Getting a loan is one of the most challenging decisions you’ll have to make. First, you have to decide if the debt is a good one to carry or a bad one. Then, you’ll need to find a bank that offers good terms for its loan services.
Philippine National Bank is one of those banks that has outstanding loan options for cars. If you’re considering getting a new car, then PNB Auto Loan might be the one for you. You can get a loan depending on the type of car you want, such as a brand new one or a used one.
Read on to find out how you can get an auto loan from PNB. In this article, we will talk about PNB Auto Lone interest rates, loan terms, benefits, and the application process.
- What Is Philippine National Bank?
- What Is PNB Auto Loan?
- What Are the Types of Interest Rates for a PNB Auto Loan?
- What Are the Benefits of a PNB Auto Loan?
- Necessary Requirements to Apply for a PNB Auto Loan
- How Can You Apply for a PNB Auto Loan?
What Is Philippine National Bank?
One of the biggest banks in the Philippines is the Philippine National Bank (PNB). The Philippine government set it up during the American era on July 22, 1916.
In 1980, the bank became the first universal bank in the Philippines. When the government privatized it in 1989, Lucio Tan bought it from them. On February 9, 2013, PNB merged with Allied Bank, which Tan owned. This made PNB the fifth-largest private bank in the country.
As of now, PNB has 713 branches and more than 1,400 ATMs strategically placed across the country. PNB has more than 70 overseas branches, representative offices, remittance centers, and subsidiaries in Asia, Europe, the Middle East, and North America. This makes it the Philippine bank with the most international reach.
What Are the Services and Products Offered by PNB?
PNB provides banking and financial services to corporate, middle-market, small and medium firms, retail consumers, such as overseas Filipino workers, the Philippine government, national government agencies, local government units, and government-owned and -controlled corporations.
PNB’s main commercial banking services include taking deposits, lending, trade financing, foreign exchange transactions, bill discounting, fund transfers, remittance servicing, asset management, treasury operations, comprehensive trust services, retail banking, and other related financial services.
The wholesale and retail trade is the industry that gets the most loans from PNB.
What Is PNB Auto Loan?
Getting your own car can be expensive and drain your wallet, so you should look into a PNB Auto Loan.
When it comes to an auto loan, you want the lowest interest rates. The loan period should also be reasonable, and the financing should at least cover most of the cost of the car.
That’s exactly what PNB offers with its auto loans. You can get a PNB Auto Loan for both brand-new and used cars. The process of applying is simple, and there aren’t many requirements.
How Much Can You Apply for an Auto Loan at PNB?
When you apply for a loan, you first want to know how much you will receive. When you go to PNB for an auto loan, you can borrow up to 80% of the price of the car you want to buy. Meanwhile, for loans for used cars are about 75% of the cost of the car.
At PNB, the least you can borrow for a new car with an auto loan is about PHP 300,000. This should be enough for anyone in the country to get a good car. The least amount you can get for a used car is PHP 150,000.
What Are the Types of Interest Rates for a PNB Auto Loan?
The interest rate on a PNB used car loan ranges from 12.40% to 33.70%. PNB gives you two options for interest rates, like most banks that offer auto loans.
The first one is the Add-on-Rate (AOR). AOR is your loan’s interest rate if you pay on time, usually a month after your down payment.
Meanwhile, the second one is the Effective Interest Rate (EIR). EIR is the interest rate you’ll be charged if you pay your first payment with your down payment or if you pay your first payment a month early. Still, the next payment is due in a month.
The lower interest rate benefits EIR, especially if you take out a loan for 24 months or more. The benefit of AOR is that you get less cash right away. In the long run, EIR is a better way to save money.
What Is the Loan Term for a PNB Auto Loan?
The loan term for a brand-new car can be up to 60 months, and the interest rate can be anywhere from 5.29% to 28.01%. Regarding the used car, you can only get a loan for 48 months, and the interest rate will be between 7.97% and 33.70%.
The amount you can borrow also depends on whether you are getting a loan to buy a new or used car. With PNB, you can pay your auto loan in around 60 months, which is for both a second-hand and a new car.
The longest period you can have to pay up the loan, depending on how much you borrowed for your car, is 60 months. For used cars, PNB wants at least a 25% down payment.
What Are the Benefits of a PNB Auto Loan?
One of the benefits of a PNB Auto Loan is that your monthly payment is always the same when you have equal monthly amortization. There is no need to be concerned about the yearly alterations to your budget. You can also pay with a post-dated check or automatic debit arrangement.
To avoid paying late penalties, you should ensure enough money in your bank account to meet the repayment cost.
Auto loans are available to businesses organized as partnerships or companies.
What Are Some Limitations of a PNB Auto Loan?
If you are looking for a loan where you may use your own vehicle as security, this is not the loan for you. You are better off using another lender, preferably a licensed private lender.
A comprehensive auto or car insurance policy must be acquired. This means that you must purchase comprehensive auto insurance for your vehicle rather than just liability insurance. This is an additional cost on your part.
Necessary Requirements to Apply for a PNB Auto Loan
Getting an auto loan is like obtaining any other kind of loan, so you must meet several requirements. You must be between 21 and 65 years old and have a job to get an auto loan from PNB. You must also be a PNB depositor.
You must also be able to prove how much money you make, and it must be at least Php 50,000 a month. You’ll need a co-borrower if you don’t make at least that much.
Before you can apply for an auto loan, you must show proof of income documents that proves how much money you make, and whether you work for someone else or are self-employed.
You also have to be a Philippines citizen or a foreigner living in the country as a resident. Then, you need to have a loan application form that is correctly filled out and attached to all these documents.
What Are the Documents You Need to Submit for a PNB Auto Loan?
Here are the documents you need to submit to PBN to process your auto loan application.
- Filled out and signed application form
- 2 Government-issued valid IDs like Drivers License, Passport, UMID, etc.
- Certificate of Employment with Compensation or Payslip (if employed)
- Latest Income Tax Return (if employed)
- Business papers with DTI Registration (if a business owner)
- Latest Income Tax Return (if a business owner)
- Latest Audited Financial Statements (if a business owner)
- Latest (6) six-month Bank Statements (if a business owner)
How Can You Apply for a PNB Auto Loan?
The auto loan application form is easy to find on the bank’s website. Before filling it out completely, you should download it and read it carefully.
Make sure to fill in all parts, because that could be the difference between getting the auto loan you want and not getting it.
Lastly, once you’ve filled out your form and read all the terms and conditions, it’s time to formally apply. This is done at the bank, where you must go in person with the required documents and the application form.
How Can You Contact PNB?
If you have questions regarding your auto loan application, you may visit any of the PNB branches in the country. Note that PNB is currently headquartered at PNB Financial Center, Pres. D Macapagal Blvd., Pasay City, Philippines.
You may also contact PNB by telephone at (+632) 8573 8888, or by email at customercare@pnb.com.ph.
Conclusion
Getting a car can be a turning point in your life, and if you want to buy one with a loan, you’ll need the right kind of money. Learn about these things and then decide if a loan from PNB is right for you.
Disclaimer: There are risks involved when applying for a Philippine National Bank Auto Loan. Consult the Philippine National Bank’s terms and conditions page for more information.