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| Auto Loan |
Congratulations! You are about to start off with
one of life's most exciting and memorable journey - buying your dream
car. At DBS, we are able to take the most complicated component of
vehicle purchase - your car loan - and make it SIMPLE & EASY!
Feel free to refer to Consumer Tips and check
out what you need to know about DBS car loan and our competitive
interest rate offer! |
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| DBS Car Financing Package |
Fixed Rate Flat Add-On Loan Scheme
This scheme allows you to plan your finances with certainty. Any
interest rate fluctuation will not affect your monthly repayment.
Eligibility
Applicable to both New / Used passenger vehicles.
Period of Financing
Maximum of 10 years. For used passenger vehicle, age of car plus
period of financing must not exceed 10 years.
Interest Rate
Fixed Rate Flat Add-On. Please refer to our Interest
Rate Offer.
Payment Schedule
Monthly instalment payable in advance.
Partial Redemption
Not available.
Full Redemption
Anytime. Please refer to Consumer Tips for more
details. |
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| Interest
Rate Offer |
| New Passenger
Vehicles |
| Period
of Financing |
Customer
Interest Rate |
Effective
Interest Rate (p.a.) |
| 1 year |
3.25% |
7.043% |
| 2 years |
3.25% |
6.666% |
| 3 years |
3.25% |
6.505% |
| 4 years |
3.25% |
6.396% |
| 5 years |
3.25% |
6.309% |
| 6 years |
3.25% |
6.234% |
| 7 years |
3.50% |
6.611% |
| 8 years |
3.50% |
6.540% |
| 9 years |
3.50% |
6.474% |
| 10 years |
3.50% |
6.412% |
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| CONSUMER TIPS |
Car Loan Under Hire Purchase
When DBS grants you a car loan, you are entering into
a "hire purchase". DBS owns the car until you have paid up
all amounts owed.
Terms & Conditions Under Hire Purchase
The terms and conditions will depend largely on the
price of your car:
- Price of car (exclude COE) <= S$55,000.00
- Terms and conditions are governed under Hire Purchase
Act
- Loan interest rate is computed on Fixed Rate Flat
Add-On basis
- Price of car (exclude COE) > S$55,000.00
- Terms and conditions are governed by Common Law
- Loan interest rate is computed on Fixed Rate Flat
Add-On basis
Interest Rate Computation Under Flat Rate Basis
Fixed Rate Flat-Add-On means that the interest rate
and your monthly loan instalment remain the same throughout
the duration of your loan. This protects you against any interest
rate fluctuations.
Illustration 1
Suppose you take a loan of S$50,000.00 over 7 years at an interest
rate of 3.50%. The computation would be as follows:
- Total interest payable over 7 years
S$50,000.00 x 3.50% x 7 years = S$12,250.00
- Monthly instalment
(S$50,000.00 + S$12,250.00) / 84 months = S$741.08
Computation For Loan Redemption
For any standard Hire Purchase car loan scheme, you
are required to pay all principal and interest that would have
accrued over the entire loan period. However, in the event
you decide to repay the outstanding loan before the loan period
ends, you will receive a rebate on the interest.
The interest rebate will be calculated by the method of Rule
of 78 less 20%. This is to cover some of the costs which the
bank will incur when a loan is repaid early.
Suppose your loan is S$50,000.00 over 7 years at 3.50%. If
you repay the entire loan outstanding after making 36 monthly
instalments, the computation is as follows:
| Computation For Loan Redemption |
| Original
Loan Amount |
S$50,000.00 |
| Total Interest (based
on illustration 1) |
S$12,250.00 |
| Total payable (principal
+ interest) |
S$62,250.00 |
| Less : instalment
paid (S$741.08 x 36) |
(S$26,678.88) |
Less : Rebate
of Unearned Interest
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(S$3,228.24) |
| Total amount
payable to bank to fully redeem your loan |
S$32,342.88 |
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+ Formula for Rule of 78 Method (less 20%)
| Where: |
| R |
represents the interest charges rebate |
| n |
represents the balance loan period expressed in months |
| N |
represents the original loan period expressed in months |
| TC |
represents the total amount of interest payable over
the loan period |
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