Your Drive, Your Loan:
Best Car Loan Interest Rates in Singapore
Securing a car loan in Singapore with a low car loan interest rate can be a complex process. The journey usually starts even before you set foot in a showroom — it starts with understanding how much you can truly afford and comparing the options available.
Finding the best car loan in Singapore doesn’t have to be a guessing game. Compare car loan interest rates in Singapore to get a clear picture of your borrowing cost, how much you can borrow, and what your monthly repayments will look like. This allows you to secure the most competitive rates and confidently plan your financing, so you can focus on the important decision: choosing the right car for you and your family.
Disclaimer: Interest rates and promotions are subject to change and are accurate based on available public information. The final rate you receive may vary based on your personal credit assessment.
UOB Car Loan
Annual Interest Rate
From 2.78% p.a.
EIR
From 5.09% p.a.
Processing Fees
NA
- Attractive interest rates from 2.78% p.a.
- Fast processing and instant approval with Singapore’s first digital car financing service
- Borrow up to 70% of purchase price or Bank’s valuation (whichever is lower)
- Fixed monthly instalments with up to 7 years loan tenure
- Available for both new and used cars (10 years and under)
Eligibility
- Aged 21 years and above
- Singapore Citizens and Permanent Residents
- Non-residents may apply with a local guarantor
Fees
- NA
Features
- Attractive interest rates from 2.78% p.a.
- Fast processing and instant approval with Singapore’s first digital car financing service
- Borrow up to 70% of purchase price or Bank’s valuation (whichever is lower)
- Fixed monthly instalments with up to 7 years loan tenure
- Available for both new and used cars (10 years and under)
Loan details
Eligibility
- Aged 21 years and above
- Singapore Citizens and Permanent Residents
- Non-residents may apply with a local guarantor
Fees
- NA
UOB Car Loan
Annual Interest Rate
From 2.78% p.a.
EIR
From 5.09% p.a.
Processing Fees
NA
- Attractive interest rates from 2.78% p.a.
- Fast processing and instant approval with Singapore’s first digital car financing service
- Borrow up to 70% of purchase price or Bank’s valuation (whichever is lower)
- Fixed monthly instalments with up to 7 years loan tenure
- Available for both new and used cars (10 years and under)
Eligibility
- Aged 21 years and above
- Singapore Citizens and Permanent Residents
- Non-residents may apply with a local guarantor
Fees
- NA
Features
- Attractive interest rates from 2.78% p.a.
- Fast processing and instant approval with Singapore’s first digital car financing service
- Borrow up to 70% of purchase price or Bank’s valuation (whichever is lower)
- Fixed monthly instalments with up to 7 years loan tenure
- Available for both new and used cars (10 years and under)
Loan details
Eligibility
- Aged 21 years and above
- Singapore Citizens and Permanent Residents
- Non-residents may apply with a local guarantor
Fees
- NA
DBS Car Loan
Annual Interest Rate
From 2.78% p.a.
EIR
NA
Processing Fees
NA
- Hassle-free application via digibank and Singpass — complete your application in just minutes
- Loan tenure of up to 7 years to suit your financing needs
- Flexible Loan-to-Value (LTV): Up to 70% financing if Open Market Value (OMV) ≤ S$20,000, and up to 60% financing if OMV > S$20,000
Eligibility
- Aged 21 years and above
- Singapore Citizens or PRs earning at least S$2,000/month, and foreigners earning at least S$4,000/month
Fees
- NA
Features
- Hassle-free application via digibank and Singpass — complete your application in just minutes
- Loan tenure of up to 7 years to suit your financing needs
- Flexible Loan-to-Value (LTV): Up to 70% financing if Open Market Value (OMV) ≤ S$20,000, and up to 60% financing if OMV > S$20,000
Loan details
Eligibility
- Aged 21 years and above
- Singapore Citizens or PRs earning at least S$2,000/month, and foreigners earning at least S$4,000/month
Fees
- NA
DBS Car Loan
Annual Interest Rate
From 2.78% p.a.
