Getting a car is not all about the car itself. A huge chunk of this financial journey must be on finding for the best auto loan.
Is PSBank the best choice for you?
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Check out the Eligibility
This auto loan is offered to Filipinos who are at least 21 years old up to 65. This is a wider range compared to most of the banks in the Philippines. Even foreigners can apply for the PSBank auto loan but they must have at least three (3) years of residency in the country.
Employed borrowed must have been in the company for the last two years. This is longer than what other banks require. Self- employed must have a business which have been profitable for the last two (2) years. Over all, the gross family income must be P30,000 or higher. You can include your spouse’s salary.
PSBank Auto Loan Calculator
With the use of a calculator, you will be able to make a more informed decision. You can easily see the possible amount of your monthly amortization, required down payment in cash, and the number of repayments according to months.
Loan calculators are very useful as you can see if you can pay the monthly amortization at ease. Remember that a loan must not put you in financially disaster. Auto loan is a tool to help you get a car without getting into financial dilemma.
However, the PSBank auto loan calculator has its limitations. It does not show the total amount of your loan including the interest charged according to the corresponding loan term. The interest rate is also not shown.
PSBank Auto Loan Fees and Charges
Aside from the basic amount you have borrowed and the interest charge, there are other fees you need to consider:
- Chattel Mortgage Fees,
- Insurance fee which is also required,
- RD Registration fee, and
- LTO Encumbrance fee.
These are the basic fees. There are additional fees depending on situation,
- If you want to extend your due date, you need to pay the Due Date Extension Fee.
Outstanding Balance x Rate x number of days
- Service fee for the LTO Registration costs P50 with additional P300 as a notary fee.
- Change of collateral has a fee of P5,000
- Conversion of unit has a fee of P10,000 if you want to change your vehicle into a PUV.
- Late submission of insurance policy renewal documents will be fined with P1,000
PSBank Car Loan Delayed Payment
- Late payment penalty fee is unpaid monthly amortization plus an addition 5% of the amount due.
- If you failed to pay the monthly amortization for a certain number of months, your loan will be considered default.
- In case of default, you will be charged with a collection fee amounting to 3% of the amount due.
- You will need to pay an additional 10% of the amount due as the attorney’s fees. This is if there has been no legal action filed against you.
- In case that there has been a case filed, you need to pay a fee equal to 25% of all amount outstanding as the attorney’s fees. This fee is apart from the other expenses you need to pay due to litigation.
Having a car loan is a serious financial responsibility. Not choosing the right one will be your financial downfall. Make sure to use the loan calculator and ask for clarification when you don’t understand something.