Ride On: Motorcycle Loans in the Philippines and How to Apply for One

For many Filipinos, a motorcycle is an ideal mode of transportation. It’s significantly more affordable than cars, easier to maintain, and handy for navigating even the trickiest traffic jams. More importantly, it can also be a source of livelihood—a lot of motorcycle owners double as couriers or food delivery riders.

According to the ASEAN Automotive Federation (AAF), the production of motorcycles and scooters in the Philippines jumped by 53.1% in the first two months of 2023.^[1] This shows how highly dependent on motorcycles Filipinos are.

Are you planning to buy a motorcycle soon? If you haven’t saved enough or just don’t want to scoop money from your bank account, consider getting a motorcycle loan in the Philippines. If this is your first time applying for such a loan, here’s a comprehensive guide to help you out.

What is a Motorcycle Loan in the Philippines?

A motorcycle loan is a type of loan that helps you finance your motorcycle purchase. It’s usually offered by banks and lenders and can be a secured or unsecured loan, depending on the lender. Just keep in mind that unsecured motorcycle loans may have higher interest rates since you’re not using your motorcycle as collateral.

You can use your motorcycle loan to buy either a brand-new or secondhand unit. If there are excess loan proceeds, you can use the remaining amount to buy motorcycle accessories.

Related reading: Personal Loan vs Car Loan: Which is Better for Financing a Car?

Why Should You Get a Motorcycle Loan?

There are many reasons that may convince you to apply for a motorcycle loan in the Philippines. Here are some of them:

👍 The Application Process is Usually Quick and Effortless

Depending on the lender you’ll work with, the loan application process can be quick. Some lenders have easy and light requirements. More importantly, you can efficiently file your application online.

👍 You Won’t Need to Touch Your Savings or Emergency Fund

Yes, you may afford a two-wheeler with the money you have in the bank. But paying for it in cash may create a dent in your savings. There are lenders who offer easy and flexible payment terms, so you won’t have to touch your personal savings.

👍 You May Get a Low Interest Rate  

If you do your research, you’ll find that a lot of banks offer friendly interest rates. Getting a loan with a low interest rate will make repayments easier to manage.

Where to Get a Motorcycle Loan in the Philippines

To help you get the right motorcycle loan, here’s a list of top motorcycle financing companies and lenders in the Philippines together with their interest rates, loan amount, and payment terms:

🏍️ #UNONow Loan

Key Features: 

• Minimum loan amount: ₱10,000
• Maximum loan amount: ₱200,000
• Payment terms: Six to 36 months
• Interest rate: 1.79% per month

The UNONow Loan^[2] may be a type of personal loan, but it can double as a motorcycle financing product. Perhaps the best thing about this is that you can file your application using the UNO Digital Bank app. This means that you can apply anytime, anywhere.

You don’t need a bank or credit card account from other banks to avail of an UNONow Loan. The interest rate is also relatively low compared to those from other banks. 

🏍️ BPI Motorcycle Loan

Key Features: 

• Minimum loan amount: ₱100,000
• Maximum loan amount: Up to 70% of the purchase price
• Payment terms: 12 to 36 months
• Interest rates:
  • 12 months: 8.83%
  • 18 months: 12.57%
  • 24 months: 17.54%
  • 36 months: 27.84%

BPI’s Auto Loan provides financing not only for those who want a car but also for would-be big biker owners.  One of the best things about this loan is its convenience. If you have a BPI account, enroll in the automatic debit arrangement for easy monthly payments.

Those who have a minimum household income of ₱40,000 are welcome to apply for a BPI motorcycle loan. The minimum unit price for this loan is ₱200,000. 

🏍️ Security Bank Motorcycle Loan

Key Features: 

• Minimum loan amount: ₱300,000
• Maximum loan amount: Up to 70% of the purchase price
• Payment terms: 12 to 36 months
• Interest rate:
  • 12 months: 8%
  • 18 months: 12.01%
  • 24 months: 16.96%
  • 36 months: 26.05%

Security Bank’s motor loan is offered to clients with good records. This applies to high-end big bikes with a minimum suggested retail price of ₱300,000 and a capacity of 400cc and up. You can use this loan for brands such as Ducati, BMW, Honda, Kawasaki, Harley Davidson, Suzuki, Yamaha, MV Agusta, and KTM.

Security Bank boasts of this loan’s quick approval time—you can get results within one banking day (from receipt of the complete application form and requirements)! Moreover, you can pay back your Security Bank motorcycle loan conveniently with an auto-debit arrangement.

🏍️ SB Finance MotorsikLOAN

Key Features: 

• Maximum loan amount: Up to ₱2 million 
• Payment terms: 12 to 48 months 
• Interest rate: 1.2% to 2.47% per month 

SB Finance, a partnership between Security Bank and Thai bank Krungsri, has a motorcycle financing program called MotorsikLOAN. You can borrow up to ₱2 million to buy either a regular bike or a high-end bike.

