With interest rates of of 2.68% and 2.98%, UOB does not offer the cheapest car loans in Singapore. With that said, UOB could be a good backup source of car financing for individuals that are not approved for loans from other banks. Additionally, the bank is unique because it offers Certificate of Entitlement (COE) loans for used cars.
|Summary of UOB Car Loans|
|New & Used Car Loan Interest Rates: 2.68% & 2.78% p.a.|
|Loan Tenure: 1 to 7 years|
Table of Contents
What Makes UOB's Car Loans Stand Out to Borrowers
UOB does not offer the cheapest car loans in Singapore, due to its higher than average interest rates. However, the bank can be a good source of financing for individuals that are unable to obtain less expensive loans. In addition to car loans, UOB offers COE loans for used cars, which can be very useful because a COE can be very expensive. For example, the average cost a COE is approximately S$30,000. UOB charges annual interest rates of 3.25% for these loans and provides financing for up to 70% of the COE cost as well as tenures of up to 7 years. Unfortunately for used car owners, UOB only offers COE loans to used cars that are more than 10 years old but not exceeding 11 years old, which significantly limits the eligibility of this financing.
Total Cost of UOB's New & Used Car Loans
|Car Type||Interest Rate||Monthly Payment||Total Interest Cost|
Who Can Apply: Eligibility Criteria
In order to be eligible for UOB's car loans, applicants must be at least 21 years old. Singaporean Citizens, Permanent Residents and foreigners are allowed to apply for UOB's car loans; however, non-residents must apply with a local guarantor. UOB offers the largest possible loans allowed by MAS, with maximum principals of 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
UOB does not detail any fees associated with its car loans on its website. However, car lenders tend to charge fees for late payments or early loan completion. Fees can impact the total cost of your car loan, so it is important to fully understand the terms and conditions of before applying for financing.
How to Apply: Application Process
Individuals interested in applying for one of UOB's car loans must submit an application form. The bank offers an online application and claims that the application takes about 10 minutes for Singaporean Citizens and Permanent Residents. In addition to the application form, applicants are required to submit proof of identity, income and vehicle purchase.
- Photocopy of NRIC / Passport
- Income Tax Notice of Assessment
- Computerised Payslip
- IR8A Form
- Sales/Purchase Order from supplier (new car)
- Copy of Registration/COE Card (used car)