Maybank is Malaysia’s universal bank, with key markets in Malaysia, Singapore and Indonesia. Ranked among the top 5 banks in Southeast Asia in terms of assets, Maybank has an extensive global network of over 2,400 branches and offices in 20 countries. Maybank’s competitive rates are one of the reasons why it is one of the most popular auto-financing providers in Singapore. If you’re looking to buy a new car, it is definitely one to consider. Read the review below to find out more about how it works.
- New car loans. These are only available for the purchase of a brand new car. In accordance with 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, Maybank 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.
- Used car loans. Maybank provides up to 70% financing for up to 7 years for used cars that are less than 10 years of age. However, the combination of the age of the car and the length of the loan must not exceed 10 years.
- COE car loan. Maybank is one of the few lenders in Singapore that provides loans for COE cars, which are 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.
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”.
- New, used or COE cars. Besides being available for both new and used vehicles, Maybank also provides loans for COE cars that are less than 20 years of age.
- Loan term. You may choose a loan term from one to seven years.
- Free credit report. You can obtain a free credit report from Credit Bureau (Singapore) within 30 calendar days from the date of approval or rejection of the car loan application.
- Early redemption. While partial redemption is not allowed, you may opt for an early settlement. Learn more about early redemption for your car loan from our guide.
At the time of writing (16 June 2018), the Maybank car loan interest rates start from 3.25% p.a. Bear in mind that unlike home loans, car loans charge interest on a flat rate rather than a rest rate. This means that you’ll be paying a fixed interest rate throughout your repayment period. Compared to car loans from other banks, such as DBS or OCBC, Maybank’s interest rates are considerably higher.
While Maybank does not have a car loan calculator, calculating your monthly payments is very simple.
For example, a 3.25% p.a. flat rate for a $50,000 loan over five years will incur $1,635 in interest every year. The total payable amount for five years would be $50,000 (loan amount) plus $8,175 (interest). This means that the monthly instalment over 60 months would be $969.58.
To apply for a Maybank car loan, simply download and complete the “Hire purchase application form” on this page, and then head down to your nearest Maybank branch to apply. But before you do, make sure you meet each of the eligibility criteria listed below to increase your chance of approval.
- Age. You must be at least 21 years of age.
- Residency. You need to be a Singaporean citizen, a permanent resident or a foreigner (must appoint a local guarantor).
- Income. Maybank does not publish the minimum income requirement or whether foreign applicants are required to have a higher income. However, you should have a minimum monthly income of S$1,500 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, it’s best to check with Maybank directly before applying. You can fill in their online contact form and request a call back or call the
Maybank 24-hour hotline on 1800-629 2265.
You will also be required to provide the following information, which you can provide in person at the bank or upload online:
- Identification. Your NRIC (front and back) or passport and employment pass (for foreigners).
- Income documents. These may include the latest computerised payslips, CPF contribution statement and bank statements. If you’re self-employed, you’ll need to provide your Income Tax Notice of Assessment as well.
- Employment status. This includes details of your current job, income and length of employment. Foreigners are required to submit relevant documents such as an employer letter obtained from the employer and a valid employment pass. Their guarantors are also required to submit proof of identity and income documents.
- Car details. If you’re purchasing a used car, you must submit the seller’s plate number and NRIC or their vehicle electronic log card.
If you’re looking to buy a new, used or COE car, you can consider a competitive car loan from Maybank. Find everything you need to know in this guide on Maybank’s offerings, including whether this is the right car finance for you. However, to ensure that this is the right loan for you, make sure you compare all your car loan options before applying.