15 Car Loans in the Philippines with the Lowest Interest Rate

Every Filipino dream of owning a car. Having your own transportation helps make everyday travels more convenient and comfortable. Besides, you can get anywhere you want to with your own vehicle, be it an SUV or a sedan. Since most Filipinos purchase cars through financing, it would help to find the best car loans in the Philippines with the lowest interest rate.

Most car financing schemes go at least five years. When a bank extends you a loan to purchase a car, you pay not only for the principal but also the interest imposed on top of it. Higher interest rates mean more expensive monthly amortizations for five years. This means you can save money every month if you can find out which bank is best for car loans in the Philippines.

Below are 15 of the best car loans in the Philippines that you might want to check out.

Best Car Loans in the Philippines with the Lowest Interest Rate – Metrobank Car Loan

First on our list of the best car loans in the Philippines is the Metrobank Car Loan. This loan program imposes 4.77% to 28% interest and requires a 20% downpayment from the buyer. Metrobank also lets you choose loan terms between 12 months and 60 months, or 1 year to 5 years.

One of the reasons the Metrobank Car Loan is preferred by many aspiring car owners is its approval time. After you submit the documentary and financial requirements, you can expect a response from the bank within 24 hours. Take note that the loan is not intended for 2nd hand car financing in the Philippines; it only finances brand new vehicles for personal or business use.

The loan extends at least PHP350,000 in financing and up to 80% of your chosen vehicle’s net selling price. For instance, Metrobank can finance PHP1.42 million to purchase a brand-new 2022 Mitsubishi Montero Sport GLS with a net selling price of PHP1.77 million. You only need to cash out PHP354,200 for the 20% downpayment.

PSBank Auto Loan

The PSBank Auto Loan provides financing for brand new or repossessed cars. All you need to prepare is a 20% downpayment. However, you can make a higher downpayment to reduce monthly amortization costs. You can pick terms as short as 12 months with 5.5% interest or as long as 60 months with 28% interest.

PSBank incentivizes early payment by offering what it calls a Prime Rebate, which applies a rebate on the borrower’s remaining balance as a reward for advance or excess payments. The bank’s system calculates the refund on a daily basis, considering the gap between the day your payment is posted and your due date. The algorithm also applies the reimbursement on the next due date.

Another feature that makes the PSBank Auto Loan one of the best car loans in the Philippines is its expansive list of payment partners. They can pay conveniently through PSBank Online or PSBank Mobile app. Another payment method is through cash using PSBank, Metrobank, and BancNet ATMs. Lastly, clients can pay over-the-counter at any PSBank branch or 7-Eleven store.

Global Dominion Financing Inc.

Global Dominion Financing Inc. provides an alternative to bank financing when purchasing brand-new or second-hand cars. The financial institution has spent the last decade building financial solutions that are innovative and more affordable loans to OFWs, business owners, employees, and self-employed individuals.

True to its mission, the institution’s car loans carry interest rates as low as 0.99% for brand new vehicles and 1.30% for second-hand cars. To qualify, one must be between 21 and 65 years old and with proof of income. Other documentary requirements include 2 Valid IDs, proof of billing, the Official Receipt and Certificate of Registration (OR/CR) of the vehicle, and the seller’s ID and contact details.

You only need to fill up a form through the company’s website to apply for a loan. Keep your lines open because one of their loan specialists will call within 24 hours after submitting the form.

Security Bank Car Loan

The Security Bank Car Loan is one of the best car loans in the Philippines for those looking to buy second-hand cars. The loan for pre-owned vehicles can finance the purchase of models that are at most 11 years old. Security Bank also has one of the lowest requirements for minimum salary for car loans in the Philippines at only PHP20,000.

Like other car loans, the owner must be ready to make a downpayment of between 20% and 50% of the vehicle’s total value. Security Bank can finance up to 70% of its appraised cost for second-hand cars. Depending on the loan’s length, the bank charges up to 37% interest. Available term lengths are between 12 and 48 months.

Aside from providing 2nd hand car financing Philippines, Security Bank also finances brand new car purchases for up to 80% of the automobile’s selling price. Term lengths for new vehicles can extend up to 60 months.

Interested clients can apply for Security Bank’s Car Loan at the nearest branch or online. They only need to scan copies of their valid ID and proof of income.

Welcome Bank Auto Loan

Welcome Bank (Rural Bank) Inc. is the Philippine subsidiary of South Korea’s Welcome Financial Group, where it is the no. 4 savings bank in total assets. According to its website, the Group has amassed assets valued at $3.6 billion. The Philippine unit has direct access to this liquidity. Thus, it is well-suited to provide financial assistance for Filipinos looking to buy brand new or repossessed cars.

Welcome Bank can provide up to PHP1 million financing to purchase your dream vehicle. It has one of the lowest monthly add-on rates, which begin at 1.39%. Applicants can choose terms of up to 60 months and still enjoy low interest rates. For instance, a PHP1 million loan with a 60-month repayment period and a 1.39% add-on rate will only incur PHP13,900 in interest.

