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Get the Best Car Loan Interest Rates From Top Banks in Singapore (2022)

car loan interest rates
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.idSingapore has seen exponential growth in car ownership in the past decade. Despite the exorbitant price tag of acquiring one, the allure of driving your own car lies an undeniable convenience and prestige that remain to outweigh its cost. 

With the heavy amounts associated with buying a car, Singaporeans would normally find themselves taking out a car loan to be able to afford it. Although not 100% of financing can be covered, 70% of your car’s Open Market Value (OMV) is considerable enough with loan tenures of up to 7 years. 

Car loan interest rates in Singapore range from 2.48% to 2.9% for brand new cars and 1.99% to 2.9% for used cars and the variance from banks or financial institutions are usually at close points. Now, the question is which financing should you go for?

Best car loan interest rates in Singapore (2022)

Before signing over the dotted line, it is always smart to determine your best car loan options and see which term and car loan interest rates are the most competitive to make your car purchase as comfortable as possible. 

Best Bank Car Loans

Car Loan Minimum Loan Amount Maximum Principal (% of car valuation) Maximum Loan Tenure Annual Interest Rate (+ EIR pa) Best For
OCBC Car Loan – New Car $15,000 Up to 70% 7 Years 2.28%
(EIR  4.18% – 4.29% pa)
New Car Purchase
DBS Car Loan – Used Car $10,000 Up to 70% 7 Years 1.99%
(EIR  3.67% – 3.82% pa)
Used Car Purchase


Runners Up

Car Loans Minimum Loan Amount Maximum Principal (% of car valuation) Maximum Loan Tenure Annual Interest Rate (+ EIR pa)
UOB Hire Purchase Car Loan – New Car $10,000 Up to 70% 7 Years 2.68%
(EIR  4.91% -5.01% pa)
Maybank Car Loan – New Car $10,000 Up to 70% 7 Years 2.78%
(EIR  not listed but may range from 4.18% – 4.29% pa)
OCBC Car Loan – Used Car $15,000 Up to 70% 7 Years 2.28%
(EIR  5.54% -5.46% pa)
Hong Leong Finance New Car Loan Not listed Up to 70% 7 Years 2.48%
(EIR  4.77% -5.38% pa)


In our analysis, we compared the most popular banks in the country and these car loan products managed to offer the best loans in terms of interest rate competitiveness, loanable amount, ease of application, and repayment terms. Let’s discuss what made each attractive.

1. OCBC Car Loan – New Car

Best Loan to Purchase New Cars

At an interest rate of 2.28%, OCBC Car Loan for new car purchase easily made it the most competitive bank financing in Singapore. OCBC also stands out with their premium service of instant approval (within 1 minute) and customer’s can apply for a car loan even before selecting the car of your choice; which you won’t easily find in other competitors. 

Key Features:

  • Maximum Loan amount: up to 60% or 70% per vehicle price
  • Exclusive package of 1.68% pa interest rate if borrowers opt for ECO-Car Care Loan
  • Loan approval within 60 seconds before visiting the showroom

Eligibility Requirements:

  • Anyone above 21 years old
  • Applicable to Singaporeans, Singapore PR, and foreigners
  • Looking to purchase new cars from distributors or parallel importers

Other Fees and Charges:

  • Early Settlement Fee: 1% of outstanding loan amount and 20% interest rebate
  • Late Payment Fee: $80


2. DBS Car Loan – Used Car

Best Loan to Purchase Used Cars

DBS offers the lowest interest rate for pre-owned car purchase in Singapore at 1.99% plus borrowers can enjoy an interest saving from their 6-month interest rebate promotion. To qualify for this promo, customers must meet the minimum loan amount of $10,000 and a loan duration of at least 3 years. 

Key Features: 

  •  Maximum Loan amount: up to 60% or 70% per vehicle price
  • Significantly lower interest rate at 1.68 if customers will opt for DBS Green Car Loan
  • Lowest Interest rate and EIR in Singapore for used car purchase

Eligibility Requirements:

  • Must be 21 years old and above
  • Minimum Monthly income of $2,000 (Singaporean & Singapore PA)
  • Minimum Monthly Income of $4,000 for Foreigners residing in Singapore

Honorable Mentions

In case borrowers could not qualify for OCBC and DBS car loans, the following banks are worth considering for their competitive car loan interest rates and terms.


3. UOB Hire Purchase Car Loan  – New Car

With a close percentage difference from OCBC’s offer for new cars, UOB’s Car Loan interest rate at a fixed 2.68% makes it an attractive financing option. Suppose you take out a loan of $30,000 payable in a maximum of 7 years, a $427 of monthly payments remain competitive.

Key Features: 

  • 2.68% Interest rate for new cars
  • 2.78% interest rate for used cars
  • Loan quantum up to 70% of purchase price

Eligibility Requirements:

  • Must be more than 21 years of age
  • Singaporean or Singapore PR
  • Foreign applicants must have a local guarantor
  • Minimum annual income of $20,000


4. Maybank Car Loan – New Car

It may not be the best car loan in terms of its interest rate, but at 2.78%, it is about average and may be a suitable backup if you don’t get approved by other car loan lenders. They share the same loan tenure and loan quantum with other top banks on the list.

