Standard Chartered Auto Financing

Standard Chartered Auto Financing Review 2023: A Decent Car Loan Back-up

Even if Singapore has an enviable public transport network, none can compare to driving your personally-owned car. But acquiring a vehicle is not only heavily restricted but also costly. Standard Chartered Auto Financing can help the financial burden by providing reasonable loan rates.

Standard Chartered does not provide the lowest rate on the market, but its interest rate is still better than most other banks. Having a vast distribution network is also a plus. In almost any car dealer across the island, you can have them finance your auto purchase.


Standard Chartered Auto Financing Hire Purchase Plan

Loan Tenure New Cars Used Cars
12 to 84 months 2.48% per annum 2.78% per annum


How Standard Chartered Auto Financing Works

Standard Chartered essentially provides two types of car loans – for new cars and used cars.

Here is a sample computation of a car loan to give you an idea of the cost of borrowing:

New Car Used Car
Loan Amount S$50,000 S$50,000
Loan Tenure (months) 84 84
Interest Rate 2.48% 2.78%
Monthly Installment S$699 S$712
Total Amount S$58,716 59,808
Total Interest S$8,716 S$9,808


One thing that you need to understand about the interest rates of car loans is that they are “flat” rates.

Other loans, such as home loans, use “rest” rates. The interest accrued is only on the remaining principal balance after each monthly installment. In each subsequent payment, the amount paid to interest decreases while the payment to the balance increases.

Flat rates used in car loans, on the other hand, mean that the accrued interest is pegged to the initial loan amount. Towards the end of the tenure, you are still paying the same amount of interest as the first month. Consequently, you end up paying more interest with flat rates compared to rest rates.

In Singapore, unfortunately, all auto financing uses flat rates. Click here to read more on the comparison of the best car loan interest rates. 


Key Features of Standard Chartered Auto Financing

  • Applying for a car loan with Standard Chartered is easy
  • Flexible repayment terms with tenures from 12 to 84 months
  • Competitive interest rates, especially for brand new cars
  • A vast network of car dealers all over the country
  • Multiple payment channels for your convenience


Advantages and Disadvantages of Standard Chartered Auto Loans

Financial institutions create car loan packages meant to entice the most number of new customers. Depending on needs, availability, and many other factors, a loan that is perfect for some may not be the best for others.

At any rate, before having Standard Chartered finance your upcoming car purchase, it is best to consider both the positive and negative merits.


  • Competitive Interest Rates. At 2.48% per annum, Standard Chartered offers one of the lowest car loan interest rates for new cars.
  • Wide Distribution Network. The chances are high that you can have Standard Chartered finance a car purchase at your preferred dealer.


  • Not the Lowest Interest Rate. As of this article’s posting time, OCBC offers a lower interest rate than Standard Chartered. Nonetheless, SC (and Hong Leong Finance) offer better rates than all other large banks in Singapore.
  • No Green Car Loan. At this time, Standard Chartered does not have special rates for green or eco-cars. Other banks offer 1.68% per annum, with UOB offering the lowest at 1.28% per annum.


How Standard Chartered Auto Financing Compare to Others

This section compares the Standard Chartered with the top banking institutions in Singapore offering car loans.

1. Published Interest Rates of Car Loans

New Cars Used Cars Green Cars
OCBC 2.28% 2.28% 1.68%
Standard Chartered 2.48% 2.78% n.a.
Hong Leong Finance 2.48% 2.78% 1.68%
UOB 2.68% 2.78% 1.28%
DBS 2.78% 2.78% 1.68%
Maybank 2.78% 2.78% 1.68%

Note: The above rates are the published rates taken from each bank’s website.


2. Published Effective Interest Rates of Car Loans

Bank/Tenure Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
OCBC 4.18% 4.32% 4.35% 4.34% 4.33% 4.31% 4.29%
UOB 4.91% 5.06% 5.09% 5.08% 5.06% 5.04% 5.01%
Hong Leong Finance 5.38% 5.11% 5.00% 4.92% 4.86% 4.82% 4.77%

Unfortunately, not all banks – including Standard Chartered – published their effective interest rates. Only three – OCBC, UOB, and Hong Leong Finance – did.

Aside from interest, the cost of car loans also includes many other fees. For that reason, you should look at the published interest rates as mere indicators. A better measure is to look at the effective interest rates. EIR, for short, takes into account the interest and all other charges.

What happens if you only compare the interest rates?

