CAR LOAN

You can visit our Auto Loan Office at:

1/F, Eastern Central Plaza
3 Yiu Hing Road, Shau Kei Wan
Hong Kong

Office Hours:
Monday to Friday: 9:00 a.m. – 5:00 p.m.
(Closed on Saturdays, Sundays, and public holidays)

The fastest and most convenient way to renew a vehicle licence is through the GovHK website using an “iAM Smart+” account with:

• For individual customers: Digital signing capability
• For corporate customers: A valid organisational digital certificate

Otherwise, you may submit all required documents directly to the Transport Department Licensing Office, or submit all required documents to Auto Loan - Licence & Insurance Administration Section for processing.

How to Submit Your Application

Step 1: Complete the Required Forms

• Sign all relevant forms.
• Affix the company chop where applicable.
• Provide valid proof of address.

Step 2: Prepare Supporting Documents

• Include all required Transport Department documents.

Step 3: Submit Your Application

• Send the completed application and supporting documents either directly to the Transport Department Licensing Office or to our Licence & Insurance Administration Section for processing.

If you require other Transport Department-related services (such as retention or assignment of vehicle registration marks), please refer to the relevant fees in the Bank Services Fee Guide by click here and contact us for further assistance.

If there are any updates to your insurance policy or vehicle licence, please follow the steps below:

Submit updated documents by email:

Insurance documents (e.g. Cover Note, Certificate of Insurance, or Policy Schedule)
Send to: aef_insurance@ocbc.com

Vehicle Licensing Notice issued by the Transport Department
Send to: aef_licence@ocbc.com

Important Note on Original Insurance Policy

As per our agreement, the original insurance policy is required for safekeeping.

Please return the original document:
By mail, or In person at our office

If your insurer issues electronic policies, please email the digital copy instead to:
aef_insurance@ocbc.com 

Our team is available to assist you if you need any support with document submission.

Yes, this service is available to individual customer only. To apply for the Northbound Travel for Hong Kong Vehicles Scheme, please email your application letter to aef_settlement@ocbc.com.

Please ensure that valid insurance coverage for Northbound travel is maintained throughout the loan tenure.

If you wish to apply for Cross Border Travel between Hong Kong and Mainland China/Macau, please refer to the relevant fees in the Bank Services Fee Guide by click here and contact us for further assistance.

Step 1: Make an appointment
by phone: (852) 2281 9888/ by email: aef_settlement@ocbc.com

Step 2: Prepare proof of payment (one of the following):

FPS:

·       Add OCBC as the payee

·       Include the vehicle registration mark in the payment remarks

OCBC Branch Bank-in :

a)      Cashier’s Order:

·       Payee: OCBC Bank (Hong Kong) Limited;

·       Bring Cashier’s Order receipt or copy of the Cashier's Order, together with a bank-in slip recorded Cashier’s Order No.; or

b)   Cash: Max 100 banknotes/day; excess subject to 0.25% handling fee (min HK$125)

If a representative settles on your behalf:

Please provide:

·       Original authorization letter (with company chop if applicable)

·       Representative’s ID

·       Payment receipt

Important Notes

·       Cheque payments require four working days for clearance before loan documents can be released.

·       Loan documents can be released immediately upon successful receipt of payment via:

• • • FPS
    • Cashier's Order deposit at an OCBC branch
    • Cash deposit at an OCBC branch

·       All signatures must match the specimen signatures recorded in the loan agreement.

Generally speaking, the earlier you repay your auto loan, the more outstanding interest expenses are likely to be saved. Nevertheless, you should carefully consider any applicable early repayment charges involved before deciding to make early repayment. For OCBC auto loan, the allocation of interest and principal is calculated based on “Rule of 78” method. Under this method, a larger portion of each instalment in the earlier stages of the loan term is applied towards interest, while a smaller portion goes towards principal repayment. As the loan progresses, the interest component decreases and the principal component increases. If you choose to make early repayment in the later instalments of the loan, the loss may outweigh the gain as the interest expenses saved may not be enough to cover the relevant charges for early repayment. You may contact us to check about the total early repayment amount (including outstanding loan balance, early repayment charges and other fees as applicable) and the amount of outstanding interest and consider carefully before deciding to make the early repayment.

What is “Rule of 78” ?

The “Rule of 78” is a method commonly used by banks to break down the principal and interest in the monthly repayment of an instalment loan. Under this rule, the proportion of interest in the monthly payments decreases over the course of the loan period.

For example, if a loan is to be repaid over 12 months, the total interest will be divided into 78 portions (12 + 11 + 10 + … + 1 = 78). 12/78ths of the interest is allocated as the first month’s portion of the total interest, 11/78ths of the interest is allocated as the second month’s portion and so on until the twelfth month, at which time 1/78th of the interest is allocated as that month’s portion of the total interest.

The total interest portions for different loan tenors are illustrated as below:

Example

A customer borrows HK$100,000 for a tenor of 24 months. Based on an interest rate of 2. 5% per annual flat, the total interest will be:

- Total Interest = Loan principal x annual flat rate x tenor (months)

= HK$100,000 x 2.5% x 2

= HK$5,000*

According to “Rule of 78”, the denominator of the loan with a 24-month tenor is the sum of the numbers 1 to 24 added together, which is 300 (24 + 23 + 22 + …… + 1 = 300). Hence, 24/300ths of the total interest is allocated as the portion to be paid in the 1st month.

Interest in each instalment = Total interest x interest portion

- Interest of the 1st instalment = HK$5,000 x 24 / 300 = HK$400.00*

- Interest of the 2nd instalment = HK$5,000 x 23 / 300 = HK$383.33*

- Interest of the 3rd instalment = HK$5,000 x 22 / 300 = HK$366.67*

- Interest of the last instalment = HK$5,000 x 1 / 300 = HK$16.67*

* rounded to 2 decimal places

Detailed breakdown of the principal and interest in each monthly repayment

Tenor (months): 24

Interest Rate (per annual flat): 2.50%

Total Loan Amount (HK$): 100,000

Monthly Repayment Amount (HK$): 4,375

The above example is for reference only and the amounts are rounded to 2 decimal places.