Get Your Dream Bike: A Guide to Motorcycle Loans in Singapore

motorcycle loan singapore

In Singapore, the cost of a motorcycle can vary widely, with some models priced under S$20,000. Vespa can cost around $19,000, while Honda and Yamaha offer bikes below $10,000. 

Due to the high cost of owning a vehicle in Singapore, many opt for motorcycle loans to make the purchase more manageable. Loans allow buyers to spread the cost over time, making it easier to afford a bike without a large upfront payment.

Learn how to navigate the loan process, compare different options, and ultimately choose the right loan to make your dream bike a reality.

Types of Loans Available for Motorcycles in Singapore

When buying a motorcycle, you can choose from direct, indirect, and in-house financing options. 

  • Direct financing involves getting a loan directly from a bank or financial institution, often with lower interest rates but more effort required from the borrower. 
  • Indirect financing involves applying for a loan through a third-party institution, which is easier but may have higher rates. 
  • In-house financing is provided by the manufacturer or dealership, with varying rates and terms. 

Where to Get a Loan

Please note that we have no affiliation with other entities mentioned below and our recommendations are impartial, based on thorough research.

Banks

Major banks, such as DBS, UOB, OCBC in Singapore offer personal loans that can be used for purchasing motorcycles. These loans typically require a good credit rating and may involve providing collateral.

Personal Loan from Licensed Moneylenders

If you have a bad credit rating or do not want to put down collateral, you could consider taking a personal loan from us at A1 Credit, a licensed moneylender. This is an unsecured loan that can be used for almost any purpose, including purchasing a motorcycle.

Third-Party Platform

There are several third-party institutions in the market. Motorist.sg offers buyers the opportunity to obtain a full loan for motorcycle purchases. The full loan amount will be covered by them, as long as you possess a credit card from either POSB or OCBC.

Dealers

The dealers below may offer motorcycle loans or financing options. However, it’s recommended to contact them directly or visit their websites for detailed information on their financing services.

Dealer NameLocationPhone Number
Gusto 2 Wheels Pte. Ltd.25 Kaki Bukit Rd 4, #01-73, Singapore 417800+65 9248 2328
Speedzone13 Kaki Bukit Road 4 Bartley Biz. Centre, #01-24 Singapore 417807+65 6225 6225
SS Motoring Pte. Ltd.1084 Serangoon Rd, Singapore 328186+65 9770 7875
Unique Motorsports Pte. Ltd.1 Kaki Bukit Ave 6 #02-54 Autobay, Singapore 417883+65 6844 6378
Yew Heng Motorsports25 Kaki Bukit Rd 4, #01-32/33, Singapore 417800+65 6242 9097
PITMOTO71 Woodlands Industrial Park E9, #01-12, Singapore 757048+65 6909 9876
S1 Motoring3006 Ubi Rd 1, #01-366, Singapore 408700+65 6749 9535
M1 Motoring411 CHANGI ROAD, Singapore+65 6266 7030
Bike Asia Motto3006 Ubi Road 1, #01-366, Singapore 408700+65 6749 9535
Yishun MotoringYishun Industrial Park A, #01-386 BLK 1019, Singapore 768761+65 6232 7992
Motto Motto1080/1082 Serangoon Rd, Singapore 328183+65 8188 2357
Heng Motor471 Changi Road 5 1/2 M.S (S)419889(65) 6747 2411

Applying for a Motorcycle Loans in Singapore

When considering the purchase of a motorcycle in Singapore, understanding the loan application procedure and necessary documentation is crucial. Financing options vary, and selecting the right one requires careful consideration of the terms.

Required Documents and Application Process

The first step in securing financing for a motorcycle is to gather the necessary documents. Applicants typically need to provide:

  • Proof of identity (e.g., NRIC for citizens, passport for foreigners)
  • Proof of income (e.g., recent payslips, CPF contribution history)
  • Credit card details if opting for in-house financing schemes
  • Employment details and/or income tax returns

The application process involves submitting these documents to the lender for review. Prospective buyers may need to fulfill certain eligibility criteria, such as being a Singapore 

Pros and Cons of Taking Out a Motorcycle Loan in Singapore

When considering a motorcycle loan in Singapore, it is essential to weigh both the benefits and drawbacks. This ensures that potential borrowers can make informed financial decisions.

