Published on December 8, 2021

Taking A Car Loan In Singapore: Part 1 – In-house Financing

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Businesses that require commercial vehicles as means of transportation will most likely consider a car loan in Singapore, which involves borrowing a lump sum of money specifically intended for business purposes and repaid with interest from finance companies.


If your company is looking to purchase a fleet of vehicles for work purposes, you may consider taking up an auto financing loan provided by banks or private financial institutions to help fund vehicle purchases. 


There are three main types of auto financing loans in Singapore to help finance a business – in-house financing, fixed-rate financing and balloon financing. 


In this article, we will cover everything you need to know about in-house financing. 

What is in-house financing?

In-house financing is typically offered by private financial institutions like car dealers and is also one of the more popular loans in Singapore as it has less strict requirements compared to banks. Businesses who have had their loan applications rejected for reasons such as unfavourable employment history or bad credit scores may want to try applying for in-house financing. 


The process of getting an in-house loan through a car dealer is a lot quicker as some can even be approved within 24 hours, while bank loans usually take up to weeks for approval. It is also easier since these private institutions do not do credit checks and a more secure type of loan as the vehicle will be your collateral. 

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Factors to consider when it comes to in-house financing

As with taking up any loan, there are a number of things to consider before sealing the deal.

1. Compare interest rates

Different lenders and car dealers operate on different interest rates. The average interest rate range from 2 to 5% for most car dealerships in Singapore. It is best to compare the rates before diving headfirst into it. 

2. Compare terms and conditions

Read the fine print or clarify any doubts before signing. Look out for the terms and conditions regarding penalties, repayment terms and monthly instalments. 

3. Only take what you need

It is never a good idea to borrow more than you need as that is unnecessary. Make sure the amount you decide to loan has been well thought out and is what you need because not being able to repay your loan will affect your credit score. As this is a business vehicle loan, the lender also possesses the right to seize your vehicle to repay losses if you are unable to repay it. 

In-house financing at Swee Seng Credit

We offer in-house loans at Swee Seng Credit with a competitive interest rate starting from 2.98% and a flexible loan amount. 


Here are some reasons to consider loaning from us:


  • No extra charges for handling LTA and bank transactions
  • Free financing advice and paperwork assistance
  • No middlemen which mean no mark-ups on interest rate
  • Fast, transparent and fuss-free process
  • 100% no hidden or additional charges


Simply apply online and a quote will be sent to you via email together with an application form. 


Swee Seng Credit accepts six types of repayment methods – Interbank Giro, Internet Banking, Quick Cheque Deposit, PayNow and ATM – to provide you with a hassle-free experience. 


Find out more about car loans in Singapore, such as Swee Seng Credit’s in-house loan here.