Applicants must be at least 21 years old and with a monthly income of PHP26,000 to qualify for a loan. They also need to provide proof of income, proof of billing, and two government-issued IDs. Second-hand car buyers also need to present evidence of the vehicle’s registration. Finally, applicants must have a checkbook since Welcome Bank only accepts post-dated settlement checks.

EastWest Bank Auto Loan

Another example of the best car loans in the Philippines is the EastWest Bank Auto Loan. It is one of the car loans Philippines with the lowest interest rate. For instance, a 60-month loan for a brand-new automobile gets only 31% interest in arrears. If the buyer opts to make a one-month advance payment, the interest rate is even lower at 29%.

The EastWest Bank Auto Loan provides a minimum loan amount of PHP200,000, making it ideal for both new and 2nd hand car financing in the Philippines. The minimum downpayment is also at 20%. Ideally, the loan will cover 80% of the vehicle’s total price. However, applicants must first inquire with the bank as the downpayment and loan coverage depends on which car must be financed.

EastWest Bank also has the most convenient car loan application process. You only need to go to its Auto Loan page and click the Apply Now button. The bank’s representative will get back to you within 24 hours after submitting the form.

UCPB DrivEasy Auto Loan

The UCPB DrivEasy Auto Loan closely rivals EastWest’s Auto Loan when it comes to interest rates. While the DrivEasy loan charges 31% interest for a long-term commitment, it also has a lower minimum financing amount at PHP100,000.

For example, you want to borrow money for a car worth PHP1.5 million. UCPB will finance PHP1.3 million while you provide the remaining PHP300,000 as a downpayment. You can also choose to raise the downpayment if you want to lower your monthly payment costs. However, in this example, you have to pay PHP26,353 per month if you choose to settle the payment over 60 months.

UCPB has a minimum salary requirement of PHP30,000, but the parameters depend on the intended loan’s value. Using the same example above, UCPB will need you to provide proof that you’re earning PHP80,000 monthly to qualify for the chosen financing and term length.

RFC Financing

Radiowealth Finance Co. provides a financing option that can be used to purchase heavy equipment, appliances, heavy machinery, and personal-use vehicles like cars and motorcycles. According to its website, it can provide up to PHP3 million in business financing.

However, unlike other car loan offerings, RFC’s financing is usually payable within 36 months. A loan worth PHP100,000 payable in 36 months must be repaid at PHP6,777.78 per month. That means a total payable amount of PHP244,000, including interest of 69%.

The company offers its loans to both self-employed and employed individuals. For employees, they have to be affiliated with their current employer for at least 12 months. They should also be earning at least PHP18,000 monthly. On the other hand, self-employed applicants should demonstrate profit for at least 1 year. They should also be in business for at least 1 year.

UnionBank Auto Loan

The UnionBank Auto Loan is ideal if you’re looking for a car loan with comfortable interest rates and a quick application process.

The process begins with the bank’s loan calculator feature. First, you must select the brand and car model you’re interested in. You also have to set the percentage of the car’s total value that you’ll personally finance as a downpayment. You can cash out between 20% and 50% of your car’s price.

Lastly, determine how many months you’d like for your loan’s length. Click Calculate, and you can see an estimate of how much you’ll pay monthly. If you’re comfortable with the figures, click Apply to initiate the form accomplishment and submission. All you have to do is wait for the bank representative’s call within 1 banking day.

The UnionBank Auto Loan charges interest rates of at least 5% and at most 31%. Like EastWest’s Auto Loan, you can make a one-month advance payment to lower the interest by one percentage point.

BPI Auto Loan

Whether you’re interested in brand new or repossessed cars, the BPI Auto Loan can help you. With a minimum loan amount of PHP200,000, you can purchase a second-hand car with its help. The only downside is that BPI only finances pre-owned vehicles if they’re not older than 5 years old.

The Bank of the Philippine Islands is also the only entity that allows a downpayment of less than 20% of the purchase price. If you can only afford to cash out 15% of the car’s total value, BPI is okay with it.

The BPI Auto Loan also charges a lower interest rate than its competitors. For instance, a 60-month loan for a brand-new car only has an interest rate of 30.25%. BPI’s interest for auto loans is 5.14% for 12-month financing.

BPI’s auto loan interest rates are higher for second-hand vehicles. A 60-month loan for a pre-owned car carries a 44.32% add-on interest rate.

RCBC Auto Loans

As one of the oldest banks in the Philippines, the Rizal Commercial Banking Corporation has extensive experience providing solutions to their clients’ financial needs. For car loans, you have not one option only but three of the best car loans in the Philippines with the lowest interest rate!

Let’s start with the Regular Auto Loan. It has a minimum loan amount of PHP300,000 and a downpayment of 20%. It’s perfect for 2nd hand car financing in the Philippines, with its low-interest rates of only 33.70% for a 60-month term. Of course, the Regular Auto Loan can also be used to finance a brand-new car purchase for a lower interest rate of 30.40% for 60 months.

