OCBC Car Loan Review: Competitive Financing Rates?

OCBC Car Loan Review: Competitive Financing Rates?

OCBC offers the cheapest new car loan available.

Good for

  • Individuals seeking the cheapest loan for a new car

Bad for

  • Individuals seeking the cheapest loan in order to purchase a used car

Analyst's Rating

4.5/5.0

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 TypeInterest RateMonthly PaymentTotal Interest Cost
New Car2.28%S$1,329S$9,730
Used Car2.28%S$1,329S$9,730
Assuming 5-year loan of S$70,000

Who Can Apply: Eligibility Criteria

Consider this if you want to refinance an existing car loan

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 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

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 oustanding 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
William Hofmann

William is a Product Manager at ValueChampion Singapore, helping consumers and SMEs find the best banking products through comprehensive analysis of data. He previously was an Economic Consultant at Industrial Economics Inc, where he conducted a variety of research and economic analyses. He graduated from University of Vermont with degrees in Economics and Psychology. His work has been featured on a variety of major media such as the Straits Times, the Business Times, the Edge, DailySocial, the Entrepreneur and more.

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