OCBC offers the cheapest car loan refinancing option in Singapore. The bank allows borrowers to refinance their existing car loans for a very competitive rate of 2.08%, which is much cheaper than most rates for new loans. While the bank also offers loans for the purchase of new and used vehicles, these rates of 2.78% and 2.98% are not the cheapest available in Singapore.
|Summary of OCBC Car Loans|
|Low Refinancing Rate: 2.08%|
|New & Used Car Loan Interest Rates: 2.78% & 2.98%|
|Loan & Refinance Tenure: 1 to 7 years|
|Maximum Loan Amount: Up to 60% or 70% of vehicle price|
Table of Contents
What Makes OCBC's Car Loans Stand Out to Borrowers
OCBC is the only bank in our review to offer car loan refinancing. If you are approved to refinance your existing car loan from another bank, you may be able to save thousands of dollars by switching to OCBC due to its refinance rate of 2.08%, which is significantly cheaper than those of most car loans offered by lenders in Singapore. For example, if you use OCBC to refinance a 5-year loan of $70,000 with a 2.78% annual interest rate after 1 year, you could save S$3,125 in interest over the remaining tenure of the loan.
Cost Savings from OCBC Car Loan Refinancing
|Original Loan 1st Year||OCBC Refinancing Loan from 2nd Year||Original Loan from 2nd Year|
|Total Saving From Refinancing||S$3,125|
On the other hand, OCBC's car loans are less competitive with the best car loans for purchasing a new or used vehicles. With annual rates of 2.78% and 2.98% respectively, these loans are more expensive than banks such as DBS, which offer rates as low as 1.99%.
Total Cost of OCBC's New & Used Car Loans
|Car Type||Interest Rate||Monthly Payment||Total Interest Cost|
Who Can Apply: Eligibility Criteria
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 does not disclose details of fees that it charges for its car loans or refinancing package; however, lenders tend to charge fees for late payments and fully repaying a loan before the end of its tenure. It is important to enquire about potential 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