POSB Car Loan Review
Own your dream ride with a simple and affordable car loan from POSB.
Factors to consider before taking out the POSB Car Loan
With a POSB Car Loan, you can finance a new or used vehicle up to ten years old at interest rates from as low as 1.99% p.a. The loan amount you can borrow is dependable on the car’s Open Market Value (OMV) and tenures range between one to seven years.
If you’re looking to finance a new or used car purchase, you can consider a car loan from POSB. Learn more about its features in our review below.
Features of the POSB Car Loan
- Interest rate. POSB is providing a promotional interest rate of 1.99% p.a and 3 months interest-free period for online applicants for new car loans. Once the promotion ends on 31 October 2020 , or if you’re applying offline, the fixed interest rate will be pegged to 1.99% p.a. The interest rate is also generally slightly higher for used cars.
- Loan term. Select a loan tenure from one to seven years.
- Loan amount. The loan amount is pegged to the Open Market Value (OMV). You may take a loan up to 70% of the car purchase price if the OMV is lower than or equal to S$20,000. For OMV higher than $20,000, you’ll only be able to borrow up to 60% of the car purchase price.
- Finances both new and used cars. POSB provides car loans for both new and used cars. However, used cars must be less than 10 years old to be eligible for financing.
- Car loan calculator. POSB has a car loan calculator for you to input your loan amount, tenure and interest rate to generate a realistic figure on your monthly repayments.
Fees and charges to consider
Like any other lenders, you incur late payment penalty if you’re unable to settle your outstanding instalments before the payment due date. Other fees and charges that may apply are when you decide to redeem your POSB Car Loan early.
For early redemption of car loans in Singapore, the amount that you need to pay will be calculated based on the Rule of 78. If you wish to find out how the Rule of 78 works, check out our guide on early redemption of car loans.
How to apply for the POSB Car Loan
If you’re an existing POSB/DBS customers, you may log in with your digibank ID to pre-filled with your relevant personal data. Alternatively, you may also choose to have your personal and income details retrieved via MyInfo if you’re a SingPass holder, or manually input your information.
Make sure you meet the criteria for this loan:
- Age. You must be at least 21 years of age.
- Residency. You must be a Singapore Citizen, Singapore Permanent Residents or foreigner
- Income. You must have a minimum monthly income of S$2,000 (for Singaporeans/PR) or S$4,000 (for foreigners).
You will also be required to provide the following:
With competitive rates and fees, the POSB Car Loan is one to consider if you’re getting a new ride. To ensure this is the right loan for you, make sure you compare all your car loan options before applying.