EIR
NA
Processing Fees
NA
- Hassle-free application via digibank and Singpass — complete your application in just minutes
- Loan tenure of up to 7 years to suit your financing needs
- Flexible Loan-to-Value (LTV): Up to 70% financing if Open Market Value (OMV) ≤ S$20,000, and up to 60% financing if OMV > S$20,000
Eligibility
- Aged 21 years and above
- Singapore Citizens or PRs earning at least S$2,000/month, and foreigners earning at least S$4,000/month
Fees
- NA
Features
- Hassle-free application via digibank and Singpass — complete your application in just minutes
- Loan tenure of up to 7 years to suit your financing needs
- Flexible Loan-to-Value (LTV): Up to 70% financing if Open Market Value (OMV) ≤ S$20,000, and up to 60% financing if OMV > S$20,000
Loan details
Eligibility
- Aged 21 years and above
- Singapore Citizens or PRs earning at least S$2,000/month, and foreigners earning at least S$4,000/month
Fees
- NA
OCBC Car Loan
Annual Interest Rate
From 2.48% p.a.
EIR
From 4.65% p.a.
Processing Fees
NA
- Loan tenure of up to 7 years
- Borrow up to 70% of purchase price or OCBC’s valuation (whichever is lower)
- Instant approval in 60 seconds when applying with Singpass
- Preferential rates for electric vehicles (EVs) with significant savings
- Flexible repayment options with 6 payment methods (Direct Debit, GIRO, Internet Banking, ATM, Cheque, Cash)
Eligibility
- Aged 21 years and above
- Singapore Citizens, Permanent Residents, and eligible foreigners
Fees
- Late payment fee: S$80
- Early repayment fee: 1% of outstanding loan amount + 20% of interest rate rebate
Features
- Loan tenure of up to 7 years
- Borrow up to 70% of purchase price or OCBC’s valuation (whichever is lower)
- Instant approval in 60 seconds when applying with Singpass
- Preferential rates for electric vehicles (EVs) with significant savings
- Flexible repayment options with 6 payment methods (Direct Debit, GIRO, Internet Banking, ATM, Cheque, Cash)
Loan details
Eligibility
- Aged 21 years and above
- Singapore Citizens, Permanent Residents, and eligible foreigners
Fees
- Late payment fee: S$80
- Early repayment fee: 1% of outstanding loan amount + 20% of interest rate rebate
OCBC Car Loan
Annual Interest Rate
From 2.48% p.a.
EIR
From 4.65% p.a.
Processing Fees
NA
- Loan tenure of up to 7 years
- Borrow up to 70% of purchase price or OCBC’s valuation (whichever is lower)
- Instant approval in 60 seconds when applying with Singpass
- Preferential rates for electric vehicles (EVs) with significant savings
- Flexible repayment options with 6 payment methods (Direct Debit, GIRO, Internet Banking, ATM, Cheque, Cash)
Eligibility
- Aged 21 years and above
- Singapore Citizens, Permanent Residents, and eligible foreigners
Fees
- Late payment fee: S$80
- Early repayment fee: 1% of outstanding loan amount + 20% of interest rate rebate
Features
- Loan tenure of up to 7 years
- Borrow up to 70% of purchase price or OCBC’s valuation (whichever is lower)
- Instant approval in 60 seconds when applying with Singpass
- Preferential rates for electric vehicles (EVs) with significant savings
- Flexible repayment options with 6 payment methods (Direct Debit, GIRO, Internet Banking, ATM, Cheque, Cash)
Loan details
Eligibility
- Aged 21 years and above
- Singapore Citizens, Permanent Residents, and eligible foreigners
Fees
- Late payment fee: S$80
- Early repayment fee: 1% of outstanding loan amount + 20% of interest rate rebate
Maybank Car Loan
Annual Interest Rate
From 2.78% p.a.
EIR
NA
Processing Fees
NA
- Attractive interest rates for hire purchase financing
- Car loan options with repayment terms up to 7 years
- Competitive auto insurance premium quotation bundled with financing
Eligibility
- Aged 21 years and above
- Singapore Citizens, Permanent Residents, and Foreigners with Employment Pass
- Singapore Permanent Residents (must have a local guarantor)
- Minimum monthly income of S$1,500
Fees
- Late payment fee: S$80
- Early repayment fee: 1% of principal loan amount + 20% of interest rate rebate+ one month’s interest (if notice is not served)
Features
- Attractive interest rates for hire purchase financing
- Car loan options with repayment terms up to 7 years
- Competitive auto insurance premium quotation bundled with financing
Loan details
Eligibility
- Aged 21 years and above
- Singapore Citizens, Permanent Residents, and Foreigners with Employment Pass
- Singapore Permanent Residents (must have a local guarantor)
- Minimum monthly income of S$1,500
Fees
- Late payment fee: S$80
- Early repayment fee: 1% of principal loan amount + 20% of interest rate rebate+ one month’s interest (if notice is not served)
Maybank Car Loan
Annual Interest Rate
From 2.78% p.a.
