UOB Car Loan Review (2022): Car Financing Starting From 2.68% Per Annum

Alevin Chan

Alevin Chan

Last updated 15 July, 2022

The UOB Car Loan isn’t the absolute cheapest car loan on the market, but it covers a wide network of dealers and popular car brands. Here’s a closer look at what this car loan offers.

The UOB Car Loan doesn't stand out in any particular way. 

It doesn’t offer the lowest interest rates, but it’s not on the higher end of the spectrum either. A large selection of car brands are covered, but the list is mostly made up of the usual suspects. It does have a partnership with Carousell, so that’s something to consider for those planning to look for their next set of wheels there. 

Okay, not terribly exciting for sure, but this also means that the UOB Car Loan is highly likely to be a good fit for most drivers — provided you can qualify for an interest rate that is not too punitive. 

Let’s take a closer look at what this car loan is all about. 

Product summary 

Item Details
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, per annum) UOB Car Loan: New - 2.68%, Used - 2.78%
UOB COE Car Loan: 3.25%
UOB Go Green Car Loan: 2.08%
Eligibility 21 years or older
Singaporean or Permanent Resident
Foreigners may apply with a guarantor
Payment methods Fund transfer, Telegraphic transfer, PayNow, Cash, Cheque, Cashier’s Order, GIRO 

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How much can you borrow, and for how long?

The UOB Car Loan lets you borrow up to 70% of the value of your car, or the Bank’s valuation, whichever is lower. 

The Open Market Value (OMV) of your vehicle will also have an impact. 

For models with OMV up to S$20,000, the maximum loan quantum is 70% of the car’s value.

However, for cars which have an OMV more than S$20,000, the most you can borrow is 60% of the value of the vehicle. 

You may choose a loan tenure between one to seven years. 

What is the interest rate of UOB Car Loan?

UOB Car Loan offers fixed interest rates for all three of its variations, as follows:

  • UOB Car Loan (for cars with internal combustion engines): 
    • 2.68% per annum for new cars
    • 2.78% for used cars
  • UOB COE Car Loan (for cars older than 10 years but not exceeding 11 years old at point of application): 3.25% per annum
  • UOB Go Green Car Loan (for electric cars): 2.08% per annum

In line with the current norms, loans for an electric vehicle are priced the cheapest, which is helpful in helping to offset the higher purchase prices such vehicles tend to have.

Paying your UOB Car Loan instalments

You may use any of the following methods to pay your loan instalments:

  • Fund transfer
  • Telegraphic transfer
  • PayNow
  • Cash
  • Cheque
  • Cashier’s Order
  • GIRO 

Pros and cons of UOB Car Loan

Pros Cons
Covers new and used cars, COE cars and electric vehicles Not the lowest-priced car loan on the market
FIxed interest rate for all loan tenures S$1,000 processing fee for change of instalment due date
Secure online application via SingPass  
Partnered with several popular car brands, Carousell  

Why should you choose UOB Car Loan 

While the UOB Car Loan isn’t the cheapest car financing option on the market, it is still quite competitively priced. Also, it offers the same loan quantum cap and tenures as its peers, so it should serve your needs just as well as any other car loan. 

The loan also covers a large selection of popular car brands, ranging from Japanese favourites like Nissan and Mazda to continental makers such as Audi and Cycle & Carriage. You can also make use of this loan if you’re buying a car from Carousell. 

Eligibility criteria for UOB Car Loan

  • 21 years and above
  • Singapore citizen or Permanent Resident
  • Foreigners will require a guarantor satisfying the above requirements

UOB does not display the minimum annual income needed in order to qualify for this loan. 

If you aren’t sure of your eligibility, it may be a good idea to contact your car dealer for clarification.

Charges and fees to note 

UOB doesn't publicly disclose a lot of the important fees and charges, but I was able to find this:

  • Processing fee for change of instalment date: S$1,000

Other important fees and charges to know include: 

  • Late payment charge
  • Loan processing fee
  • Early redemption fee

Be sure to clarify with your car dealer on the above items, as well any other charges and fees that you may be subject to.

How to apply?

You’ll need to apply for this loan through your car dealer or via Carousell (if that’s where you’re buying your car from). Those who have Singpass can use MyInfo for a smoother application process. 

Alternatively, you may download the Car Loan Application form and mail it in it to UOB directly, along with the required documents. See this page for more details


Read these next:
Your Go-To Personal Loans Guide in Singapore (Updated in May 2022)
Best Personal Loans For Low-Income Earners In Singapore
The Cost Of Owning A Car In Singapore (and How To Do It)
How To Calculate A Car Loan Payment In Singapore
Why Cars in Singapore Have Been Getting More Expensive (and Some Car Loans to Consider)

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.