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Bank of Commerce Car Loan: Facts to Consider

Filled under: Car 
bank-of-commerce-car-loan

Finally getting a car?

Newsflash! Finding the right car is the easy part, but looking for the best car loan is the real work.

What people forget to take into consideration is how they’ll pay their car loan without making their finances suffer. This is why banks and various financial institutions offer auto loans–including the Bank of Commerce.

Bank of Commerce

Bank of Commerce is a progressive commercial bank operating in the country since 1963. BOC offers a wide range of financial products including corporate banking, consumer banking, e-banking solutions, trade and remittances, and loans including a car loan.

In 2008, BOC proved its increasing value after it forged its partnership with San Miguel Corporation. Now, it has 132 branches across the country with a net income of PHP 600 million in 2016 alone.

BOC Car Loan Qualifications

BOC Car Loans may have its advantages, but it also has its limitations.

You can apply for a car loan if you are between 21 and 70 years old; and a regular employee that earns at least PHP10,000 a month.

If you are a small business owner, your business should be profitable for the last 3 years. You just have to present proofs that you have a regular income.

If your spouse is working, you can have a joint application.

BOC Car Loan Requirements

Interested applicants must present these general requirements:

  • Duly accomplished auto loan application form
  • Photocopy of a valid ID such as driver's license, Postal ID, passport, SSS ID, PRC ID, company ID (if included in top 5,000 corporations)
  • Photocopy of marriage contract if applicable
  • Photocopy of the bank statements or deposit passbooks from the previous 6 months
  • Latest bill statements such as utility, cell phone, and broadband
  • Quotation from the dealer for the vehicle you want to purchase

Income requirements for employed applicants:

  • Original copy of Certificate of Employment detailing your compensation and tenure
  • Latest Income Tax Return

Income requirements for self-employed applicants:

  • Business Registration Certificate issued by DTI or SEC (whichever is applicable)
  • Income Tax Return (with BIR / bank stamp)
  • Audited and In-House Financial Statements

Additional requirements for Corporation or Partnership:

  • Business Registration Certificate issued by DTI or SEC (whichever is applicable)
  • Audited financial statements
  • Board Resolution or Secretary’s Certification
  • Income Tax Return (with BIR / bank stamp)

BOC Car Loan Amount

BOC offers car loan from as low as Php 100,000 up to 80% of the car’s market value.

However, you need to seriously consider the amount of car loan you want to borrow. Remember that aside from the amount of the principal loan, you have to consider the tax, insurance, and other existing fees.

Also, it is best to pay as much down payment as you can. You will just need to borrow a lesser amount. The smaller loan amount will generate lower interest charge and will let you save more.

You need to make sure that you can pay your monthly installments at ease without sacrificing your basic needs. You may choose the longest repayment terms of 60 months to make the monthly installments lower. However, the longer the loan, the higher the interest you will have to pay in the end.

Choosing the amount you will borrow and the term of your car loan needs serious planning.

BOC Car Loan Purpose

Before applying for a loan, you must also take note of its purpose. BOC Car Loan is used to purchase a brand new car.

Some banks do not offer a car loan for certain unit of vehicles which made it very limited. With BOC car loan, you can buy a passenger car, a Sports Utility Vehicle, Light Commercial Vehicle, and Asian Utility Vehicle.

On the other hand, you can only use this loan to buy a new unit. Most car loans from other banks can be used for pre-owned cars.

Conclusion

Bank of Commerce is a reputable bank. And since it is also a bank, you have to expect it to have strict standards when it comes to credit history.

Banks use credit reports to know your creditworthiness. Simply, the banks want to avert risk borrowers who have a high chance to default their loan. And the best way to know the borrowers’ payment behavior is to know how they dealt with their previous loans.

If you think you have a bad credit history, it is best to rebuild it first before applying for an auto loan or any bank loan. If you have no credit history yet, you can increase your chance of getting approved by building it now.

To build a healthy credit score, get small personal loans from a bank or any licensed money lenders and pay the loans diligently. Another advantage of a good credit score is a chance to get a higher amount of loan.

Want to make a good credit score history? Start with Cash Mart today. Cash Mart is affiliated with credit bureaus and will make sure to relay your good paying habits to any banks you want to deal with in the future.

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