Maybank Car Loan

Maybank Car Loan Review 2021: Good Back-Up Option For Low-Income Borrowers

Getting your own car is one of the most useful and lasting possessions you will have in your lifetime, alongside a house. But just like getting a house, nobody normally has the money to buy a car in one, single payment. So for people aiming for vehicle ownership, you would need a car loan, and Maybank has one for you.

Maybank’s interest rates are middling when compared to car loans from other banks found in Singapore. This doesn’t mean it’s a bad choice, but it’s better to look at it as a non-priority option and chosen only if you are not approved for other sources of vehicle financing. Click here to read more on the comparison of the best car loan interest rates in Singapore here. 

 

Key Features

  • You can get fixed interest rates of 2.78%.
  • The loan term ranges from 1 to 7 years.
  • The maximum loan amount is 60% to 70% of the vehicle’s purchase price or open market valuation price, whichever is lower.
  • You can make GIRO payments.
  • While partial redemption is not allowed, you may go for an early settlement.

 

Maybank Car Loan Interest Rates

Assuming you get a car financing from Maybank at S$40,000, your monthly instalments will be as follows:

Loan Tenure Interest Rate Monthly Instalment Total Loan Cost
1 year 2.78% S$3426.00 S$1,112.00
2 years 2.78% S$1759.33 S$2,224.00
3 years 2.78% S$1,203.78 S$3,336.00
4 years 2.78% S$926.00 S$4,448.00
5 years 2.78% S$759.33 S$5,560.00
6 years 2.78% S$648.22 S$6,672.00
7 years 2.78% S$568.86 S$7,784.00

 

The Pros and Cons of a Maybank Car Loan

Pros

  • Flat Interest Rates
    Like most car loans, Maybank car loans charge a flat interest, which means you make consistent monthly payments based on your principal.
  • Free Credit Report
    You can obtain a free credit report from the Credit Bureau (Singapore) within 30 calendar days from the application’s date of approval or rejection.
  • Loans for COE cars
    Maybank car loans not only cover used and new cars, but they also cover COE cars that are less than 20 years of age.
  • Low-income requirement
    Maybank has an income requirement of S$1,500 for both their citizens and foreigners.
  • GIRO payments viable
    You can make convenient cashless payments through your bank account. Fees may or may not apply.
  • Early settlement allowed
    If you opt for an early settlement, you must pay a charge of 20% of the total term charges, settle the prepayment fee of 1% of the principal amount, and send a 30-day notice in advance of the settlement date.

Cons

  • Comparatively high-interest rates
    Compared to car loans from other banks, Maybank has noticeably higher rates.
  • Partial redemption not allowed
    Maybank does not allow partial redemption.

 

How Maybank Car Loans Compare to Other Bank Car Loans

Bank Car Loan Interest Rate Minimum Annual Income Requirement Minimum Loan Amount Maximum Loan Amount Loan Tenure Range Monthly Instalments
Maybank Car Loan 2.78% S$1,500 S$10,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 years S$759.33
DBS New Car Loan 2.78% S$2,000 S$10,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 years S$759.33
DBS Used Car Loan 1.99% S$2,000 S$10,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 years S$733.00
Hong Leong Finance New Car Loan 2.48% not listed S$10,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 years S$749.33
Hong Leong Finance Car Loan 2.78% not listed S$10,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 years S$759.33
OCBC Car Loan 2.28% not listed S$15,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 years S$742.67
UOB New Car Loan 2.68% not listed S$10,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 years S$756.00
UOB Used Car Loan 2.78% not listed S$10,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 years S$759.33

 

Monthly payment amounts are based on a S$40,000 quantum and a tenure of 5 years. You may use an online car loan calculator to compute for other amounts.

 

What We Think of Maybank Car Loans

Maybank’s car loans lose out to other banks when it comes to interest rates for financing cars. While this may be a liability, Maybank does win out on its income requirement. This makes Maybank’s loans a viable backup option if you can’t get approval from other bank loans.

In addition, Maybank’s car loans allow you to buy COE cars provided that the vehicle in question is less than 20 years of age.

 

Car Parking Lot

How to Apply for Maybank Car Loans

Eligibility

  • 21 years and above
  • Open to Singapore Citizens, Singapore Permanent Residents, and Foreigners with Employment Pass (with a local guarantor)
  • Minimum monthly income of S$1,500

Requirements

Maybank’s website currently does not list the required documents but will likely require you to complete an application form and provide documents proving your identity, income, and employment.

  • Photocopy of NRIC/Passport
  • Computerised payslip
  • CPF Statement of Account
  • Latest Income Tax Notice of Assessment
  • Transfer of Vehicle Ownership (if applicable)

Fees

  • Cashier’s Order: S$5.00
  • Copy of Hire Purchase Agreement: S$30.00 (first free)
  • Early Settlement Fees: 20% interest rebate + 1% of the principal + 1-month interest instead of notice.
  • Late Payment Fees: S$80 (for each late payment)
  • Late Interest Charge: 5% per annum above bank’s Prime Lending Rate (current rate 5.25%) prevailing from time to time
  • Other fees apply for Maybank-specific documents

 

FAQs

1. What is Maybank Hire Purchase Car Loan?

It is a type of transaction that allows you to use the car even if the whole amount is still being paid in instalments. Only when the debt is settled can ownership be transferred to you.

Eligibility depends on the amount after deducting the COE price. If the COE has been deducted from the vehicle purchase price and the difference does not exceed S$55,000, then you will be classified under the Hire Purchase Act.

If the difference is higher than S$55,000, you are classified under the common law and not the Act.

2. How much can I borrow with a Maybank Car Loan?

The actual amount will greatly depend on whichever is lower between the Open Market Valuation price (OMV) or the listed price of the car you want to buy.

If the vehicle’s open market value is less than or equal to S$20,000, you can get as much as 70% of the listed price. If the vehicle is priced more than S$20,000, you can only get up to 60% of the listed price.

If you have a discount, rebate or any other benefits, these will first be deducted from the OMV. The loanable amount will depend on what has been left on the OMV.

3. How can I check my Maybank Car Loan balance?

If you are registered, you can log in to Maybank Online and Mobile Banking to view your details online.

4. How do I pay my Maybank Car Loan?

You can make payments in three different ways: GIRO, cheques, or cash deposits. You may get the details here.

5. Can foreigners get a Maybank Car Loan?

Yes, a foreigner may apply for Maybank’s car loans provided they have a local guarantor.

6. Can I use personal loans instead to buy a car?

Yes, the personal loan’s flexible nature allows it to be used for making different purchases, including cars.

 

Our Final Thoughts

  • Maybank’s interest rates are in the average range, meaning other options may be worth considering before trying them out.
  • The lower eligible monthly salary makes Maybank a viable choice for borrowers with lower income.
  • Consider other financing options to help you buy a car, like personal loans.
  • You must consider the state of your finances when choosing a financing option.

You might like to consider the services of Instant Loan if you are having trouble choosing a financing option. Using the service, you will be presented with a curated list of the three best offers from the top licensed moneylenders in Singapore based on your financial situation. Check out the best car loans in Singapore here.

Compare your options quickly and easily, and get your most ideal financing choice today!

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