Planning to buy a new car in 2025? Understanding Philippines car loan interest rates 2025 is key to making a smart and budget-friendly decision. Whether you’re looking at a sleek sedan or a robust SUV, knowing the latest bank offers and EMI options can help you plan better.
Why Car Loan Interest Rates Matter
When you apply for auto loans PH, the interest rate directly impacts your financial commitment. Here’s why paying attention to rates is crucial:
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Affects monthly EMIs – Lower rates mean more affordable monthly payments.
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Influences total loan cost – A small difference in interest can mean big savings.
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Determines repayment flexibility – Rates often dictate how flexible your terms can be.
Latest Philippines Car Loan Interest Rates 2025
Here’s a summary of current Philippines car loan interest rates 2025 from top banks:
| Bank Name | New Car Loan Interest Rate (per annum) | Used Car Loan Interest Rate (per annum) | Maximum Term |
|---|---|---|---|
| BPI | 5.30% | 7.50% | 60 months |
| Metrobank | 5.25% | 7.25% | 60 months |
| Security Bank | 5.77% | 8.10% | 60 months |
| PSBank | 5.45% | 7.95% | 60 months |
| EastWest Bank | 5.88% | 8.25% | 60 months |
Note: Actual rates can vary based on the loan amount, car model, and borrower’s profile.
Popular Bank Financing Offers 2025
Banks in the Philippines are offering attractive bank financing deals in 2025. Here’s what’s available:
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BPI – Down payments as low as 15% of car price
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Metrobank – Free first-year car insurance on select loan plans
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Security Bank – Approval within 24 hours for eligible clients
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PSBank – Zero processing fees (limited-time offer)
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EastWest Bank – Payment holiday options for new car loans
Sample EMI for ₱1,000,000 Loan
Here’s an estimate of monthly payments for a ₱1M loan:
| Bank | Interest Rate (p.a.) | Loan Term | Estimated EMI (₱) |
|---|---|---|---|
| BPI | 5.30% | 5 years | 18,975 |
| Metrobank | 5.25% | 5 years | 18,940 |
| Security Bank | 5.77% | 5 years | 19,220 |
| PSBank | 5.45% | 5 years | 19,050 |
| EastWest Bank | 5.88% | 5 years | 19,300 |
Tips to Get the Best Auto Loan PH Deal
To secure competitive Philippines car loan interest rates 2025, consider:
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Keeping a high credit score – A good credit record helps get better rates.
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Comparing bank financing packages – Look beyond rates; check fees and flexibility.
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Choosing a higher down payment – This can lower your overall interest.
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Reading the fine print – Understand early repayment clauses and penalties.
FAQs
What is the average car loan interest rate in the Philippines for 2025?
The average Philippines car loan interest rates 2025 range from 5.25% to 5.88% for new vehicles. Used car loans typically have higher rates, between 7.25% and 8.25%.
Can I get a car loan without a down payment?
Some auto loans PH packages in partnership with dealerships may offer zero down payment, but they often require a stronger credit profile or higher income documentation.
How long does it take for auto loan approval in the Philippines?
Many banks, like Security Bank and PSBank, provide approval within 24 to 48 hours for qualified applicants, while others may take up to 5 working days.
Is there a penalty for early loan settlement?
Yes, most bank financing contracts include an early repayment penalty. Make sure to check this before signing your loan agreement.
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