OCBC Car Loan Review: Competitive Financing Rates?
OCBC Car Loan Review: Competitive Financing Rates?
ValueChampion Rating 
Pros
- Great backup car loan option
Cons
- Not the cheapest for new or used cars
OCBC offers loans for the purchase of new and used vehicles. With a 2.28% p.a. interest rate, this is the cheapest new car loan in Singapore and among one of the cheapest car loans in Singapore for used cars.
| Summary of OCBC Car Loans |
|---|
| New & Used Car Loan Interest Rates: 2.28% & 2.28% |
| Loan Tenure: 1 to 7 years |
| Maximum Loan Amount: Up to 60% or 70% of vehicle price |
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Table of Contents
What Makes OCBC's Car Loans Stand Out to Borrowers
OCBC car loans are cheaper than most in Singapore, as their annual rates are 2.28% for both used and new cars. If you are looking exclusively for a used car loan, however, DBS offers rates as low as 1.99%. OCBC also offers its customers premium features, such as instant approval (within 1-minute) and the ability to apply a car loan before you choose a car.
Total Cost of OCBC's New & Used Car Loans
| Car Type | Interest Rate | Monthly Payment | Total Interest Cost |
|---|---|---|---|
| New Car | 2.28% | S$1,329 | S$9,730 |
| Used Car | 2.28% | S$1,329 | S$9,730 |
Who Can Apply: Eligibility Criteria
- Interest Rate
- N/A
- Maximum Principal
- Up to 100% of car price
- Maximum Term
- 7 years
OCBC's car loans are available to individuals that are at least 21 years old, including Singaporean Citizens, Permanent Residents and foreigners residing in Singapore. To be eligible for OCBC's car loan refinancing product, borrowers must have had a car loan for at least 6 months with another bank. Additionally, the existing loan must have an interest rate of at least 2.4%. OCBC's refinancing plan covers 100% of existing loans. The bank also offers the maximum car loan sizes allowed by MAS at 60% or 70% based on 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
OCBC charges additional fees for late payments and early repayment. For instance, you will be charged S$80 per late payment, and, if you decide to settle the loan early you will have to pay 1% on the outstanding loan amount and 20% on interest rebate. It is important to enquire about all the fees associated with your loan before applying in order to fully understand the total cost of borrowing from your preferred lender.
How to Apply: Application Process
Individuals interested in applying for a car loans or car loan refinancing from OCBC must complete an application form and provide documents proving their identity, income and employment. OCBC also requires that applicants submit their signed hire purchase agreement, if applicable.
Examples of Required Documents:
- Photocopied ID card
- Computerised payslip
- Income tax notice of assessment
- Latest 6 months' CPF contribution
- Work permit (foreigners)
- Vehicle Sales Agreement
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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.