Getting bank Car loan in Philippines is amazing when you qualify for one to buy your dream car with low rates and flexible payment options to suit your lifestyle.
Car loan is convenient way to acquire a car without exhausting your total saving since it involved a monthly basis instead of paying one time with a big amount. Car financing through a loan is the best option for anyone who plans to enjoy the benefits of the car and to also make sure that someone’s cash flow is in top shape.
However, Most lenders in Philippines offer loan to used and new car. If you’re in the market for a new vehicle, you’ve probably spent a lot of time researching car options, but do you have a good understanding of how car loans work?
What can you do with your Car loan?
1.Purchase of a brand new or second hand car for personal use
2.Reimbursement of a brand new vehicle
3.Refinancing of a second hand car/loan take-out
4.Purchase of a brand new car for business use such as:
Car Rental Services
5.Transport Services (e.g. Taxi, Grab, UV Express, School Service, Company Use / Employee Service)
6.Cargo (e.g. Trucks)
Basic requirement to apply for Car loan in Philippines
Before you can apply for car credit facility , most leaders will ask you to provide the following documents :
1. ITR (Income Tax Return) and Government issued ID’s are for citizens,
2. while resident foreigners need to show documents or proof of residency and income.
For eligibility purposes, 30% of your income should cover the monthly repayments of all debt, may it be a house, personal or car loan.
3. Accurately filled form, if it is from a bank
5. Proof of employment for workers and self-employed, proof of an active business.
6. Borrower age should be between 21 to 65 years old at the time of loan maturity.
7. Certificate of Employment with Compensation or Payslip
8. Latest Proof of Billing under borrower’s name
9. Minimum joint monthly gross income with spouse of Php 40,000 (brand new) or Php 20,000 (2nd hand/used car)
10. Employed for at least 2 years or officer position on a permanent / regular basis.
This post will outline top 14 car lenders in Philippines. along their term, tenor and interest rate respectively.
1. Security Bank Car Loan
Security Bank offers Brand new car loan up to 80% of purchase price and Second hand up to 70% of appraised value with interest rates 6.77% – 37.63% APR loan term up to 60 months
They also offer used car with interest rates 16.5% – 24% APR loan term up to 48 months
Brand New Payment Terms ranges from 12 to 60 months while Second hand car package range from 12 to 48 months with Down Payment As low as 20% of purchase price
2. RCBC Car loan
.Rcbc has Auto Loan with Minimum Loan Amount: Php 300,000
.Payment Terms: 12 to 60 months
.Interest Rate: 5.54%
.Low monthly amortization
.Brand New – interest rates 5.75% – 30.3% APR loan term up to 60 months
.Pre-owned – interest rates 8.4% – 33.9% APR loan term up to 48 months
3. EastWest Bank Auto Loan
.EastWest Bank offer brand new car and second hand vehicle
.Flexible Payment Terms of 12 months to 60 months
. Brand New – interest rates 5.9% – 31% APR loan term up to 60 months
. Pre-owned – interest rates 7.19% – 36% APR loan term up to 48 months
4. BDO Unibank Auto Loan
BDO Unibank car loan have competitive rates and you can get loan approval within 24 hours. You can get Brand New or Pre-Owned loan
Brand New: Personal Use Maximum Loan Term is 5 years while Business Use is 3 years
Pre-Owned: Personal Use is 4 years while Business Use is 2 years
Brand New – interest rates 17.33% – 30% APR loan term 36 – 60 months
Pre-owned – interest rates 14.11% – 30% APR loan term 24 – 48 months
5. Maybank Philippine Car loan
Maybank Philippine offers Refinancing| Auto Loan for both Used and new vehicle
Brand New – interest rates 12,48% – 18% APRloan term up to 60 months
Used Car– interest rates 18% – 20,76% APR loan term up to 48 months
6. Robinsons bank car loan
Robinsons bank Loan Amount for car loan:
Brand New – Up to 80% of Net Cash Price
Used Cars – Up to 70% of appraised value
Brand New – interest rates 8,6% – 10,2% APR loan term – 12 to 60 months
Used Cars – interest rates 16.7% – 22% APR loan term – 12 to 48 months
Down Payment: As low as 20% SRP
7. Producers Bank Auto Loan
Brand New – interest rates 6% – 9% APR loan term up to 60 months
Pre-owned – interest rates 8% – 14% APR loan term up to 24 months
8. Ucpb bank car loan
Ucpb offer both brand new and used car loan to customer at:
Brand New – interest rates 9,95% – 11,43% APR loan term up to 60 months
Pre-owned – interest rates 9,95% – 14% APR loan term up to 36 months
9. BPI Auto Loan
BPI offers new car Loan at 5.36% Interest Rate with Monthly Repayment of ₱ 9,673
10. Sterling Bank Asia
Sterling Bank Asia Loanable Amount is P100,000.00 and up—-Loan Terms 12 to 60 mos.(Brand New) 12 to 48 mos. (Second Hand) with Payment Options of Post-dated checks and Automatic debit arrangement
Brand New – interest rates 14% – 19,04% APR loan term up to 60 months
Pre-owned – interest rates 19,74% – 26,65% APR loan term up to 48 months
11. PNB Sure Wheels Auto Loan
PNB offer loan for brand new and used car with Monthly Repayment ₱ 9,671
Brand New – interest rates 9,4% – 10,4% APR loan term up to 60 months
Pre-owned – interest rates 12% – 20% APR loan term up to 48 months
12. Metrobank Car Loan
Metrobank new car loan has Interest Rate of 4.79% with Monthly Repayment ₱ 9,531
13. Chinabank AutoPlus Loan
Chinabank AutoPlus Loan have very low interest rates ,low monthly amortization ,Longer payment terms and low down payment.They also offer Low insurance premiums through China Bank’s subsidiary, China Bank Insurance Brokers
The auto plus loan Interest Rate for new car is 5.49% with Monthly Repayment of ₱ 9,706
14. Union Bank Philippines Auto Loan
Union Bank Philippines brand new car loan interest is 5.61% with Monthly Repayment ₱ 9,736