Truck Loan Philippines

Truck Loan Philippines – many people think it is rare to find a bank that provides such a service as a truck on credit. It is not the case. It’s just that this type of lending is in much less demand than, for example, the purchase of an apartment or a car. After all, large or medium-sized companies engaged in business in the field of cargo transportation are interested in purchasing trucks with the help of a loan.

If you feel a great need to buy a truck with a loan, you can do it in several ways: take a loan from the manufacturer or take a truck loan Philippines from a bank. When buying a car with the help of a bank, you must contact the bank’s loan officer and provide him with a package of documents necessary to issue a truck in installments. As a rule, the bank will require your standard documents about your financial and legal status, as well as a preliminary contract of sale for the truck you are buying.

Truck Loan Philippines
Truck Loan Philippines

What is a Truck Loan Philippines

Truck loan financing Philippines involves the allocation of money by the bank to the client for the purchase of a vehicle.

This purchase has many advantages:

  • the ability to purchase a car even without a down payment;
  • you can choose the option that suits the price and technical parameters;
  • the presence of a large number of programs with different conditions;
  • fast processing for borrowers with a good credit history and a stable income.

The application process for loans is rather straightforward. The lending commission of the bank will review your application after all the required paperwork has been gathered. If the verdict is in your favor, you will have to submit a down payment on the truck. The remaining money will be sent to your account or, depending on the preliminary arrangement, to the account of the vehicle seller as soon as you have paid for a portion of the truck in installments. You must thereafter return the loan in full and on schedule.

When trying to know how to get a loan Philippines, it is essential to consider that the truck you purchase on credit becomes the property of the bank as collateral to secure the loan unless otherwise provided for in terms of the agreement.

The disadvantage of obtaining a loan from a bank is the need to pay the agreed amount of the down payment. You can also purchase a truck through a supplier’s loan program. In this case, the loan interest rate may be significantly lower than in banks, but the down payment will remain. As a rule, lending through a supplier is no different from lending at a bank.

How To Apply For A Truck Loan

When figuring out how to get a loan to buy a truck, keep in mind that when evaluating borrowers, regardless of whether they are individuals or legal entities, the bank pays attention to:

  • solvency – the ability to pay loan installments without prejudice to the central budget;
  • credit score.

The bank analyzes data such as age, registration, and work experience when evaluating individual customers. For legal entities, the bank checks the business’s duration, capital amount, revenue, turnover, etc.

At the same time, the features of buying a truck for individuals are:

  • high-interest rate since an individual cannot participate in state grant programs;
  • the increased amount of the first installment;
  • a small loan amount since the profit of a private trader is much lower than the profit of a legal entity.

To apply for a truck loan in Cebu Philippines, the client goes through several stages:

  • choice of vehicles;
  • choosing a bank and lending program;
  • collection of necessary documents;
  • filling out an application online or in person at the bank office;
  • obtaining approval and signing a loan agreement;
  • payment of the down payment;
  • vehicle registration.

This is not a complicated process, but it is worth thoroughly preparing for it in order to accurately receive approval of the application.

Truck loans in the Philippines
Truck loans in the Philippines

What Are The Requirements For A Truck Loan

Banks focus on the following points:

  • solvency – whether the applicant has sufficient financial resources to fulfill obligations promptly;
  • no delinquency on other loan products;
  • age 21-65 years;
  • the place of residence and registration must be in the region where the financial institution is located;
  • a permanent source of income, which is enough to service the loan product.

Banks also require an authentic receipt and registration document. A person must hold a Ground Transportation Authority certification. These are OR and CR. The vehicle’s gross weight, model, and brand are all included in the CR document. On the other hand, the OR paperwork has thorough information regarding the truck’s serial number, license plate, and final payment, among other things. For a financial institution to behave like a truck loan, OR and CR are required.

Asialink Financing Corporation provides its clients with flexible and all-encompassing terms for acquiring a vehicle. It’s essential to keep in mind, though, that this business only works with clients who wish to buy brand-new cars. Additionally, consumers of this company must make an initial payment in the range of 20% to45%. Further, the interest rate on loans ranges from 7.24 percent to 27.54 percent. The highest loan duration is 60 months, ranging from 12 months.

