Maybank Car Loan offers full financing for petrol cars, hybrid and electric vehicles, and drivers in need of Islamic automobile financing. However, is this car loan worth the higher interest rates?
Let’s get one thing out of the way: Maybank Car Loan isn’t the lowest-priced car loan out there, so you should expect to pay slightly more compared to other loan providers.
Apart from this disadvantage, this is a perfectly competent auto financing package that will go the full distance for most car owners.
Financing is provided for petrol cars, as well as hybrid and electric vehicles. Those in need of Islamic automobile financing are also likely to find this loan package suitable for their purposes.
Here’s a closer look at Maybank Car Loan, and whether it is right for you.
|Maximum loan amount||OMV of car less than S$20,000: Up to 70% of purchase price or valuation|
OMV of car more than S$20,000: Up to 60% of purchase price or valuation
|Loan tenure||1 to 7 years|
|Interest rate (indicative, actual interest rate will be revealed at application)||ICE cars: 2.99% per annum |
Electric and hybrid cars: 1.98% per annum
|Eligibility||Age: 21 years and aboveNationality: – Singapore citizens- Singapore Permanent Resident- Foreigner with valid work pass (guarantor required)Minimum income: S$1,500 per month|
|Payment methods||Interbank GiroChequeCash|
How much can you borrow, and for how long?
The maximum amount you can borrow under Maybank Car Loan depends on the Open Market Value (OMV) of your vehicle.
For cars with OMV less than S$20,000, you may borrow up to 70% of the valuation or purchase price. For cars with OMV greater than S$20,000, you may borrow up to 60% of the valuation of purchase price.
In both cases, the maximum loan tenure available to you is seven years, or 84 months.
What is the interest rate of Maybank Car Loan?
Judging by information on the website, you may be charged an interest rate of 2.99% per annum on your Maybank Car Loan. For hybrid and electric vehicles, you may be charged 1.98% per annum in interest.
The actual interest rate offered on your loan will be made known during the application process.
How can I pay for my Maybank Car Loan?
You can pay your car loan instalments using any of the three following methods:
- Interbank GIRO
- Cheque (drop off at any Maybank branch)
- Cash payment (over the counter, or vis Maybank Cash Deposit machine)
Pros and cons
|Low minimum monthly income||High interest rates compared to other car loans|
|Can loan up to 70% of the car’s value||Stiff penalties for late payment|
|Can take up to 7 years to repay the loan|
|Financing available for both ICE and electric/hybrid vehicles|
Why should you choose Maybank Car Loan?
Maybank Car Loan provides automobile financing for both ICE and hybrid/electric vehicles, with a maximum loan value of up to 70% of the cost of the vehicle, and a loan tenure capped at seven years. This puts it on par with other car loans available.
The main flaw of Maybank Car Loan is its relatively high interest rates — at least going by the figures indicated on its website. You may be quoted an interest rate of up to 2.99% per annum on your car loan. Meanwhile, hybrid and electric car owners can benefit from a promotional rate of 1.98% per annum — slightly lower, but you can still find better rates elsewhere.
Bear in mind that these are indicative rates, as Maybank doesn’t display any rates on their website. As such, you will only find out the actual interest rate you can get when you send in an application for the loan.
For those seeking Islamic auto financing, Maybank may be your only option.
Who can apply?
Maybank Car Loan is available to anyone in Singapore who requires a private car. Singapore citizens, Permanent Residents and foreigners with a valid work pass are eligible for the loan. Note that foreigners will also need to have a guarantor.
Besides the above, applicants should be at least 21 years of age, and be earning a salary of at least S$1,500 per month.
What charges or fees should you look out for?
If you’re considering signing up for Maybank Car Loan, here are some charges and fees you should look out for:
- Early redemption of loan
- 20% fee on interest rebate
- 1% fee on original loan amount
- 1 month’s interest in lieu of notice
- Late payment charge: S$80
- Late interest charge: 5% per annum above prime lending rate of 5.25% per annum
- Cashier’s Order (third-party name): S$5
How to apply?
To apply for MayBank Car loan, follow these steps:
- Download and fill up the Hire Purchase application form
- Submit your application to Maybank
- Wait for Maybank to get in touch with further instructions on how to proceed
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By Alevin Chan
An ex-Financial Planner with a curiosity about what makes people tick, Alevin’s mission is to help readers understand the psychology of money. He’s also on an ongoing quest to optimise happiness and enjoyment in his life.