Key Features:

  • Flat rate of 2.78% interest for loan tenures of 1 to 7 years
  • Convenience of GIRO payments

Eligibility Requirements:

  • Minimum age of 21 years old
  • Open to Singaporean Citizens, Singapore PA, and Foreigners with a local guarantor
  • Minimum monthly income of $1500


5. OCBC Car Loan – Used Car

It could’ve been a double win for OCBC for new or used car loans had they matched or offered more competitive interest rates than DBS. Still, OCBC offers the next best option at 2.28% and the fast 1-minute approval service makes the car loan experience as easy as possible.

Key Features: 

  • Customers can apply for a car loan even before visiting the car showroom
  • Loading fee of $200 if the loan amount is less than $15,000
  • Enjoy significant savings with a 1.68% interest rate pa for Eco-Care Car Loan

Eligibility Requirements:

  • Anyone above 21 years old
  • Applicable to Singaporeans, Singapore PR, and foreigners
  • Looking to purchase new cars from distributors or parallel importers


6. Hong Leong Finance New Car Loan

If OCBC’s new car loan didn’t work for you, Hong Leong Finance should be your next best choice. Compared to other top banks, Hong Leong Finance offers one of the lowest interest rates at 2.48% pa for new car purchases and is a fixed interest rate for any loan tenure. 

Key Features:

  • 2.48% for new car purchase
  • 2.68% for used cars
  • 60% – 70% financing of vehicle’s OMV

Eligibility Requirements:

  • Must be 21 years old and above
  • Applicable to Singaporeans, Singapore PR, and foreigners

Now that we have discussed your best auto loan options, let’s talk about the other important things that you should know when taking out a loan.

Bank vs In-house Dealer financing: Which car loan is better?

While there are many factors that could affect your decision, one of the easiest ways to determine your best option for car loans is by comparing the interest rates and associated fees and charges. 

Opting for car loans with an in-house dealer is convenient since you can process everything in one place, plus you can also negotiate the price, which you can’t do with banks. But the interest rate from car dealers usually ranges from 4% to 4.8% interest rates per annum which is generally higher than the bank’s 1.99% to 2.9% interest rates. 

Both banks and In-house Dealer financing charge an early repayment fee should you wish to default before the loan tenure ends. Since money is the driving force in acquiring your dream car, choose the one that lets you save more. 

Can I still get a car loan even with a poor credit score? 

Auto Dealers are generally lenient with the client’s credit score. But if you opt for a car loan from a bank, you could expect that the bank would lower your loan quantum or increase your interest rate. Since buying a car is a major purchase, it is best to improve your creditworthiness before taking a loan.  

How much can you borrow from car loans?

Although banks publish a maximum loan quantum of 70% of your car’s valuation, there are various factors that could affect the actual amount you can take. Cars with an Open Market Value (OMV) of lower than or equal to $20,000, you can borrow up to a maximum of 70%, and 60% if the OMV is higher. Other factors include your current financial commitments, credit score, and outstanding debts that could influence your loan amount and terms. 

Suppose you are approved of the 70% financing for a new car priced at $70,000, which means you have to shell out the remaining 30% deposit of $21,000 out of your pocket.

What are the current interest rates for car loans in Singapore?

The car loan interest rates vary whether you are taking a new or used car. Interest rates may also change depending on the running promotion from banks. 

Car loans for new vehicle : Interest rates from 1.99% to 2.78% pa

Car loans for used vehicle: Interest rates from 2.78% to 2.98% pa

How to apply for car loans in Singapore?

Once you have identified your best financing options, it wouldn’t hurt to submit applications to multiple lenders to see which approves you with the best car loan interest rates and terms. Ensure that you have the following details and documents on hand.

  • Vehicle Sales Agreement (if applicable)
  • Proof of employment to establish ability to repay- with details of income history, company name, designation, tenure, monthly income
  • Proof of financial commitment such as mortgage loan, personal loans or credit cards among others
  • Income documents such as copy of your IRAS Notice of Assessment, your latest CPF Contribution, and payslip

Once you have signed the deal, it’s time to show off your sparkling new car, but remember that the repayment journey is just beginning. Abide by the terms and settle your monthly instalment on time to avoid late repayment fees. 

Wrap Up

The joy of riding your own wheels in the streets of Singapore is indeed accompanied by a lot of financial considerations. And if you are ready to purchase your own car, remember to factor in the associated costs of the monthly repayments and the actual cost of maintaining and owning one so you could comfortably enjoy its convenience and prestige. 

Ultimately, with the serious investment amount needed to purchase a car, you will highly likely opt for the car loan that will give you the most savings. Loan Advisor gathers the best auto loan quotes from the most reputable licensed moneylenders in Singapore, to guide you in making a smart and informed car financing decision. Get your tailored car loan quotes within minutes today.

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