's New & Used Car Loans
|Tenure||Monthly Payment (New)||Total Interest Cost (New)||Monthly Payment (Old)||Total Interest Cost (Old)|
Who Can Apply: Eligibility Criteria
Singaporeans, Singapore PRs and foreigners of at least 21 years old are eligible for car loans from Hong Leong. The bank offers used car loans for the purchase of vehicles that are 1 to 10 years old. Additionally, it offers the maximum car loan principals allowed by MAS at up to 60% or 70% of the vehicle's value.
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
Hong Leong Finance does not detail their fees for their car loan products. However, other banks charge fees for late payments and repaying your loan in full before the end of the loan tenure. It is important to fully understand fees and other terms and conditions before applying from a loan from any bank, as fees can significantly impact your total cost of borrowing.
How to Apply: Application Process
Individuals that are interested in applying for one of Hong Leong Finance's car loans can apply by calling, visiting a branch or requesting more information online. Typically, car lenders require that applicants submit an application form as well as documents that prove the applicant's identity, income, employment and vehicle purchase.
Examples of Required Documents:
- Photocopy of NRIC/Passport
- Computerised payslip
- CPF Statement of Account
- Latest Income Tax Notice of Assessment
- Transfer of Vehicle Ownership (if applicable)