For OFWs, owning a car can be a significant milestone that provides convenience, comfort, and mobility. However, purchasing a car can be quite costly, and not all OFWs have the resources to pay for it in full. Fortunately, there are various car loans for OFWs that can help them achieve their dream of owning a car without breaking the bank.
This list of car loans for OFWs is an excellent resource for anyone looking to finance their car purchase. Whether you’re a first-time buyer or looking to upgrade your ride, this list offers a variety of options that cater to different needs and preferences. So, buckle up and explore the world of car loans for OFWs!
According to a local transport group, public transportation in the Philippines has not improved despite the country’s gradual recovery from the pandemic. In fact, the number of passenger cars sold in the country ranked 11th among Asian countries, with approximately 153,000 vehicles sold in 2020 during community quarantines.
As we navigate the “new normal,” owning a vehicle has become a more popular and safer way to travel. To finance a vehicle purchase, it’s crucial to find the best bank for a car loan in the Philippines. However, there is no one-size-fits-all option as different auto loan providers offer various features and promotions that cater to the needs and preferences of car buyers. Before applying for a car loan, it’s essential to research and compare different options based on the type of car, budget, and qualifications. To assist with this process, we’ve compiled a list of car loans available in the Philippines.
Asia United Bank (AUB) Car Loan
AUB offers motor vehicle loans for financing both brand-new and used cars. Some key features of AUB’s car loans include:
- a minimum loan amount of ₱200,000,
- interest rates that can be obtained by contacting the nearest AUB branch for the best car loan offer, and
- repayment terms of up to 60 months.
If you would like to know more about the specific details and requirements for applying for this type of loan with AUB, you may follow this link. You might also want to check out our guide on AUB loans for OFWs to learn more.
Bank of Commerce Car Loan
Bank of Commerce offers affordable car loan products, allowing you to drive your family with ease. To use their car loan calculator, you can input the car’s price, and if it costs ₱1 million payable in 60 months, you’ll be paying a monthly amortization of around ₱17,000. The bank’s car loan features include:
- financing for brand-new cars only,
- a minimum loan amount of ₱100,000,
- a down payment range of 20% to 45%,
- interest rates between 7.24% to 27.54%, and
- repayment terms from 12 to 60 months.
To learn about the specific details and requirements for applying for this type of loan with the Bank of Commerce, you can follow this link. Additionally, you may be interested in our guide on Bank of Commerce loans for OFWs for further information.
Bank of the Philippine Islands (BPI) Car Loan
If you’re interested in finding the best car loan in the Philippines, consider BPI Auto Loan. BPI Auto Loan offers fast and easy financing for brand-new and second-hand personal or business-use cars.
- minimum monthly household income of ₱40,000 and a minimum loan amount of ₱200,000, you can get a loan payable over 12 to 60 months.
- down payments as low as 15% and a competitive effective interest rate, which varies depending on whether you choose to pay in arrears or with one-month advance.
- Approval can be as quick as three to eight hours.
Other BPI Auto Loan Features
- Free BPI credit card: Customers who are approved for an auto loan can get a Petron-BPI Mastercard for free during the first year, which offers a 3% rebate on fuel purchases at participating Petron stations.
- Auto Loan Step Up PayPlan: With this option, you can pay lower amortizations in the first two years than you would with a regular BPI auto loan. Amortizations gradually increase in the succeeding years.
- BPI Flex Rewards: Customers who are approved for a car loan will receive ₱10,000 worth of Flex Rewards for every ₱500,000 loan amount. These rewards can be used to pay for car insurance premiums, chattel mortgage fees, and amortizations, or converted into credit card rewards for other cashless purchases.
- Up to ₱130,000 cash discounts from Ford: BPI Auto Loan customers can enjoy discounts of up to ₱130,000 when purchasing a new Ford. The discount amount varies depending on the Ford car model, with the highest discount for the Ford Ecosport or Ranger.
- Zero Cash-Out, Deposit Holdout: Instead of paying for a down payment with cash, BPI allows customers to use their deposit savings as a holdout, which will serve as the car’s down payment.
