Car Loan Requirements You Should Prepare Before the Application

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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.

Read: Comparing Different Car Loans from Different Banks Through Loan Calculators

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.

Employment requirements

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.

Car loan requirements

Other than the eligibilities, there are physical requirements or documentation that will be asked if you’re applying for a car loan. These documents are to be presented to see:

  • The address of residency
  • How much you’re earning on a monthly or bi-monthly basis
  • To gauge how much you’re spending in a monthly basis for your utilities

This is so they can help you by suggesting what other options are fit for you in the event that what you want is something that might be difficult for you. The documentary car loan requirements you need to submit are:

Read: Applying For A BPI Auto Loan? Here’s How

  • Accomplished application form (this would be different depending on the bank)
  • Proof of billing (utility bills); bills that show your current present address and/or your permanent address
  • Two (2) valid government IDs with signature and photo. See list for the accepted valid IDs here in the Philippines.

Requirements for employees:

  • Original and photocopy of Certificate of Employment (CoE)
  • Photocopy and original copy of the latest Income Tax Return (ITR)
  • Three (3) months worth of payslips. Total of six (6) payslips if the payout is bi-monthly

For self-employed or for those who are running businesses

  • Original and photocopy of business registration with DTI (for sole proprietorships); SEC (for partnerships/corporations)
  • Proof of other income (latest) such as the certificate of deposits, stock certificates, bond certificates, lease contracts, etc.
  • Photocopy and original copy of the latest Income Tax Return (ITR)
  • Financial statements to view how much the costs are in the past three (3) months. Statements like income and expenses, photocopy of passbook, statement of assets and liabilities, and/or audited financial statements.

For OFWs or for those who work abroad, you need to submit the following documents:

  • OFWs need to provide their latest employment contract which is fully noted and authenticated by the Philippine Consulate.
  • Seafarers/Seamen must present their latest crew contract or proof of their employment.
  • Lastly, overseas workers need to provide three (3) months at least of their remittances to their families here in the country.

Other than these documents, here are some that you can present to further strengthen your car loan application:

  • Real estate asset certificates/proof of ownership
  • Other owned car original receipt/certificates
  • Stock investment certificates/proof of ownership
  • Other additional proof of capacity to pay to declare to the bank

Read: How To Apply For UnionBank Auto Loan

By having these, you’re heightening your chances of being approved of a car loan because you’re initially telling the bank that you are capable of paying the monthly of the loan.

Generally, banks are sensitive in approving a car loan. However, there are officers that give chances to people who they think really need a car. You might want to apply during the perfect timing so that your chances will be greater if you apply for a car loan. Gather everything that can help in the approval of your car loan and, of course, make sure that your car loan requirements are complete before you proceed in applying for one.

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