This lending company has partnered with leading motorcycle dealers, such as Star Honda, KServico, MotoXPress PH, and EMCOR. Both employed and self-employed individuals can apply for this motor loan via the zuki app.  

🏍️ Robinsons Bank Go! Motorsiklo Loan 

Key Features: 

• Loan amount:
  • Regular Bike: Minimum of 10% based on SRP
  • Big Bike: Minimum of 30% based on SRP
  • Secondhand Unit: 8% based on SRP
• Payment terms: Six to 36 months
• Interest rate: Will depend on the selling price, down payment, and amount financed

If you’re looking for inclusive motorcycle financing in the Philippines, just head over to Robinsons Bank. Its Go! Motorsiklo Loan helps you purchase any kind of motorcycle, whether it’s a regular bike, a big bike, or a secondhand unit.

In case you purchase a secondhand bike, just keep in mind that it may come with a higher interest rate. This is due to the higher perceived risks resulting from the unit’s existing mileage.^[3]

🏍️ City Savings Bank Motorcycle Loan

Key Features: 

• Minimum loan amount: ₱20,000
• Maximum loan amount: ₱300,000
• Payment terms: 12 to 48 months
• Interest rate: Will depend on the selling price, down payment, and amount financed

How to get a motorcycle loan fast? Apply with City Savings Bank. If you submit your complete requirements in the morning, you can get a decision within the day.

Another benefit of applying for a City Savings Bank Motorcycle Loan is that you can get a co-borrower, depending on your capacity to pay. You don’t even need to open a savings account with them to get a loan. And in case you don’t have a motorcycle dealer yet, the bank will look for one for you.

While the loan term for two-wheel motorcycles is up to 36 months, the term for three-wheel motorcycles can be up to 48 months. 

🏍️ AUB Big Bike Loan

Key Features: 

• Minimum loan amount: ₱200,000
• Payment terms: 12 to 36 months
• Interest rate: 6.6% per annum

Asia United Bank or AUB is one of the best banks for motorcycle loans in the Philippines if you’re after high-end bikes. The bank’s Big Bike Loan helps you finance a ride with an engine size of 400cc and above.

Don’t worry, you won’t have to deal with stringent requirements for this motor loan. You can also file your application easily with your smartphone using the AUB Mobile app. 

🏍️ Sumisho Motor Finance Corporation Motorcycle Loan

Key Features: 

• Minimum loan amount: ₱20,000
• Maximum loan amount: ₱1.8 million
• Payment terms: 12 to 48 months
• Interest rate: Depends on the selling price, down payment, and amount financed

As an affiliate of PSBank and Japan’s Sumitomo Corporation, Sumisho Motor Finance Corporation is one of the go-to names in motorcycle financing in the Philippines. With its wide range of loan amounts, you can buy either an entry-level scooter or a high-end big bike.

More interested in buying a secondhand unit? You can get a good deal with the company’s repossessed bikes. Competitive financing is available, too!

🏍️ Malayan Savings Bank Motorcycle Loan 

Key Features: 

• Minimum loan amount: ₱30,000
• Maximum loan amount: ₱300,000
• Payment terms: 12 to 36 months 
• Interest rate: Prevailing rate at the time of the loan approval

A motorcycle bank loan from Malayan Savings Bank can help you finance a bike that you can use for both travel and business. This lending product applies to models with a capacity of 400cc and up. Accepted brands are BMW, Harley Davidson, Honda, Kawasaki, Suzuki, Yamaha, KTM, and MV Agusta.

Unlike other lenders that require borrowers to purchase a bike from their partner dealers, Malayan Savings Bank lets you buy from your preferred dealership. The bank also has a selection of pre-loved bikes. 

🏍️ Pag-IBIG Motorcycle Loan 

Key Features: 

• Maximum loan amount: Up to 80% of your total Pag-IBIG Regular Savings
• Payment terms: Up to 36 months
• Interest rate: 10.5% per annum

Because of its specialization in home financing, Pag-IBIG may not be the first thing that comes to mind when it comes to motorcycle loans. The Pag-IBIG motorcycle loan is technically the fund’s multi-purpose loan or MPL.

With the Pag-IBIG MPL, you can borrow up to 80% of your regular savings, which are composed of your monthly contributions, your employer’s contributions, and the dividends earned. You can qualify for this loan if you have at least 24 monthly membership savings and  an active membership. Your existing Pag-IBIG loan (Housing, MPL, and Calamity), if any, must not be in default. 

Read more: 

• Affected by the Recent Typhoons? Check Out the Pag-IBIG Calamity Loan
• SSS Calamity Loan for 2023: Requirements and Everything Else to Know

What are the Requirements for a Motorcycle Loan?

Motorcycle banking companies typically ask borrowers to provide the requirements below. However,  get in touch with your preferred bank or lender to know the specific requirements.  

