Car Loan Philippines

Car Loan - auto financing

Are you currently living in the Philippines and thinking of getting your wheels soon? Whether it’s a brand-new vehicle or a used one, we are all aware of how a major investment it is. In the Philippines, a car is proof of becoming a full-fledged adult, so- a car is a must in every household. Yes, despite the excessive traffic in this country. Unfortunately, because of low-paying jobs here in the Philippines, not everyone has enough money in their savings to buy their dream wheels. Worry no more! Because we present – Car Loan Philippines.

A car loan, also known as Auto Loan, is a kind of mortgage that allows individuals to buy their dream car in a more attainable way. How? Instead of paying the full payment for your wheels, with an Auto loan, you can buy your dream wheels monthly with interest over time. Until you can fully pay for the car the bank (or whoever the loaner is) will hold the papers and the title to the vehicle and have the power to repossess it if you fail to fulfill your monthly payment on time.

Car Loan Programs in the Philippines

Bank Financing

Bank Financing, or Bank Loaning, allows the bank or a lending company to lend you, the borrower, a specific range of amounts that you can use to buy the wheels of your dreams. Instead of paying in one full payment, with Bank Financing, you have the option to pay the borrowed money, together with plus the interest, in a series of monthly payments over a time that commonly takes between 12 and 60 months.

Why Bank Financing? With Bank Loaning, you will have the power to compare the number of loans from different banks plus, compared to dealership financing, Bank Financing has a 4% to 5% lower interest rates. However, it also requires time and effort to get your Bank Loan Application.

Dealership Financing

Other than loaning money from banks, you can also avail your dream car through the dealer itself. It’s convenient, the easy loan application process, fast approval, and lower down payment.

This program includes a contract where you, the borrower, agree to pay your dealer the total loan amount including the interest. The dealer will then process the loan and collects your monthly payment with the help of their partner, the bank, or the lender.

Credit Card

If you have a high credit limit, take advantage of it. Use your credit card to buy a car of your choice because why not? Although this type of program includes various fees you may need to cover.

This type of Car loan program can be arranged by a dealer- with the approval of the issuing bank. However, only limited dealerships accept Credit Card payments.

What is the interest rate for a car loan in the Philippines?

The average interest rate for a car loan here in the Philippines ranges from as low as 6.56% to 31.76%. The interest rate of the banks varies whether you are planning on buying a brand-new car or a used one. However, there are a few banks and lenders that offer below the average interest rate.

With the help of UpFinance, we can list down the Top 5 Best Car Loans in the Philippines that offer the lowest rate in the industry that you should consider.


Brand New – interest rates 5.75% – 30.3% APR

term up to 60 months

Pre-Owned – interest rates 8.4% – 33.9% APR

term up to 48 months


Brand New – interest rates 5.9% – 31% APR

term up to 60 months

Pre-Owned – interest rates 7.19% – 36% APR

term up to 48 months

Producers Bank

Brand New – interest rates 6% – 9% APR

term up to 60 months

Pre-Owned – interest rates 8% – 14% APR

term up to 24 months


Brand New – interest rates 9,95% – 11,43% APR

term up to 60 months

Pre-Owned – interest rates 9,95% – 14% APR

term up to 36 months

Security Bank

Brand New – interest rates 6.77% – 37.63% APR

term up to 60 months

Pre-Owned – interest rates 16.5% – 24% APR

term up to 48 months

Things you should do before applying for a Car Loan

Check Your Qualifications

Of course, the first thing to do is check if you are qualified for an Auto Loan. The banks in the Philippines require these basic qualifications before accepting a car loan application.

Age: between 21 to (not older than) 65 years old


  1. Filipino Citizen
  2. Foreigner residing in the Philippines with qualified Filipino co-borrowers

Minimum monthly income or joint income: PHP 30,000 to PHP 50,000

Employment status: Two years of employment

Compute How Much Money You Can Borrow

Using an auto loan calculator, compute how much you can afford to pay monthly without risking your daily needs. This is extremely important when it comes it borrowing money, not just for a car loan, but for any type of loan.

Factors To Consider:
  • Price and Type of the Vehicle
  • Minimum Down Payment
  • Payment Terms

One of the best features of UpFinance is it has an inbuilt Auto loan calculator Philippines so you won’t have to manually calculate how much you borrow. Just type your monthly household income, the desired term of payment, and the interest rate then you are done!

Car Loan Requirements


For locally employed consumers:

  • Duly accomplished application form.
  • Valid government-issued I.D. (with signature and photo)
  • The latest proof of billing.
  • Certificate of Employment
  • Three months’ worth of pay slips.

For self-employed employees or business owners:

  • Certificate of Business Registration
  • Latest ITR.
  • Last three months of financial statements

For OFWs

  • Latest employment contract
  • For Seafarer/Seaman- latest crew contract.
  • Proof of remittance (last three months or more)

Car Loan with UpFinance

UpFinance will level up your Car Loan experience here in the Philippines! You can find all the current best Philippine credit offers with the cheapest price, lowest interest and their complete information on financial services only here on UpFinance.

We are in partnership with all of the major banks and lenders here in the Philippines. So, instead of applying from bank to bank, from dealers to dealers, open their site, check for the best offer for you, and apply for a car loan. As simple as that! So, what are you waiting for? Check out UpFinance and finally buy the car of your dreams!

Interesting Related Article: “How Do Car Loan Repayment Calculators Determine Interest Rates