UOB Car Loan Review (2024): Car Financing Starting From 2.78% Per Annum

Alevin Chan

Alevin Chan

Last updated 14 March, 2024

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 is 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. 

Table of contents

UOB Car Loan: 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 & Used (10 years and under) - 2.78% 
UOB COE Car Loan: 2.88%
UOB Go Green Car Loan: 2.48%
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 

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. 


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SingSaver Exclusive Promotion: Enjoy the following rewards when you sign up for a UOB Personal Loan:


Receive an Apple iPhone 15 128GB (worth S$1,311) or an Apple Bundle: Apple iPad 10th Gen 10.9 wifi 256 GB + Apple Pencil (USB-C) (worth S$878) or Dyson Airwrap™ multi-styler and dryer (Complete) (worth S$859) or a Morning Coffee Machine + 20 Capsules Bundle (worth S$684) or a Sony WF-1000XM5 (worth S$429) or up to S$1,220 cash when you get approved for a UOB Personal Loan with a min. loan amount of S$8,000 and tenure of 1 to 5 years. Applicable to new customers only. Valid till 8 September 2024. T&Cs apply.

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): 
    • 2.78% per annum for new and used cars under 10 years
  • UOB COE Car Loan (for cars older than 10 years but not exceeding 11 years old at point of application): 2.88% per annum
  • UOB Go Green Car Loan (for electric cars): 2.48% per annum

In line with the current norms, loans for an electric vehicle are priced the cheapest, which is helpful 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 

UOB Credit Card Welcome Offer: Receive up to S$350 Cash Credit or up to 50,000 miles when you apply for select UOB credit cards and fulfil the minimum spend requirements. Valid till 31 July 2024. T&Cs apply.

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  

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 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.

UOB Car Loan fees and charges

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

Car ownership in Singapore is very expensive. So it is smart to find ways to reduce the cost. One way is researching and finding a car loan with the most competitive interest rate. Another money-saving tactic is shopping for car insurance that provides the best benefits that match your driving needs at the lowest premium possible. Compare car insurance rates and coverage easily by filling up the form below.

UOB Car Loan early settlement

If you want to fully pay off your outstanding car loan with UOB early (known as early redemption), you will need to pay an early redemption fee.

The specific amount of the early redemption fee depends on your remaining loan amount and original loan length. For the most up-to-date fee amount, it's best to contact UOB directly.

To avoid surprises, plan ahead and get the exact early redemption fee amount from UOB before paying off your loan early.

You can request the total payoff amount needed for early redemption through:

  1. Calling the UOB Contact Centre at 1800-388-2121
  2. Emailing a written request to CarRedemptionRLOC@UOBgroup.com
  3. Faxing a written request to 6439 2604

How to apply for UOB Car Loan?

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.


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 choose to take up this loan if you’re buying a car from Carousell. 

Overall, the UOB Car Loan is a solid option for financing your next vehicle purchase. It may not have the absolute lowest rates, but it offers convenience and access to a wide range of car brands and models. If you're looking for a hassle-free way to finance your new car, the UOB Car Loan merits strong consideration.


Score up to S$300 cashbackS$280 petrol vouchers or up to 23% in discounts on your car insurance premiums when you purchase it via SingSaver.

Plus, get 1x chance to win Shell Petrol Vouchers (worth S$3,000) OR a Herman Miller Remastered Aeron Chair - Mineral Size A (worth S$2,470) OR a UBOX Slim Starter+ Package - 280W Slim Karaoke Speakers with 6.5" Subwoofer (worth S$3,696). T&Cs apply.



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.


Use a personal loan to consolidate your outstanding debt at a lower interest rate!

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