Get competitive rates and smooth processing with Standard Chartered, a bank with over 150 years of experience.
Standard Chartered Bank is among Singapore’s leading financial institutions, offerings products and services for individuals, businesses and institutions alike. Its first branch in Singapore was opened in 1859, and after more than 150 years of operation, it now boasts over 9,000 employees and has a network of 15 branches locally. This bank offers a variety of products and services across personal, priority and private banking as well as business, commercial and corporate banking.
If you’re looking to buy a new or used car, Standard Chartered Bank’s 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?
- New car loans. Due to 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, Standard Chartered Bank 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. Although Standard Chartered Bank does not specify the maximum eligible age of the vehicle for its used car loan, used car loans offered by banks are generally available for vehicles less than 10 years of age, based on the original date of registration. Loan terms can stretch from 1 years to 7 years, but the combination of the age of the car and the loan term must not exceed 10 years. The bank also provides up to 70% financing.
- Car refinancing. If you have an existing car loan with another financial institution, you may enquire with Standard Chartered Bank directly regarding their auto refinancing interest rates. You may consider refinancing your car loan with Standard Chartered Bank if the interest rate quoted is more favourable than your existing loan.
What to consider with Standard Chartered’s car loan
- Interest rate. At the time of writing (18 June 2018), Standard Chartered does not publish their interest rate for car loans on their website. The application form states that interest rates may vary depending on the length of the hire period, so you can check your projected monthly instalment with their online car loan calculator. To receive a quotation for the interest rate, please visit a Standard Chartered branch and speak to a bank executive regarding the loan.
- Loan term. You may choose a loan term from one to seven years.
- Various payment channels. You may pay your monthly instalments via GIRO, AXS stations, self-service automated machine (S.A.M.), cheque, Standard Chartered’s online banking platform or cash at cash deposit machines.
- Free credit report. You may 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. This initiative is to help you be more aware of your financial standing and work towards improving your credit score.
Standard Chartered Car Loan – Preferential Staff Interest Rate
If you’re a Standard Chartered employee, you may apply for staff banking and enjoy a preferential staff interest rate of 2.58% p.a. for new car loans and 2.88% p.a. for used car loans. Find out more about Standard Chartered staff banking here.
How much will my monthly instalments be?
The Standard Chartered car loan calculator allows you to calculate the monthly payments you’ll need to make if you take up a car loan. Simply indicate the car type, enter the required loan amount, loan term and click “Calculate”. Remember to always consider if you’ll be financially comfortable paying the projected monthly instalments while still meeting your basic needs before committing to a car purchase.
In Singapore, the market practice for auto financing is to charge what is known as a “flat” or “applied” interest rate, and your monthly payments will remain fixed throughout your loan term.
Here is an example of a flat interest rate calculation:
Loan amount = $50,000
Flat interest rate = 3.5%
Loan term = 5 years (60 months)
Total interest payable = 3.5% x $50,000 x 5 = $8,750
Monthly instalment = $(50,000 + 8,750) / 60 = $979.17
Fees and charges
If you decide to apply for auto financing with Standard Chartered Bank, here are some fees to be aware of:
|Late payment fee||$60 will be charged for each late payment|
|Late payment interest||12% per annum on the overdue amount on a monthly basis|
|Early completion fee||20% of outstanding interest + 1% of balance payable|
|Photocopy of hire purchase agreement or log card||$53.50 (including GST)|
*Accurate as of 18 June 2018. The stated fees are subject to change from time to time at the at the bank’s discretion.
How to apply for a Standard Chartered car loan
To apply for a Standard Chartered car loan, sign and complete this form and visit a Standard Chartered branch to begin the application process. 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.
- Income. Standard Chartered does not publish the minimum income requirement. However, keep in mind that you should have a minimum annual income of $20,000 to be eligible for a car loan from most financial institutions in Singapore.
- Financial standing. Your credit score should at least meet the bank’s minimum criteria.
You will also be required to provide the following during your application:
- Identification. Copy of NRIC (front and back), or passport and a valid employment pass (for foreigners).
- Proof of address (for foreigners only). Documents including your residential address (ie, utility bills or credit card statements with your name and address)
- Income documents. Copy of the latest 1-month computerised payslip from your current employer, the latest 12-month CPF contribution statement or the latest Income Tax Notice of Assessment. If you’re self-employed, you’ll need to provide your Income Tax Notice of Assessment for the last two years.
- Purchase documents. You’ll need to provide the sale and purchase agreements, application for hire purchase and the vehicle registration or log card.
While Standard Chartered Bank provides competitive interest rates and smooth processing, bear in mind that you may find lower interest rates from other institutions, so take some time to compare a few before applying.