Introduction
Are you searching for the best bank for car loan in the Philippines? With so many financing options available, choosing the right lender can make a big difference in your monthly payments and overall cost. Whether you’re buying a brand-new sedan, a family SUV, or a pre-owned vehicle, finding the best auto loan Philippines offers can save you thousands in interest and fees.
But which bank is best for car loan in Philippines? The answer depends on factors like interest rates, loan terms, down payment requirements, and approval speed. In this guide, we’ll compare top banks, highlight their latest promotions, and help you secure the most affordable and convenient auto financing deal.
Ready to drive home your dream car? Let’s find the perfect auto loan for you!
Factors to Consider When Choosing an Auto Loan in the Philippines
When looking for the best auto loan, it’s important to compare different offers to find the most affordable installment cars in the Philippines. One of the biggest factors is securing banks with lowest auto loan interest rates, as even a small difference can save you thousands over the loan term. Currently, car loan interest rates Philippines range from around 5% to 12%, depending on the bank, loan term, and your credit profile.
If you’re considering a used vehicle, check lenders offering 2nd hand car loan Philippines, as these often have different rates and terms compared to brand-new cars. Other key factors include:
- Down payment (typically 10%–30% of the car’s value)
- Loan tenure (1–7 years—shorter terms mean higher monthly payments but lower total interest)
- Processing fees & hidden charges (some banks charge 1%–3% of the loan amount)
- Approval time (some banks approve loans in 1–3 days, while others take weeks)
- Flexibility (early repayment penalties, payment holidays, or refinancing options)
By carefully evaluating these factors, you can find a loan that fits your budget and helps you drive away with the best deal possible.
Top Banks for Auto Loans in the Philippines
Finding the best bank for auto loan Philippines can make a huge difference in affordability and convenience. In 2025, several banks stand out for their competitive rates, flexible terms, and fast approval processes. Whether you’re buying a brand-new vehicle or a quality pre-owned car, here are the top contenders for the title of best bank for car loan Philippines:
BDO Unibank
When searching for a competitive auto loan in the Philippines, BDO Unibank and UnionBank stand out as top choices in 2025. BDO offers flexible terms (up to 7 years) with interest rates from 5.5% to 10.5%, catering to both new and pre-owned vehicles, along with fast approvals for existing clients. Meanwhile, UnionBank provides a fully digital application process with rates starting at 5.75%, appealing to tech-savvy borrowers seeking convenience. Both banks feature low down payments and transparent processing, but BDO excels in widespread accessibility while UnionBank leads in digital efficiency. Choosing between them depends on whether priority lies with traditional banking strength or seamless online service.
Interest Rates: 5.5% to 10.5% per annum
Loan Term: Up to 7 years
Why Choose BDO?
- Frequent promotional rates for specific car brands.
- Competitive interest rates
- Flexible terms (up to 5-7 years)
- Low down payment options
- Fast approval for existing customers
Bank of the Philippine Islands (BPI)
BPI remains one of the most competitive options for auto financing in the Philippines, offering attractive BPI car loan interest rates ranging from 5.25% to 10% in 2025. Known for its customer-centric approach, BPI provides flexible repayment terms of up to 5 years, along with exclusive perks such as cashback promotions and free insurance for qualified borrowers. The bank’s streamlined online application process and preferential rates for existing clients make it a top choice for both new and used car purchases. With its reputation for reliability and transparent loan terms, BPI continues to be a preferred lender for Filipinos seeking affordable and hassle-free auto financing solutions.
Interest Rates:5.25% to 10% (with special discounts for loyal clients)
Loan Term: 1 to 5 years
Why Choose BPI?
- Exclusive deals like cashback offers
- Free insurance
- Streamlined online application process.
- Low-interest rates for loyal clients
Metrobank
Metrobank remains a leading choice for auto financing in the Philippines, with its Metrobank car loan offering competitive interest rates starting at 6% in 2025. Known for its reliability and customer-friendly terms, Metrobank provides flexible repayment periods of up to 7 years, catering to both brand-new and pre-owned vehicle purchases. Borrowers benefit from low processing fees, special discounts on select car models, and a straightforward application process. With its strong reputation and nationwide accessibility, Metrobank stands out as a trusted option for Filipinos seeking affordable and convenient auto financing solutions tailored to their budget and needs.
Interest Rates:6% to 11%
Loan Term: Up to 7 years
Why Choose Metrobank?
