, Singapore

DBS floats Singapore's first green car loan

It offers a 1.68% p.a car loan and the bank is also donating trees for every loan taken up.

DBS has launched the DBS Green Car Loan for Singapore customers purchasing new and used electric and hybrid vehicles.

This is Singapore’s green car loan, DBS said in a press release.

Available beginning 1 March 2021, the loan provides a 1.68% p.a. car loan to all customers purchasing electric and hybrid vehicles. This is reportedly the lowest rate in the industry, DBS said.

As part of the green car loan package, DBS is also donating trees towards NParks’ OneMillionTress movement for each customer who takes up a loan.

The bank has been named Tesla’s preferred financing partner in Singapore, and the preferential rate of 1.68% p.a. is already available to Tesla car buyers.

There are some 43,000 electric and hybrid cars registered in Singapore today, comprising just 6.8% of the car population in the country, notes Jeremy Soo, head of consumer banking group (Singapore) at DBS Bank. In comparison, a country like Norway—the global leader in electric car market share—sees electric cars make up 54% of its car population.

“There is clearly much room for growth and we hope the introduction of Singapore’s first green car loan will help alleviate affordability concerns and be the tipping point for car buyers including electric or hybrid vehicles in their consideration set,” Soo said.

A March 2020 report done by DBS and the Impact Institute found that lending to the electric vehicle (EV) instead of combustion engine vehicle (CEV) sector has lower environmental and social costs of approximately 40% and 16%, respectively.

The DBS Green Car Loan is also in in line with the Singapore government’s announced initiatives in 2020 to support their target of replacing Internal Combustion Engine vehicles by 2040.

This includes expanding EV charging infrastructure significantly to 28,000 by 2030, and an early adoption incentive scheme for EV buyers from 2021 to 2023 which will offer rebates capped at SGD 20,000 per vehicle.

Photo courtesy of Wikimedia Commons.

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Asian Banking & Finance in your inbox

VCs flocking to "lucrative" APAC payments segment: report

Global VC deals rose to 620 in Q1 2021.

China injects $15.5b cash into the financial system to maintain liquidity: report

The nation’s top leaders recently described economic recovery as “unbalanced and unstable.”

Chart of the Week: Card payments in China to rebound 21.3% in 2021

Card payments are set to rise as economic activities gathers pace.

Citi APAC adds nearly 650 new wealth professionals in 2021 so far

The group has added over $5b in net new money in Q1 alone.

Goldman Sachs ramps up China ambitions with hiring spree: report

It is planning to add over 400 new people in its headcount in 2021 alone.

Citi appoints new head for private banking arm in South Asia

Lee will have direct responsibility over the private bank arm of Singapore, Malaysia.

Citi APAC rolls out gender diversity program for investment, securities arm

The program’s 50 top candidates will have the chance to be recruited by the bank.

Standard Chartered, EastWest on the blueprint for building the bank of the future

Data is the new oil, says Sarabjit Anand, Standard Chartered’s CIO for Singapore and ASEAN.

Low costs buoys Australian banks’ profits, but pressures to persist

Operating profit is 46% higher than last year, but pre-impairment earnings remain subdued.

HSG shares insights on modelling core banking IT for the digital economy

Sisi Yu gives us a glimpse of how banks can achieve higher performance through improved services.