On the other hand, RCBC’s Auto Loan Plus lets you borrow at least PHP500,000 to buy a new car. Like the Regular Car Loan, the highest interest rate is only 30.40% for a 60-month loan. Available loan terms are 36 months, 48 months, and 60 months. The loan also includes free 5-year insurance coverage for your vehicle.

Last but not least is the bank’s Fully Loaded Deal car loan. Unlike the other two auto loans from RCBC, the Fully Loaded Deal lets you cash out only 15% of the car’s total value. It also has a minimum loan amount of PHP500,000 and a slightly higher interest rate of 37.71% for 60 months. The loan includes one-year free insurance coverage and waived chattel mortgage fees.

Bank of Commerce Auto Loan

The Bank of Commerce Auto Loan is one of the best car loans in the Philippines for purchasing brand new or repossessed cars. It has the lowest minimum loan amount at PHP100,000 and the lowest 60-month interest rate at 27.54%. Hence, if you borrow PHP100,000 and cash out 20% as a downpayment, you’ll pay only PHP1,700.53 for 60 months.

One unique feature of the Bank of Commerce’s Auto Loan is that it adjusts its maximum loanable amount depending on the applicant’s gross monthly income. For instance, an applicant earning PHP50,000 before expenses and taxes can borrow up to PHP940,000. On the other hand, another applicant with a gross monthly income of PHP30,000 can only borrow PHP540,000 maximum.

Car loan requirements for the Bank of Commerce Auto Loan include bank statements, proof of billing, valid IDs, and an accomplished application form. Employed applicants must also provide their COE and ITRs with payslips covering the last 3 months. Self-employed individuals should also include their business registration documents, audited financial statements, and Income Tax Returns.

Banco de Oro Car Loan

One of the hallmarks of Banco De Oro Unibank’s auto loan is flexibility. Instead of limiting your choices, the bank lets you customize your loan, so the terms are tailor-fitted to your income and budget.

For starters, the loan gives you three options for your downpayment. The Low Downpayment option lets you cash out only 20% of the car’s total price, and the bank handles the rest.

All-In-Financing lets you shoulder 30% of the vehicle’s value while the bank pays 70%. As a bonus, BDO will also pay for the chattel mortgage fees and your car’s insurance for the first year. The third option, the Multi-Year Motor Insurance Coverage, includes a five-year insurance policy’s value in your total loanable amount.

Regardless of your downpayment amount, BDO charges a flat interest rate of 30.26%.

BDO’s minimum salary for car loan Philippines is PHP50,000. However, the minimum requirement may increase depending on your financing option. For instance, a loan under the Low Downpayment Option will only require PHP60,000, while a loan with a 40% downpayment may require only PHP50,000.    

PBCOM Auto Loan

The Philippine Bank of Communications’ auto loan ranks among the best car loans in the Philippines because of its flexibility and the simplicity of the application process.

To apply, you have to download and fill out the application form. PBCom has no online application form, so you have to bring that form to the nearest PBCom branch to continue the process. Visiting a branch lets you contact a loan specialist who will assess your needs and recommend an ideal solution.

In any case, PBCom’s auto loan provides a minimum loan of PHP200,000 and a maximum of PHP10 million. The longest term length is 60 months or 5 years. The loan would also include a PHP1,500 appraisal fee and a chattel mortgage fee if you borrow money to buy a second-hand vehicle.

Aside from the duly accomplished application form, you also need to present proof of employment, proof of business registration (for self-employed), and proof of income. Submit these together with any valid ID issued by the government that bears your name and signature. When buying a second-hand car, the bank will also require the vehicle’s registration documents and a deed of sale.

ChinaBank AutoPlus Loan

The last in our list of the best car loans in the Philippines with the lowest interest rate is ChinaBank’s AutoPlus loan.

ChinaBank’s AutoPlus Loan functions more as a multi-purpose loan than a car loan. For instance, you can use a car you own as collateral to receive financing to renovate your store or pay for emergency expenses. You can also use it to reimburse you for purchasing a brand-new car within 30 days.

ChinaBank’s insurance costs are also lesser than most loan issuers since policies are guaranteed by its subsidiary, the China Bank Insurance Brokers. The bank will also help you find the best car deals through its partnership with various sellers throughout the country. For your convenience, ChinaBank will automatically deduct your monthly dues from your ChinaBank savings account.

Visit a ChinaBank branch now to discuss with a specialist and determine the ideal loan for your needs and limitations.

Conclusion

With the help of these banks and financial institutions, your dream car can now be made a reality. All you need to do is determine your eligibility. Are you earning enough? Will you settle for a first car that’s preloved instead of brand new? You’d also need to learn how to get approved for a car loan in the Philippines.

With these 15 best car loans in the Philippines with the lowest interest rates, you’re sure to find the financing that suits your wants and needs. Just exercise due diligence, and spend time asking questions from the bank’s representatives.

Good luck, and congratulations on buying that first car in the future.