OCBC, DBS rev up green car loan competition

DBS and OCBC are racing to take a share of the green-car loan market.

OCBC has pushed out an Eco-Care car loan package at a preferential pricing of 1.68 per cent per annum for the purchase of electric vehicles (EVs), it said on Monday. 

It joins DBS which had said it would from this month likewise offer loans at the rate of 1.68 per cent per annum to all customers purchasing new and used electric and hybrid vehicles.

This preferential rate was first offered to Tesla car buyers, DBS had said in February. DBS said it is the American EV company’s "preferred" financing partner in Singapore. 

OCBC has also officially sweetened the deal. On Monday, it said all loan customers will get up to 12 months of free charging at all Charge+ charging stations.

Customers living in condominiums who purchase an EV from Jaguar under Wearnes Automotive will receive an additional six months of free charging, said OCBC in a press statement. Those living in landed properties will get a free Charge+ charging station installed within their homes.

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This comes after the bank announced a strategic partnership with Charge+ last month to encourage the widespread adoption of EV usage among its clients in Singapore. Under its memorandum of understanding signed with Charge+, the bank intends to encourage its property developer and property owner customers to install charging points at their premises.

OCBC will implement digital payment solutions for Charge+ charging points, as well as look into the financing for the infrastructure. Both parties also plan to develop incentives to encourage EV buying and the usage of Charge+ charging points.

In the press statement, Sunny Quek, head of consumer financial services Singapore, OCBC Bank said: "As one of the biggest car loans providers in Singapore, OCBC is keenly aware of our role to set the tone to accelerate electric vehicle adoption amongst our customers to embrace 'greener' lifestyles'.

"We hope that setting a lower interest rate for the OCBC Eco-Care car loan will be a good nudge for car owners who are currently looking to convert to electric vehicles."

Eligible car owners can apply for the loan on the bank's new online approval platform, an integrated site which uses SingPass's data, to obtain approval within 60 seconds.

DBS cited statistics in February showing that just 6.8 per cent of the car population in Singapore comprises electric and hybrid cars, as based on data from the Land Transport Authority.