Own your dream car with Security Bank Auto Loan!
Hold the keys to your new car soon with car payments made easy thanks to Security Bank Auto Loan's low interest rates and free 1 year car insurance.
Why Choose Security Bank Auto Loan?
Security Bank Auto Loan will take you one step closer to owning your own car or starting your own business. Not all banks and lending institutions include the benefits and features below, so read on if you want to get more out of your auto loan.
Free 1 Year Car Insurance
Auto loan na, may insurance pa? Yes, you get to save more on your first year of car ownership with Security Bank’s Auto Loan Free First Year Motor Car Insurance Program. If you plan to buy a brand new car for personal use that’s worth at least ₱500,000 and has a minimum loan term of 36 months, you’re entitled to 1 year comprehensive car insurance for free. The insurance excludes Third Party Liability but includes Acts of Nature.
Secondhand cars and cars for business use are included
Not all banks accept secondhand cars or cars for business use but Security Bank Auto Loan is the exception. Secondhand cars aged 11 years or less and cars that will soon be used for transport (TNVS, taxis, company use), car rental, or cargo services can get a Security Bank Auto Loan. Here’s a list of the types of cars that are eligible:
- Passenger vans/cars
- SUVs
- Asian Utility Vehicles (AUVs)
- 4- or 6-wheeler light commercial vehicles (pick-ups, utility vans, and light trucks)
- Brand new and selected brands for 10-wheeler trucks
Flexible payment terms
The main factor that makes auto loans attractive is its loan payment terms. With Security Bank Auto Loan, you can choose your loan terms depending on the type of car you’ll purchase.
- Brand new cars - 12 to 60 months
- Secondhand cars - 12 to 48 months
Want to buy a new car but you’re not sure if Security Bank Auto Loan can finance it? Don’t worry, all the top car brands are available for financing with Security Bank Auto Loan.
What an auto loan can do for you?
Picture this: you arrive to work late and show up in your best haggard self. You don’t need to tell your boss what happened, one look at your windswept hair and sweaty shirt is enough for them to know you’ve conquered Metro Manila traffic and commute today. Sometimes you wonder, “Why won’t I just get a car?” Then you look at your bank account and remember the reason why.
But should you wait until you’ve saved up enough money for a car, even if you really need one now? This could be you:
- New parent with a growing family - an infant and/or a toddler
- Son or daughter with an ailing parent or parents
- A good driver who wants to use their driving skills to earn money ASAP
Whether it’s for personal or business use, you don’t need to wait until your car piggy bank’s already full before purchasing a car. You can do it today with an auto loan.
An auto loan is an unsecured loan from a bank or a financial institution specifically for automobiles. It’s a good option for those who need a car but can’t afford to pay in full since it offers loan terms ranging from 12 to 60 months. It comes with an interest rate ranging from 4.6% to 7.2%, depending on the bank or financial institution of your choice.
Before you determine your loan term, find out first how much you can give for the downpayment. Auto loans require a downpayment of 20% to 50% of the car amount. From there, you can pick your ideal loan term and monthly amortization.
Car loans aren’t exclusive to new vehicles as secondhand cars have a place in it as well although not all banks accept secondhand cars for their auto loan.
Who Can Get a Security Bank Auto Loan?
End your days of visiting the car dealership and looking at your dream car with googly eyes. That car will soon be yours if you fulfill Security Bank Auto Loan’s eligibility criteria.
- At least 21 years old and not more than 65 years upon final loan maturity
- Filipino citizens
- Living in the Philippines
- Residing outside the border of the Philippines with a qualified Filipino citizen co-maker or guarantor
- Foreign citizens living in the Philippines with a positive endorsement from their employer and a qualified Filipino co-maker or guarantor in place
- Minimum joint monthly gross income with spouse
- Brand new car - ₱40,000
- Secondhand/used car - ₱20,000
- At least 2 years employed or holds an officer position on a permanent/regular basis
- Duly registered to operate as a legal entity in the Philippines
- Actively operating business for at least 3 years
- Actively operating business for at least 3 years, sureties/co-makers are required
- Has strong business prospects/potentials based on evaluation
Security Bank Car Loan Requirements
End your days of visiting the car dealership and looking at your dream car with googly eyes. That car will soon be yours if you fulfill Security Bank Auto Loan’s eligibility criteria.
