Standard Chartered Bank Car Loan in Singapore
While Singapore’s transportation system is on top among other Asian countries, a lot of Singaporeans are still eyeing the convenience of having a car.
Now that there are various car loans in the market, purchasing a car has never been more affordable. You can easily get a car and drive it around while you are still paying for it. However, there are a lot to consider other than just the design and brand of a car.
You need to take your time shopping for the right car loan. Let’s take a look at Standard Chartered Bank Car Loan here in Singapore.
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Standard Chartered Car Loan Documents Required
Just like any other banks, Standard Chartered Bank has a strict policy when it comes to the required documents. Your documents must be complete and the photocopies have to be clear.
Standard Chartered Bank requires its car loan applicants to submit proper identification documents, proof of income, Sale and purchase agreements, Application for Hire Purchase, and Vehicle registration card or Log card.
If you are a foreigner, you can still apply for a car loan if you can present additional documents such as your proof of address. Giving complete requirements can make you loan process faster.
Standard Chartered Car Loan Interest Rates
Unlike other loans that can charge after a certain period of time, Standard Chartered Bank offers fixed interest rates for the whole duration of your loan term. You can now choose a term of up to seven (7) years. This is after the Monetary Authority of Singapore (MAS) had eased its regulations with car loans. This made the car loans in Singapore more affordable because longer terms can lower the amount of monthly instalments.
Standard Chartered Car Loan Fees and Charges
You also need to consider the car loan’s fee and charges before you choose the one that fits your needs. This also gives you the idea on how much you will have to pay in case you have not met what was said in the loan contract.
The late payment fee will be charged every month you fail to pay your instalment. Not much? Well, aside from the late payments fee, your unpaid monthly instalment will also be charged with 12% p.a. interest rate.
Let’s say the opposite happened. You want to settle the loan ahead of the maturity date. You would think that the bank will be happy to pocket your money and close the loan. Apparently, banks such as the Standard Chartered Bank will give a penalty to those who did not follow the agreed contract may it be late payments or early completion.
Should you decide to voluntarily settle your loan, you will need to pay 20% of outstanding interest in addition to 1% of balance payable. This is why you need to choose the right loan term for you.
Standard Chartered Car Loan Calculator
How will you know the estimated amount of your monthly instalments? And is it even really important?
Nowadays, banks and other financial institutions provide easy to use loan calculators to help borrowers have an idea on how much they have to pay in case their requested loan amount has been approved. With this, the borrower can see if the monthly repayments can be met without sacrificing the basic needs.
The loan calculator can also help you decide the number of years you want to pay your car loan. this will help you avoid the prepayment charges too.
5 Smart Questions to Ask on Standard Chartered Bank Car Loan
- How much financing should you apply for?
Using an online car loan calculator can help you decide the right amount of financing. Choose the amount that you really need with the monthly instalment that you can handle at least. Remember that you are getting a loan to have a better life, not to go deep into debt.
Another thing to consider is your savings. How much downpayment are you willing to pay off? It is best to pay as much downpayment as you can. This will lessen the amount that you have to borrow and the interest charge you need to pay.
- What are the first steps when purchasing a car with Standard Chartered Bank Car Loan?
When purchasing a car, it is best to get as much knowledge about the car you need and the possible expenses you need to handle as a car owner. While a car gives convenience, it also has to be well maintained, refuelled and taxed.
Can you handle additional expenses on top of your current finances? If so, then you can go on and visit car dealers. Check the available makes and models. Read about these units and consider which one is best for your needs.
- How does the Standard Chartered Bank Car Loan charge its interest?
The usual practice among banks is typical to charge what is known as a “flat” or “applied” interest rate. It is assumed that the Amount Financed is constant throughout the loan term. Multiply the loan amount, the Applied Interest Rate and the number of years (Loan Term). This is your total interest to be paid throughout the duration of the loan.
Amount Financed x Applied Interest Rate x Hire Period = Total interest
- Are there any charges for early settlement of Standard Chartered Bank Car Loan?
Should you decide to prematurely settle your car loan, you will be charged with an early completion fee of 20% of outstanding interest on top of the additional 1% of balance payable.
- What to consider if you are financing a used car with Standard Chartered Bank Car Loan?
Standard Chartered Bank Car Loan lets you purchased a used car, however, there are other things that you need to check before you apply for a loan. You must have the car appraised to know its current value. This will help you know how much you have to borrow. Know when you have to repay the Road Tax and when to renew the COE registration. All these will incur expenses aside from the car loan fees and interest charge.
When getting a car loan, you need to be realistic with the money you have to borrow and the amount you can handle. There might be a fine line between your wants and needs, but remember that whatever you borrow now has to be paid with interest and other fees in the future.
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