Granted that you and the dealer can work with all the above-listed banks, you will choose the one offering the lowest rate. But instead of paying the least amount of money, you may end up paying more than another bank with a higher published interest rate.

Looking at the above tables:

  • Hong Leong Finance is offering 2.48% per annum
  • UOB is offering 2.68% per annum

But when you compare their effective interest rates, UOB with higher interest rates has lower effective interest rates for 1- and 2-year loan tenures.


3. Estimated Effective Interest Rates of Standard Chartered New Car Loan

For Standard Chartered, we could only make estimated effective interest rates.

Tenure Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Effective Interest Rates % 4.55% 4.69% 4.72% 4.71% 4.70% 4.68% 4.65%


Both Standard Chartered and Hong Leong Finance offer the same 2.48% per annum interest rate on auto loans for new cars. While the actual cost of borrowing from Standard Chartered may be lower, the above are only estimates.

For more accurate information, you would have to get the most updated details from the bank.


Cars in the parking lot

What We Think of Standard Chartered Auto Financing

First of all, we think Standard Chartered is transparent in publishing their interest rates on their car loan page. Not all banks do that. Some, like DBS and Maybank, buried the rates deep. On this note, we also wish Standard Chartered published their effective interest rates.

As things stand, the total cost of a car loan from OCBC is lower than Standard Chartered. SC, in this regard, should be your second choice. If your preferred car dealer cannot process OCBC loans, then go with SC.


How to Apply for Standard Chartered Auto Financing

There are a couple of ways you can apply for a car loan.

  • Apply directly from Standard Chartered – at a branch or online.
  • Have the car dealer help you with the application


Identification Documents Required

Singapore Citizen:

  • Copy of NRIC (front and bank)

Singapore Permanent Resident:

  • Copy of Passport


  • Copy of passport
  • Copy of Employment Pass
  • Any of the following:
    • Latest utility bill (electricity, water, or refuse collection), rates, or tax bill
    • Latest bank or credit card statements (including e-statements)
    • Copy of rental agreement showing address
    • Latest mobile phone or pay-TV statements
    • Letter from employer stating the current address
    • Government-issued documents (IRAS, CPF, or ICA) showing address


Income Documents Required

Any of the following:

  • Copy of latest Income Tax Notice of Assessment (2 years for Self-employed)
  • Copy of latest one-month computerized payslip from current employer
  • Copy of latest 12-month CPF Contribution Statement


Other Documents Required

  • Sales and purchase agreements
  • Vehicle registration card/Log card
  • Application for hire purchase


Fees and Other Charges

Late Payment Fee S$60 for each late payment
Late Payment Interest 12% per annum on the overdue amount monthly
Early Completion Fee -na-
Within 12 Months from Commencement Date 20% of outstanding interest + 1.5% of the balance payable
12 Months or More from Commencement Date 20% of outstanding interest + 1% of the balance payable
Photocopy of Hire Purchase Agreement/Log Card S$53.50


Frequently Asked Questions (FAQ)

1. How much car loan can you avail of or the maximum car loan amount?

The maximum amount of loan you can take out depends on the car’s purchase price or open market value (OMV).

For cars worth less than S$20,000, you can borrow up to 70%. But if the car’s value is more than S$20,000, the maximum car loan is only 60%.

If possible, try to pay more upfront to lower the principal loan amount. This way, you pay less interest. While at it, do consider a shorter hire period. The longer the tenure, the smaller the monthly installments, but the more the total cost.

2. Should you get a Standard Chartered or a car dealership auto loan?

The only reason why you should even consider a car dealership loan is if you have a bad credit score. Your credit history not only affects the chances of getting approved. Suppose the bank did approve your application. Your interest rate may be higher than the published rate.

For reference, the interest rates of car loans from dealers range from 3.7% to 4.5% per annum.

3. Can you refinance your car with Standard Chartered?

Yes, you can. For details, you would have to contact the bank.


Conclusion: Standard Chartered Car Loan Is a Good Back Up Plan

Standard Chartered offers among the most competitive car loan rates. Nonetheless, they have the most expansive network of car dealers. Suppose you could not get a loan from another institution offering lower rates. In that case, SC can serve as an excellent alternative. Check out the best car loans in Singapore here.

Key Highlights:

  • It is easy to apply for a Standard Chartered auto loan.
  • Be sure to compare effective interest rates before choosing.
  • For eco-cars, you would have to find another financial institution.

Finding the best auto loan rate is challenging because banks do not disclose complete details, such as publishing effective interest rates. If you have trouble making comparisons, then request three quotes from Instant Loan!

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