Oversea-Chinese Banking Corporation (OCBC) O39 has expanded the range of electric vehicles (EVs) that can be financed under its eco-care car loans scheme.
The loan provides an additional incentive for customers with a preferential interest rate of 2.48% per annum (p.a.), which is 0.3% lower than the loans offered for internal combustion engine (ICE) cars.
Now, the scheme includes used EVs aged up to 10 years old, along with new EVs and used EVs under three years old.
The move comes as more used EVs over three years old enter the market. Used EVs will also become increasingly available and demand is expected to be healthy as they are more affordable options.
New EVs are expected to attract interest among new car purchases as well, especially as the range of EV brands continues to expand.
According to the Land Transport Authority (LTA), the number of EVs registered in 2023 climbed 50.5% y-o-y. The adoption rate of EVs stood at 18.1% of total car registrations in 2023, up from 11.7% in 2022.
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OCBC has seen its eco-care car loans surge over sixfold in 2023 since its inception in 2021. The value of loans achieved an average annual growth rate of 170%.
The bank’s eco-care car loans for new EVs made up nearly 50% of the loans extended to its customers purchasing new cars in 2023. Newer, more affordable EV brands, many of which were Chinese brands like BYD, accounted for about 40% of the loans extended in 2023.
“Three years ago, when we introduced OCBC Eco-Care Car Loans, consumer interest in EVs was still low and knowledge about EVs was not as widespread. We wanted to do our part to get the momentum going by providing that additional incentive, in the form of a preferential interest rate for OCBC Eco-Care Car Loans. It has helped to reduce the barriers to entry to owning EVs,” says Sunny Quek, head of global consumer financial services at OCBC.
“Three years on, the EV market has become more mature and demand has been increasing. More brands and used EVs are entering the market, making them more affordable. Correspondingly, OCBC Eco-Care Car Loans have seen a strong growth trajectory. By expanding the loan to all used vehicles up to 10 years old, we will be able to meet this demand and support more consumers who want to transition to EVs. This is in line with our corporate strategy, where sustainability is a key pillar,” he adds.
