OCBC Car Loan Review: A Great Refinancing Rate

OCBC Car Loan Review: A Great Refinancing Rate

The best option for refinancing your existing car loan.

Good for

  • Borrowers that seek to refinance their existing car loan

Bad for

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

Editor's Rating

4.0/5.0

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 YearOCBC Refinancing Loan from 2nd YearOriginal Loan from 2nd Year
Interest Rate2.78%2.08%2.78%
Monthly InstalmentS$1,329S$1,030S$1,329
Total InterestS$1,946S$4,659S$7,784
Total Saving From RefinancingS$3,125
Assuming 5-Year, S$70,000 loan

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 TypeInterest RateMonthly PaymentTotal Interest Cost
New Car2.78%S$1,329S$9,730
Used Car2.98%S$1,341S$10,430
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 2.08%
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 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

Comments and Questions