- Car loans come in different flavors and depend on which bank you choose.
- Choose the best car loan in the Philippines in the list we provided you with.
- In some cases, it may be enough just to repair the machine to upgrade it.
- Then you will need not a car loan, but a loan from Digido.
Top Car Loans for you in the Philippines
Having your vehicle, whether for personal or business use, is no longer a luxury but it’s turned into a necessity. The country has an unstable transportation system with changing rules all the time, so you don’t know if your bus is allowed to enter the city or not, prompting you to wait for a ride to work or school with no certainty. So many Filipino families can have the option to own their vehicles. Vehicles are expensive but through an auto loan, a vehicle can be obtained quickly. We will tell you how to choose the best bank from the top auto loans in the Philippines. This is the best for you among car loans in the Philippines.
When to Use a Car Loan?
A car loan is a necessity when a prospective buyer is unable to produce enough cash to pay for the vehicle’s price tag in one go so an auto loan is the only way to purchase a vehicle.
This is usually done through bank financing. The bank will pay off the vehicle and the buyer will pay the bank back with some interest.
How does Car Loan Work?
To be qualified for the best car loan, the buyer must have a good credit score: this proves to the bank or financier that the buyer is responsible enough to keep up with the payment. It’s also a major requirement to have a job because how else would the buyer pay up if he or she is unemployed?
In some cases, there are banks that will allow buyers to use their existing car as collateral to purchase a new one.
Car Loan Requirements
Aside from having a good credit score and a stable job, there are several documents for a used car loan or new car loanapplicant must possess. Below we will tell you about the standard requirements for a car loan. You can study everything carefully before you apply.
– An application form for a car loan filled with all the necessary information. You can can obtain this form from the bank or whichever agency that acts as the financier;
– Photocopy of any valid ID. These IDs are pretty much common that any citizen can have them such as Voter’s ID, Social Security System (SSS) ID, Professional Regulation Commission (PRC) ID, Passport, Driver’s License, and others;
– Applicants running their own business or self-employed will have to submit photocopies of their ITR (with BIR stamp), Department of Trade and Industry certificate, or Securities and Exchange Commission certificate, plus a copy of audited financial statements for the last two years.
The bank also takes your credit score into account when analysing the application form for a car loan. The higher your credit score, the better your chances of being approved. You can apply for a car loan to new or used car if you fulfil these requirements.
The applicant must also be qualified for the following:
- The applicant must be a Filipino resident and must be within 21-65 years old;
- The gross income of the applicant must not be below PHP 50,000.00;
- Self-employed applicants should have been running an active business for 2 years;
- Foreigner applicants must have a co-maker. You can ask your family member for help.
Is it better to get a car loan from bank or dealer Philippines?You can get lower interest rates by borrowing directly from the bank. However, applying for a bank loan on your own requires a little more patience, time, and paperwork.
How much is the car loan interest rate in the Philippines?Currently, at the end of 2020, the lowest auto loan interest rate in the Philippines is around 5%.
Is a car loan safe?Yes, if you get it from a verified bank with a state license.
Top Car Loans in the Philippines
If you are interested for the top car loans with lowest interest rates, they are all collected below. Explore and compare an auto loan offers from the most popular Philippine banks. For a quick snapshot of the different interest rates from different banks, here’s a list of them. Here you can see the top car loans in the Philippines.
BDO Car Loan
Minimum loan: PHP 100,000.00 or up to 80% of the car’s selling price.
The interest rate: 17.33% to 30.26% (for new car) or 14.11% to 30.06% (for used ones).
Repayment terms: 36 to 60 months (for new vehicles) or 24 to 48 months (for used ones).
The conditions to obtain the best car loan from BDO are the following:
- The applicant must be at least 21 years old but not be more than 70 by the end of the auto loan term;
- The applicant must be a Filipino citizen; if the applicant is a foreigner, he or she must have been living in the country for at least 2 years;
- The minimum gross family income of the applicant must be at least PHP 50,000.00;
- The applicant must have stable employment or business. The former should be at least 2 years old and the latter should be also 2 years old and has been profitable for those years. If employed overseas, it should be 2-3 years.
BPI Car Loan
Minimum loan amount: PHP 200,000.00.
The interest rate: 8.87% to 10.43% (arrears) or 9.21% to 10.45% (one month advance).
Repayment terms: 12 to 60 months.
The conditions for a new or used car loan are the following:
- The applicant of auto loan must sign an application form, include 2 valid IDs such as a Passport, Postal, Voter’s, Tax Identification Number (TIN), or SSS. There is a list of IDs and documents that can be found at their website;
- If the applicant is married, the couple should both sign the application form. If the applicant is signing with a co-borrower, both should sign separate application forms;
- The applicant should also have a job. If employed locally, he or she must present payslips from the last 3 months, a Certificate of Employment, and Income Tax Return (ITR). For self-employed applicants, SEC, DTI, and ITR for the last 2 years are required, a list of trade references (3 names with contact information);
- For those with medical practice, an ITR for the last 3 years is required along with clinic address(-es) and schedule. For those renting out properties, names of tenants and their monthly rent is required plus a photocopy of TCT/CCT.
METROBANK Car Loan
Minimum loan amount: PHP 350,000.00 or up to 80% of the vehicle’s net selling price.
Interest rate: 4.63% to 22.28% or 3.98% to 22.07% (with advanced payment).
Repayment terms: 12 to 60 months.
