Increased environmental awareness, together with the government’s push for electric vehicles (EVs) under its Singapore Green Plan 2030, have seen OCBC’s Eco-Care Car Loans surge over sixfold in 2023 since its launch in 2021.

“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,” says Sunny Quek, the bank’s head of global consumer financial services. “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.”

As more used EVs over three years old enter the market, the bank has also expanded the range of electric vehicles that can be financed under its loan scheme to meet burgeoning demand. Alongside new and used EVs under 3 years old, financing is now offered for used EVs up to 10 years old.

“By expanding the loan to all used vehicles up to 10 years old,” Quek adds, “we will be able to meet this demand and support more consumers who want to transition to EVs.”

The number of EVs registered in 2023, according to Singapore’s Land Transport Authority, climbed 50.5% year-on-year, and the adoption rate of EVs also rose to 18.1% of total car registrations in 2023, up from 11.7% in 2022.

Newer, more affordable EV brands – many of which were Chinese brands like BYD – led the way. Such Chinese brands accounted for about two in five OCBC Eco-Care Car Loans extended in 2023.

The OCBC Eco-Care Car Loans scheme provides an additional incentive for customers choosing EV’s with a preferential interest rate of 2.48% per annum, which is 0.30% lower than the loans offered for internal combustion engine cars.