What benefits you'll get from Standard Chartered Car Loan?
Still can’t decide whether to buy a car by paying cash or through car financing? Well, you need to consider some factors when choosing which option best suits you.
Benefits of Buying A Car Through Finance
Buying a car is one big purchase that an individual can make. Of course, you can buy a car with cash or through financing. But paying in cash might be hard for some individuals. Thus, they prefer to apply for a car loan to pay in instalments.
When you buy a car through a car loan, it allows you to build and enhance your credit history. You can use your available cash on hand or in the bank on other essential matters. Besides that, with a car loan, you can build equity.
Once you complete your payment, you’re free to sell or trade it in on a new car. Moreover, you get a car with no mileage limit and get a lesser insurance rate. Plus, you are free to customise your vehicle.
The only drawbacks about car loans are that you need a downpayment, either in trade or cash. Cars quickly depreciate once used. It would be worth little by the time you pay it off ultimately. And lastly, your vehicle might be at risk of being repossessed by the bank. That’s if you fail to repay and get defaulted.
With car loans, people can now manage to buy a car without worrying about their funds. In addition, there are many banks you can choose from.
One of the recommendable banks you can go to is Singapore Standard Chartered Bank. The bank offers Auto Finance which has several features that clients will enjoy.
Features of Standard Chartered Car Loan
Auto Finance can help you get your dream car. Here are what you’re going to enjoy if you get an Auto Finance:
- First, you get a smooth application process.
- Get options from its Flexible Repayment Plan.
- Enjoy attractive interest rates.
- Wide range of Distribution Network.
- Accessible to Pay Bills.
Experience The Smooth Application Process
Apply for a car loan through Standard Chartered Branch. Speak with your preferred car dealer, and they will assist you throughout the application.
But, first, be sure that you have decided what vehicle you want to get. Also, you should know whether you’re eligible for the loan.
Here are the Eligibility Requirements you need to meet:
- You must be a Singaporean or Permanent Resident.
Foreigners residing in the country can still get an auto loan from Standard Chartered Bank to submit all the required documents.
- Should be at least 21 years old.
- Must meet the annual income of S$20,000
Important Note: Whatever the result of your application, approved or declined, it’ll reflect in your credit history. Thus, it could have a significant impact on your credit score. To make a clear
Offering Flexible repayment options.
You can choose what repayment plan you think you can afford to pay. For example, Standard Chartered Car Loan offers 12 to 84 months loan tenure. But note that the longer you pay, the higher the interest rate will accumulate.
Offer Competitive Interest Rates in the Market
Standard Chartered Car Loan offers different interest rates: For new cars, they offer 2.48%, while for used vehicles, 2.78%.
Have access to Wide Distribution Network
Buying a car with Standard Chartered Bank won’t be that hard since the bank partnered with a vast network of car dealers across Singapore.
Easy to Pay Bills
Standard Chartered Bank Singapore offers several payment channels for car loans. You can pay either through GIRO, AXS stations, Self-service, automated machines (S.A.M), or through the bank’s online banking platform.
Or, if you’re more comfortable paying it by cash, you can send it through cash deposit machines.
Standard Chartered Car Loan Requirements You Should Comply
There are things you need to comply with first in applying for UOB Car Loan. First, you have to submit the completed application form. Then, you have to provide further requirements. It’s for them to help assess your car loan application.
Standard Chartered Bank requires borrowers to submit the said documents:
- Identification Documents*
- Income Documents*
- Your Sale and Purchase Agreement
- Your Vehicle registration card or Log Card
- Form of Application for Hire Purchase
- A fully accomplished and signed application form
Identification Documents to submit are the following:
Singaporean citizens and Permanent Residents need to submit a front and back photocopy of NRIC. Plus, a copy of the Passport.
For Foreigners, all you need to submit are a copy of their Passport and a copy of Employment Pass. Submit also any of the following documents:
- Your latest utility bills, rates or tax bills
- Your latest Bank or Credit Card statements (with e-statement)
- A clear copy of your Rental Agreements containing your address
- Your latest Mobile phone statements or pay-TV statements
- A letter from your employer stating your current address
- Government-issued documents stating your address like IRAS, CPF, or ICA
Income Documents to submit:
- Provide your latest copy of Income Tax Notice of Assessment (Two years for Self-Employed); or
- Submit a copy of your latest one-month computerised payslip from your current employer; or
- A copy of your latest 12-month CPF Contribution Statement
Frequently Asked Questions in Standard Chartered Car Loan
How much loan can I take?