- Multi-Year Protect: BPI Multi-Year Protect is a full insurance coverage for your car with no upfront cash out. You can get an insurance policy for the entire auto loan term and pay in monthly installments.
Check out BPI’s current car loan rates for more information on interest rates. To find out more about the particular qualifications and prerequisites for applying for this loan through BPI, you can click on this link. You may also want to refer to our guide on BPI loans for OFWs for additional information.
EastWest Bank Car Loan
EastWest Bank Auto Loan offers several benefits for those looking to purchase a brand-new or pre-owned vehicle. The loan promises affordable down payments, easy amortization, and flexible payment options. The bank provides car loans for both personal and business use, with a minimum monthly household income of ₱60,000.
- Interest rates for brand-new cars range from 5.99% to 31% (in arrears) or 5.20% to 29.85% (in advance), while
- interest rates for pre-owned cars range from 7.19% to 36.04% (in arrears) or 6.04% to 34.25% (in advance).
- The repayment terms for brand-new cars range from 12 to 60 months, while pre-owned cars range from 12 to 48 months.
For further details on the specific qualifications and requirements for this loan, you may click on this link. Additionally, our guide on EastWest Bank loans for OFWs may provide supplementary information that may be helpful.
Metrobank Car Loan
Metrobank offers competitive rates, manageable terms, and personalized services for car loans, making it one of the best banks in the Philippines for this type of financing. To obtain a car loan worth ₱1 million, prepare a down payment of around ₱200,000, and set a monthly budget of ₱17,269 for your monthly amortization. The following are the key features of Metrobank’s car loan:
- Financing for brand-new cars for personal or business use, with a minimum monthly household income of ₱40,000.
- The loan amount ranges from ₱350,000 up to 80% of the net selling price, with a minimum down payment of 20%.
- Metrobank offers varying interest rates, which can be checked on their website.
- Repayment terms range from 12 to 60 months, and
- Approval time takes within 24 hours.
To learn more about the necessary qualifications and requirements for this loan, please click on this link. For additional information that may be helpful, refer to our guide on Metrobank loans for OFWs.
If you want to own a vehicle but don’t have the funds to purchase one outright, bank loans can be a good option. Many banks in the Philippines, including the Philippine National Bank (PNB), offer car loans to help individuals purchase a vehicle.
PNB’s car loan is called the Sure Wheels Auto Loan and comes with the following features:
- Low Interest Rates
- Low Downpayment
- Easy Payment Terms
- Quick Approval
- Convenience in Payment
PSBank Car Loan
The PSBank Auto Loan with Prime Rebate provides quick approval, with a loan status notification in just 24 hours. In addition, the loan comes with rebates for excess payments, which can be applied to reduce monthly amortization or shorten the loan term.
- To qualify, the minimum monthly household income should be ₱30,000, with a minimum loan amount of ₱100,000 and a down payment of at least 20%.
- PSBank car loan interest rates range from 5.58% to 28.76% for the standard rate and 4.85% to 27.70% for the rate with a one-month advance payment.
- Repayment terms can be from 12 to 60 months.
Other PSBank Auto Loan Feature
By paying in advance or above your monthly amortization, you can earn rebates through PSBank Prime Rebate. The calculation of your rebates commences on a daily basis from the date your payment is posted, and all rebates are credited to your account on every due date.
RCBC Bank Car Loan
RCBC Auto Loan offers one of the best car loan deals in the Philippines with the freedom to choose your loan type. You can take out a car loan with low amortization, free insurance coverage for the first year, and low down payment.
- If you take out a ₱500,000 car loan from RCBC, you’ll put a ₱100,000 down payment and set aside around ₱8,684 monthly for your car loan payment.
- Vehicle type: Brand-new and secondhand cars
- Minimum monthly household income: ₱40,000
- Loan amount: Minimum of ₱300,000
- Down payment: 20% to 80%
- Interest rate: 5.75% to 30.30%
- Repayment terms: 12 to 60 months.
