Maybank Car Loan Review: Is it Worth Considering?
Maybank Car Loan Review: Is it Worth Considering?
ValueChampion Rating 
Pros
- Great alternative when unable to find approval from other lenders
- Islamic vehicle financing available
Cons
- Not the cheapest car loans available
- Not the best for refinancing an existing car loan
Maybank's car loan rates are about average compared to those of other loans available in Singapore, with an interest rate of 2.78%. Therefore, it is best to view the bank as a backup option if you are not approved for other sources of vehicle financing.
| Summary of Maybank Car Loans |
|---|
| Interest Rates: 2.78% p.a. |
| Loan Tenure: 1 to 7 years |
| Maximum Loan Amount: Up to 60% or 70% of vehicle price |
| Promotion: |
Table of Contents
What Makes Maybank's Car Loans Stand Out to Borrowers
Maybank charges an interest rate of 2.78%, which is not the best rate available in Singapore. For this reason, we recommend that prospective borrowers view the bank as a backup option. It is also worth noting that Maybank offers Islamic auto financing, which may be of interest to prospective borrowers. However, Maybank does not provide additional details about this product on its website, making it difficult to assess its affordability compared to other loans.
Total Cost of Maybank's Car Loans
| Duration (Years) | Flat Rate | Monthly Payment | Total Interest Cost |
|---|---|---|---|
| 1 | 2.78% | S$5,996 | S$1,946 |
| 2 | 2.78% | S$3,079 | $3,892 |
| 3 | 2.78% | S$2,107 | S$5,838 |
| 4 | 2.78% | S$1,621 | S$7,784 |
| 5 | 2.78% | S$1,329 | S$9,730 |
| 6 | 2.78% | S$1,135 | S$$11,720 |
| 7 | 2.78% | S$996 | S$13,622 |
Who Can Apply: Eligibility Criteria
- Interest Rate
- 2.78%
- Maximum Principal
- Up to 60% or 70% of car price
- Maximum Term
- 7 years
Maybank offers its car loans to Singaporean Citizens, Permanent Residents and foreigners residing in Singapore. Applicants must be at least 21 years old. Foreigners applying for a car loan from Maybank must apply with a local guarantor. Additionally, Maybank offers the largest loans for new and used cars possible under MAS rules, with principals of 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
Maybank does not provide details of any fees associated with its new or used car loans. Typically, lenders charge fees for late payments or for fully repaying a loan before the end of its tenure. We strongly recommend that you understand the fees associated with any financial product before applying. This also true for car loans, as expensive fees can increase the total effective cost of owning your vehicle.
How to Apply: Application Process
Individuals interested in applying for Maybank's car loans must complete an application form and provide documents proving their identity, income and employment. Maybank also requires applicants to complete a hire purchase agreement form, if applicable.
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)
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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.