Top 15 banks for affordable car loans in the Philippines

Congratulations! Now, if you have landed on this blog, it’s probably because you plan to make a big purchase, a car. If that’s the case, we must tell you it is a big deal and comes with many financial decisions. No, we do not intend to scare you, but it’s better to be prepared than get surprised, right?

Luckily, many banks in the Philippines offer auto loans that turn the dream of owning a car into a reality. It doesn’t matter if you are after a shiny new four-wheeled beauty or a reliable second-hand car, there’s always a financing option waiting to serve you and your needs.

We have compiled a list of 15 banks offering some of the best car loan deals in the Philippines. But before that, did you know that there are several financing options available for a car buyer in the Philippines? Each of these options caters to different needs and financial situations, so let's check them all out.

Also Read: Here's why your car loan can get rejected in the Philippines

Car financing options in the Philippines

Brand-new car loans

This is the most common type of car loan for buyers looking to purchase a new car. A buyer can finance up to 80% of the car’s price, and interest rates tend to be lower compared to other loan types.

• Best for: Those who want a brand-new vehicle.
• Interest rates: 6% to 8% per annum.
• Loan term: Up to 60 months.

Second-hand/used car loans

Banks offer loans for pre-owned vehicles but at slightly higher interest rates. It is an affordable option if the applicant is on a tight budget.

• Best for: Those wanting a secondhand car.
• Interest rates: 8% to 10% per annum.
• Loan term: Up to 48 or 60 months, depending on the car's age.

In-house financing

Offered by several dealerships, it is convenient but usually comes with higher interest rates compared to traditional bank loans. However, approvals are quicker and require less documentation.

• Best for: Buyers looking for convenience and speed.
• Interest rates: 8% to 14% per annum.
• Loan term: Varies, typically up to 60 months.

Chattel mortgage

A common type of secured loan where the car itself is used as collateral. Interest rates are lower because the bank holds a claim on the car until the loan is fully repaid.

• Best for: Buyers who want lower interest rates and are okay with collateral.
• Interest rates: Typically lower due to collateral.
• Loan term: Up to 60 months.

Balloon payment plans

It allows the applicant to pay lower monthly installments but a large lump sum at the end of the loan term. It is ideal if you expect to have more funds later on.

• Best for: Buyers who need low monthly payments but can make a larger payment at the end.
• Interest rates: Slightly higher than standard loans.
• Loan term: Typically 36 to 60 months, with a balloon payment at the end.

Car refinancing loans

It allows borrowers to replace their existing car loan with a new one, often at a lower interest rate or more favorable terms.

• Best for: Buyers who want to lower monthly payments or extend the loan term.
• Interest rates: Dependent on the new loan, typically lower than the existing loan.
• Loan term: Depends on the lender's assessment, often up to 60 months

Auto loan for OFWs

Specialized loan allowing OFWs to purchase vehicles while working abroad.

• Best for: OFWs looking for flexible loan terms, accommodating their unique income and documentation challenges.
• Interest rates: Similar to standard car loans, often between 6% and 12%.
• Loan term: Up to 60 months.

Lease-to-own car financing

It allows prospective buyers to lease the vehicle. They make regular payments that go towards eventually owning the car.

• Best for: Buyers who aren’t ready for full ownership upfront but still want a path to ownership over time.
• Interest rates: Generally higher than traditional loans.
• Loan term: Flexible, often between 12 and 60 months.

Also Read: Important financial terms a car buyer must know

Top banks offering affordable car loans in the Philippines

1. Bank of the Philippines Islands (BPI)

BPI is a solid choice when it comes to car loans, thanks to its competitive interest rates starting at 6.30% per annum. They offer flexible loan terms, ranging from 12 to 60 months, and can finance up to 80% of the car’s price.

Loan Term	12 to 60 months
Down Payment	20% of the car price
Interest Rate	From 6.30% per annum

2. Philippine National Bank (PNB)

PNB’s auto loan is another great option, especially for those who want to finance brand-new vehicles. They allow you to borrow up to 80% of the car’s price with a repayment term of up to five years.

