S$50,000 Car Loan in Singapore: Instalments, Interest and EIR
Borrowing S$50,000 for a car at 2.78% flat over seven years means S$711.07 a month and S$9,730.00 in total interest. The effective interest rate is about 5.19%.
Instalments by tenure
| Tenure | Monthly at 2.78% | Total interest |
|---|---|---|
| 3 years | S$1,504.72 | S$4,170.00 |
| 4 years | S$1,157.50 | S$5,560.00 |
| 5 years | S$949.17 | S$6,950.00 |
| 6 years | S$810.28 | S$8,340.00 |
| 7 years | S$711.07 | S$9,730.00 |
How much car does this loan buy?
MAS caps car loans at 70% of the price for cars with OMV up to S$20,000, and 60% above that. A S$50,000 loan therefore supports a car price of up to S$71,428.57 (OMV ≤ S$20,000) or S$83,333.33 (higher OMV), with the rest paid as a downpayment.
Before you sign
- Compare loans by effective interest rate, not flat rate; the EIR is roughly double the flat rate.
- Factor in inflation when you plan for goals that are many years away.
- Paying credit card bills in full avoids interest charges of around 27% a year or more.
- Car loans are capped at seven years, and interest is charged on the original amount for the whole term.
Background
Interest in Singapore is quoted in several ways. Mortgages and savings accounts use effective annual rates, while car loans and many personal loans are advertised at flat rates that look much lower than their true cost. Banks must disclose the effective interest rate, and comparing on that basis gives a fair picture.
An emergency fund of three to six months of essential expenses protects you from having to borrow at high rates when something unexpected happens. Once that buffer is in place, extra savings can go towards longer-term goals and investments.
Cars in Singapore carry costs found almost nowhere else, including the Certificate of Entitlement and the Additional Registration Fee. Loans are capped at 60% or 70% of the price depending on the car's Open Market Value, and the maximum tenure is seven years.
Related calculations
- Break-Even Calculator: Finds how many units you must sell to cover costs.
- Profit Margin Calculator: Calculates profit, margin and markup from cost and price.
- Markup Calculator: Finds the selling price from cost and markup.
- Discount Calculator: Works out sale prices during Great Singapore Sale, 11.11 and other promotions.
Compare rates and tenures in the S$50,000 Car Loan Repayment Calculator.
Run your own numbers: S$50,000 Car Loan Repayment Calculator