If you’re planning to purchase a car for personal or business use, Security Bank Auto Loan is a great option. Here are some key features of the car loan that you should be aware of:
- You can find the best car loan for business here, which you can use for car rental services or cargo and transport services.
- The loan covers brand-new and secondhand cars for personal use and brand-new cars for business use.
- The maximum car age is up to 11 years old.
- The minimum monthly household income for brand-new cars is ₱40,000, while for secondhand cars, it is ₱20,000.
- The loan amount for brand-new cars is a minimum of ₱400,000 up to 80% of the purchase price, while for secondhand cars, it is a minimum of ₱100,000 up to 70% of the appraised value.
- The down payment ranges from 20% to 50%.
- The interest rate ranges from 6.77% to 37.63% for the standard rate and from 6.02% to 36.38% with one-month advance.
- The repayment terms for brand-new cars are 12 to 60 months, while for secondhand cars, it is 12 to 48 months.
- The approval time is within one banking day.
Click on this link to learn about the essential requirements and qualifications for this loan. Furthermore, for additional useful information, you can refer to our guide on Security Bank loans for OFWs.
UCPB Car Loan
If you’re looking to purchase a brand new or pre-owned car and also apply for a multi-purpose loan while using your vehicle as collateral, then a UCPB car loan may be the right fit for you. With the UCPB DriveEasy Auto Loan, applying is simple and can be done easily online. All you need to do is fill out the DriveEasy Auto Loan application form, attach the required documents, authenticate your application with a one-time password, and then wait for feedback.
Before applying for the loan, it’s recommended that you use the UCPB DriveEasy Auto Loan calculator to determine the monthly amortization and interest rates that you will need to pay. If you’re planning to purchase a car worth ₱1 million, you will need to have a minimum monthly gross income of ₱50,000.
- Vehicle type: UCPB car loan is available for both brand-new and secondhand cars.
- Minimum monthly household income: To qualify for the UCPB car loan, the minimum monthly household income required is ₱30,000.
- Loan amount: The minimum loan amount that can be availed with UCPB car loan is ₱100,000.
- Down payment: The down payment required for UCPB car loan ranges from 20% to 50% of the total loan amount.
- Interest rate: The interest rate for UCPB car loan varies from 5.471% to 31.76%, depending on the loan amount and repayment term.
- Repayment terms: For brand-new cars, the repayment terms range from 12 to 60 months, whereas for secondhand cars, the repayment terms range from 12 to 36 months.
To learn about the essential qualifications and requirements for this loan, simply click on this link. Additionally, for more helpful information, please consult our guide on the best OFW loans in the Philippines.
UnionBank Car Loan
If you’re in search of the best bank to provide you with a car loan in the Philippines, you might want to consider UnionBank. The UnionBank Auto Loan offers fast approval, a simple online application, and excellent customer service. The loan application process is straightforward, and it can be completed in just three easy steps: calculate your loan, fill out the application form, and submit it. You can use the loan calculator to get an estimate of the total loanable amount, the insurance premium cost, and your monthly amortization.
- Vehicle types: UnionBank provides car loans for brand-new cars, second-hand cars, and brand-new light trucks.
- Minimum monthly household income: The minimum monthly household income required for UnionBank car loan applicants is ₱50,000.
- Down payment: UnionBank requires a down payment of 20% to 50% for their car loans.
- Interest rate: UnionBank offers two interest rate options for their car loans. The standard interest rate ranges from 6.56% to 31.76%, while the interest rate with a one-month advance payment ranges from 5.68% to 30.57%.
- Repayment terms: The repayment terms for UnionBank car loans are flexible, ranging from 12 to 60 months.
For information regarding the required qualifications and prerequisites for this loan, please click on this link. Additionally, we offer a helpful guide on UnionBank loans for OFWs that may provide you with further useful information.
Video: OFW Tips for AUTO LOAN
Want to take out a loan from the bank as an OFW? Here are some tips you can follow to ensure smooth transactions for your loan.
