Motorcycle Loan in the Philippines: How to Apply for a Motorcycle Installment

You are 21-70 years old

You are a Filipino citizen

You have a valid government ID

For Filipinos earning an average income, owning a motorcycle is the best substitute for a car or public transportation. Unlike cars, motorcycles have lower maintenance costs, are somewhat more fuel efficient, do not take up too much parking space and can take you faster from one place to another.

Buying a motorcycle in full payment may not be very ideal for Filipinos who are earning an average income. If you are one of those, and you have a short budget, you can get a loan to finance your ideal bike.

If you’re considering buying a motorcycle, this article provides essential information on obtaining motorcycle loans in the Philippines. 

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Advantages of Motorcycle loans

Taking a motorcycle on credit, rather than paying upfront, can offer several advantages:

✅ Simplified application process
Many banks offer motorcycle loans with simplified application procedures; some lenders even offer an online loan application. This means you can complete the necessary paperwork and get approval relatively quickly, allowing you to acquire your dream motorcycle sooner.

✅ Access to Higher Models
Credit options might enable you to afford a better model with more features than you could buy with cash. Monthly payments can make owning a motorcycle more accessible for those who cannot afford the full price upfront.

✅ Promotional Deals
Financing often comes with promotional incentives like lower interest rates, deferred payments, or bonuses that are not available with cash purchases. These can make the overall deal more attractive and cost-effective.

✅ No need for you to withdraw your emergency funds
By opting for a motorcycle loan, you can preserve your savings and emergency fund for other essential expenses and unexpected emergencies.

Requirements for a Motorcycle Installment

Motorcycle loans often have less stringent approval requirements compared to car loans. This is particularly beneficial for individuals who might not have a formal employment record or a high credit score.

In the Philippines, most financing institutions have the same motor loan requirements. A lot depends on whether you choose a new or used motorcycle. Your chances increase if you have a good credit rating. Generally, these are:

• The applicant should be a Filipino citizen whose age is 21 years old or above;
• Have valid IDs;
• A completed application loan form;
• Currently employed or has a reliable source of income.

Banking companies usually ask borrowers to provide the following documents to prove their income:

• Billing slips;
• Proof of billing;
• Income tax return ;
• Business Registration Certificate (DTI);
• Proof of remittance for OFWs.

Each bank financing motorcycle may have different qualifications and requirements, so you need to keep them in mind. Considering these can also influence your decision in choosing for a motorcycle loan program that suits your goal.

Learn more: How to Get
OFW Loan Fast Release in the Philippines

Bank Motorcycle Loans in the Philippines 2024

Here are some of the top banks offering motorcycle loans in the Philippines in 2024, known for their competitive rates and favorable terms

1. Security Bank Motorcycle Loan

Security Bank offers big bike loans in the Philippines with a low interest rate. Down payment and loan term varies from each other. The applicant can be an individual or a company. For an individual applicant, the necessary documents needed are as follows:

• Filled out and signed loan application form
• Copy of valid government-issued ID
• Latest BIR Form 2316, or
• Latest three months’ pay slip
• Certificate of Employment
• Employment Contract for OFW

To apply online you need to go to the official web page of the Security bank and fill in the form (1). Security Bank motorcycle loan calculator will be available on their website. If you are wondering if there is a Security bank used motorcycle loan, the answer is no. The Security Bank motorcycle loan is for new models of motorcycles 400cc and up only.

The loan is tailored to assist individuals in purchasing brands like BMW, Ducati, Harley Davidson, Honda, Kawasaki, Suzuki, Yamaha, KTM, and MV Agusta. The minimum selling price requirement for the motorcycles is PHP 300,000.

2. SB Finance MotorsikLOAN

MotorsikLOAN is a loan option available to employed or self-employed individuals who want to buy either a new or used motorcycle from SB Finance. New motorcycles are bought from dealer partners such as Star Honda, MotorCentral, KServico, MotoXPress PH, MotoKing and EMCOR, while used ones come from the repossessed units of SB Finance.

SB Finance MotorsikLOAN, on top of offering one of the lowest motorcycle loan rates in the Philippines, boasts the following loan features for their bank motorcycle loan:

• Hassle-free loan application process;
• Affordable monthly payments – interest rate for as low as 1.25%;
• Easy documentary requirements
• Fast processing (as fast as 2 hours)

The loan calculator is conveniently available on the SB Finance website (2) as well.

