Maybank has started its venture in 1960. Currently, it has been recognized as one of the domestic systemically important banks in the city-state. The extensive financial products range from insurance to investments.
Since Maybank is known for its easy banking for individuals and corporates. It has offered competitive loans just like the other major banks in Singapore.
Maybank Car Loan Eligibility
Maybank offers car loans to Singapore Citizens, Permanent Residents, and foreigners who have a proper Employment Pass. Aside from this, foreigners must also have a local guarantor. All applicants for the car loan must be at least 21 years old.
So do you think you are qualified? Before you apply for the Maybank Car Loan, you need to know these five (5) facts.
- Maybank Car Loan Amount
The actual amount of the loan will greatly depend on the Open Market Valuation (OMV) of the car you want to purchase.
If the vehicle’s open market value is less than or equal to S$20,000, you can borrow as much as 70% of purchase price. If the vehicle costs more than S$20,000, you can only get up to 60% of purchase price. In case you’ve got some discount, rebate or any other benefits offered by Maybank, these will first be deducted from the OMV. Then the loanable amount will depend on what has been left on the OMV.
- Maybank Car Loan Tenure
Maybank also gives car loans to those who wants to buy used cars. One thing that can affect your loan tenure is the age of the car. If the vehicles are less than 10 years upon the loan maturation, your loan tenure can stretch up to seven (7) years.
If the vehicle is older than 10 years of age upon the maturity of the loan, the tenure you can get is maximum of four (4) years for revalidated COE of five (5) years. If the COE is revalidated COE of 10 years, then the loan tenure can be up to seven (7) years.
Take note that the age of the vehicle must not exceed 20 years upon the settlement of the loan.’
- Maybank Car Loan Interest Rate
Maybank Car Loan has a fixed interest rate which can be as low as 3.25% per annum. To calculate your monthly hire purchase installments with the flat rate of interest, you need to follow these steps:
- Multiply the principal amount of finance by the interest rate. Let’s say your loan amount is S$15,000 with the interest rate of 3.25%. Your loan tenure is 7 years.
S$15,000 x 3.25% = S$487.5 x 7 = S$3,412.5
- Add the figure you’ve got with the principal amount. This will be your total amount payable.
S$15,000 + S$3,412.5 = S$18,412.5
- Divide the total amount payable by your tenure (in months)
S$18,412.5 / 84 months = S$219.20 a month
- Maybank does not allow partial redemption
The partial redemption is not allowed by Maybank, but you can do early settlement. However, take note that there are certain conditions.
- If you opt for an early settlement, you must pay a charge of 20% of the total term charges.
- Also, aside from the 20% charge, you will also have to settle the prepayment fee of 1% of the original loan amount of the loan.
- You must also send a 30-day notice in advance of the settlement date.
- You might not be classified under the Hire Purchase Act
If the COE has been deducted from the purchase price and the amount does not exceed S$55,000, then you will be classified under the Hire Purchase Act. If the amount is higher than S$55,000, then you are classified under the common law and not the Hire Purchase Act.
The Hire Purchase is a transaction that gives you the right to use the car even if the whole amount is still being paid in installments. Simply, you can immediately enjoy the vehicle while paying through monthly installments. Upon the settlement of the loan, the ownership can then be transferred to you.
Getting a car is not just looking for the vehicle unit. You must find the best car loan to finance your car to make sure that you can purchase it without sacrificing your basic needs.
Maybank car loan may be a good choice for some, but it is not a one-size-fits-all. Take the time to shop around for other options and consider the other fees involved. Ask questions as much as possible to know all the facts you need.
If you need additional cash for the downpayment, Cash Mart can help you out. Call Cash Mart today to find out how.
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