Looking to buy a new car for personal or business use but don’t have enough money? You can get financial help from banks and lenders by applying for a car loan. Here is a comparison of car loans currently available in the Philippines. Compare your options online with Moneymax!
|Bank||Monthly Interest Rate*||Minimum Loan Amount||Processing Time (Banking Days)||Loan Term (Months)|
12 to 60
1 to 3
12 to 60
12 to 60
12 to 60
12 to 60
12 to 60
₱100,000 for used
12 to 60 (new)
12 to 60
*Interest rate depends on loan term
A car loan, also known as an auto loan, is a financing scheme involving a bank or lender letting you borrow a specific amount for the sole purpose of purchasing a motor vehicle. You will then be paying what you owe in a series of monthly payments plus interest over a period of time, usually between 12 to 60 months.
Even if you have enough budget for a car, it’s still a good idea to apply for an auto loan. One benefit of doing so is getting to own a car without having to pay full price upfront. Now you can allocate some of that money somewhere else useful while you use your car to pay for itself. And since not everyone can afford a brand new car, getting a car loan is the ideal solution.
If you meet the following eligibility criteria, you can definitely apply for an auto loan from your preferred loan provider in the Philippines:
In order to increase your chances of approval, you need to prepare the following requirements:
Here are some of the requirements for some of the best car loan deals in the Philippines:
Not yet. When you buy a car using an auto loan, the bank or lender technically becomes the owner of the car since they were the ones who financed it. This means you should take proper care of your car while you’re still under contract. You will eventually own it once you’ve settled all your payments with the loan provider.
Yes! All auto loans in the Philippines allow borrowers to use the loan proceeds to buy used vehicles. You can also use your loan to reimburse the money you used to finance your used vehicle.
Yes, most banks let you borrow money to buy a vehicle intended for business use. If you’re planning to become a TNVS driver, this type of loan will certainly help you get your own vehicle. Some even have a dedicated loan for SUVs, vans, and even trucks.
The monthly interest rates of auto loans are rather high. It can range from 4% to 8% and it will depend on whether you’re buying a new or used car. Note that you’re required to pay a down payment of 20% to 50% of the vehicle’s selling price.
Aside from the interest rate and the loan amount of down payment, some other factors will influence the total cost of your car loan. The vehicle type, age, make, and model are examples of these factors. Your loan term can also affect the loan amount of your monthly amortization. The shorter the term, the more expensive it is, but you’ll be paying less interest that way. On the other hand, a longer-term leads to lower amortization, but you’ll receive a higher interest.
Some banks offer online car loan calculators to give you a rough estimate of your monthly amortization. For instance, BPI auto loan offers their own version of an online calculator that is available for everyone. Just input the car price, the amount of down payment you’re willing to shell out, and your preferred loan term.
You can! Just make sure you at least have a good credit score and a long-standing relationship with your loan provider. One tip to increase your chances of getting a deal is to apply for an auto loan with the bank you already have an account with. To negotiate a lower car loan payment, offer to pay a higher down payment if you have the budget. This will show the loan provider that you are capable enough to maintain your monthly amortizations.
Most banks accept both walk-in and online applications. Just prepare your documents and head to your nearest branch to apply from there. Alternatively, you can submit your application using the bank’s online facility. Just prepare digital versions of your documents for faster processing.
Banks and lenders usually take as fast as one banking day to process and approve an auto loan application. Once it’s done, your loan provider will require you to do the following:
Getting an auto loan can be difficult but it can be easier when you read our guides. Check out our articles to help you with your journey in owning a car in the Philippines.
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