3. Robinsons Bank Go! Motorsiklo Loan

Meanwhile, Robinsons Bank offers different motor loan features in the Philippines with a low interest rate. You can choose to get a motorcycle loan for a regular / solo bike, big bike loan, or second-hand unit loan. For the individual application, you need to secure the the following:

• Filled out and signed Robinsons motorcycle loan application form
• Copy of government-issued IDs
• Proof of billing.

Take note that the additional Robinsons Bank motorcycle loan requirements differ depending on your employment status. Robinsons Bank loan calculator is available on Robinsons Bank website (3) for a more accurate calculation of payments is available on the bank’s website.

• If locally employed, you also need to submit your latest one-month pay slip or certificate of employment, photocopy of government-issued IDs, and proof of billing.
• If self-employed, submit your latest three-month bank statements, your DTI registration, photocopy of government IDs, and proof of billing.
• If an OFW, submit a copy of your employment contract, latest three-month proof of remittance, photocopy of government IDs, and proof of billing.
• If a partnership or corporation, submit the latest three month bank statements, latest GIS, income tax returns (ITR) & audited financial statements (AFS) for the last three years.

4. City Savings Bank Motorcycle Loan

City Savings Bank has a motorcycle loan program that offers two types of features: two-wheeler and three-wheeler, with engine capacity not exceeding 400cc.

According to their website, the bank finances motorcycles from top Japanese brands and you don’t have to open a bank account in order to avail of the motorcycle loan! You can even avail of a rebate as long as you pay your amortization on time!

To apply for a City Savings Bank motorcycle loan, you must be at least 21 years old but not more than 65 years old upon loan maturity. There are different motorcycle installment requirements in the Philippines and below are for a City Savings Bank motorcycle loan:

• If you are employed, present 1 government ID and certificate of employment or latest payslip.
• If self-employed, present 1 government ID.
• If you’re a pensioner, present 1 government ID and statement of account with at least 1 month pension credit.
• If you’re a sole proprietor, present 1 government ID, a copy of the business permit and DTI permit.
• If a corporation, present SEC registration, articles of incorporation, board resolution, business permit, and audited financial statement.
• If you’re receiving remittances, present 1 government ID and at least 2 months’ proof of remittance within the past 6 months.

City Savings Bank also has a motorcycle loan calculator available on its website (4).

5. AUB Big bike loan

Hurray for the big bike lovers! With Asia United Bank, you can now have your dream big ride!

AUB Big Bike Loan is available for those who are planning on buying motorcycles that are 400cc and above. The AUB Big Bike Loan is available for those who are employed, self-employed and working overseas. Motorcycle loan requirements include two valid government IDs with photo and signature and latest proof of billing under your name.

• If you’re locally employed, present your latest income tax return or BIR Form 2316 or latest 3 month payslips.
• If self-employed, present the latest audited financial statements for the last 2 years, latest ITR/BIR Form 2316, bank statement/passbook copy for the last 3 months, and certificate of business registration with DTI or SEC.
• If OFW, submit proof of remittance for the last 3 months, latest crew contract duly authenticated by the Philippine Consulate (for OFWs), and consularized special power of attorney.

To apply online, you need to visit the official webpage of Asia United Bank and fill the forms (5).

6. BPI Motorcycle loan

Go on priceless adventures on your dream big bike with BPI Auto Loan!

In order to qualify for a BPI Auto Loan, covering a big bike loan in the Philippines, you must be at least 21 years old but not older than 70 years old upon loan maturity, and must have a minimum household income of Php 40,000 per month. You must submit an accomplished application form (you can apply online as well (6)  and two valid IDs. Additional signatures and forms are needed if you’re married or have a co-borrower

They also boast a low cash out using their payment features Step Up PayPlan, Multi Year Protect Program, and Zero Cash Out.