Advantages of Spreading the Cost and Using the Loan as a Down Payment

  • Spreading the Cost: Allows for manageable payments over time.
  • Immediate Ownership: Enables purchase without full upfront payment.
  • Facilitates New Purchases: Can be used as a down payment for a new bike.

Disadvantages of Interest Payments and Potential Negative Impact on Credit Score

  • Interest Payments: Increases the total cost of the motorcycle.
  • Credit Score Impact: Missed payments can negatively affect credit rating.
  • Higher Overall Cost: Total repayment can exceed the bike’s original price.
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Considerations When Taking A Motorbike Loan

When considering a motorcycle loan, several key factors can impact your financing decisions:

Interest Rates: New bikes often attract interest rates of around 5% per annum, while second hand motorcycles may see rates 2% to 3% higher. This difference reflects the increased risk associated with used vehicles.

Loan tenure: Refers to the period over which borrowers repay their loan. Borrowers can use a loan calculator to adjust the loan duration to see how it affects monthly instalments and total interest payable.

Down payments: Upfront amounts paid when purchasing a motorcycle. A common down payment for a new bike is usually at least 15% of the purchase price. This reduces the loan amount and, as a consequence, the interest paid over time.

Fees: These may include administrative fees, processing fees, or early repayment penalties. Carefully comparing the fee structures of different credit companies allows borrowers to select the most cost-effective financing option.

motorcycle loan faq

Frequently Asked Questions

1. How does one finance a new motorcycle in Singapore?

Individuals looking to finance a new motorcycle can consider options like in-house dealership financing or loans from financial institutions that specialize in vehicle loans. It typically involves a down payment followed by monthly installments.

2. Which institution offers the best motorcycle loan terms?

The best motorcycle loan terms are subjective and depend on the borrower’s needs; however, some platforms, like Motorist.sg and speedzone.sg facilitate loans for motorcycle purchases with certain conditions.

3. What is the typical interest rate for a motorcycle loan in Singapore?

The typical interest rate for a motorcycle loan in Singapore can vary depending on factors such as the borrower’s credit score, the loan amount, the loan tenure, and the lender. However, as a general guideline, interest rates for personal loans in Singapore can range from around 2.88% for banks and 1-4% for lenders.

4. How can I calculate my monthly payments for a motorcycle loan in Singapore?

Monthly payments can be calculated using online loan calculators provided by finance companies, such as Heng Motor. They take into account the loan amount, interest rate, and tenure of the loan.

5. Are there financing options available for used motorcycles in Singapore?

Yes, used motorcycles can be financed as well. Loan facilities are offered by various financial institutions and credit companies, such as A1 Credit.

6. Can I obtain a motorcycle loan in Singapore with poor credit?

Obtaining a motorcycle loan with poor credit may be challenging but not impossible. Some institutions might still offer loans provided that certain conditions are met, and the interest rates might be higher to offset the risk.

Closing

Getting a motorcycle loan in Singapore can be a viable option for buyers to finance their purchase. Key options include full loans available through certain platforms for those with specific credit cards, and dealer financing, although the latter may come with higher interest rates.

Key Takeaways

  • A motorcycle loan is a financial agreement where a lender provides funds to assist with the purchase of a motorcycle, which must be repaid over time with interest.
  • Interest rates vary, typically higher without dealership partnerships but could be more competitive within organized financing schemes.
  • Repayment terms are fixed, and using a motorcycle loan calculator can help estimate monthly payments.

A1 Credit offers a straightforward loan application process for motorcycle purchases, providing various loan types based on income. We offer fast approvals, competitive interest rates, and flexible repayment options without requiring collateral or charging early repayment fees. Request a quote now for free!

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