• Duly accomplished application form
• Photocopy of government-issued IDs
• Payslips
• Proof of Billing
• Income Tax Return (ITR)
• Certificate of Business Registration (DTI)
• Latest Financial Statements (for businesses)
• Audited Financial Statements or AFS (for businesses)
• Proof of Remittance (OFWs)

Related reading: What You Need to Know About Short Term Loans in the Philippines

How to Apply for a Motorcycle Loan

The loan application process will depend on your lender, but companies usually follow a general framework. Here’s what you may be asked to do:

Step 1: Check If You’re Eligible

First, find out if you’ll be able to satisfy your lender’s eligibility requirements. Typically, banks accept borrowers who are at least 21 years old but not more than 65 years old upon loan maturity. Applicants should also be employed or have a regular stream of income through a legitimate business.

Step 2: Collate and Double-Check Your Requirements

Create a checklist of documents that your lender requires. Once you’ve collated all the documents, keep them in a folder or envelope. Make sure the information in the documentary requirements is accurate. Otherwise, your application may get delayed. 

Don’t forget to create scanned copies in case you’re allowed to submit your requirements online.

Step 3: File Your Application

Head to your lender’s office to personally file your application. But if the lender has a website that facilitates online applications, you can go for this route instead.

Step 4: Wait for the Approval

Depending on the volume of applications, your application may be processed within three to seven days. Some, on the other hand, can process your application within the day as long as the requirements are complete. But you always have the liberty to follow up on your application status.

Additional Tips When Applying for a Motorcycle Loan

If you want to land the right motorcycle loan or save money, here are a few things to keep in mind.

✅ Pay the Down Payment Using Your Own Money

Some banks only cover about 70% of the bike’s price, especially if it’s high-end. This means you’ll need to pay the 30% down payment. But if your budget permits, go beyond it. 

Pay at least 40% or 50% so that you’ll only borrow the remaining 50%. This way, you won’t have to shoulder the loan and its interest for a  long time. 

To help you decide, use the bank’s loan calculator.

✅ Compare Your Options

Don’t just go for the first bank or lender that comes your way. Create a shortlist to compare the pros and cons of each motorcycle loan package. You can start creating your shortlist by referring to the list of banks above.

✅ Ask Questions

More often than not, the fine print is difficult to understand because of the jargon. Be honest when you’re confused. The loan officer will explain things to you. 

Knowing the details of your contract, even the minute ones, spells the difference between customer satisfaction and buyer’s remorse.  

✅ Ask Your Family and Friends For Recommendations

Got a family member or a friend who recently bought a motorcycle? Ask if they availed of a motorcycle loan. If so, they may recommend a bank or lender which offers loan packages with friendly terms.

Final Thoughts

While motorcycles are significantly cheaper than cars, it may still be difficult to buy one without a little help. Thankfully, banks and lenders offer motorcycle loans in the Philippines. To get the loan that suits your repayment capacity, do your due diligence and compare the offers of different lending companies.

Looking for personal loan providers instead? Compare your options and apply through Moneymax:

Personal Loan	Minimum Loan Amount	Maximum Loan Amount	Monthly Add-on Rate	Minimum Annual Income	Approval Time
UNO Digital Bank Personal Loan	₱10,000	₱200,000	1.79%	₱180,000	1-2 days
Metrobank Personal Loan	₱20,000	₱1 million	1.25% to 1.75%	₱350,000	7 days
UnionBank Personal Loan	₱20,000	₱2 million	1.29%	₱250,000	24 hours
BPI Personal Loan	₱20,000	₱2 million	1.2%	₱300,000	5 to 7 banking days
RFC Loan	₱10,000	₱150,000	4%	₱120,000	As fast as 24 hours
Tonik Flex Loan	₱20,000	₱250,000	Starts at 1.7%	₱180,000	1 banking day
Tonik Quick Loan	₱5,000	₱50,000	Starts at 4.26%	₱180,000	As fast as 1 hour
Tonik Big Loan	₱250,000	₱5 million	0.5825%	None	7 days
Tala Loan	₱1,000	₱15,000	15%	None	24 hours
HSBC Personal Loan	₱30,000	₱500,000	0.65%	₱168,000	5 to 7 banking days
CIMB Personal Loan	₱30,000	₱1 million	1.95%	₱180,000	As fast as 24 hours
Maybank Personal Loan	₱50,000	₱1 million	1.3%	₱300,000	5 to 10 banking days
RCBC Bank Personal Loan	₱50,000	₱1 million	1.3%	₱360,000	5 to 7 banking days
SB Finance Personal Loan	₱30,000	₱2 million	2%	₱180,000	5 banking days
CTBC Bank Personal Loan	₱500,000	₱2 million	1.39% to 1.79%	₱180,000	1 to 5 banking days
PSBank Personal Loan	₱20,000	₱250,000	1.75% or 2.5%	₱180,000	5 to 9 banking days

Sources:

• ^[1] Philippines Vehicle Makers Jack Up Output by 63% (The Philippine Star, 2023)
• ^[2] UNONow Loan Page
  
• ^[3] Robinsons Bank Go! Motorsiklo Loan