EIR
NA
Processing Fees
NA
- Attractive interest rates for hire purchase financing
- Car loan options with repayment terms up to 7 years
- Competitive auto insurance premium quotation bundled with financing
Eligibility
- Aged 21 years and above
- Singapore Citizens, Permanent Residents, and Foreigners with Employment Pass
- Singapore Permanent Residents (must have a local guarantor)
- Minimum monthly income of S$1,500
Fees
- Late payment fee: S$80
- Early repayment fee: 1% of principal loan amount + 20% of interest rate rebate+ one month’s interest (if notice is not served)
Features
- Attractive interest rates for hire purchase financing
- Car loan options with repayment terms up to 7 years
- Competitive auto insurance premium quotation bundled with financing
Loan details
Eligibility
- Aged 21 years and above
- Singapore Citizens, Permanent Residents, and Foreigners with Employment Pass
- Singapore Permanent Residents (must have a local guarantor)
- Minimum monthly income of S$1,500
Fees
- Late payment fee: S$80
- Early repayment fee: 1% of principal loan amount + 20% of interest rate rebate+ one month’s interest (if notice is not served)
Other financial institutions
Annual Interest Rate
Up to 48% p.a.
Processing Fees
Up to 10% of the loan principal
Loan Tenure
Up to 2 years
- Fast loan approval
- No credit score restrictions
- Same-day disbursement available
- No minimum loan amount
- Borrow up to 6x your monthly income if you earn at least S$20,000/year, open to all nationalities
- Maximum loan amount of S$3,000 for Singaporeans/PRs earning below S$20,000/year
- Maximum loan amount of S$3,000 for foreigners with annual income of at least S$10,000 but less than S$20,000; S$500 for foreigners who earn less than S$10,000/year
Eligibility
- Aged 18 and above
- Must have a stable source of income
Fees
- Processing fee: Up to 10% of the loan principal
- Late payment fee: Up to S$60 per month for overdue payments
- No early repayment fees
Features
- Fast loan approval
- No credit score restrictions
- Same-day disbursement available
- No minimum loan amount
- Borrow up to 6x your monthly income if you earn at least S$20,000/year, open to all nationalities
- Maximum loan amount of S$3,000 for Singaporeans/PRs earning below S$20,000/year
- Maximum loan amount of S$3,000 for foreigners with annual income of at least S$10,000 but less than S$20,000; S$500 for foreigners who earn less than S$10,000/year
Loan details
Eligibility
- Aged 18 and above
- Must have a stable source of income
Fees
- Processing fee: Up to 10% of the loan principal
- Late payment fee: Up to S$60 per month for overdue payments
- No early repayment fees
Other financial institutions
Annual Interest Rate
Up to 48% p.a.
Processing Fees
Up to 10% of the loan principal
Loan Tenure
Up to 2 years
- Fast loan approval
- No credit score restrictions
- Same-day disbursement available
- No minimum loan amount
- Borrow up to 6x your monthly income if you earn at least S$20,000/year, open to all nationalities
- Maximum loan amount of S$3,000 for Singaporeans/PRs earning below S$20,000/year
- Maximum loan amount of S$3,000 for foreigners with annual income of at least S$10,000 but less than S$20,000; S$500 for foreigners who earn less than S$10,000/year
Eligibility
- Aged 18 and above
- Must have a stable source of income
Fees
- Processing fee: Up to 10% of the loan principal
- Late payment fee: Up to S$60 per month for overdue payments
- No early repayment fees
Features
- Fast loan approval
- No credit score restrictions
- Same-day disbursement available
- No minimum loan amount
- Borrow up to 6x your monthly income if you earn at least S$20,000/year, open to all nationalities
- Maximum loan amount of S$3,000 for Singaporeans/PRs earning below S$20,000/year
- Maximum loan amount of S$3,000 for foreigners with annual income of at least S$10,000 but less than S$20,000; S$500 for foreigners who earn less than S$10,000/year
Loan details
Eligibility
- Aged 18 and above
- Must have a stable source of income
Fees
- Processing fee: Up to 10% of the loan principal
- Late payment fee: Up to S$60 per month for overdue payments
- No early repayment fees
Table of Contents
Car Loans in Singapore 101
What is a car loan?
