We’ve been discussing topics that revolve around car loans and by now, you should have the slightest idea on what they are, how beneficial it is for everyone, and how you should manage it beforehand. As we keep on mentioning, even though you have the whole amount in your bank account, you wouldn’t be spending every peso you have for just a ride. Imagine spending all of your savings just so you can purchase a car. This is where a car loan comes in handy and in this part, we will be discussing different car loan requirements you should accomplish so you can successfully proceed to the car loan application.
Before applying for a car loan, there are eligibility requirements everyone should be eligible for. To give you a refresher, an applicant who’s applying for a car loan should be:
Must be a Filipino citizen
Must be at least 21 years old but not more than 65 years old upon loan maturity.
The applicant must have a household monthly income of at least Php30, 000.00 to Php40, 000.00 for some banks.
If the applicant is a foreigner, the co-borrower must be a Filipino.
There are banks who require the applicant to be employed for at least two (2) years. Moreover, there are banks who require applicants to be in a permanent position in where they’re working.
OFWs can also apply for a car loan. This is possible as long as their co-borrower or co-guarantor is a resident here in the Philippines. Both the borrower and the co-guarantor can have their salaries combined and that can be the declared salary in paying for the car loan.
NOTE: There are banks who would require just one stream of income while there are banks who would ask you to declare the whole household’s income. This is for them to gauge the amount of the loan that you’re applying for.
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