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4 Options On How to Assume Balance Car Loan Mortgage from Bank

assume balance car loanFirst off, as a professional loan broker or agent, I would like to remind future readers of this post to remember avoiding fictitious persons offering assume balance car loan. Recently, it has been all over the mainstream media and internet. There are syndicates posing in the car loan industry trying to lure people who are in dire need to avoid a possible repossession of mortgaged cars. These syndicate offers what is called “pasalo” or car loan assume balance. Stay away from offers of the same loan product but will have opt in for car impounding or surrender your car. Note that assume balance car loan is the same as an OR CR loan without taking your car.

The only way you may be able to avoid getting scammed by these bogus loan agents or syndicates is to check on their office. A website or a decent website may be a good way to know it as of today. The reason is because you can easily see the registrant name of these site domains from their provider. Furthermore, you can easily determine if an agent is bogus usually because they immediately try to lure you with unbelievable promises but will ask for an advance charges hidden in the name or processing fee. Another effective way to know if you are up for a bogus offer is to know if you can qualify for a car loan takeout or assume balance for your mortgage with bank or financing company. Below are some details on how to know if you qualify to apply. Note that the same thing works for truck loan assume balance.

5 Factors to Know If You Qualify for Car Loan Assume Balance

  1. Current balance with bank or financing company must not be less than 20% of the fair market value of the car. Fair market value is derived from existing for sale used or 2nd hand cars in the market today. You may look in popular car selling websites like and
  2. To compute the above 20% here is a simple formula. – ex. if car current fair market value is 1M, the balance which must equate to 20% should range from around 200K +++ (due to down payment value). 200k is the 20% of 1M value.
  3. Income source or capacity to pay for the loan must not be less than the quotation of monthly amortization of the balance. Low income may disqualify you from assume balance or refinancing your mortgaged car. Meaning, if you have a 200K loan + interest rate and other charges, you must have enough income to pay for however much come out as quotation of your monthly dues as per computation. Ask for a quotation in this case and see how much income you need to have to qualify. One thing you can do is to avoid disclosure of overspending in your utilities and miscellaneous expenses. Another is to avoid disclosure of credit card monthly expenses or payments and other mortgage payments if you have one like property under mortgage or other car.
  4. No income source may disqualify you. But there is another way – provide an immediate family comaker or co-borrower who has regular income sufficient to pay for the loan amount for takeout or balance to assume.
  5. Current residence status and availability of ALL documentary requirements. Although newly renting residence status may be remedied also thru providing an immediate family comaker, it is still best if you provide owned house, free use or relative or family residence as your current stay-in for daily living. The importance of this is to avoid any idea from the second party lending company from thinking that if you just recently changes status to a new renter for your residence, that it would be easy to elude future efforts to collect loan payment. Another important issue here is your current proof of billing which establishes trust factor for lending companies that you are stable living in your residence area.

Since we have already given you some pointers on how to know if you can qualify for assume balance car loan, it must be easier now for you to see that there are other important details to note. That there are also alternative issues needed to be addressed to maximize the loan approval. Just base your thoughts from what we have discussed above. Here at Auto Loan Philippines, we take pride in giving the best advice for our clients. We come up with choices and options so below is the bottom line which are your actual choices for an assume balance car loan application. So don’t hesitate to call us anytime for a free consultation and application assistance for your vehicle.

4 Bank or Financing Mortgage Car Loan Assume Balance Optionsassume balance options

  1. Private Financier – With this option, you find a private lender who happens to usually offer OR CR Sangla and car loan takeout (or assume balance car loan). What makes this as your best option if you know you qualify based from above requirements and scenario is that it only takes 1-2 days guaranteed. Less requirements are also up for submission if you want to apply here. Furthermore, with less processing hassle, borrowers directly deal and talk with financiers or owners making the process so much more convenient and faster than any other providers we have on our list. There is a downside though – the interest rate is much higher compared to other 2 options below. If you find this post and you don’t want to take time searching for this type of provider online, we have it here. Just pay us a call using our Contact Us numbers or call us straight here – 0917-1797723 (Globe) / 0928-3455234 (Smart) / 7756277 (PLDT)
  2. Private Lending Company – Financiers falling under this category can process your loan approval much faster than a bank can. Their difference with a private financier is that this option is governed by BSP or Banko Sentral ng Pilipinas (Central Bank of the Philippines) and strictly follows lending laws. This options also gives the loan borrower a lower interest rate. To learn more, please call us using our Contact Us page.
  3. Bank – We all know that banks can give you the lowest possible interest rate compared to the first 2 options above. The cons here is that it takes 1-2 weeks and sometimes even longer to come up with an approval of your application. Another downside is that banks have a much stricter guidelines which usually contribute to processing problems and eventually, hassle. We have providers on this end too and good news is yes you may apply thru us for free just like with a private lending company. But please save us the hassle too by understanding that process must take place by the numbers. This means extra patience is required in order to have your car loan assume balance application approved. The borrower must also adhere to strict process interviews which may sometimes be repetitive and time consuming. Credit mapping is also expected to be much stricter than usual and banking records are a must. But good news again is, you may apply and get a free consultation thru us anytime.
  4. Loan Sharks – Just for the sake of discussion, this 4th option is here. We must warn you that we never recommend any of our clients to opt in for this option unless there is no other choice. Currently don’t have a provider for this so it’s your judgement call to get help elsewhere. Never will we assist clients for this provider for the sole reason that we believe in helping people and offer of only the best option. For us, this is not an option.

Assume Balance Car Loan Requirements

Different providers require different requirements. The easiest so far are those with our private financier. They don’t require proof of income. An immediate family or relative comaker or co-borrower is instead required to qualify to process your application.

  • Two (2) valid IDs, Photocopy (in one page).
  • Car model should at least be year 2000 and UP.
  • OR/CR (Official Receipt and Certificate of Registration), Original Copy (for comparing purpose only) and Xerox
  • BIR Tax Identification Number, TIN#
  • 3 months latest proof of income –Employees: We need a copy of your most recent payslips (for 3 months). Presenting an ITR is a big advantage but not required.Business Owners: We need a copy of your DTI or SEC registration, Mayor’s business permit and 3 months recent bank statement.Property Owners: We need a lease of contract and 3 months recent bank statement.

    Freelancers: Any voucher, remittance receipts and 3 months recent bank statement.

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