14 Best bank Car loan lenders in Philippines

Last Updated on October 27, 2023 by admin

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 is car loan?

A car loan, also known as an auto loan or vehicle financing, is a type of loan specifically designed to help individuals purchase a car. It is a form of installment loan where the borrower borrows a specific amount of money from a lender or financial institution to purchase a vehicle and then repays the loan over a certain period of time, usually with interest.

Here are some key features of a car loan:

1. Loan amount: The loan amount provided by the lender is generally based on the purchase price of the vehicle, minus any down payment or trade-in value.

2. Interest rate: The lender charges an interest rate on the loan amount, which is the cost of borrowing. The interest rate can be fixed or variable and varies based on factors such as the borrower’s creditworthiness and the loan term.

3. Loan term: The loan term is the duration for which the borrower agrees to repay the loan. Car loans typically have terms ranging from 2 to 7 years, although shorter or longer terms may be available depending on the lender.

4. Down payment: Some lenders require borrowers to make a down payment towards the purchase of the vehicle. The down payment is a percentage of the vehicle’s purchase price and helps reduce the loan amount.

5. Monthly payments: Borrowers repay the loan through monthly installments, which include both principal and interest. The amount of the monthly payment depends on factors such as the loan amount, interest rate, and loan term.

6. Collateral: In a car loan, the vehicle being purchased serves as collateral for the loan. This means that if the borrower fails to repay the loan, the lender has the right to repossess the vehicle to recover the outstanding loan amount.

7. Ownership: While the borrower takes possession of the vehicle at the time of purchase, the lender retains a lien on the vehicle until the loan is fully repaid. Once the loan is paid off, the lien is removed, and the borrower becomes the sole owner of the vehicle.

Car loans provide individuals with the opportunity to purchase a car without having to pay the entire purchase price upfront. However, it’s important to carefully consider the terms, interest rates, and repayment capacity to ensure that the loan is affordable and fits within one’s financial situation.

Read: Banks and Online lenders in Philippines that offers Business Loans

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 lenders 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
4.Official income
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.

Read: 10 Philippines Banks that offer Personal Loans with Lowest Interest Rate

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

Key Security Bank Car Loan Features

  • Vehicle type: Brand-new and secondhand cars for personal use / Brand-new cars for business use
  • Maximum car age: Up to 11 years old
  • Minimum monthly household income:
    • Brand-new: ₱40,000
    • Secondhand: ₱20,000
  • Loan amount:
    • Brand-new: Minimum of ₱400,000 up to 80% of the purchase price
    • Secondhand: Minimum of ₱100,000 up to 70% of the appraised value
  • Down payment: 20% to 50%
  • Interest rate:
    • Standard: 6.77% to 37.63%
    • With one-month advance: 6.02% to 36.38%
  • Repayment terms: 
    • Brand-new: 12 to 60 months
    • Secondhand: 12 to 48 months
  • Approval time: Within one banking day

 

2. RCBC Car loan

.Rcbc has Auto Loan with Minimum Loan Amount: Php 300,000

.Downpayment: 20%
.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

Downpayment: 20%-40%

 

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

Key Maybank Car Loan Features

  • Vehicle type: Brand-new cars
  • Loan amount: Details will be provided upon Maybank Auto Loan application
  • Down payment: 20%
  • Interest rate: Contact the nearest Maybank branch for the best car loan off
  • Repayment terms: Up to 60 months
  • Approval time: Within one day

Also read: Banks and online lenders that offer Salary loan in Philippines

 

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

Key BPI Car Loan Features

  • Vehicle type: Brand-new and second-hand cars for personal or business use
  • Maximum car age: Up to 10 years old
  • Minimum monthly household income: ₱30,000
  • Loan amount: Minimum of ₱200,000
  • Down payment: 15% to 70%
  • Effective interest rate:
    • Brand-new cars: 9.87% to 11.18%
    • Secondhand cars: 14.26% to 15.50%
  • Repayment terms: 12 to 60 months

 

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

Key Metrobank Car Loan Features 

  • Vehicle type: Brand-new cars for personal or business use
  • Minimum monthly household income: ₱40,000
  • Loan amount: Minimum of ₱350,000 and up to 80% of the net selling price
  • Down payment: Minimum of 20%
  • Interest rate: 
    • Standard: 6.4500% to 31.7600%
    • With one-month advance: 5.5100% to 30.5700%
  • Repayment terms: 12 to 60 months
  • Approval time: Within 24 hours

 

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

Key China Bank Savings Car Loan Features

  • Vehicle type: Brand-new and secondhand cars
  • Loan amount: Minimum of ₱30,000
  • Interest rate: Contact the nearest China Bank Savings branch for the best car loan offer
  • Repayment terms:
    • Brand-new: up to 60 months
    • Secondhand: 36 to 48 months

14. Union Bank Philippines Auto Loan

Union Bank Philippines brand new car loan interest is 5.61% with Monthly Repayment ₱ 9,736

Key UnionBank Car Loan Features

  • Vehicle type: Brand-new cars, secondhand cars, and brand-new light trucks
  • Loan amount: Details will be provided upon UnionBank Auto Loan application
  • Down payment: 20% to 50%
  • Interest rate:
    • Standard: 6.56% to 31.76%
    • With one-month advance: 5.68% to 30.57%
  • Repayment terms: 12 to 60 months

 

Meet Ogbeide Frank, popularly known as perere, a blogger who loves writing about finance and Tech. He studied Business administration at the Ambrose Alli University Ekpoma and Mobile Communication at Orange College Malaysia .Frank have worked as a banker and consultant in variety of Nigeria agencies

For Advertisement, Content marketing andsponsored post: contact : kokobest04@gmail.com
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    Ogbeide Frank loves writing and research about finance and Tech. He studied Business administration at the Ambrose Alli University Ekpoma and Mobile Communication at Orange College Malaysia .Frank have worked as a banker and consultant in variety of Nigeria agencies For Advertisement, Content marketing and sponsored post: contact : kokobest04@gmail.com

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Ogbeide Frank loves writing and research about finance and Tech. He studied Business administration at the Ambrose Alli University Ekpoma and Mobile Communication at Orange College Malaysia .Frank have worked as a banker and consultant in variety of Nigeria agencies For Advertisement, Content marketing and sponsored post: contact : kokobest04@gmail.com
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