It’s been decades since I availed of car loans. The first two were thru company car loans which were affordable and being in-house financing, the monthlies were deducted from salary. Those units were second-hand cars.
My next two car loans came two years apart and they were for brand new units of a subcompact car and a minivan loaned thru the banks. I can’t recall the interest rates but they were quite high compared to what I saw when I attended the press conference recently of the BPI Family Savings Bank’s All-Out Auto and Housing Loan promo.
BPI Family Savings Bank has waived fees and brought down interest rates for both car and housing loans in the promo that started last June 1st and will end on October 31, 2018. The aim is to help more families achieve the car and home of their dreams.
Qit Abola, Head of BPI Family Saving Bank Retail Lending Group, said “ We would like to address the need for financing to help make car and home ownership more affordable for Filipino families. With these offers, we are able to lighten the financial burden of car and home ownership through our limited offer.”
On top of low rates of 6.8 percent per annum, auto loan clients, get free first year comprehensive car insurance, free chattel mortgage fees, and a P10,000 discount on a car’s down payment which is usually 20 percent of loaned amount.. Housing loan clients, meantime, may save up to P60,000 in waived fees.
With the economy expected to grow by 6-7 percent, the Philippines is a potential major automotive market in Southeast Asia and the government’s Comprehensive Automotive Resurgence Strategy or CARS program aims to enable the country to produce one million cars a year to satisfy local and exort demand by 2027.
There is also a growing demand for housing loans, which, despite the production of less than 200,000 units a year, will still lead to a housing deficit of 7.67 million by 2022, according to government estimates.
Perhaps this is the best time to avail of either auto or housing loans.
According to BFSB, the loan amount for cars should be within the range of P500,000 to P5,000,000 and the loan term should be 5 years. The loan application should be approved and booked on or before December 31, 2018.
For car buyers, there are several new car models to choose from. Those under P700,000 include the all new Suzuki Dzire andVolkswagen Santana. Those under P1 million are seven-seater SUVs like the Mitsubishi Xpander, Toyota Rush and Honda BR-V and minivans like the Suzuki Ertiga and Toyota Avanza which are good family vehicles. Those looking for mid-size SUVs may go for the Isuzu Mu-X, Toyota Fortuner, Mitsubishi Montero Sport, Ford Everest, Hyundai Sta. Fe and the new Nissan Terra.
Meantime, the all-out housing promo is available to clients nationwide who will avail of a BFSB housing loan or property equity loan until October 31, 2018, and whose loan applications are approved and booked by December 31, 2018. The required minimum loan amount is at P400,000 and the required minimum loan term is at 10 years.
BPI Family Savings Bank also said they can accept loans for house improvement with same terms.