Orchard Credit launches one-stop shop for car loans

Singapore

A LOCAL vehicle financing company is taking the fintech route and launching a website that not only aggregates car loans from nearly 10 banks but also promises more attractive packages.

Orchard Credit will be the first here to provide an online one-stop shopping service for car buyers and sellers.

There are dealers who already advertise various financial products online but prospective customers have to phone or email for the loan application and processing. They also have to meet the dealers to sign on a hardcopy form.

But at Orchard Credit's website - orchardcredit.com.sg - loan applications are submitted online with an e-signature after choosing one of the nine participating banks and financial institutions, including DBS, OCBC, UOB and HL Bank.

The site, which is scheduled to go live in mid-December, offers new and used car financing, vehicle refinancing and COE financing.

"Currently, someone who wants to take a car loan has to apply either through a salesman or a bank,'' said Orchard Credit director Renny Heng. "But our one-stop shopping website has a variety of banks with whom you can apply for a loan directly.''

Orchard Credit (OC) has been in business for almost 40 years, processing loans on behalf of banks for new and used car companies at its head office at 897 Old Holland Road.

It works with many of the distributors and dealers in town, but most closely with authorised Hyundai distributor Komoco Motors.

OC's long history also allows it to perform personalised financing services, for example, an escrow service between private buyers and sellers where it settles outstanding balances for sellers while ensuring safe handling of buyers' funds before the vehicle is transferred.

Mr Heng said he hit upon the idea to develop the website about five months ago. "We handle many cases from new car distributors and used car dealers, and I realised that more and more people are looking for a one-stop service,'' he explained.

"To get a loan, there are many things to look for. So customers want more convenience as they may not have the time to go to all the different banks to check each one out.''

Even if an application is denied, Mr Heng said customers can easily apply to another bank or financial institution.

"It is convenient to re-submit online, even with your phone.''

As for the banks, they are also said to be happy to cut the amount of paperwork involved, thus reducing the number of staff required for loan processing.

Mr Heng added that a mobile phone app is being planned for next year.