The amount of loan you can take depends on what type of car loan you avail of. Standard Chartered Bank offers New Car Loans and Used Car Loans.
But before that, take note that banks comply with the Monetary Authority Singapore (MAS) Regulations. Therefore, the vehicle’s loan amount will depend on its Opening Market Value (OMV).
New Car Loans: Once the vehicle’s OMV is less than S$20,000, the bank can finance the borrower up to 70% of the vehicle’s price. But if the OMV is more than S$20,000, Standard Chartered Bank will finance 60% of its cost.
Used Car Loan: Standard Chartered bank doesn’t specify the vehicle’s maximum age for the used car loan. Generally, banks offer used car loans for cars that are less than ten years from the date of their original registration.
The bank can finance you up to 70% in a used car loan with loan terms from one up to seven years. But note that the combination of the vehicle’s age and the car loan term must not exceed ten years.
Car Refinancing: You can avail of this one if you have an existing car loan from the other bank. Ask through SCBS’ hotline or customer service about their refinancing interest rates. If you think their interest rate is more favourable than your existing loan, you can avail of this product.
How much monthly instalment will I pay for the car loan?
Your monthly loan payment will depend on the car price, length of the loan, and down payment. In addition, the interest rates incurred on car loans tend to be higher than those on new car loans.
How to use the Standard Chartered Car Loan Calculator?
Using the bank’s calculator, you’d be able to see how much monthly instalment you need to repay over time. Just indicate what car type you desire to take and how much loan amount you need.
Afterwards, you choose your preferred loan term. Then, click the “Calculate” button, and you’ll get the result.
How to get instant approval?
Standard Chartered Bank can grant you instant loan approval given that you have a good credit history. Also, the bank will check your income profile whether you can repay the loan based on your chosen loan term.
Included in their evaluation is the age of the car. Make sure that the vehicle is ten years old from its original date of purchase. Otherwise, it will not be eligible for financing.
What are the fees and other charges in Standard Chartered Car Loan?
You should be aware of the following fees when you apply for Standard Chartered Car Loan:
- Late Payment Fee: $60
- Late Payment Interest: 12% per annum based on the overdue amount of your monthly instalment
- Early Completion Fee: 20% of your loan’s outstanding interest, plus 1.5% of your balance payable. That is if within 12 months from the commencement date.
But if it’s beyond 12 months, it would be 20% of outstanding interest, plus 1% of the balance payable.
- Photocopy of Hire Purchase Agreement or Log Card: S$53.50, including GST.
If you want to settle your loan earlier, the bank will ask you to submit an Early Settlement Form. There are two forms you must accomplish. One is for the customer, and one is for the car dealer.
The bank will ask you to submit all necessary forms at any SCBS local branches. First, be sure that you fully understood the terms and conditions applied. Then, sign the papers before you present them.
You can request early full settlement quotes during bank working days. That is from Monday to Friday, 9 a.m. to 5 p.m. It takes two business days before you get your requested quotations.
You can perform a fast transfer of funds if you wish to settle the loan immediately. You can transfer the fund directly to your repayment account. Repayment channels could be through Cashier’s Order, Cheque, or Cash to any local branch of SCBS.
Be aware that the process will take three business days. Instructions will be processed once the bank receives your complete settlement forms and funds.
Are you financially fit to buy a Car?
Vehicles are one essential property in Singapore. You can buy one if you have saved enough money for it or through car loans. But note that either of the two, you should first check your financial capacity.
Do not push yourself to acquire a vehicle if you’re not financially ready for it. Moreover, considering car loans, it’s better to seek the financial help of professionals. Remember, car loans are different from short term personal loans.
Personal loans can either be secured or unsecured, which you can use in any way. Should you need any short-term instant cash loans, you can try getting one from reputable moneylenders like Cash Mart Singapore.