As one of the most prominent business cities in the world, Singapore is known for its extremely high car prices. This has prompted making car loans more in demand. Moneylender Review has checked every car loan from Singapore’s top lenders to assist you in choosing the cheapest and the most ideal loan for your next vehicle purchase.
Like regular personal loans, there are two main types of car loans, secured and unsecured. Neither is better than the other, it primarily depends on your financial situation as to which one you should choose.
Features of a Car Loan
Variable interest rate – The interest rate on your loan will change throughout the loan duration meaning the repayments on the loan will coincide with the fluctuating market interest rates.
Fixed interest rate – The interest rate is locked in and won’t change during the loan term.
Comparison rate – This rate is as transparent as you can get, making a comparison rate already inclusive of fees and charges.
Redraw facility – Should you’ve paid off a part of your loan, you can draw that money back out again. This is essential for when an unexpected bill or emergency pops up.
Payment frequency – This is determined when you set up the loan and can be weekly, fortnightly, monthly, or any agreed date.
Loan term – This is the duration you have to repay the moneylender with the amount you borrowed. It usually varies depending on the type of loan you availed.
Extra repayments – This allows borrowers to make advanced and additional repayments on your loan, so they can be debt-free more easily than as planned.
Bank Comparison Table
Steps to Apply
Most moneylenders share the same application process which consists of three easy ways. After comparing three top picks we have provided:
1 – Call or apply from the comfort of your home with a few clicks using our online form.
2 – Visit the branch for an appointment to create a customized plan that suits your needs.
3 – Finalize the loan plan and receive the cash right after.
Car Loan Affordability Calculator
Loan Amount ($)
Loan Duration (years)
How to Choose the Best Car Loan for You?
With enough research and preparation, it will be easier for borrowers to choose the most ideal loan for their next car purchase. We’ve listed down ways to help you further:
1. Stick to the budget with the amount you want to borrow. Paying more than what you had planned will immediately be a pain for you.
2. Keep in mind that higher monthly repayments equate to shorter loans and thus lower monthly repayments equate to longer loans while more interest is being accrued.
3. Choose wisely whether you’ll get a secured or unsecured car loan. Either way, you’ll have to make sure not to miss a payment.