- Fixed and flexible payment schemes
- Low processing fees
- Discounts for specific car models
Security Bank
Security Bank emerges as a strong contender in auto financing with its Security Bank car loan offering competitive rates from 5.99% in 2025. Distinguished by its high loan-to-value ratio (up to 80% of vehicle price), the bank makes car ownership more accessible with lower downpayment requirements. Borrowers benefit from transparent terms, fast approval within 24-48 hours for complete applications, and flexible 1-5 year repayment options. With no hidden charges and dedicated relationship managers, Security Bank provides a hassle-free financing solution for both new and pre-owned vehicles, making it an excellent choice for practical buyers seeking efficient service and fair loan terms.
Interest Rates: 5.99% to 10.5%
Loan Term: 1 to 5 years
Why Choose Security Bank?
- Fast loan processing
- High loanable amount (up to 80% of car value)
- No hidden charges
EastWest Bank
EastWest Bank stands out in the auto financing sector with its EastWest Bank car loan, offering attractive rates starting at 6% in 2025. Catering to diverse borrower needs, the bank provides flexible repayment terms of up to 7 years for both brand-new and pre-owned vehicles. Known for its customer-centric approach, EastWest features low monthly amortizations, minimal documentation requirements, and exclusive promotions on select car models. With quick approval processes and personalized service, the bank makes car ownership more accessible. Whether for first-time buyers or seasoned motorists, EastWest Bank delivers competitive financing solutions that balance affordability with convenience.
Interest Rates: 6% to 10%
Loan Term:Up to 7 years
Why Choose EastWest?
- Low monthly amortizations
- Attractive promos for brand-new cars
- Easy documentation requirements.
Best loans for Used Cars and Best 2nd hand Car loan in the Philippines
Philippine National Bank (PNB) offers competitive auto loan solutions with interest rates starting at 6.5% in 2024, featuring flexible repayment terms of up to 5 years for both new and pre-owned vehicles. The PNB car loan stands out for its accommodating approval process, requiring minimal documentation and offering quick processing for qualified applicants. With special promotions on select models and the option for high loan amounts (up to 80% of the car’s value), PNB makes car ownership accessible to a wide range of borrowers. Its reliable customer service and nationwide branch network further enhance its appeal as a trusted auto financing partner in the Philippines.
Interest Rates: 6.5% to 12% (for 2nd hand car loan Philippines)
Loan Term: Up to 5 years
Why Choose PNB?
- Competitive rates for new and used cars
- Extended repayment terms
- Easy documentation
Loans for motorcycles in the Philippines
For motorcycle enthusiasts in the Philippines seeking affordable financing options, securing the lowest interest motorcycle loan is crucial to making ownership more accessible. In 2024, several banks and financing institutions offer competitive rates starting as low as 6% per annum, with repayment terms typically ranging from 12 to 60 months. Leading the market are major banks like BPI, Metrobank, and Security Bank, along with specialized lenders such as Home Credit and Motortrade, which provide flexible payment schemes tailored for different budgets.
The best motorcycle loan deals often feature low down payments (as little as 10-20%), quick approval processes (sometimes within 24 hours), and minimal documentary requirements. Borrowers should compare offers carefully, considering not just interest rates but also processing fees, insurance inclusions, and prepayment penalties. Some lenders also offer promotional rates for specific motorcycle brands or models, making certain purchases even more cost-effective.
Additionally, in-house financing from dealerships can be convenient, though rates may be higher than bank loans. For those with strong credit scores, traditional banks remain the best option for the lowest interest rates, while alternative lenders provide accessible solutions for borrowers with limited credit history. By evaluating all available options, Filipino riders can find a motorcycle loan that balances affordability with manageable monthly payments, ensuring a smooth journey toward ownership.
Which is the Best Bank for You?
The best bank for auto loan Philippines depends on your needs—whether you prioritize the lowest interest rates, the longest repayment term, or the fastest approval. Compare offers, check for ongoing promotions, and choose the lender that gives you the most value for your money.
