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Things You Should Know About UOB Car Loan Singapore

When taking up a car loan, you should take it seriously. It is indeed a long-term debt that requires you to weigh your financial abilities. You need to have bold decision-making towards it. Before you decide, familiarise yourself first with car loans. 

UOB is one of the top-ranking banks in Singapore and has plenty to offer, including a car loan service. We’ll dig deeper and discover more about UOB Car Loans.

United Overseas Bank: Why People Trust UOB

Since 1935, UOB, formerly United Chinese Bank, has consistently served residents in Singapore. Many individuals have benefited from UOB’s products and services. For more than 80 years, UOB has built its reputation and gained the trust of its customers. 

UOB developed and continuously grew stronger. From its humble beginnings, the bank has now reached 19 markets in the world. UOB commits to providing the best financial services to its customers. In fulfilling the commitment, UOB earned countless awards and accolades throughout these years. 

UOB car loan

Know more about UOB Car Loans Singapore

Here’s the primary thought about how the car loan works. This type of loan is about borrowing money from a lender and used to buy a car. You are then obliged to repay your borrowed money, the principal amount plus interest rate. 

Car loans are known to be secured type loans. If you fail to repay your loan, the bank has the right to repossess your vehicle. 

Now, if you want to take a car loan, consider UOB. The bank offers two types of car loans with features that clients will love!

Two Types of UOB Car Loan

UOB has two different types of car loans – UOB Car Loan and UOB COE Car Loan.

Things you need to Know about UOB Auto Loan Singapore 

Among all banks in the country, UOB is one of the ranking banks for car loan services. Here’s why:

Features and Benefits of UOB Car Loan

  • Competitive UOB Car Loan interest rates: Interest rates for New Cars are 2.68% per annum, with effective interest rates ranging from 4.91% to 5.09%. In contrast, Used Car has an interest rate of 2.78%, with effective interest rates from 5.32% to 6.03%.
  • Paperless application: Apply online in ten minutes through UOB’s online platform. With MyInfo, you can leverage your data and won’t need to fill in any details. Plus, there’s no need to submit your income documents.
  • Loan Quantum: Get a loan quantum of up to 70% of the vehicle’s sale price. Or, it could be the bank’s valuation, whichever is lower.
  • Loan Tenure: Repay your borrowed money for up to seven years.
  • Easy Repayment Method: Pay fixed monthly instalments over time till you complete your obligation.

Things you need to Know about UOB COE Car Loan

COE Car Loan is only applicable to used cars. COE or Certificate of Entitlement is a license to register and use a vehicle in Singapore. Without such, you cannot get any car or other vehicles like a motorcycle or a truck. 

This license has ten years of validity. Once the license expires, you have the option to extend your COE for another five years to ten years. But note that your vehicle’s lifespan plays a vital role. First, it helps to determine the duration of the renewal. 

For a ten-year revalidation, you can extend your COE for up to 20 years. That is if you have enough cash in hand ready for repayments. But on the five-year revalidation, you can never renew your car’s lifespan once its timeframe ends. 

With all that said, COE Car means the person has already renewed the license for another five to ten years. So, if you can picture it out, the vehicle is now older than ten years. 

Yet, UOB has its terms and conditions for COE Car Loan. 

UOB has only a maximum of five years tenure for the revalidated COE of five yearsOn the other hand, UOB offers a maximum of seven years tenure for a ten-year revalidated COE.

Read on and discover more.

Features and Benefits of UOB COE Car Loan

  • Competitive UOB COE Car Loan interest rates: Take advantage of the fixed interest rate of COE Car (greater than ten years to eleven years) which is 3.25% per annum. The effective interest rates range from 6.17% up to 7.04%. 
  • Paperless application: Finish your car loan application in ten minutes through UOB’s online platform. With MyInfo, you can leverage your data and won’t need to fill in any details. Plus, there’s no need to submit your income documents. You can download an application form from UOB if you prefer to apply traditionally. 
  • Loan Quantum: Enjoy a loan quantum of up to 70%.
  • Loan Tenure: UOB offers a loan tenure of up to seven years for revalidated COEs.
  • Easy Repayment Method: Pay fixed monthly instalments over time till you complete your obligation. 

UOB partnered with known auto brands and car dealers in Singapore. A few of them are the following: 

  • Audi
  • Mazda
  • Nissan
  • Subaru
  • Carousell
  • Cycle & Carriage
  • Inchcape
  • Performance Premium Selection Limited 

Choose which car dealer you would like to buy a car. Then, get assisted by a car dealer’s staff, provided that you present all necessary documents. But if you want to skip that process, apply through UOB’s online platform using your MyInfo. 

Commonly Asked Questions About UOB Car Loan Singapore

Who can apply for a UOB Auto Loan Singapore?

UOB Car Loan applicants would be all Singaporeans and Singaporean Permanent Residents. But first, you must be at least 21 years old. 

Prepare the following documents (if you applied not through MyInfo):

  • Income Documents: Latest Income Tax Notice of Assessment, your last six months CPF contribution statement, and computerised payslip.
  • A Vehicle Sales Agreement, only if applicable.
Can a non-resident person take a UOB Car Loan?

Yes. a foreigner can apply for a UOB Car Loan, provided they have a local guarantor. 

They need to present a copy of the Identification Card or Passport. 

How much would be the monthly instalments to repay?

UOB can’t tell you immediately how much your monthly instalment repayments would be. But you can use the UOB Car Loan calculator on UOB’s site. It’s a tool which you can use to know how much you could pay in a certain period. 

All you have to do is indicate which car type you want – a new car or a used car. Then, you’ll be asked what interest rate you would like to take: 2.68% (new vehicle) or 2.78% (used car). 

Afterwards, you indicate how much car loan you would like to apply for. Then, choose how long you would want to repay the loan. 

Click the “Calculate” button and get the results. Whatever the result, remember that it is still subject to changes. 

How to pay UOB Car Loan Online?

You can quickly pay your car loan through Fund Transfer, Cash, Cheque, and Telegraphic Transfer. In addition, you can browse the site of UOB and look for their Help and Support portal. 

What is the UOB Car Loan hotline?

If you seek help on your car loan application, you can reach UOB through their Property Loans hotline: 1800-388-2121.

Advantage of Learning UOB Auto Loans

Knowing more about car financing, like UOB Car Loans, will help you weigh your financial status. Buying a car needs deep planning. Otherwise, you’ll ruin your hard-earned money. 

UOB Car Loans is not only the trusted financial product by many. UOB offers a wide range of bank loans, including personal loans. It’s a low-interest loan product that you can use whenever you’re in dire need of extra cash aside from properties. 

But if you are looking for instant cash loan services, try getting a low-interest personal loan from trusted licensed moneylenders. They even have competitive features like banks. 

Cash Mart Singapore is one of the most well-known and reputable licensed moneylenders.