DBS Car Loan Review
Find out how DBS's competitive loan options can help you get on the road.
DBS Bank (The Development Bank of Singapore Limited) is the largest bank in Singapore and a leading financial group in Asia, providing an extensive range of financial services and products in over 280 branches across 18 markets. If you’re looking to finance the purchase of a new or used car, DBS may be one of the most ideal options available due to its affordable interest rates, promotions and flexible tenures.
Read the review below to find out more about how it works.
What types of car loans are on offer from DBS?
- New car loans. The DBS new car loan is only available for the purchase of a brand new car. 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 S$20,000, DBS may finance up to a maximum of 70% of the purchase or valuation price, whichever is lower. If the OMV of the vehicle is more than S$20,000, the maximum loan amount will be capped at 60% of the vehicle cost.
- Used car loans. The DBS 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 year to 7 years. 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. Just like the case with new car loans, the loan amount is dependent on the vehicle’s OMV. For used cars, the OMV is adjusted in accordance with its age to determine the appropriate loan-to-value (LTV) ratio allowable under the bank’s financing restrictions.
Features of the DBS car loan
- Interest rate. DBS is providing a promotional interest rate of 1.89% p.a and 3 months interest-free period for online applicants for new car loans. Once the promotion ends on 31 August 2020 , or if you’re applying offline, the fixed interest rate will be pegged to 2.28% p.a. The interest rate is also generally slightly higher for used cars.
- Loan term. You may choose a loan tenor from three to seven years.
- Free credit report. You may obtain a free credit report from the Credit Bureau (Singapore) within 30 calendar days from the date of approval or rejection of the car loan application.
Factors to consider
- Monthly fees and interest rates. The DBS car loan calculator allows you to calculate the monthly payments you’ll need to make if you take up a car loan. Ask yourself if you’ll be financially comfortable paying the projected monthly instalments before committing to a car purchase. Also, do note that since car interest rates are calculated on a “flat” rate, your monthly payments will remain fixed throughout your loan tenure.
- Downpayment costs. Consider if you have enough savings to cover the downpayment of a DBS car loan.
- Loan term duration. Can you afford to make payment within the loan term duration? Does it offer you flexibility to consider emergency costs or unexpected expenses?
How to apply for a DBS car loan
To apply for a DBS car loan, click on the “Go to site” button on this page. Then, simply fill out the bank’s online application form to be considered for your loan. 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. You must have a minimum monthly income of at least S$2,000 (Singaporeans/permanent residents), or S$4,000 (foreigners).
- Financial standing. Your credit score should at least meet the bank’s minimum criteria.
You will also be required to provide the following at the bank, or upload the documents 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.
- 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.
For online applications, an executive from DBS will make contact and verify the authenticity of the information you’ve provided before processing your loan application.
With competitive interest rates, the DBS car loan is an option to consider when it comes to financing your dream car. To ensure that this is the right loan for you, make sure you compare all your car loan options before applying.