Compare car loan rates in the Philippines
| Bank | Interest Rate | Loan Term | Down Payment | Processing Fee | Key Feature |
| BDO | 6% – 11% | 1-7 yrs | 20% | 1-2% | Fast approval |
| BPI | 5.5% – 10% | 1-5 yrs | 15-30% | 1.5% | Loyalty discounts |
| Metrobank | 6.5% – 12% | 1-7 yrs | 20% | 1% | Car model promos |
| Security Bank | 5.99% – 11% | 1-5 yrs | 20% | 1% | High loan amount |
| EastWest | 6.25% – 10.5% | 1-7 yrs | 15% | 1.5% | Low amortization |
Tips for Getting the Best Car Loan in the Philippines
Buying a car is a significant financial commitment, and securing the best car loan can save you thousands of pesos in interest and fees. Whether you’re eyeing a brand-new sedan, a family-friendly SUV, or a reliable second-hand vehicle, choosing the right financing option is crucial. Here are essential tips to help you get the most affordable and convenient car loan in the Philippines.
Check and Improve Your Credit Score
Your credit score plays a major role in loan approval and interest rates. Banks and lenders assess your credit history to determine your risk level as a borrower. A high credit score (usually 700 and above) can qualify you for lower interest rates, while a poor score may lead to higher rates or even rejection.
How to improve your credit score?
- Pay existing loans and credit card bills on time.
- Avoid multiple loan applications in a short period.
- Clear outstanding debts before applying.
Compare Interest Rates and Loan Terms
Not all car loans are created equal. Banks, financing companies, and dealerships offer varying interest rates , repayment terms, and fees.
Traditional banks (e.g., BDO, BPI, Metrobank) usually offer the lowest rates (around 5% to 12% ).
In-house financing (from car dealers) is convenient but often has higher rates (up to 15-20% ).
Online lenders (e.g., Tonik, UnoBank) may offer quick approvals but check for hidden fees.
Always compare at least three lenders before deciding.
Negotiate for the Best Deal
Many borrowers don’t realize that interest rates and fees are negotiable. If you have a good credit score or an existing relationship with a bank, you may qualify for:
- Lower interest rates (ask for promotional discounts).
- Waived processing fees (some banks charge 1-3% of the loan amount).
- Free insurance or chattel mortgage fee coverage .
Don’t hesitate to negotiate—banks want your business!
Choose the Right Loan Term
While longer loan terms (e.g., 5-7 years) mean lower monthly payments, they also result in higher total interest paid. Shorter terms (e.g., 1-3 years) reduce overall costs but increase monthly dues.
Tip: If possible, opt for the shortest term you can afford to minimize interest payments.
Save for a Higher Down Payment
A larger down payment (20-30%) reduces your loan amount, which can:
- Lower monthly amortizations.
- Qualify you for better interest rates.
- Decrease the risk of loan rejection.
Some banks even offer discounted rates for borrowers who can pay a higher down payment.
Watch Out for Hidden Fees
Before signing any loan agreement, check for additional charges such as:
- Processing fees (1-3% of the loan amount).
- Chattel mortgage fees (for car collateral registration).
- Insurance premiums (some lenders require comprehensive coverage).
- Prepayment penalties (if you want to pay off the loan early).
Always read the fine print to avoid surprises.
Consider Pre-Approved Loans
If you’re an existing customer of a bank, check if you qualify for a pre-approved car loan . These often come with:
- Faster processing (sometimes within 24 hours).
- Lower interest rates (exclusive offers for loyal clients).
- Less documentation required.
Explore Promotions and Special Offers
Banks and dealerships frequently run promos , such as:
- Low or zero interest for the first few months.
- Cashback or free accessories upon approval.
- Discounted insurance bundles.
Timing your purchase during a promo period can lead to big savings.
Avoid Multiple Loan Applications
- Submitting applications to multiple lenders at once can hurt your credit score . Instead: Compare rates online first.
- Shortlist 2-3 lenders.
- Apply only to the best option.
Read Reviews and Ask for Recommendations
Before finalizing a loan, research the lender’s reputation. Check:
- Customer reviews (are there complaints about hidden charges or slow processing?).
- Bank reliability (are they known for good service?).
- Recommendations from friends or family who’ve taken car loans.
Conclusion
Choosing the best bank for your auto loan in the Philippines is a crucial step toward affordable and stress-free car ownership. Whether you prioritize low interest rates, flexible repayment terms, fast approval, or exclusive promotions, there’s a financing option that fits your needs.
Traditional banks like BDO, BPI, and Metrobank remain top choices for competitive rates and reliability, while digital banks like UnionBank offer convenience for tech-savvy borrowers. If you’re buying a used car, PNB and Security Bank provide attractive financing solutions. Meanwhile, EastWest Bank stands out for its flexible terms and personalized service.
Before making a decision,compare offers, check your credit score, and negotiate for better terms. A well-researched auto loan can save you money and make your car-buying journey smoother.
