Installment plans for ebike with affortable monthly repayment

If you are reading this article, you are probably considering to buy an ebike or electric bicycle. Ebike is also known as Power assisted bicycle (PAB) in Singapore.
Most Land Transport Authority (LTA) approved ebikes in Singapore are priced around $1000 thus making it a substantial purchase.

Surely, non LTA approved or “yet to the approved” ebike may be cheaper by a few hundred dollars. But what is the purpose of paying a single cent for something that cannot be use legally in Singapore.

At $1000, most people would hope to turn the payment into smaller, more affordable amounts. The widely known way is using credit card 0% interest installment plans or hire purchase (with interests) from a retailer or legal finance company.

But do you know there are affordable installment plans for those without credit cards?

Let’s take a look at the available installment plans for ebike in Singapore.

Credit card 0% interest installment plan

This is a value-added service provided by the bank to their credit card customers. You can stretch the purchase from 6 months to as long as 36 months.

The bank does not charge the buyer any interest. Rather the partcipating merchants pay a service fee to the bank whenever a buyer uses the service.

For example:

• MOBOT MINI 16 ebike: $1200
• Using DBS 12 months 0% interest installment plan: $100 x 12 months
• Processing fee: $0
• Interest paid: $0
• Total amount paid at the end of the repayment period: $1200

This is probably the best option for those with credit card. If you do not have a credit card, you can consider to use your family member’s card.

Nevertheless, do bear in mind that the bank will deduct the total purchase amount from the credit card limit. For example, if your credit card limit is $5000, it will be reduced to $3800 upon purchase.

In addition, there is usually a penalty fee for card cancellation, early repayment and/or late payment. Lastly, the purchase is usually not eligible for points or cashback.

Personal loan with interest

If you need long repayment period and do not have a credit card, you can consider to take up a loan from a bank or legal finance company. This is considered a personal loan.

The bank charges processing fee and interests for this service. You will need to submit personal and financial documents for support the loan application.

The advantage is a low monthly installment over a long repayment period.

For example:

1. MOBOT ECO DRIVE ebike: $1000
2. Using OCBC 36 months repayment: $38 x 36 months
3. Processing fee: $100
4. Interest paid: $368
5. Total amount paid at the end of the repayment period: $1468

If you do not mind paying more to get the ebike, this is probably the lowest monthly installment plan for ebike.

Similarly, there is usually a penalty fee for early repayment and/or late payment.

In house installment plan with interests

Some retailers such as COURTS has their own in house installment plan with interests. Such plans are very similar to those provided by banks or legal finance companies. But instead of a personal loan, it works more like a hire purchase.

For example, the COURTS FLEXI PLAN can provide repayment period up to 36 months. The FLEXI PLAN is applicable to almost all the products listed in their outlet, from home appliances to furnitire to electronic gadgets.

You will need to submit personal and financial documents for support the application.

Note: As of 18 Feb 2020, the COURTS FLEXI PLAN is not applicable to ebike and e-scooters.

For example:

1. MOBOT ECO DRIVE ebike: $1000
2. Using COURTS FLEXI PLAN 36 months repayment: $42 x 36 months
3. Processing fee: $165 (estimate)
4. Interest paid: $512
5. Total amount paid at the end of the repayment period: $1677

This is an alternative to bank loans. Similarly, there is usually a penalty fee for early repayment and/or late payment.

HOOLAH debit card 0% interest installment plan

HOOLAH is one of the pioneers in Singapore to launch 0% interest installment plan using debit card in Singapore. A normal debit card from any Singapore bank will allow you to split your purchase into 3 equal payment with no interest and zero fee.

For example:

1. MOBOT MINI 16 ebike: $1200
2. Using HOOLAH 3 months 0% interest installment plan: $400 x 3 installments
3. Processing fee: $0
4. Interest paid: $0
5. Total amount paid at the end of the repayment period: $1200
6. Payment cycle:

• At the time of purchase: $400 (1^st installment)
• 1 month from time of purchase: $400 (2^nd installment)
• 2 months from time of purchase: $400 (3^rd installment)

There is no additional fee for early repayment but a late payment fee is applicable if you do not pay on time. And it will seriously affect your future purchases using HOOLAH.

Summary

For those with credit cards, tapping on the 0% interest monthly installment plan is the most economical option as long as you can service the payment promptly.

And for those without credit cards, Hoolah debit card 0% interest installment plan is the recommended option.

Regardless of whichever installment plans for ebike you choose, requests the sales consultant to indicate the real cost at the end of the payment period and the penalty charges for defaulting on payments.

Finally, do remember to “live within means”. In other words, do not spend more than what your income allows.

Ride safe. Stay safe.