Metrobank Truck Loan

Metrobank offers one of the top loan possibilities in the nation. The unique feature of this financial institution is that it enables consumers to compare at least three vehicles of their choosing. Each consumer is charged a new vehicle interest rate of 4.79 percent. It implies a payback of Php9,531 every month. However, depending on the parameters of the arrangement, the interest rate varies from 3.98 percent to 22.28 percent.

The application will be accepted within a day, another significant aspect of working with this bank. The loan’s duration ranges from 12 to 60 months.

BPI Truck Loan

Another well-known competitor in the business is the BPI. It provides excellent terms, making it handy for many people to borrow a vehicle. As a result, the bank offers to pick a loan for a new automobile with an interest rate of 5.36 percent. It has a PHP 9.673 percent monthly payback obligation. Pays between 60 and 80 percent of the principal sum, depending on the contract’s provisions. The loan’s duration ranges from 12 to 60 months. It also provides low-interest financing for old autos.

BDO Truck Loan

BDO truck loan Interest rates ranging from 17.33% to 30.26% for cars with a down payment of 20% to 40% is why many Filipinos choose this particular financial institution. It is also worth remembering that the interest rate ranges from 14.11% to 30.06% for used cars. All these conditions are relevant for those who provided the down payment from 30% to 50%. The loan term takes from 24 to 60 months, depending on the truck’s condition. An equally great advantage is that the loan will be provided as quickly and efficiently as possible.

Maybank Truck Loan

Maybank truck loan – this well-known lender offers quick cash to needy individuals and is famous for doing so nationwide. As a result, the lending company offers to finance between 60 and 70 percent of the price of a new vehicle at an interest rate of 2.78 percent annually. A loan can be repaid in 1 to 7 years. Nevertheless, it takes longer than other banks — 3 days — to issue the loan. It is also important to note that the organization provides financing for new and used trucks.

Truck Loans PH
Truck Loans PH

FAQ About Truck Loans

The answers to some questions will help you understand whether a person needs a loan for a truck or shed light on how best to get it.

What is The Truck Loan Interest Rate?

Large enterprises, small businesses, and private people may require a truck loan. Just the banks offering such lending programs will be able to earn money on credit to buy a vehicle. The borrower’s application will only be taken into consideration if it complies with the credit institution’s fundamental conditions.
Numerous people wonder what is the interest rate on a truck loan. Rates of interest remain steady. They range from 4.79 to 31.76 percent at the outset. The lender determines each loan’s interest rate. Therefore, it is wise to use a truck loan calculator Philippines on the bank’s website to check the interest rate on the loan before applying.

Why Do People Get a TruckLoan?

In the product line provided by banks, there are not only lending programs for purchasing cars but also car loans for a truck, truck, or dump truck. This service is in demand among individuals and legal entities that need transport for the transportation and delivery of goods. It is also worth remembering that the purchase of a truck entails its maintenance, which is often expensive. Getting a truck loan is the only way to get repairs and maintenance on schedule without hitting your budget.

Verified SEC Licensed Companies

All banks work with licenses, so they are verified for sure.
As for the alternative loans, you can try Digido, Finbro, Unacash, Moneycat, Cashalo, etc., but they don´t provide truck loans, they provide fast unsecured loans for some of your urgent needs in some exact cases.
These organizations provide excellent opportunities to purchase a truck profitably.

Resume About Track Loans in the Philippines

Applying for a truck loan is the responsible thing. Small and medium-sized business representatives are especially interested in truck loans. Nonetheless, occasionally, those who lack the resources to own a car have a need for such transportation. Filipinos who want to get a truck loan might go to dealers who let them buy a truck in installments, leasing firms, or banks that are willing to grant a car loan for a big-capacity automobile. Additionally, one can get help from online financial institutions that provide fast loans, but suppose it is only in some extra cases.

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