Is Security Bank Car Loan Fit to Your Lifestyle?
Planning to get your first wheels?
Before you fall in love with a car, make sure that you have sufficient funds. While the best way to buy a car is in cash, most Filipinos use car loans.
Security Bank offers a car loan, however, will it fit your lifestyle?
Security Bank Auto Loan Eligibility
Filipino citizens at least 21 years old can apply for a Security Bank car loan. The borrower must not be older than 65 years old by the end of the loan term. Foreigners can also avail the loan if they have a qualified Filipino guarantor and they can present positive endorsements from their current companies. OFWs currently residing abroad can also apply for a car loan. But, they need to have a qualified guarantor here in the Philippines.
The car loan applicant must have a minimum joint monthly income of P40, 000 with a spouse if the car is brand new. If the car is 2nd hand, then the required minimum income is only P20, 000.
Security Bank Car Loan Requirements
Since Security Bank is a traditional bank among others, there will be a long list of required documents that you have to prepare. The basic requirements are the duly signed Auto Loan Application form, a valid government ID bearing your signature and photo, and the latest proof of billing under the applicant’s name.
If you are locally employed,
you simply have to provide your latest Income Tax Return. Also, you need a verified BIF Form 2316 or your payslips for the past three months. In addition, you need a Certificate of Employment.
For OFWs,
you will need Proof of Remittance for the past three months. This may be in the form of allotment slips.
Seafarers
need to present their Latest Crew Contract, and land-based OFWs have to submit their Latest Employment Contract authenticated by the Philippine Consulate.
For business owners,
you are required to provide your latest Income Tax Return or duly stamped BIR Form 1701, your latest Audited Financial Statements or Statement of Income and Expenses, your Certificate of Business Registration with DTI/SEC, bank statements for the past three months, and proof of other income. The proof of other income can be certificates of the lease contract, stock and bonds certificates, and certificates of deposits.
If you are buying a used car,
you will need to provide additional documents such as the car, a Copy of LTO OR/CR, the vehicle’s Deed of Sale, and Macro Etching Certificate and PNP Clearance.
For imported Security Bank cars,
you must have a Bill of lading and proof of payment on customs and settlement of duty taxes.
Security Bank Auto Loan Amount
No matter the vehicle’s size, the minimum amount for brand new vehicles is P 400,000. For Security Bank used cars, you must borrow at least P 100,000. The required downpayment you must pay in cash is 20% of the car’s purchase value, and the maximum loan amount is 80%. You can choose a term as short as 12 months up to 60 months. However, the longest term for used cars is only up to 48 months. Get a better estimate using the online Security Bank car loan calculator.
Security Bank Car Loan Purpose
Car loans have various purposes aside from buying a car, whether brand new or used. Also, you can apply for a car loan if you want to have it reimbursed or refinance a second-hand car. You can choose from a wide range of vehicles, such as Sports Utility Vehicles, Passenger Vans, Auto-Sedan, or Asian Utility Vehicles. Or you can even buy Foton or Geely. These are China-made vehicles that other banks do not finance.
If you want to buy a used vehicle, make sure it is less than 12 years old, and the mileage is less than three thousand miles. The price of the Security Bank second hand cars is subject to appraisal.
Security Bank Auto Loan Fees
While we know that loans are charged with interest rates, you must get ready to settle other fees such as the processing fee, notarial fees, and documentary stamp tax included in the Chattel Mortgage Fee (CMF). If you fail to pay your amortization, you will be penalized.
Security Bank Car Loan Payment Method
There are two ways to pay the monthly amortization. You can arrange for an auto-debit or settle the monthly payments with Post Dated Checks. Either way, you have to make sure that your account has enough funds every month. If you want a lesser interest rate, you can opt to pay 30 days in advance or on the day the loan is released. Then pay the succeeding amortization exactly 30 days after. This is called One Month Advance (In Advance).
Security Bank Car Loan won’t fit you if the minimum loan you need is lower than P400, 000. If you are not willing to borrow such an amount, you can look for other car loans with a lower minimum loanable amount. Also, if you earn less than the required salary, you will either need to shop around for other car loans or postpone your car purchase until you have a higher salary.
If you need more cash for your down payment, you can apply for a bridging car loan from Cash Mart. Cash Mart offers affordable bridging car loans to help you pay off your downpayment and bring home your new ride.
