October 26, 2020
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Loan

How To Get An Auto Loan In Singapore

Are you planning to buy a car but you don’t have enough money to buy it. Taking a car loan is an ideal option for this situation. Don’t worry if the car price is too costly; you can apply for the loan. Singapore is among the place where the cost of buying a car is expensive. This also aligns to the cost of living in the country.

A standard car in Singapore is the rate of S$110,000. That’s why everyone cannot afford it, so they take a car loan from directly to the bank or through the car dealer. In Singapore, the limits are raised by 10% to take a loan. The second biggest financing of yours is to purchase a car, and the first is buying a house. You are tired of traveling in a cab, bus, taxi and many more and you are late for the destination.

The best thing to get a car loan is that you don’t have to give collateral for loans. If you cannot pay back the amount of the car, the bank can take back the vehicle and sell it to someone else, and you will get back the loan amount. After getting your favourite vehicle, you can go on road trips with your friends, family, and many more. Sounds incredible, right? A car loan is secured against your transportation asset. Which means it is collateral for the loan. In other cases, you have good credit; then, it is easy to apply different types of loans according to your kind.

While applying for a car loan, usually, it is a lower interest rate, and it is easier to make a good score on the credit card. If you are not able to pay all the amount told you to give, then they can take your car back, and if you have paid all the amount, then in the last installment, the financing institution will now transfer the ownership of the vehicle in your name. There are different types of modes of getting a car loan.

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Top Reasons Why You Need A Car Loan

  • You apply for a car loan because the car you are buying is your favourite.
  • Your financial conditions are not that great, or your savings are not more, but don’t worry, there are different types of car loans available for you.
  • You don’t want to wait for the things to happen in the future, then only you will purchase your favorite car. It’s time to make your dream come true by not wasting time and apply for a car loan, which is a good investment for your future.
  • When you get the car, you will be able to reach your destination place in time. It is time-consuming because you will have to wait for a taxi, cab bus, and many more, and you will reach at the correct time. All the others will think you are a systematic person who knows the value of time because time is a valuable thing if you know how to work at the right time and be more successful in personal and social life. You can travel to the finest and favorite places with your family, friends, or you can drop a stranger on your way. When you have a car of your people will look you that you are well financially stable. There are many types of loans, like personal loans, car loans.

Different Car Financing Options

  • In this mode, you can directly take a loan from the bank.
  • The second option is to take a loan which is working as a car dealer.
  • From financial institutions like from Capitall, which also offer Capitall Business Loan.

How To Apply For A Car Loan

After researching all the information about a car loan, you should go to your car dealer and tell the dealer about the chosen financial institution where you want to take a car loan. Read the bank or financial institution’s agreement of terms and conditions carefully before applying for a loan.

Remember also that before taking for a car loan, make sure you check your credit score, and if it is right, you can quickly get a car loan.

If you want to go directly to the bank without involving a car dealer in between for a loan, you should give an online application to the bank website or arrange meetings with the person from the bank.

At the time when you meet the person from the bank, you must have these documents like

  • Vehicle sales agreement (it’s not that important).
  • Show the evidence of your income like Salary payslip, CPF statement, or income tax statement.
  • Proof of your present financial assurances like personal loan, housing loan.
  • Your employment information like monthly income, name.

Select The Cheapest Loan

You should select the correct type of bank according to the rates and interest. It will take time to visit different types of banks, but event the small percent can effect. If you don’t know how to apply for an auto loan or communicate to the various owners of the existing cars. They have different types of schemes and the most excellent interest rates to adjust your budget. Every company follows the KYC (Know Your Customer). Different types of documentation procedures should be done and verified by your credit score.

Borrowing Amount

The OMV of the current time is you can take a loan up to 70% of the car price if it is lower or equal to $20,000. If the open market value is more than $20,000, you can only apply up to 60% of the car price.

Maximum Loan Duration 

You can select a loan duration of up to 7 years. If the car you have purchased is second-hand, the loan period is according to the car’s registration time.

Take in mind that when taking a car loan, it is essential that you still consider your capacity to pay. You must pay your financial responsibilities on time to avoid getting a bad credit score in the future.