(Updated March 20, 2017)
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?
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Security Bank Car Loan Eligibility
Security Bank offers its car loan to Filipino citizens at least 21 years old. 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 a qualified Filipino guarantor and they can present positive endorsements from their companies. OFWs currently residing abroad can also apply for the 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 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 which you have to prepare. The basic requirements are the duly signed Auto Loan Application form, a valid government ID baring 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, a verified BIF Form 2316 or your payslips for the past three months. You will also need a Certificate of Employment. For OFWs, you will need a Proof of Remittance for the past three months. This may be in form of allotment slips. Seafarers need to present their Latest Crew Contract and land based OFWs has to submit their Latest Employment Contract which is authenticated by the Philippine Consulate.
For business owners, you are required to provide your latest Income Tax Return or duly stamped BIR Form 1701, 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 lease contract, stock and bonds certificates and certificate of deposits.
If you are buying a used car or an important vehicle, you will need to provide additional documents such as the cars, Copy of LTO OR/CR, the vehicle’s Deed of Sale, and Macro Etching Certificate and PNP Clearance. For imported cars, you must have Bill of lading and proof of payment on custom and settlement of duty taxes.
Security Bank Car Loan Amount
No matter how much the vehicle is, the minimum amount for brand new vehicles is P 400,000. For used cars, you must borrow at least P 100,000. The required downpayment you have to 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 month up to 60 months. However, for used car, the longest term is only up to 48 months.
Security Bank Car Loan Purpose
Car loans have various purpose aside from buying a car may it be brand new or used. You can also apply for a car loan if you want to have it reimbursed or you want to 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. You can even buy Foton or Geely. These are China-made vehicles which other banks do not finance.
If you want to buy a used vehicle, make sure that it is less than 12 years old and the mileage is less than three thousand miles. The price of the second hand car is subject to appraisal.
Security Bank Car 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). In case you fail to pay your amortization, you will be charged with penalties.
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 to have 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 amount then you can look for other car loans with lower minimum loanable amount. Also if you earn lower than the required salary amount, you will either need to shop around for other car loans or postpone your car purchase until you have a higher salary.