Here are some of the requirements you need to gather according to the featured vlogger, The CARLOAN Expert:
- Latest Contract
- Plane Ticket
- Passport & Seaman’s Book
- Latest Proof of Billing
- Spouse as Co-Maker
- Latest Bank Statement
- Latest Contract Translated in English
- Passport & Company IDs
- Latest Bank Statement
- Latest Proof of Billing
- Property Title
- Spouse as Co-Maker
- SPA Special Power of Attorney
With these taken care of as soon as you plan on applying for a car loan, you’ll have no problems getting the car of your dreams!
Tips for Applying for a Car Loan as an OFW
If you are an overseas Filipino worker (OFW) who is considering taking out a loan from the bank, it is important to be well-informed and prepared in order to have a smooth transaction. Here are some tips that can help you through the loan application process:
- Determine your loan purpose and the amount you need to borrow. It is important to know exactly how much money you need to borrow and for what purpose. This will help you choose the right loan product and provide the lender with the necessary information to assess your loan application.
- Check the loan requirements and qualifications. Each loan product has specific requirements and qualifications that must be met. Make sure to review these carefully and determine if you meet the criteria before applying for a loan.
- Prepare your documents. Once you have determined which loan product to apply for and have reviewed the requirements and qualifications, gather all the necessary documents. These may include identification cards, employment contracts, payslips, and other supporting documents.
- Compare loan products from different banks. It is always a good idea to compare loan products from different banks to find the best fit for your needs. This can help you save money on interest rates and fees.
- Choose a reputable bank. When choosing a bank, consider its reputation, reliability, and customer service. It is important to choose a bank that is trustworthy and can provide you with the best loan product and customer experience.
By following these tips, you can ensure a smoother loan application process and increase your chances of obtaining the loan you need as an OFW.
Frequently Asked Questions
1. What is a car loan for OFWs?
A car loan for OFWs is a financial product that enables overseas Filipino workers (OFWs) to purchase a car, whether brand new or second-hand. This type of loan typically involves a set of monthly payments over a fixed period of time, with interest and other charges applied.
2. What are the qualifications for a car loan for OFWs?
The qualifications for a car loan for OFWs may vary depending on the bank or financial institution offering the loan. However, typical requirements include a valid employment contract or proof of income, a government-issued ID, and proof of overseas employment.
3. Can an OFW apply for a car loan while abroad?
Yes, OFWs can apply for a car loan while abroad. Many banks and financial institutions have online application processes that allow OFWs to apply for a loan from anywhere in the world.
4. What is the maximum loan amount for a car loan for OFWs?
The maximum loan amount for a car loan for OFWs may vary depending on the lender and the borrower’s income and credit history. Generally, the loan amount can range from P100,000 up to P2 million.
5. What is the interest rate for a car loan for OFWs?
The interest rate for a car loan for OFWs may vary depending on the lender and the loan amount. Typically, interest rates can range from 4.99% to 12% per annum.
6. How long does it take to process a car loan for OFWs?
The processing time for a car loan for OFWs may vary depending on the lender’s requirements and the completeness of the borrower’s documentation. Typically, the processing time can take from several days up to two weeks.
7. Can a car loan for OFWs be used to purchase a second-hand car?
Yes, a car loan for OFWs can be used to purchase a second-hand car. However, some banks and financial institutions may have specific requirements and restrictions on the age and condition of the car.
8. What happens if an OFW defaults on a car loan payment?
If an OFW defaults on a car loan payment, the lender may charge late payment fees, penalties, and interest. Failure to make payments on time may also affect the borrower’s credit rating and may result in the car being repossessed by the lender. It is important to communicate with the lender if there are any difficulties in making payments.
In conclusion, with the help of car loans for OFWs, owning a car has become more accessible and achievable. These loans offer a range of benefits that can make a significant difference in the lives of overseas Filipino workers. From easy application processes to flexible repayment terms, car loans for OFWs are designed to meet the unique needs of this specific group of borrowers.