Learn more about
✦ In-Demand Jobs in the Philippines
✦ Student Loan
✦ Bad Credit loans 100% Approval

How to Apply for a Motorcycle Loan

To apply for a motorcycle loan in the Philippines in 2024, you can follow these general steps, which are applicable across various banks and lending institutions:

1. Know If You’re Eligible. Ensure you meet the lender’s eligibility criteria. Typically, you should be between 21 to 65 years old and have a steady income, either from employment or a legitimate business.
2. Prepare Documents. Gather all necessary documents, which usually include government-issued IDs, proof of income (like payslips or bank statements), proof of residence, and details about the motorcycle you wish to purchase.
3. File Your Application. Once you’ve confirmed your eligibility and assembled the required documents, it’s time to submit your loan application. You can usually do this online through the lender’s website or in person at a bank or credit union. Complete the application form accurately, providing all requested information and supporting documents. Be prepared to disclose your financial information, employment details, and the specific loan amount you’re seeking.
4. Wait for the Approval. After submitting your application, the lender will review your financial profile, credit history, and the motorcycle’s details. This process may take some time, so be patient. During this waiting period, it’s crucial to maintain open communication with the lender and be responsive to any requests for additional information or clarification. Once your loan is approved, you’ll receive the loan terms, including the interest rate, repayment schedule, and any applicable fees. Carefully review these terms before accepting the loan offer.

Choosing the Best Motorcycle Loan in the Philippines

Obtaining a motorcycle or bike loan in the Philippines requires careful consideration to ensure you get the best value.
You can seek recommendations from family and friends who have previously taken out loans, gathering insights on banks, down payments, and interest rates for comparison.

Or check out our 6 tips on choosing a lender for your motorcycle loan:

1. Examine the interest rates to secure lower rates. Banks mostly advertise their competitive interest rates in their website so this should be accessible to you.
2. Review Loan Terms. Different lenders offer different loan terms, including the loan duration and the amount of down payment required.
3. Consider Additional Fees. Apart from the interest rates, consider other fees such as processing fees, early repayment fees, and late payment penalties. These can add up and make the loan more expensive than it initially appears.
4. Check Eligibility Requirements. Some lenders have more stringent requirements than others. Make sure you meet the eligibility criteria before applying.
5. Assess the bank’s reputation and loaning track record, and one that will offer you the most convenience.
6. Check out special Promotions and Offers. Sometimes lenders offer special promotions, such as discounted interest rates, waivers on initial payments, or additional services.

TIP: The larger the down payment, the better
Before applying for a motorcycle loan in the Philippines in 2024, consider using your own savings for the down payment. Banks often cover 70% of a bike’s cost, especially for high-end models. Paying a larger down payment, around 40% to 50%, can help reduce your loan amount and, consequently, lower your monthly payments and interest costs. This responsible financial move can also make you a more attractive candidate for loan approval.

What to do if the bank rejects a motorcycle loan?

Unfortunately, motorcycle loan providers can easily deny you a loan. For example, it could be because you don’t have a guarantor, your lack of stable income, or because you don’t have a good credit history. In the event that your motorcycle loan application gets denied, where else can you apply? One of the best options you can consider is getting a quick online cash loan.

With Digido, getting a fast cash loan for any need is simple and easy! Digido offers a fast approval process in 5 minutes with 0% interest rates for first loan!

Here are some benefits of Digido for your comfort perfect loan for any purpose:

⭐️ We only require one government ID
⭐️ 0% interest rate for first-time borrowers
⭐️ No collateral or guarantors required
⭐️ You can get up to PHP 25,000 in just 10 minutes
⭐️ Get your money with GСash
⭐️ Simple online application

For first-time borrowers, you can apply for a loan up to PHP 10,000  with 0% interest, while repeat borrowers can avail up to PHP 25,000!  You don’t have to worry about the requirements as they can accept just your government-issued ID.

Also read all about
✦ Easy Cash Loan
✦ Phone Loan

Articles sources

• 1. Security bank online application
• 2. SB Finance online application
• 3. Robinsons Bank Motorcycle Loan Application Form
• 4. City Savings online application
• 5. AUB online application
• 6. BPI official website

Authors

Digido Financial Writers Team

Author pages:

Digido Financial Writers Team is a team of experts in the field of finance and credit, specializing in writing articles for Digido blogs.

Anna Kireeva

Author pages:

Anna is a marketing communications professional who specializes in digital marketing strategies and long-form content.

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