Lowest Car Loan Interest Rates in the Philippines for 2024

When it comes to purchasing a car, finding the best financing option is crucial. In the Philippines, several banks offer competitive car loan interest rates in 2024. The key to choosing the right bank is to compare these rates and consider additional factors such as loan terms, processing fees, and prepayment penalties. This comprehensive guide provides an overview of the banks with the lowest car loan interest rates in the Philippines for 2024, along with important considerations to help you make an informed decision.

1. BDO Unibank

Interest Rate: BDO Unibank offers one of the most competitive car loan interest rates in the Philippines. For new cars, the rate starts at 5.20% per annum, while for used cars, it begins at 6.20% per annum.

Loan Terms: BDO provides flexible loan terms ranging from 12 to 60 months, allowing borrowers to choose a repayment plan that suits their financial situation.

Additional Features:

• Processing Fee: Approximately PHP 5,000.
• Prepayment Penalty: None.
• Special Offers: Occasionally, BDO runs promotions that may reduce the interest rate further.

Comparison Table:

Car Loan Type	Interest Rate (per annum)	Loan Term Options
New Cars	5.20%	12 to 60 months
Used Cars	6.20%	12 to 60 months

2. Metrobank

Interest Rate: Metrobank offers competitive rates starting at 5.50% per annum for new cars and 6.50% per annum for used cars.

Loan Terms: Metrobank's car loans can be availed with terms ranging from 12 to 60 months.

Additional Features:

• Processing Fee: PHP 3,000.
• Prepayment Penalty: None.
• Special Offers: Metrobank frequently offers discounts on processing fees and other benefits.

Comparison Table:

Car Loan Type	Interest Rate (per annum)	Loan Term Options
New Cars	5.50%	12 to 60 months
Used Cars	6.50%	12 to 60 months

3. Security Bank

Interest Rate: Security Bank offers attractive rates starting at 5.75% per annum for new cars and 6.75% per annum for used cars.

Loan Terms: Security Bank provides flexible terms from 12 to 60 months.

Additional Features:

• Processing Fee: PHP 4,000.
• Prepayment Penalty: None.
• Special Offers: Periodic promotions may offer lower interest rates.

Comparison Table:

Car Loan Type	Interest Rate (per annum)	Loan Term Options
New Cars	5.75%	12 to 60 months
Used Cars	6.75%	12 to 60 months

4. PNB (Philippine National Bank)

Interest Rate: PNB offers car loan interest rates starting at 6.00% per annum for new cars and 7.00% per annum for used cars.

Loan Terms: Available terms range from 12 to 60 months.

Additional Features:

• Processing Fee: PHP 4,500.
• Prepayment Penalty: None.
• Special Offers: PNB occasionally provides promotional rates and discounts on processing fees.

Comparison Table:

Car Loan Type	Interest Rate (per annum)	Loan Term Options
New Cars	6.00%	12 to 60 months
Used Cars	7.00%	12 to 60 months

5. UnionBank

Interest Rate: UnionBank offers competitive car loan rates starting at 6.20% per annum for new cars and 7.20% per annum for used cars.

Loan Terms: UnionBank provides terms ranging from 12 to 60 months.

Additional Features:

• Processing Fee: PHP 3,500.
• Prepayment Penalty: None.
• Special Offers: UnionBank often has special deals that may include reduced processing fees.

Comparison Table:

Car Loan Type	Interest Rate (per annum)	Loan Term Options
New Cars	6.20%	12 to 60 months
Used Cars	7.20%	12 to 60 months

Key Considerations

When selecting a car loan, interest rate is just one factor to consider. Here are a few additional points to keep in mind:

1. Processing Fees: These can vary significantly between banks and can impact the overall cost of your loan.
2. Loan Terms: Longer terms may reduce monthly payments but can increase the total interest paid over the life of the loan.
3. Prepayment Penalties: Check if the bank charges any fees for early repayment, as this can affect your ability to pay off the loan early without additional costs.
4. Special Offers: Banks frequently run promotions that can provide better rates or reduced fees.

In summary, BDO Unibank currently offers the lowest starting interest rate for new cars at 5.20% per annum, followed by Metrobank, Security Bank, PNB, and UnionBank. Each bank has its own set of features, so it’s essential to review all aspects of the loan to find the best fit for your needs.