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Hong Leong Finance Car Loans

Buying a new or used car might be simpler than you think with a Hong Leong Finance car loan.

Hong Leong Finance (HLF) evolved from its humble beginnings as Small & Medium Enterprise (SME) in 1961 to be one of Singapore’s largest finance company. Today, it serves as the financial services arm of Hong Leong Group Singapore with a distribution network of 28 branches and 10 SME Centres islandwide and offers an extensive range of financial products and services. HLF also offers auto financing, so if you’re looking to buy a new or used car, the competitive rates and quick turnaround make it one to consider. Read the review below to find out more about how it works.

What kind of car loans can you apply for?

HLF New Car Loan

Available for new car purchase only. Due to the Monetary Authority of Singapore (MAS) regulations, the loan amount for the vehicle is dependent on the vehicle’s Open Market Value (OMV). If the OMV of the vehicle is less than $20,000, HLF may finance up to a maximum of 70% of the vehicle price. If the OMV of the vehicle is more than $20,000, the maximum loan amount will be capped at 60% of the vehicle cost.

Interest rates for HLF New Car Loan:

Loan TenureApplied Interest Rate (AIR)Effective interest rate (EIR)
1 year2.48% p.a.5.38% p.a.
2 years2.48% p.a.5.11% p.a.
3 years2.48% p.a.5.00% p.a.
4 years2.48% p.a.4.92% p.a.
5 years2.48% p.a.4.86% p.a.
6 years2.48% p.a.4.82% p.a.
7 years2.48% p.a.4.77% p.a.

*Interest rates stated are accurate at the time of writing, 22 June 2018. Bear in mind that the interest rates may be subjected to change, so do check with the finance institution for the latest rates.

HLF Used Car Loan

The HLF used car loan is only available for vehicles less than 10 years of age, based on the original date of registration. Loan tenures can stretch from 1 to 7 years, depending on the age of the car. For example, if you’re taking up a loan for a car that’s 5 years old, your loan tenure can only be up to a maximum of 5 years.

Interest rates for HLF Used Car Loan:

Loan TenureApplied Interest Rate (AIR)Effective interest rate (EIR)
1 year2.78% p.a.6.03% p.a.
2 years2.78% p.a.5.72% p.a.
3 years2.78% p.a.5.59% p.a.
4 years2.78% p.a.5.50% p.a.
5 years2.78% p.a.5.43% p.a.
6 years2.78% p.a.5.37% p.a.
7 years2.78% p.a.5.32% p.a.

*Interest rates stated are accurate at the time of writing, 22 June 2018. Bear in mind that the interest rates may be subjected to change, so do check with the finance institution for the latest rates.

HLF COE Car Loan

HLF is one of the few lenders in Singapore that provides loans for COE cars – cars that are more than 10 years old, but not exceeding 20 years old. The maximum length is 7 years for a revalidated COE of 10 years, and 4 years for a revalidated COE of 5 years. Bear in mind that the length of the loan must not exceed the maturity period of the COE. HLF does not publish the interest rates for COE car loans on its website, so please check directly with HLF for the latest rates.

What are COE cars?

In Singapore, cars are due to be scrapped at 10 years of age and owners will receive a Preferential Additional Registration Fee (PARF) rebate upon de-registration. However, if the owner wishes to continue using the car after 10 years, the owner will have to renew the certificate of entitlement (COE) of the car for either 5 or 10 years, and will no longer be entitled to the PARF rebate. Instead, only the COE rebate will be available upon de-registration. Therefore, these cars are known as “COE cars”.

How much will my monthly instalments be?

HLF has an online calculator for both new and used car loans. It allows you to work out the monthly payments you’ll need to make if you take up a car loan. Simply indicate the car type, the required loan amount and loan term and the calculation will display automatically.

Purchasing a car is a large financial undertaking, so always ask yourself if you’ll have the funds available to pay the projected monthly installments comfortably before committing to it. Also, do note that since car interest rates are calculated on a “flat” rate, your monthly payments will remain fixed throughout your loan tenure.

Here’s an example of a flat interest rate calculation:

Loan amount = $50,000

Flat interest rate = 2.48%

Loan term = 5 years (60 months)

Total interest payable = 2.48% x $50,000 x 5 = $6,200

Monthly instalment = $(50,000 + 6,200) / 60 = $936.67

How you can apply for a car loan from HLF?

To apply for a HLF car loan, simply speak to a representative by calling the HLF hotline at 6579 6777, request a callback via the online form or visit one of the branches to begin the application process.

HLF does not provide a comprehensive list of eligibility criteria for its car loans. However, to increase your chance of approval, make sure you meet the standard eligibility criteria that are usually required by other financial institutions in Singapore. Those criteria are:

  • Age. You must be at least 21 years of age.
  • Residency. You need to be a Singaporean citizen, a permanent resident or a foreigner with valid employment pass.
  • Income. It’s good to know that you should have a minimum annual income of $20,000 to be eligible for a car loan from most of the banks or financial institutions in Singapore.
  • Financial standing. Your credit score should at least meet the bank’s minimum criteria.

Bear in mind that every loan application will be listed on your credit file and rejections can have a negative impact on your credit score. If you’re unsure about your eligibility or application process, it’s best to check with HLF directly before applying. You can speak with a representative by calling the HLF hotline at 6579 6777.

You will also be required to provide the following:

  • Identification. Copies of your NRIC (front and back) or passport and work permit (for foreigners).
  • Application form. Make sure that the application form you submit is complete and accurate.
  • Income documents. These may include computerised payslips, latest 6 months CPF contribution or your Income Tax Notice of Assessment.
  • Car details. If you’re purchasing a used car, you must provide the seller’s plate number and NRIC or their vehicle electronic log card.

With competitive rates and fast approval process, the HLF Car Loan is definitely an attractive option to consider if you’re looking to purchase a new or used car. However, to ensure this is the right loan for you, make sure you compare all your car loan options before applying.

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