Loan Term	12 to 60 months
Down Payment	20% to 50% of the car price
Interest Rate	Inquire directly for rates

3. PSBank

Need a fast approval? PSBank could be your go-to. They promise to let you know the status of your car loan application within 24 hours, plus you can earn rebates if you pay in advance.

Loan Term	12 to 60 months
Down Payment	Starts at 20% of the car price
Interest Rate	Based on prevailing market rates

4. RCBC

RCBC offers flexibility with their car loan options, allowing you to choose between brand-new and secondhand cars. They even include perks like free insurance for the first year.

Loan Term	12 to 60 months
Down Payment	20%to  50% of the car price
Interest Rate	From 5.35% to 28.76%

5. Security Bank

Security Bank’s auto loans are known for their fast approval process (3 to 5 banking days) and competitive interest rates. You can borrow up to 80% of the car’s price with flexible terms.

Loan Term	12 to 60 months
Down Payment	Minimum 20% of the car price
Interest Rate	From  6.77% to 37.63%

6. Union Bank

UnionBank offers a quick and simple process to finance both new and used cars, with loan terms of up to 60 months. The bank also partners with auto brands like Chevrolet and Honda for special promos.

Loan Term	12 to 60 months
Down Payment	20% to 50% of the car price
Interest Rate	From 6.56% to 31.76%

7. Robinsons Bank

If you’re looking for low interest rates, Robinsons Bank might be the one. Their rates start as low as 4.31% for both brand-new and secondhand vehicles, and their loan terms are quite flexible.

Loan Term	12 to 60 months
Down Payment	Minimum 20% of the car price
Interest Rate	From 4.31% to 28.76%

8. Sterling Bank of Asia

Sterling Bank’s Ultima Auto Loan is designed for both brand-new and used cars. Their loan terms go up to 60 months, making it easy to budget your payments.

Loan Term	12 to 60 months
Down Payment	Minimum 20% of the car price
Interest Rate	Contact the bank for details

9. EastWest Bank

EastWest Bank offers some of the most competitive auto loan rates in the market, with flexible terms and quick processing times.

Loan Term	12 to 60 months
Down Payment	Minimum 20% of the car price
Interest Rate	Contact the bank for details

10. China Bank

China Bank’s auto loan products cover both brand-new and secondhand cars. They offer fast loan approvals and allow you to choose flexible repayment terms.

Loan Term	12 to 60 months
Down Payment	Minimum 20% of the car price
Interest Rate	Contact the bank for details

11. BDO Bank

BDO’s auto loans offer flexible repayment terms of up to 60 months. They finance both brand-new and used cars, and approvals are generally quick and easy.

Loan Term	12 to 60 months
Down Payment	Minimum 20% of the car price
Interest Rate	Contact the bank for details

12. Metrobank

Metrobank’s auto loan program allows you to finance up to 80% of the car’s price, with flexible terms and low interest rates. It’s available for both brand-new and used cars.

Loan Term	12 to 60 months
Down Payment	Minimum 20% of the car price
Interest Rate	4.63% to 28.41%

13. Asia United Bank

AUB offers flexible car loan options for individuals and businesses, including light trucks. Their approval process is quick, and they offer competitive rates.

Loan Term	12 to 60 months
Down Payment	Minimum 20% of the car price
Interest Rate	Contact the bank for details

14. Maybank

Maybank’s auto loan offers come with competitive interest rates, allowing customers to finance brand-new or used cars. They offer repayment terms of up to 60 months.

Loan Term	12 to 60 months
Down Payment	Minimum 20% of the car price
Interest Rate	5.20% to 45.27% (depending on the client; new, existing, & premier)

15. CTBC

CTBC Bank focuses on making car financing as simple as possible, offering competitive rates and quick processing times.

Loan Term	12 to 60 months
Down Payment	Minimum 20% of the car price
Interest Rate	Contact the bank for details

Bottom line

In short, there are a variety of financing options ensuring that the potential car buyer will find a plan that fits his/her budget and needs. Whether you're looking for quick approvals, flexible payment terms, or low interest rates, these banks have something for everyone. Institutions like BPI, PNB, RCBC, and PSBank stand out for their competitive rates, while others like Sterling Bank of Asia and Robinsons Bank offer great options for both new and used vehicles.

Also Read: Car loan scams in the Philippines: Applicants be aware