Auto Loan

lans_ph

paano ba toh? ano ba requirements dito?? any suggestions///

JdelaCruz

Usually, you have to put up an equity of 30% of the purchase price. So for a P1M car, P300K must come from your own pocket. The bank only finances the remaining 70% of the price. This constitutes your loan which you will repay in monthy amortizations for usually 3 or 5 years at interest (I do not know the going rate nowadays. Try calling the banks).

As security for the loan, the bank imposes a chattel mortgage on the vehicle. This means that if you default on your loan, the bank will repossess the vehicle and auction it off. The proceeds of the auction will used to pay for the remaining balance of your loan. Bye-bye equity. Hello negative credit rating.

Requirements: good credit standing, evidence of capacity to pay i.e. a stable high-paying job.

richyuppie

Also, aside from good credit background, your monthly earnings should be at least 3 times your monthly ammortization for almost sure approval. If you indicate that you earn less than thrice, there's a big chance that you won't get approved.

Indeed!