Owning a car is everyone’s dream and in fact it is a necessity in today’s fast paced world. A car can make your life more convenient by offering you with a stable and fast means of transport. It is now easier than ever to own a car in Philippines thanks to the banking reforms. As long as you have a stable income, most banks will gladly offer you a car loan with favourable terms and conditions. Car loan is one of the most sought after banking products in Philippines and most of the tops banks in the country offer car loans to customers.
Car Loan Interest Rates - Philippines
|Bank Name||Loan Name||Interest Rate||Loan Amount||Loan Tenure|
|Asia United Bank Car Loan||NA||P200,000.00||5 years|
|Bank of Commerce Car Loan||NA||Starting from P100,000||1 year – 5 years|
|BDO Car Loan||5.63%||Up to 80%||Upto 6 years|
|BPI Car Loan||4.10% - 27.28%||Up to P200,000||NA|
|China Bank Car Loan||5.49%||NA||NA|
|China Bank Savings Car Loan||NA||Up to 80%||5 years|
|East West Bank Car Loan||4.95% - 32%||NA||1 year – 5 years|
|Maybank Car Loan||NA||P100,000||1 year – 5 years|
|Metrobank Car Loan||8.44% - 9.68%||Up to 80%||5 years|
|PBCOM Car Loan||NA||Up to 80%||5 years|
|PNB Car Loan||5.29% - 28.10%||Up to 80%||5 years|
|Robinsons Bank Car Loan||NA||Starting from P100,000||5 years|
|Security Bank Car Loan||NA||Up to 80%||5 years|
|Sterling Bank of Asia Car Loan||NA||Starting from P100,000||5 years|
|UCPB Car Loan||NA||Starting from P100,000||5 years|
|UnionBank Car Loan||NA||NA||NA|
Why Opt for a Car Loan?
All kinds of vehicles are quite expensive these days and you may not have access to the funds needed to purchase the car of your choice. Hence, you can loan the amount from a bank or financial institution and purchase the car without any difficulty. The loaned amount will either be disbursed directly to you or to the auto dealer.
Features and Benefits of a Car Loan
- The quantum of financing can be as high as 80 percent of the market value of the vehicle.
- The loans come with flexible tenures of 1 year to 5 years.
- The interest rates offered are quite attractive and so the cost of borrowing will not be very high.
- Car loans can be availed for the purchase of both new and used cars.
- The loans require a down payment of only 20% of the value of the vehicle.
Some of the leading banks that offer car loans in Philippines are as follows:
- BPI Car Loan – When you apply for a BPI auto loan, the application can be processed within a few hours (3 – 8 hours). A fast application process ensures that you will not have to wait for a day to two to purchase the vehicle of your choice.
- BDO Car Loan – BDO finances the purchase of both new and used vehicles. With a BDO car loan, you will get the option of paying a higher percentage of the value of the vehicle as a downpayment in order to reduce your monthly instalment payments.
- PNB Car Loans – Auto loans from PNB, known as PNB Sure Wheels Auto Loan, come with a range of beneficial features. You can apply for an auto loan from PNB if you are aged 21 or above but not more than 65 years.
- Metrobank Car Loans – A car loan from Metrobank will come with a repayment period of 1 year to 5 years. The minimum loan amount offered is PhP 250,000 and maximum amount can be up to 80 percent of the selling price of the vehicle.
- China Bank Car Loan – China Bank AutoPlus, a car loan from China Bank, has been designed to help Filipinos buy their dream car without any difficulty. It comes with attractive interest rates and low monthly instalments along with other benefits.
- East West Bank Car Loan – Auto loans from East West Bank come with flexible tenures of 1 year to 5 years and tons of other beneficial features. The bank also offers very attractive rates with its auto loans thus reducing the cost of borrowing of the customers.
- Security Bank Car Loan – Auto loans from Security Bank cover both new and used cars and the amount offered can be as high as 80 percent of the price of the vehicle. They come with very flexible terms and low interest rates along with an approval time of 1 business day.
- UnionBank Car Loan – With a UnionBank Auto Loans you can not only purchase new and used cars, but you can also purchase new light trucks. You should have a monthly income of PhP 50,000 or above to apply for an auto loan from this bank.
Before selecting a car loan offered by any particular bank or financial institution, you need to decide whether you want to purchase a new or a used vehicle. The amount given as a loan and other features offered by the lender will differ based on your choice. While choosing the ideal car loan based on your needs, you should consider the following factors: quantum of financing, tenure of the loan, interest rate offered, available payment options and refinancing options. A high quantum of financing will ensure that you are able to purchase the vehicle of your choice. A low interest rate and flexible tenure will make it convenient for you to pay off the borrowed amount.
The eligibility criteria for a car loan is one of the simplest and most practical for most Filipinos, thus it is also the most sought after. The following is a list of basic requirements that most banks expect when you apply for a car loan:
- The age of the applicant must be between 21-65 years (at loan maturity, the applicant’s age must not exceed 65 years of age)
- The applicant must be a resident of Philippines or based abroad.
- Typically, the gross family income of the applicant must not be below P 50,000.
- The lender will look at the applicant’s credit history which must be solid and with no red flags.
- The applicant must have a stable income: They must either be self-employed, employed by someone else or the owner of a business, for at least two years
- Further, they should have been in the same organization/business for a minimum of one year.
Check out All Banks Car Loan Eligibility in Philippines
- Duly filled auto loan application form
- Photocopy of your Passport, Driver’s License, Digitized TIN ID, Voter's ID, GSIS / SSS ID, PRC ID
- Documentation for salaried applicants:
- Income Tax Return (ITR) copy with BIR or bank stamp of the last 1 year
- Original copy of Certificate of Employment
- Photocopy of last full month pay slip
- Photocopy of DTI registration or SEC
- Photocopy of latest ITR with BIR/Bank Stamp
- Copy of Audited Financial Statements of the past year
*Please note that the actual documents that you need to submit with your loan application will differ from one bank to another.
