Last Updated on July 27, 2024 by admin
Philippine National Bank Auto loan is designed for Filipino citizens or Foreigners based in the Philippines with valid Alien Certificate of Registration (ACR) to purchase a car at payment they can afford without breaking their savings.
When you take out a car loan from PNB you receive your money in a lump sum, then pay it back (plus interest) over time. How much you borrow, how much time you take to pay it back and your interest rate all affect the size of your monthly payment.
Before you can obtain a car loan you must between the age of 21 to 65 years old at the time of loan maturity, have a stable source of income—Permanently employed for at least 1 year or business must be in operation for at least 3 years.
Also you must earn at least Php 50,000 a month, but if you did not meet the required minimum salary a co-borrower will be required .You must be an existing PNB depositor
One of the most important things to understand about how auto loans work is the relationship between the loan term and the interest you pay. A longer loan term can dramatically lower your monthly payment, but it also means you pay more in interest.
Some borrowers will benefit most by taking a longer term to reduce monthly payments and using the difference to pay down higher-interest debt. Others will prefer to make a higher monthly payment and pay off the loan sooner.
Also you can read: Philippine National Bank Housing Loan- How to apply and requirements
Key Features:
- Loanable Amount:
- Minimum of ₱300,000 for brand new cars
- Minimum of ₱150,000 for pre-owned cars
- Up to 80% of the purchase price for new cars
- Up to 70% of the appraised value for used cars
- Interest Rates: Varies depending on loan amount, term, and prevailing market conditions.
- Payment Terms: Flexible terms up to 60 months for brand new cars and 48 months for pre-owned cars.
- Down Payment: Minimum of 20% for new cars and 25% for used cars.
- Loan Insurance: Available to protect your investment.
- For a limited time, PNB is offering free chattel mortgage fees for qualified borrowers.
Eligibility Requirements:
- Must be a Filipino citizen or a foreigner residing in the Philippines with a valid Alien Certificate of Registration (ACR).
- Must be between 21 and 65 years old at the time of loan maturity.
- Income:
- Employed: Permanently employed for at least 1 year with the latest Income Tax Return (ITR) and Certificate of Employment (COE).
- Self-Employed/Business Owner: Business in operation for at least 3 years with the latest ITR and Audited Financial Statement (AFS).
Required Documents:
- Completed and signed application form
- 2 government-issued valid IDs
- Latest ITR and COE (for employed individuals)
- Business registration documents (for self-employed)
- Latest 3-month bank statements (for self-employed)
- Vehicle quotation from the dealer
Factors that affect your car loan
Here are the 3 major factors that affect both your monthly payment and the total amount you’ll pay on your loan:
1. The loan amount. It can be significantly less than the value of the car, depending on whether you have a trade-in vehicle and/or making a down payment.
2. The annual percentage rate. Usually referred to as the APR, this is the effective interest rate you pay on your loan.
3. The loan term. This is the amount of time you have to pay back the loan, typically 36–72 months
What do I need to submit to apply for an auto loan?
To qualify for car loan with Philippine National Bank you have to submit the following documents and information
1. Completely filled up and signed application form.
2. 2 Government issued valid IDs like Drivers License, Passport, UMID, etc.
If You are employed by organization or Government you should provide the following:
1. Certificate of Employment with Compensation or Payslip
2. Latest Income Tax Return
If are self employed as a business owner you need to provide the following documents:
1. Business papers with DTI Registration
2. Latest Income Tax Return
3. Latest Audited Financial Statements
4. Latest (6) six-months Bank Statements
How to apply
To apply for Philippine National Bank Auto loan, kindly visit their online portal : https://forms.pnb.com.ph/autoloan/aof-autoloan.php
2. Indicate your brand car, model and estimated price
3. down payment and number of payment
4. Purpose of loan either personal or business use
However, the loan has Minimum 30% down payment and maximum term is only 36 months)
5. Fill in your name and address along with other information as required by the bank
6. Once done, review your application before submitting it.
