Car Loan in The Philippines – The Basics
The process of obtaining a car loan in the Philippines may be tedious and troublesome, but it is not actually complicated.
Once you decide on the car you want, you decide on the financing option (bank vs in-house financing), select the financier, prepare the required documentation, await approval and ultimately secure the car. For those with poor credit scores, it could be a considerably longer process require more documentation, interviews, and background checks before final approval.
Dealing with banks could be easier if you have a good financial record. The interest rates are usually lower too. Car dealerships can process loans more quickly and efficiently, but may charge higher interest rates than if you deal directly with banks. However, they are conveniently on hand and usually more lenient with loan approvals, so in-house financing could be a feasible choice.
The Application Process
To ensure that you qualify for a car loan, you need to make sure to provide the required documents for your application. Once you have done your part, it is really up to the banks to decide on the approval of your car loan.
Check out our car loan guides for more information on car loans in the Philippines.