Standard Car Loan Procedure In Singapore

What takes place in the event you purchase a vehicle in Singapore

Are you asking how a car loan works in Singapore?

The standard procedure of getting a car loan may seem to be thorny and complicated at the beginning and may even discourage most people. The fact is applying for a car loan in Singapore is simple and plain if you only have the necessary information on how it really works.  Here are some basic elements that will facilitate you in the field of car loans.

How to Apply for a Car Loan

What takes place in the event you purchase a vehicle in Singapore?

If you are interested to apply for a car loan, you can have two options. You can either apply for a car loan directly from a bank or do it via a regular car dealer. Obviously, there are benefits and drawbacks of dealing with one and the other. In case you prefer to deal with a bank, you may obtain some exceptional benefits because it is the bank that will provide you the loan.  Thus, you will not be charged with supplementary fees that are usually connected with utilizing a third party supplier.

On the other hand, if you get a car loan by means of a car dealer, the interest rate provided to you may not be reasonable or economical compared with that offered by a bank.  Nonetheless, you may come across car dealers that can grant you extra discounts on your car purchase.  Some car dealers may even facilitate you with the entire process, such as the possibility to apply for an online car loan application, which could make the whole thing easier and faster.

The Car Loan Standard Procedure

The following is a concise description of the standard car loan procedure in Singapore:

  • The first step is to select the car you want.
  • After that, you will be prompted to organise the required documents for your car loan such as  photocopy of your identification card/passport, the latest 2 months computerised pay receipts, statement of employment, credit history, your contact numbers.
  • All these documents together with your car loan application will be forwarded to a bank.
  • You might be called for an interview. If you have met all the essential requisites, then your car loan application will be granted.
  • An agreement has to be signed by both parties, you and the bank.
  • As soon as the car loan agreement is signed and is in effect, the car will necessitate registration and afterwards will be awarded to you.

In order for your car loan to obtain approval, you have to provide all the required documents for your car loan application.  As soon as the car loan application and documents are forwarded to the bank, it will be the bank that will make the final decision for your car loan.

For an additional information concerning car loan in Singapore, please see our car loan guides.

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