UOB Car Loan

UOB Car Loan Review (2023): Best for New or Used Car Buyers

If you’re purchasing a new or used car, you need a car loan that offers good interest rates and flexible loan tenure terms – and the UOB Car Loan is exactly that. With UOB Car Loans, you can borrow up to 70% of your car purchase price or the bank’s valuation price, whichever is lower, and get your loan approved lightning-fast, too. 

That said, car dealer coverage might be a little broader with other Singapore banks – especially if you want a unique car like a new Jaguar I Pace, or the ability to shop around at a wide network of car dealers.


UOB Car Loan Types – What Loans Are Available? 

United Overseas Bank (UOB) is currently offering its regular car loan product to either new or used car buyers. On top of this, the bank is also advertising a specialist UOB COE Car Loan for COE Cars and a UOB Go Green Car Loan for green and electric cars, too. 

1. UOB COE Car Loan

This is a great option for drivers who are simply in love with their existing vehicle and would like to apply for a Certificate of Entitlement to finance it for a few extra years. 

2. UOB Go Green Car Loan 

Conversely, this is a safe bet for anyone who would like to reduce their carbon footprint by purchasing a “green” or electric vehicle, like a new Jaguar I Pace.  And fund this purchase with a green car loan that offers additional perks to eco-conscious buyers.

As the majority of drivers here in Singapore will most likely be looking at getting a standard UOB Car Loan, let’s take a look at how UOB loan terms can differ depending on whether you are financing a new car or a used car. 


UOB loan terms for new or used car

The table below uses a 5-year loan tenure and $40,000 loan amount as an example to show how interest rates, your maturity period, and the total amount you will ultimately pay could differ depending on your car type and circumstances:

Type of Car Loan Amount Loan Tenure Interest Rate / EIR Monthly Payment Total Cost
New Car $40,000 5 years 2.68% p.a

5.06% p.a effective interest rate

$756 $62,748
Used Car (aged 10 years or less) $40,000 5 years 2.78 p.a

5.43% p.a effective interest rate

$760 $63,080


Key Features of the UOB Car Loan

1. Attractive Interest Rates

Get an interest rate of 2.68 p.a or 2.78 p.a depending on whether you’re financing a new car or used car.

2. Borrow Up to 70% of the Purchase Price

Secure a loan quantum of either 70% of the purchase price or the bank’s valuation price (whichever is lower).

3. Fast Processing Times

Get your loan approved super-fast with a wide network of car dealers all across Singapore

4. Easy Repayment Schedule

Pay a fixed repayment amount and interest rate each month over the course of your agreed loan tenure.

5. Skip Income Document Checks

Apply for a car loan through your Car Dealer using MyInfo to avoid having to prepare complex income documents alongside your application.


UOB Car Loans Pros and Cons

Now, let’s also take a look at some of the key advantages and disadvantages of applying for this kind of loan:


  • Fast processing and loan application times
  • Wide network of participating car dealers
  • Repayment and fee structure is transparent and very clearly defined by UOB Bank


  • Other financial products might offer better interest rates and/or a lower total cost overall
  • If foreigners apply for a car loan with UOB, a local guarantor will be required (you must provide details on your application form)
  • A green car loan may offer more additional perks if you are purchasing an eco-friendly or free charging vehicle


How Does the UOB Car Loan Compare to Competitors? 

It’s always important to compare financial products whenever you’re considering taking out car loans or any other type of loan. Each service provider will offer different terms to the next when it comes to the loan amount or loan quantum limits, interest rates, and the total cost of repayment. 

The table below compares some of the best car loans available in Singapore right now, with average costs based upon taking out a $30,000 loan quantum over a period of 5 years.

Bank / Car Loan Type Interest Rate Minimum Loan Amount Maximum Loan Tenure Typical Monthly Instalment (Based on $30,000 loan amount with 5 year loan tenure)
UOB Car Loan 2.68% p.a (new car)

2.78% p.a (used car)

$10,000 7 years $557
DBS Car Loan 2.28% $10,000 7 years $557
Hong Leong Finance Car Loan 2.28% $10,000 7 years  $557
Maybank Car Loan 2.28% $10,000 7 years $557
OCBC Car Loan  2.28% $15,000 7 years  $557
Standard Chartered Auto Financing 2.28% $10,000 7 years  $557


What We Think of the UOB Car Loan 

As the table above demonstrates, UOB’s flagship car loan product offers good loan tenure terms, as well as competitive monthly repayment and total cost expectations. 

That said, car owners should note that other banks and financial institutions tend to offer slightly more affordable car loan interest rates. This is particularly true if you intend to purchase a used car using your car loan. 

Another point worth mentioning is that United Overseas Bank PTE LTD (UOB) isn’t currently offering its regular car loan product to company car users right now. 

Car owners who’d like to apply for a car loan should think carefully about the type of car they are financing, as many financial institutions offer special rates on highly specific loans that are dependent on certain car details, such as whether your vehicle is electric or free charging, or whether it falls under the “COE cars” category. 

It’s often possible to get a better deal if you spend a little extra time comparing financial products using Instant Loan and other comparison sites, too.


Car parking lots

How To Apply for a UOB Car Loan Today

If you’d like to apply for a UOB Car Loan, you can do this online here. However, it’s important that you are able to meet the eligibility criteria set out by UOB Bank first. Here are the key things you need to know about eligibility:

Eligibility Requirements 

  • You must meet the minimum age limit of 21 years old
  • You must ideally be a Singapore Citizen or Singapore Permanent Resident
  • If you are applying as a foreigner, you will need to provide details of a local guarantor alongside your loan application form 

Unless you are applying for your car loan via MyInfo (i.e. through your car dealer), you will also need to prepare your ID and the following income documents:

Documents Required

  • Identity Card
  • Passport
  • Work permit (for foreigners only)
  • Income Tax Notice of Assessment
  • Last 6 months’ computerized pay slips
  • Last 6 months’ CPF contribution statement
  • Vehicle Sales Agreement (if applicable)

Just as with personal loans, home loans, and other financial products, all car loans have a fee structure that you’ll need to agree to when you submit your loan application. Below are the main fees charged as part of UOB’s regular car loan:


  • Interest – 2.68% p.a. to 2.78 p.a interest rate (4.91% p.a to 6.04% p.a effective interest rate)
  • You can use the UOB Loan Calculator tool here to determine what kind of monthly repayments and fees you can expect in your unique situation.


Final Thoughts – Is a UOB New or Used Car Loan Right for You?

UOB’s flagship car loan is a great product for anyone who wishes to fund the purchase of a new car or used car here in Singapore. That said, better interest rates are available elsewhere, and there are other banks on the market that might be able to offer you a better deal depending on your car type and loan requirements. 

Before applying for car loans with UOB, you should:

  • Compare interest rates, minimum and maximum loan limits, credit score requirements, and other features between different providers to find the most suitable car loan for you
  • Get a valuation price for your vehicle to find out how much you will be allowed to borrow – and for how long
  • Prepare your income documents, ID, Income Tax Notice of Assessment and more before you fill in your loan application

Here at Instant Loan, we like to keep our readers fully up to date on everything there is to know about loans – from personal loans and home loans to car loans and other financial products. 

If you’re looking for a personal loan or car loan, you can get your hands on up to three free quotes from financial institutions in a matter of seconds using Instant Loan’s loan comparison service. 

Send us a request today!

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