A car loan, or a hire purchase agreement, is a secured loan used to finance the purchase of a vehicle. In this arrangement, a bank or financial institution lends you money to buy a car, with the car serving as collateral for the loan. Until the loan is fully paid off, the car loan provider holds a claim on the vehicle. This is why you must obtain a car loan before taking ownership of the vehicle, and the loan is formally registered with the Land Transport Authority (LTA).
What is the car loan interest rate in Singapore?
Car loan interest rates in Singapore are highly competitive and can fluctuate based on market conditions, the bank, and whether you are buying a new or used car. Broadly speaking, the interest rates for new cars are lower than those for used cars. As of 2025, new car loan interest rates are typically in the range of 1.99% to 2.78% per annum (p.a.), while used car loans may range from 2.78% to 2.98% p.a.
How much can you borrow on a car loan in Singapore?
The Monetary Authority of Singapore (MAS) regulates car loan amounts. The maximum loan amount you can get is based on your car’s Open Market Value (OMV).
- For cars with an OMV of S$20,000 or less: You can borrow up to 70% of the car’s purchase price. In other words, you’ll need to make a minimum down payment of 30%.
- For cars with an OMV more than S$20,000: You can borrow up to 60% of the car’s purchase price. This means a minimum down payment of 40%.
The final amount you’re approved for will also be dependent on your income, credit score, and Total Debt Servicing Ratio (TDSR).
What’s the loan tenure of a car loan?
According to MAS regulations, the maximum loan tenure for a car loan in Singapore is capped at 7 years. Although you can go with a shorter car loan tenure, your monthly repayments will be higher. Conversely, a longer tenure reduces your monthly payments and makes it easier on your wallet.
How to calculate car loan interest in Singapore?
Most car loans in Singapore use a flat interest rate when it comes to calculating interest. This means the interest is calculated based on the original loan amount for the entire loan tenure, and the monthly interest payment remains the same throughout the loan period.
The formula is straightforward: Total Interest Paid = Loan Amount x Flat Interest Rate x Loan Tenure (in years)
For example, for a S$50,000 loan at a 2.5% flat interest rate over 7 years, the total interest paid would be: $8,750.
Your monthly repayment would be: ($50,000 + 8,750)/(7×12)=$699.40
Pro tip: Use a car loan calculator from major banks or SGCarMart for easy calculations!
How long does a car loan approval take?
The approval time for a car loan can vary depending on the lender and the accuracy and completeness of your loan application. Many banks in Singapore offer a fast, digital application process.
For instance, some banks can provide in-principle approval within 60 seconds or within 15 minutes at a dealership — the majority of bank car loans are typically approved within a couple of working days. To speed up the process, definitely make it a point to prepare in advance and furnish all necessary documents, such as your NRIC, proof of income, and car sales agreement.
What are the benefits of taking a car loan?
Preserves Savings: A car loan allows you to purchase a vehicle without having to use all of your cash upfront, preserving your savings for other financial commitments or investments.
Affordable Payments: By spreading the cost over several years, a car loan makes car ownership more financially manageable through fixed monthly instalments.
Builds Credit History: Consistently making timely loan payments helps to build a strong credit history, which can be beneficial for securing future loans.
Flexible Options: Car loans come with a range of tenures, allowing you to choose a repayment plan that best suits your budget and cash flow.
