Comparison of Home and Auto Loan Products Offered by Commercial Banks in Singapore

Description of Home Loans Offered by Commercial Banks in Singapore

1.You are expected to do some research to complete this Assignment.  In addition, please obtain the following brochures from THREE different banks operating in Singapore for the following products

i)Home loan

ii)Auto loan 

These brochures must be attached in the appendices of your report. Please note that some banks may use combined product brochures for personal lines of credit, personal loans and credit cards. 

2.The maximum marks for this Assignment are of which shall be allocated to the content of your report shall be allocated for the organisation and writing of the report 

3.Your written report must address the following

a.From your research and the brochures collected, describe the following products which commercial banks in Singapore sell to their customers: 

i)Home loan 

ii)Auto loan

In your report, ensure that you include the purpose, maximum financing amount/ quantum, tenure, usage, interest rate type, the basis of computing interest, repayment structure and any other relevant features for each of the above two products. Use a table to help you in your description of the above products.

b.Assume that your close friend and her fiancé (both 27 years old) plan to buy a new 4-room HDB apartment for, and they would like you to help them decide on the best home loan package. Based on the three sets of product brochures (home loan), compare and contrast the benefits and costs of each product from the perspective of a consumer. Clearly state the various reasons to support your recommendation. Use a table to help you show and compare the benefits and costs clearly.

c.Your close friend and her fiancé understand that they can also obtain a housing loan from HDB to fund the purchase of the apartment. They would like you to help them decide whether to take the housing loan from HDB or the bank. Clearly state the various reasons to support your recommendation. Use a table to help you with your comparisons and recommendations.

d.Assume that you have another friend, a former classmate who is considering taking up a  3-year auto loan to purchase a new electric car. Based on the three sets of product brochures (auto loan), which auto loan would you recommend to him? Clearly state the various reasons to support your recommendation. Use a table to help you with your comparisons and recommendations.

e.Based on the interest rate charged by the bank in your recommended auto loan above, compute the monthly repayment if your friend decides to take up the $40,000 3-year auto loan. Your friend will use his savings to pay for the balance amount needed for the new electric car.