- Auto loan applicants must submit a valid government-issued ID. For non-citizens, SIRV/I-Card/ACR with receipt;
- Latest Income Tax Return (ITR) or Certificate of Employment that contains information about the salary, position, and length of employment within the company;
- If the applicant is an OFW, he or she is required to submit a photocopy of any government issued ID, COEC contact information of the employer, other bank’s statements, or ITR;
- If the applicant is in business, he or she is required to submit a photocopy of any government-issued ID, Audited Financial Statements, and ITR.
SECURITY BANK Car Loan
Minimum loan amount: PHP 400,000.00 or up to 80% of tag price (for brand new cars) or PHP 100,000.00 or up to 80% of the appraised value (for used ones).
Interest rate: 6.77% to 37.63% (for new cars) or 6.02% to 36.38% (for used ones).
Repayment terms: 12 to 60 months (for new cars) or 12 to 48 months (for used ones).
- The applicant of auto loan must be a Filipino citizen residing in the Philippines. If the applicant is a foreigner, he or she must have a guarantor who is a Filipino citizen (it can also be a company operating in the Philippines);
- The applicant must be 21 to 65 years old. The applicant must not be older than 65 by the time the loan matures;
- The gross monthly income of the applicant must be at least PHP 40,000 for brand new cars or PHP 20,000 for used ones. If the applicant is married, the joint income of both should still meet the stated amounts;
- The applicant must be employed for at least 2 years;
- If the applicant is in business, the business must be legal and operating for at least 3 years.
UCPB Car Loan
Minimum auto loan amount: PHP 100,000.00.
Car loan interest rate: 5.471% to 31.76%.
Repayment terms: 12 to 60 months (for new cars) or 12 to 36 months (for used ones).
- An applicant must be 21-65 years old with a minimum annual income of PHP 360,000.00;
- Must be employed for 2 years whether in business or under a company;
- Must present photocopies of relevant documents such as IDs and certificates.
EASTWEST BANK Car Loan
Minimum auto loan amount: PHP 300,000.00.
Car loan interest rates: 4.91% to 26.64% (for new cars, arrears) or 4.21% to 26.64% (advanced); 9.15% (for used ones, arrears) or 7.67% to 34.84% (advanced).
Repayment terms: 12 to 60 months (for new car) or 12 to 48 months (for used car).
- An applicant must submit an Application Form, ITR, Certificate of Employment (if employed);
- For those in business, they must submit photocopies of their Business Permit and other permits plus their financial statements for the last 3 years;
- It helps to have bank references/statements;
- Proof of Income sources;
- IDs like SSS/GSIS, Passport, company ID, etc.
PNB Car Loan
Minimum auto loan amount: 85% of the car’s price tag.
Car loan interest rate: 8.75% (for new cars) or 11.20% (for used ones).
Repayment terms: 12 to 36 months.
- An applicant must be a Filipino citizen residing in the Philippines. The loan is also open to foreigners who live in the country and have a valid Alien Certificate of Registration (ACR);
- Ages 21 to 65 years old until the time of loan maturity;
- An applicant must have a stable source of income;
- At least 1 year employed in a permanent position;
- At least 3 years in operation of a business.
RCBC Car Loan
An auto loan minimum amount: PHP 300,000.00.
Auto loan rates: 5.75% TO 30.30%.
Repayment terms: 12 to 60 months.
- An applicant who want apply for a car loan must be a Filipino citizen or have dual citizenship, one of which is Filipino;
- At least 21 years of age;
- Not more than 65 years old upon maturity of an auto loan or 70 if self-employed;
- An applicant must possess a working phone number, a residence or office phone number;
- An applicant must be employed for a minimum of 1 year and a gross monthly income of PHP 40,000.00. If engaged in business, the business must be stable and in operation for at least 2 years.
PS BANK Car Loan
An auto loan minimum amount: PHP 100,000.00.
Auto loan rates: 5.58% to 28.76% or 4.85% to 27.70% (with advanced payment).
Repayment terms: 12 to 60 months.
For individual, self-employed, or corporate applicants who want apply for a car loan.
- The applicant must be a Filipino citizen;
- Foreigners must have an ACR;
- Must be between 21-65 years old;
- If married, the spouse must also agree to the loan;
- At least 2 years staying at the current residence;
- Must be employed for 2 years;
- Income 3 times monthly amortization.
AUB Car Loan
Minimum loan: PHP 200,000.00.
Auto loan rates: applicants must contact their local branch to get a proper car loan computation.
Repayment terms: up to 60 months.
- Fully accomplished application form;
- 2 Valid IDs (Driver’s License, Passport, SSS, GSIS, etc.);
- Income Tax Return (ITR);
- Certificate of Employment (COE) (if applicable);
- A copy of the applicants latest Financial Statement;
- For those in business under sole proprietorship, a DTI registration.
What if I Only Need a Loan to Repair My Car?
In this case, of course, there is no point in taking for a car loan. Very often the car can be repaired for a little money. If you know how to fix the car, you will need to spend money only for spare parts. But even if you pay for the repair, it will still be much cheaper than the best new car. For car repairs, you don’t have to look far and wide for the cash you need to do simple repairs. You can obtain the needed cash for repairs from online lending services like Digido PH with the lowest rates.
What are the Requirements for Getting a Digido Loan?
To be qualified for the best loan, the applicant must meet the following requirements:
– Must be Filipino citizen;
– Must be between 21-70 years old. The applicant must not be more than 70 by the time the loan term ends;
– Must have a stable job. The applicant may be required to submit certain documents like a Certificate of Employment;
– A valid ID like a Voter’s, SSS, or Passport may be required;
– Photocopies of utility bills like power and water.
You can get here an amount up to 10,000 pesos on the first loan and up to 25,000 pesos for up to 1 month on the next loan.Apply now
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