What You Need to Qualify for Car Loan?
So what do you really need in order to qualify for car loan in the Philippines? There are currently 2 understandings in the Philippines for the word car loan. The first one is intended for Pinoys looking to buy an auto whether new or used / second hand. This can be done either via car financing or cash but the first option applies to this post. Here, banks and private lending companies are the only options. The second understanding applies for Filipinos looking to apply for private car loan. This is otherwise called as car pawn.
In order to clearly understand it, Auto Loan Philippines will discuss both. Although as per our website / blog, we are more of the car pawning side. We currently stopped catering to buyers of new auto but if you need a 2nd hand unit, whether truck or car, then we may be able to help you.
Car Loan Thru Mortgage Financing
Good for those who do not have cash to buy a vehicle, financing car loan is the only solution today if you want to acquire and drive a dream car. In order to fulfill the desire to apply, there are policies by banks and financing companies. These policies help qualify any borrower interested to buy car thru auto financing. Below are some of the pre-qualifying requirements in order to know what you need to qualify for car loan.
How to Qualify for Car Loan Financing
If you can pass by having in possession what is in the list below, then you have big chances of getting an approval whether from banks or private lending companies. Here in the Philippines, it is practically easy to qualify as compared to other countries which usually require you to have an insurance and at times, trade-in documentation.
- Identity proof
- Residence proof
- Income proof
- Good or positive banking credits and no negative C-Map or derogatory records
- A private parking space (recently required by LTFRB
How to Qualify for Car Loan – Pawning via ORCR Sangla
The same requirements apply for Pinoys looking to apply for private car loan or car pawn via ORCR sangla without taking car. A few pre-qualifying status is added below to help future clients understand how they can use their auto as collateral to apply for secured loan.
- Must have a fully paid / owned car
- An 80% paid vehicle in bank or any other lending company may qualify
- 2nd, 3rd or 4th owners of vehicle with IDs of previous owner and a duly notarized deed of sale indicating the current owner’s name whom will also be the only authorized loan borrower
Documentary Requirements for Car Pawning and Financing
We have enumerated the list of pre-qualifying requirements for both car loan without taking your car and car financing above. Below are the complete list of documents you need to qualify for car loan and get approved.
- 2 valid primary IDs
- proof of billing or residence – meralco or water bill are 2 best options
- copy of ORCR (for car pawning only and refinancing or car loan takeout)
- TIN ID or any proof of TIN
- Proof of income
Income proof may include any of the following below:
For Employees: photocopy of your most recent payslips (for 3 months). Presenting an ITR is a big advantage but not required.
For Business Owners: 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
Where to Apply for Car Loan?
If you are interested to apply for new car loan via bank financing, please consider reading our previous post here. Otherwise, if you are looking to pawn your car, please call or contact us below to ask for a basic quotation using our simple loan calculator or download our application form.