COE Renewal: In-House Loan or Bank Loan?

Man Signing COE Renewal Loan for his car

Singapore, as one of the busiest countries in the world, is also amongst the most expensive areas to live in. This is evident especially with how most Singaporeans cannot afford the luxury of even owning a car. Assuming you were able to purchase one, it’s also been revealed that while most car owners anticipate their next purchase after a long time with their most-loved vehicle, they refuse to do so.

This is because of the rising costs of its price, taxes and other contributing factors. This leaves most Singaporeans into considering to pay for the Certificate of Entitlement or CEO renewal to avoid their vehicle into being deregistered. However, would it be worth it if you choose in-house loan over a bank loan for your renewal? We’ll compare both deals to help you choose which one best suits in aiding your worries.

Bank COE Renewal Car Loans

Normally, the key factor between choosing a bank loan over an in-house loan is credit assessment, as in, with a bad credit score, it is almost unlikely to get a bank loan. Bank loan applications often take longer than an in-house loan to get approval. Industry experts usually tell clients that they have to wait for at least three working days.

Banks, however, normally offer attractive interest rates when compared to in-house COE renewal loans. Maybank, for example, offers an interest rate of 3.18 per cent, and Hong Leong Finance at 2.88 per cent.

Generally, it is not as easy to score a loan from these institutions as compared to an in-house loan, as your eligibility for a loan is taken into account. Rest assured, with banks, transparency and security are guaranteed. Moreover, most banks do not charge extra payment or administrative fees, unlike in-house deals.

But, keep in mind that banks do not accept direct COE renewal loan applications. You’ll have to go through an agent which provides the same interest rates as the bank.

In-House COE Renewal Car Loans

The procedure for in-house COE renewal car loans is usually much simpler. However, compared to banks, it attracts a higher interest rate, starting from 3 per cent, going up to as high as 4 per cent, depending on your loan amount and loan tenure.

Nonetheless, there are exceptions when promotional interest rates (as low at 1.88 per cent) are offered in order to attract more customers to take up an in-house loan, though the admin fees may be high. Borrowers or car owner can even take this loan even with a low credit score. It is also generally easier to get an in-house car loan as credit checks do not affect their decision to offer you a COE loan.

Other options to consider:

Availing a personal loan from licensed moneylenders like A1 Credit can help cover your next Certificate of Entitlement renewal. Note that A1 Credit’s personal loan is one of the most flexible deals in Singapore. You can easily enjoy purchasing big-ticket expenses and bills, more importantly, your car paper dues with its loanable amount ranging from $500 to $50,000.

This deal is open for Singaporeans and foreigners aged at least 18 years old with a minimum salary of $1,500 for locals and PRs while $2,000 for foreigners.

In order to qualify for a loan, these are the required documents:

For local and permanent residents,

  • Identity Card or NRIC
  • Proof of Residence (utility bill, a letter addressed to you and/or tenancy agreement)
  • Proof of Employment (a certificate of employment or three months payslip)
  • SingPass (for logging into CPF, HDB or IRAS)

Meanwhile, for foreigners,

  • Passport
  • A working permit or S-Pass or Employment Pass
  • Proof of Employment (a certificate of employment or three months payslip)
  • Proof of income (bank or account statement)
  • Proof of Residence (utility bill, a letter addressed to you and/or tenancy agreement)
  • SingPass (for logging into CPF, HDB or IRAS)

As it one of the finest and most dependable licensed moneylenders in Singapore, your application will be made private, secured and confidential. At the same time, it is guaranteed not to affect your credit score.

To successfully apply for its deals and get your money woes sorted within just a day:

Apply for your loan either via walk-in, a phone call over 6336 0833 or online via the website.

If you are seeing a loan over the phone, some preliminary questions will be made to weigh your eligibility. You will then be invited to come down to the office to get to know more about the process.

At the office, you are urged to ask queries and clarify doubts. You will also be required to present your documents, hopefully, for the verification. Upon analysing your case, the loan officer will then offer you an amount and enlighten the terms and conditions of the loan for an agreement and for the benefit of your understanding.

Borrowers then will proceed into signing an agreement of loan amount and repayment terms. The designated loan officer will print out your contract. Rest assured this will only take a few minutes.

Once your contract is signed, you will immediately receive the cash on the spot, hassle-free.

If you’re worried about how your bad credit history would affect your application:

A1 Credit will look into your current situation and repayment ability than your credit history. However, loans will not be offered to un-discharged bankrupts.

Some Deciding Factors to Take Note Of:

Should you have a good credit score, it is then ideal to consider taking up a bank loan for your COE renewal. This, however, leaves you with the hassle of handling all the paperwork required for taking up a loan, as well as the application process to renew your COE.

Above all, it is indeed much easier and convenient if borrowers make a comparison between the two, making sure you make the best choice according to your COE renewal loan needs.

 

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