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

  1. 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.

  2. Fixed interest rate – The interest rate is locked in and won’t change during the loan term.

  3. Comparison rate – This rate is as transparent as you can get, making a comparison rate already inclusive of fees and charges.

  4. 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.

  5. Payment frequency – This is determined when you set up the loan and can be weekly, fortnightly, monthly, or any agreed date.

  6. 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.

  7. 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.

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Bank Comparison Table


DBS Car Loan
2.28% Interest Rate (p.a)
$10,000 Min Loan Amount
7 Years Max Loan Tenure

Hong Leong Finance

Hong Leong Finance Car Loan
2.28% Interest Rate (p.a)
$10,000 Min Loan Amount
7 Years Max Loan Tenure


Maybank Car Loan
2.28% Interest Rate (p.a)
$10,000 Min Loan Amount
7 Years Max Loan Tenure


OCBC Car Loan
2.28% Interest Rate (p.a)
$15,000 Min Loan Amount
7 Years Max Loan Tenure

Standard Chartered

Standard Chartered Auto Financing
2.28% Interest Rate (p.a)
$10,000 Min Loan Amount
7 Years Max Loan Tenure


UOB Car Loan
2.28% Interest Rate (p.a)
$10,000 Min Loan Amount
7 Years Max Loan Tenure

Tokyo Century

Tokyo Century Leasing Car Loan
2.78% Interest Rate (p.a)
$20,000 Min Loan Amount
7 Years Max Loan Tenure


Hitachi Capital MYHP (Auto Loan)
2.78% Interest Rate (p.a)
$15,000 Min Loan Amount
7 Years Max Loan Tenure


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.

Apply now!


Car Loan Affordability Calculator

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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.



Car Loan

What types of car loans are there?

What types of car loans are there?

In Singapore, besides the secured and unsecured car loans, there are three other types:

  1. New car loans. Almost all banks and finance companies in Singapore offer car loans that allow borrowers to purchase a new vehicle from the showroom of a car manufacturer or an authorized dealer. Tenures may differ and can be acquired easily once the eligibility criteria are met.
  2. Used car loans usually come with a unique set of eligibility criteria pertaining to the age of the car. 
  3. Commercial car loans are offered to those borrowers intending to purchase a car for commercial purposes. 

How much car loan can I borrow?

If you plan to borrow to finance your car, the limit to how much you can borrow will depend on the vehicle’s Open Market Value (OMV) rather than its actual cost. The OMV is what your car would be worth if you didn’t have to pay the considerable taxes and duties required to drive a car in Singapore.

If your car’s OMV is more than $20,000, then the upper limit you can borrow is 60% of its OMV. The absolute maximum you can borrow for a car loan in Singapore is 70% of the car’s value – assuming the OMV is $20,000 or below.

What are the documents required for a car loan application?

Listed below are the things needed when applying for a car loan:

a. For identification

  • NRIC/Passport
  • Work permit (for non-resident or foreigner)
  • Utility bill to serve as proof of address (for non-resident or foreigner)

b. For income and employment

  • Copy of latest Income Tax Notice of Assessment (2 years for Self-employed)
  • Copy of 1 to 3 months of computerized payslip from current employer
  • Copy of latest 6 to 12-month CPF Contribution Statement
  • Copy of the bank statements dating back at least 6 to 12 months.
  • Employment information and employer’s contact details

c. Assets and liabilities

  • Details of properties or large assets 
  • Ongoing expenses
  • Details of existing financial commitments like housing loan, personal loan, credit cards

d. Details of the car

  • The make, model, year, and color of the car
  • Sale and purchase agreements
  • Vehicle registration card
  • Application for Hire Purchase

What are the interest rate and fees incurred for a car loan?

On average, new car loans cost about 2.92% of interest per year, while used car loans cost about 3.34% of interest per year.

How to effectively compare car loans?

As it is always recommended, researching is necessary before applying for a loan plan. Even the tiniest details matter for these things. Here are some things you can consider looking at before proceeding.

  1. Always know what interest rate you’re being offered, and take the time to compare car loans from other lenders to be sure the offer is competitive.
  2. Car loans may be set over loan terms as short as one year or up to as long as seven years. Some lenders, usually dealership finance providers, may offer a set loan term which comes with a balloon payment at the end of it. Check if your repayments will pay off your loan or if you’ll need to cover more at the end.
  3. Ask how often you need to make repayments, how you make them, and check if you’re able to make extra repayments or the penalty you’d be charged for repaying your loan early.
  4. Check with your lender if there are any other fees that you need to be mindful of.

Can I get a pre-approval for a car loan?

Sure. Pre-approval is a good strategy to work out how much you can comfortably borrow and what your repayments will be before purchasing a car.

Do I need a deposit for a car loan?

You must finance at least 30% of the purchase price (for cars with OMV less than $20,000) or 40% of the purchase price (for cars with OMV over $20,000) of the car upfront.

Can I make extra repayments on my car loan?

Early redemption in Singapore amount for car loans is computed based on the Rule of 78. This is a method of allocating the interest charge on a loan across its payment periods. Some moneylenders will also charge you an early repayment fee for making extra repayments.

How long does it take to get a car loan?

The approval process for car loans is normally quick. Usually, you could get a conditional approval in a couple of hours, but it may take longer depending on the lender.

Can I buy a car privately or do I have to buy through a dealer?

You are able to buy your car through a private seller if you wish. You must give details about the car to the lender, such as the Hire Purchase Agreement for the loan to push through.

I've got bad credit. Can I still apply for a car loan?

While there are banks that decline a car loan application, there may be some lenders who will let you borrow money even with bad credit. This is why consultations are important before applying.

What are some of the best car loans in Singapore?

You can easily view a list of the ideal car loans you can use for your next purchase over the Moneylender Review website.

How can Moneylender Review help you?

Moneylender Review can help potential clients by providing a list of licensed moneylenders that are available to respond to their financial needs. The information which we provide from the directory includes the possible loan packages that are ideal for your demands. 

Moneylender Review offers the best picks and even clients’ reviews of lenders in Singapore which is easy to browse. Within an instant, you can easily submit your details and get up to three quotes from our best selected licensed moneylenders listed. Rest assured the entire process of borrowing your loan goes smoothly and the cost of borrowing.