Comparison: New/PARF Car Loan Interest Rates in Singapore
| Loan provider | Interest rate (p.a.) | Min. loan amount |
|---|---|---|
| DBS Car Loan | 2.78% (EIR 5.19%) | $10,000 |
| Hong Leong Finance Car Loan | 2.68% (EIR 5.31%) | $10,000 |
| Maybank Car Loan | 2.78% | $10,000 |
| UOB Car Loan | 2.78% (EIR 5.19%) | $10,000 |
| Tokyo Century Leasing Car Loan | 2.78% | $20,000 |
| Hitachi Capital MYHP (Auto Loan) | 2.78% | $15,000 |
What Affects Car Loan Interest Rates in Singapore
A number of factors influence the interest rate you’ll receive on a car loan in Singapore. Your specific car loan interest rate is determined by a combination of market conditions, the car itself, and your personal financial standing.
Market interest rates
Car loan rates in Singapore are influenced by the broader economic environment and global interest rates, particularly those set by the U.S. Federal Reserve. When these rates increase to combat inflation, Singapore’s lenders often follow suit, leading to higher borrowing costs.
Car type (new vs used vs COE-renewed)
Lenders generally view new cars as lower risk than used cars. As a result, new car loans typically come with a lower interest rate than loans for used cars. For used cars, the interest rate may also be affected by the vehicle’s age and condition. Most often than not, banks in Singapore typically offer shorter loan tenures for older or used cars, which drives up the corresponding interest rates.
Open Market Value (OMV)
The OMV refers to the assessed cost of your car when it’s first imported into Singapore. It includes the original purchase price, shipping (freight), insurance during transit, and any other costs tied to getting the vehicle delivered and sold in Singapore.
Regular car vs green car
For purchasing electric vehicles (EVs) or hybrid cars, some banks offer green car loans with modest perks—specifically lower interest rates (e.g. 0.3% discount from the usual car loan). These loans come with eco-friendly add-ons like carbon offsetting or free EV charging credits.
However, don’t expect dramatic savings as green loans often still follow the same loan mechanics as traditional vehicle financing.
Borrower profile
Your creditworthiness is a major factor that banks take into consideration. A strong credit score signals to the bank that you are a reliable borrower with a history of on-time payments. Most often than not, this can help you qualify for a lower interest rate and better loan terms. On the other hand, a low credit score can result in a higher car loan interest rate or even a loan rejection!
That’s not all. Lenders generally view salaried employees who have a stable income as low-risk borrowers, which often leads to smoother approval processes and more attractive interest rates.
Conversely, self-employed individuals, freelancers, and gig workers with variable income may face more obstacles when applying for a car loan. Their applications often undergo stricter scrutiny, and they may be offered higher interest rates due to the perceived risk. For this group of borrowers, seeking alternative financing from other non-traditional lenders might be a more viable path to securing a car loan.
Borrower TDSR
The TDSR is a regulation from the Monetary Authority of Singapore (MAS) that limits your total monthly debt payments to a percentage of your gross monthly income. A high TDSR can indicate financial strain, which may lead to a higher interest rate or a reduced loan amount.
Car Loan FAQs
How to choose the best car loan in Singapore?
Banks, financial institutions, and in-house dealership financing options all have different interest rates and promotions. It’s crucial to compare offers from various lenders, as one may offer a more competitive rate, more attractive loan terms, or special promotions that suits your needs better. While in-house dealer loans can be convenient, they tend to carry a higher interest rate due to the commission they receive from the lender.
- Consider your car type and narrow down the loan providers best suited for your needs (e.g. banks for new car, flexible lenders for older cars or parallel imports, non-bank lenders for COE cars)
- Compare EIRs across your shortlisted lenders
- Prepare all income documents (self-employed and gig workers might need to furnish extra documents)
- Pick a loan tenure you are comfortable with
Is a car loan compulsory for financing a car?
No, a car loan is not compulsory. You have the option to pay for the entire car in cash, including the Certificate of Entitlement (COE). However, given the high cost of cars in Singapore, most buyers opt for a car loan to finance their purchase. The loan covers the majority of the car’s cost, while the buyer pays the remaining amount as a down payment.
How do I check outstanding car loans in Singapore?
To check for outstanding car loans, you can use the LTA’s OneMotoring website. Log in using your Singpass to view the vehicle’s details, including any outstanding loan amounts or hire-purchase agreements. This is especially important for second-hand car buyers to ensure the previous owner’s loan has been fully settled and the ownership transfer can be completed smoothly.