If you already have an existing car loan from any particular bank, you can get the loan refinanced by another bank. Most of the times, refinancing your loan can help you to avail lower interest rates and a myriad of other benefits. You should consider all the pros and cons before you decide to refinance your auto loan.
Most of the lenders in the country finance the purchase of both new and used cars. In most cases, the quantum of financing is lower and the interest rate is higher for a loan offered for the purchase of a used vehicle.
|Know More About Used Car Loan|
Overseas Filipino Workers (OFWs) can easily apply for a car loan in Philippines and purchase the vehicle of their choice. In fact, most of the banks in the country offer auto loans to Filipinos working overseas. The application process, tenure, interest etc. differs from one lender to another. Some of the banks that offer auto loans to OFWs include BDO Unibank, Bank of the Philippine Islands, Philippine National Bank etc.
|Know More About Car Loan for OFW|
The first thing you must do as part of your research into car loans is to find out the EMI amount. This can be easily calculated online. Most of the official websites of the banks will have a free EMI calculator which you can use to calculate the repayment amount. Simply plug in the loan amount, processing fee percentage, rate of interest and loan tenure to get the monthly repayment amount. You could also find a car loan calculator which gives you a detailed breakup of the figures in the form of an amortization table. Knowing these figures in advance will help you in the process of negotiating the rate and terms of the loan.
- How does a Car Loan Calculator Work?
- Is it better to get a loan to finance your car?
- Can I get a loan to purchase a used car?
- Why is it that the interest rate of a used car loan is higher than that of a regular car loan?
- Can foreigners working in Philippines apply for a car loan in the country?
It is important that you work out a budget before you start applying for loans. The Car Loan Calculator is available for free online. It is a simple tool which requires you to key in the loan tenure, amount, down payment and if it is a brand new or second hand car. Click on ‘Calculate” and the comparison table would show applicable interest rates, monthly repayments and interest over time. Some Car Loan Calculators show more elaborate monthly amortization table than others. You can choose a calculator that you find the most convenient and easy to use.
When it comes to buying a car, paying in cash can be risky. Your cash flow will take a hit and the value of the car will plunge very fast. You can enjoy the benefits of the car, as well as make sure your cash flow stays out of harm’s way if you go for financing your car with a car loan.
It is not a difficult task to get a loan for purchasing a used car. Most of the banks in the country offer car loans for the purchase of both new and used cars. However, a car loan offered for a used car will come with a higher interest rate than a loan offered for a new car.
For the lender, lending money for a used car is a riskier investment than lending for a new car. This is because a car that has been used for a period will be more at risk for repairs. Also the resale value will be less. A higher interest rate is a safety net for banks, as they do not suffer much damage in case the car will have to be repossessed.
Yes, foreigners who live and work in Philippines can apply for a car loan with many of the leading banks in the country.
Bankbazaar.ph can be the one stop solution for all your financial needs. You can easily explore the car loans offered by different banks in Philippines on our website. You can compare the features, benefits, fees and charges of different auto loans and then choose a loan that suits your needs the most. We can help you to make the right financial decision.
News About Car Loan
Automotive Industry to grow in Philippines
The automotive industry in Philippines is expected to see massive expansion by 2020. The motor sales are expected to go up to 500,000 unit per year. The automotive markets across Southeast Asia, who sell more than 500,000 units every year are experiencing slowdown in their sales at present.
Philippines is one of the fastest growing markets for automotive according to Asean Automotive Federation. The major markets are based in Thailand, Indonesia, Malaysia and Thailand. The local production is expected to go up with Government program called Comprehensive Automotive Resurgence Strategy. The domestic sales are also expected to rise by 2020, making Philippines a major player in the automotive market.
10th May 2016
Auto Loan Market Boost in Philippines
According to data revealed by the CAMPI(Chamber of Automotive Manufacturers of the Philippines), car sales have gone up by a third since last year. Reaching a figure of 310,000, the number of cars sold have approximately doubled from the 2012 figures.
Owing to a long-awaited incentive scheme worth $600 million rolled out by the government of Philippines, the rate of car sales have received a significant boost. After observing a 25% increase in the first quarter of this year, with a figure of 244.6 billion pesos, Carmudi has predicted a double-digit growth rate in auto loans in the Philippines. The virtual car buying specialist also added that the increasing demand in car sales are due to attractive prices offered by the sellers as well as low down payments.
14th December 2015
Gateway Motors Group expand in Cebu
Early this week, the Gateway Motors Group announced their plans to expand in Cebu considering the rate at which the automobile industry has been growing in the Philippines.
Gateway Motors also said that the company will inaugurate new showrooms in SM Seaside City at Cebu City.
With the rise of the automobile industry in the country, Gateway Motors are only catering to the demands that are coming in, thereby growing as an organization as well.
Apart from Nissan and BMW showrooms that will be opened by Gateway, Mahindra will be the newest addition to their portfolio as well. Mahindra is an Indian car brand and maintains a showroom in Gorodo Avenue in Cebu City.
With the rise in demand for automobiles, there is also a rise in the demand for loans to finance the needs of the Filipinos. The company also cited the availability of the same in terms of affordable car financing and low down payment offers and competitive interest rates for the growing middle class Filipinos as well as the growing economy as swift drivers of car sales.
Gateway Motors also said that with moves such as these to meet the ever rising demands of the industry, they aim to double sales by the end of the next financial year.
25th November 2015