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Need financing for COE renewal? You've got two options - bank loan or in-house loan. Know the difference before renewing your COE for another five or 10 years!
Category: Car Ownership Advice
If the COE for your car is ending soon, renewing your COE for five or 10 years might be an option for you.
If you have ready cash, the COE renewal process is simple. Just pay the Prevailing Quota Premium (PQP) for your car's category. PQP is a moving three-month average of current COE prices.
Another way to give your car a fresh lease of life is to take up a COE renewal loan via a bank loan or in-house loan.
But if you're feeling confused about COE renewal loans, along with the pressure of rising COE premiums, read on to find out more.
Bank COE renewal car loans
Banks usually offer attractive interest rates when compared to in-house COE renewal loans.
Maybank, for example, offers an interest rate of 3.18%, and Hong Leong Finance at 2.88%.
While a COE renewal loan with a bank is attractive, not many are able to secure a loan due to a bad credit score.
Banks will access your credit to see your capacity to take a loan. The process usually takes a few working days.
Generally, it is not as easy to score a loan from the bank as compared to an in-house loan, as your eligibility for a loan is taken into account.
The good thing is that banks are transparent, offer added security, and rarely do banks charge exorbitant administrative fees as compared to in-house COE renewal loans.
Do note that banks DO NOT accept direct COE renewal loan applications. You'll have to go through an agent (like sgCarMart Connect) that offers the same interest rates as the bank.