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Completed and signed Security Bank Auto Loan Application Form
- Valid government-issued ID with photo and signature
- Latest Proof of Billing under borrower’s name
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Latest Certificate of Employment with Compensation
- Any of the following:
- Latest Income Tax Return (ITR) / BIR Form 2316 duly stamped by BIR
- At least 3 months of payslips
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ITR / BIR Form 2316 duly stamped by BIR
- Latest Audited Financial Statements/Statement of Income and Expenses/Statement of Assets and Liabilities
- Photocopy of your passbook or bank statements in the last 3 months
- Proof of other income (Certificate of Deposits, Stock/Bond Certificates, Lease Contracts, etc.)
- For sole proprietorship: Certificate of Business Registration with DTI
- For partnership/corporation: Certificate of Business Registration with SEC
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Latest Employment Contract duly authenticated by Phil. Consulate
- For seafarer/seaman: Latest Crew Contract
- Proof of Remittance (allotment slips) for at least 3 months
- Copy of LTO OR/CR under the name of the seller/applicant
- Deed of Sale
- PNP Clearance and Macro Etching Certificate
- For imported units only: Bill of lading and importation papers, including proof of payment on custom and duty taxes
Security Bank Auto Loan Interest Rates
| Loan Terms | Standard (%) | One month advance (%) |
| 12 | 6.77 | 6.02 |
| 18 | 9.74 | 8.93 |
| 24 | 14.38 | 13.48 |
| 36 | 21.51 | 20.50 |
| 48 | 29.04 | 27.92 |
| 60 | 37.63 | 36.38 |
Security Bank Auto Loan Processing Time
Processing/approval time: 3 to 5 banking days, depending on when you'll submit the application form and all of the requirements
Down payment: as low as 20% of the purchase price
Collection fee: 3% of unpaid net monthly amortization
Late payment fee: 3% of unpaid net monthly installment
-
Effective October 25, 2021: 6% of unpaid amortization (combined collection and late payment fees)
Chattel mortgage fee (CMF): Inclusive of documentary stamp tax, processing fee, and notarial fee
| Brand New Car | Secondhand Car | |
| Loan Amount | Minimum of ₱400,000 up to 80% of the purchase price | Minimum of ₱100,000 up to 70% of the appraised value |
| Loan Terms | 12 to 60 months | 12 to 48 months |
| Maximum Car Age | N/A | Up to 11 years (Loan tenor and vehicle age shouldn’t exceed 11 years) |
Tips on How To Get Approved for an Auto Loan
Check if you are eligible for a loan
The eligibility criteria should be the first thing you’ll look at to see if you’re qualified to apply for an auto loan. From there, you can decide if you’ll proceed with the application or if you’ll wait a while until you’re qualified (e.g. your salary is below the minimum annual income requirement).
Make sure to submit all the requirements
Make a checklist of all the requirements you’ll need to submit so that you’ll be handing over a complete set of documents. Don’t worry, the bank will inform you if there are missing documents but submitting complete requirements on the first instance will speed up the application process.
Borrow only what you can afford to pay
Some auto loan applicants get rejected because their intended loan amount doesn’t match their monthly salary. To make sure your application gets approved, your monthly amortization should match your monthly salary and target loan term. If you can’t afford your target loan amount after doing the math, try adjusting your loan term, loan amount, or consider buying a more affordable car.
Security Bank Auto Loans FAQs
An auto loan is a secured loan for cars only. No other loan purpose is allowed since the collateral for this type of loan will be the car you’re planning to purchase. Since there's collateral involved, interest rates are lower compared to a personal loan. On the other hand, most personal loans offered by banks and other lending institutions are unsecured loans. Since there’s no collateral involved, personal loans have higher interest rates, and banks and lending institutions are stricter compared to car loans.
Both an auto loan and a personal loan have fixed interest rates and loan terms and require a monthly payment until the end of the loan payment.
Security Bank Auto Loan can finance today’s top car brands such as Toyota, Ford, Honda, Nissan, Mitsubishi, and Suzuki, among others.
Auto loan payments will be through an Automatic Debit Arrangement (ADA) on your Security Bank account. If you don’t have a Security Bank account yet, you’ll have to open an account once your application has been approved. If you already have a Security Bank account, you’ll need to fill out and submit an ADA enrollment form before you start your auto loan repayments.
You can check the status of your auto loan by visiting https://www.securitybank.com/personal/loans/auto-loan-car-loan/check-application-status/. If you still have more questions, you can visit any Security Bank branch near you or call Security Bank’s Auto Loan contact number at (02) 8887-9188.
Learn More About Cars and Car Loans in the Philippines
Read more about car loans in the Philippines. Check out our articles below.
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