Standard Chartered Bank Car Loan is ideal for a car purchase in Singapore. Use this article as a guide. Ask these questions before proceeding.
While Singapore’s transportation system is on top among other Asian countries, many 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 quickly get a car and drive it around while still paying for it. However, there is a lot to consider other than just the design and brand of a vehicle.
It would be best to take your time shopping for the right car loan. Let’s look at Standard Chartered Bank Car Loan here in Singapore.
Standard Chartered Bank has a strict policy regarding the required documents like any other bank. Also, your paperwork must be complete, and the photocopies must be precise.
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 to present additional documents such as your proof of address. However, giving complete requirements can make your loan process faster.
Unlike other loans that can charge after a certain period, 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. After the Monetary Authority of Singapore (MAS) had eased its regulations with car loans. It made the car loans in Singapore more affordable because longer terms can lower the number of monthly instalments.
You need to consider the car loan’s fee and charges before choosing the one that fits your needs. Also, it gives you an idea of how much you will have to pay if you have not met the loan contract.
They will charge the late payment fee for every month you fail to pay your instalment.
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. Instead, banks such as the Standard Chartered Bank will penalty those who did not follow the agreed contract, whether late payments or early completion.
Should you decide to settle your loan voluntarily, you will need to pay 20% of outstanding interest in addition to 1% of the balance payable. That is why you need to choose the proper loan term for you.
How will you know the estimated amount of your monthly instalments? And is it even imperative?
Nowadays, banks and other financial institutions provide easy-to-use loan calculators. It helps borrowers know how much they must pay if their requested loan amount has been approved. With this, the borrower can see if he can meet the monthly repayments without sacrificing the basic needs.
The loan calculator can also help you decide the number of years you want to pay your car loan. Also, it will help you avoid the prepayment charges too.
Using an online car loan calculator can help you decide the right amount of financing. Choose the amount you need with the monthly instalment that you can handle. 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. It will lessen the amount you have to borrow and the interest charge you need to pay.
When purchasing a car, it is best to learn about the car you need and the possible expenses you need to handle as a car owner. For example, while a vehicle gives convenience, it must 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.
Banks’ usual practice is typically to charge what is known as a “flat” or “applied” interest rate. The Amount Financed is constant throughout the loan term. Multiply the loan amount, the Applied Interest Rate and the number of years (Loan Term). It is your total interest to be paid throughout the loan period.
Amount Financed x Applied Interest Rate x Hire Period = Total interest
Should you decide to settle your car loan prematurely, you will charge an early completion fee. It is 20% of outstanding interest on top of the additional 1% balance payable.
Standard Chartered Bank Car Loan lets you purchase a used car. However, there are other things that you need to check before you apply for a loan. First, you must have the vehicle appraised to know its current value.
Also, it will help you know how much you have to borrow. Know when 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 charges.
When getting a car loan, you need to be realistic with the money you have to borrow and your handling amount. 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.