How Flexible is the BDO Auto Loan?

Terrible traffic is inevitable for commuters along with the inconveniences it brings, especially during the rainy seasons. We have heard countless stories of stranded passengers, those who have braved the flood, the ones who walked the MRT rails as the train broke down again, and those who have encountered rude taxi drivers. Banks have created auto loans in response to Filipinos’ growing desire to have their own car.

One of the most availed auto loans is the BDO Auto Loan, yet how flexible is it?

BDO Auto Loan Eligibility

BDO Auto Loans are available for Filipinos aged 21 to 65 years old. If you are a foreigner, you can apply only if you already reside in the country for two years with the required Visa. Your family must have a minimum gross income of P50, 000 a month. Before getting a loan, you must have been employed for the past two years in your current company. If you are an entrepreneur or a freelance worker, you must prove at least 2 years of profitable income with bank statements and ITR.

BDO Auto Loan Requirements

Ready all the necessary documents before you proceed BDO Car Loan application.

Assess your qualifications

An applicant must be a Filipino or foreigner residing in the country for at least 2 years. The age must be 21 and not exceed 70 years old by the time the loan term ends. You must have a stable income from either employment or business. Plus, your minimum gross family income must be P50, 000 monthly. 

Prepare the documents

The documents needed are the completed application form and a photocopy of a valid ID. It can be your Passport, Driver’s license, TIN ID, SSS ID, and GSIS eCard. Don’t forget your income documents, too. 

Locally employed needs:

• Latest payslip / Latest Income Tax Return / BIR Form 2316
• Certificate of Employment with Salary
• For Foreigners: Current Employment Contract

Self-employed needs:

• Audited Financial Statements for the last 2 years with the latest ITR (photocopy)
• Bank Statements / Passbook for the last 3 months (photocopy)
• Certificate of Business Registration

Internationally employed needs:

• Proof of Remittance for the last 3 months
• For sea-based: Latest Crew Contract
• Consularized Certificate of Employment with Income (COEI) / Latest 3 months payslips

Once you have secured your BDO Car Loan requirements, you can submit them to various channels. You can either go to BDO Loans Center or any of the BDO Branches Nationwide. Or you may send it online.

BDO Auto Loan Calculator

When considering an auto loan, it is important to use the auto loan calculator to give you an idea of the bank’s offered interest rate and loanable amount.

Interest Rate

When Filipinos get a loan, one of the first things they check is the interest rate. It is a great idea to compare the charged interest rate from one bank to another. However, it will be hard to visualize its total impact on the borrowers’ lives. It is best to use a loan calculator to make a better-informed decision than just by looking at the interest rate.
With a BDO car loan calculator, you will not only compare the interest rates but also see the monthly repayment you have to do and if you can pay it at ease without sacrificing your daily needs. BDO offers auto loans for both used and pre-owned cars. The loans for brand new vehicles have an interest rate of 16.48 to 29.51%, while the pre-owned cars are charged with 16.39 to 34.93%.

Loanable Amount

The loanable amount varies in every bank. The BDO Auto Loan minimum loanable amount is P100, 000. However, the maximum loan amount will depend on whether you buy a new or used car. You have to pay a higher downpayment for used vehicles than the new ones, this is because it is riskier to finance a used car since it has already depreciated and there might be underlying issues with it. New cars will yield more returns if it is repossessed by the bank and sold in some way.

Loan Purpose

An auto loan has various uses. While its main use is to acquire a vehicle, either used or brand new, you can also use the BDO Auto Loan to reimburse the brand new unit you had purchased either for personal or business use.

Payment Method

One of the important considerations you have to check is the convenience of the loan repayment method. BDO Auto Loan can be paid through Automatic Debit Arrangement (ADA), Post-Dated Checks (PDC), and Over-the-Counter. For the first two options, you have to make sure that your account has enough money to service the repayment. As for the over-the-counter, you have to personally go to the bank and make your payments. It will be hard to squeeze it in if you have a tight schedule.

Loan Process

Since you are borrowing from a bank, the loan process is expected to take days. While they say that your loan process will be approved in 24 hours, you have to be sure all your requirements are complete. Your request will not be processed unless you comply with all the requirements. Also, even if the BDO Auto Loan approval takes only 24 hours, the cash disbursement will also take time.

BDO Auto Loan Benefits

BDO Financing Car Loan is one of the go-to financial institutions for Filipinos who aim for new or pre-owned cards. Here is a list of the perks you can get with it. 

“All Inclusive” Financing

BDO has an “All-in Financing Offer,” which includes a 3-year LTO Registration, Chattel Mortgage Fees, and the first year of the Car Insurance Premium. This is one of the marketing edges developed by BDO to get more auto loan applications.

Promos

BDO offers various promos and exclusive discounts such as free gas depending on the loan amount you will get. Also, you can earn points and get rewards and freebies from SM Malls and other partnering stores.

BDO Auto Loan Limitations

Despite the numerous advantages of a BDO Car Loan, some drawbacks come with it too. 

Promo has very limited terms

While it is amusing to get free gas (Who wouldn’t love free gas?), the period of the term is very limited, and it is only offered to those who are going to use auto loans to finance a brand-new car. The BDO rewards option is only for those who already have an existing BDO Rewards Memberships.

The minimum required monthly salary is higher than other auto loans

Other banks require only P30, 000 minimum monthly salary, while BDO entails their applicants to have at least P50, 000. If you earn less than this, you can’t get an auto loan from BDO.

Car insurance is required

When Filipinos plan to get a loan, they shop online and check the loanable amount and the interest rate they will be potentially charged with. However, they forget to prepare for the other fees needed to settle. As for the BDO Auto Loan, the borrower must also avail of the bank’s car insurance to be approved for the loan.

Must be currently employed for two consecutive years in a company

You must be employed for at least two years in your current company. This requirement, same as other banks, makes it impossible for those who haven’t been employed for 2 consecutive years to get an auto loan.
Being a bank, the BDO Auto Loan has its own limits, which lessen its flexibility. If you need a flexible loan, you can get it from Cash Mart and experience a hassle free online loan application.