If you are looking to buy a motorcycle, the best way to get started is by securing financing. You can apply for a motorcycle loan in the Philippines at any of the many financial institutions operating in the country. However, before applying for a motorcycle loan, ensure you have the right credentials.
In this guide, we’ll show you how to go about getting one so that your bike purchase goes smoothly:
Work On Your Credit Score
Your credit score is a measure of your creditworthiness. When you apply for loans or credit cards, lenders look at your score to determine whether they should offer you an affordable loan (high scores) or just reject your application (low scores). Therefore, it’s important that you work on improving yours because this can make all the difference between getting approved for a loan and being rejected.
Most banks require applicants to have a good credit rating before approving them for loans. In addition, they need proof of your ability to pay back debts and establish that you are financially responsible enough to take on more debt by applying for another loan in the future.
Find A Suitable Lender
The next step is to find a suitable lender. This can be a little tricky, as the lenders in the Philippines are different from those in other countries. However, since motorcycle loans are more flexible and lenient than car loans, it will be easier to get one.
Get A Good Deal
In the Philippines, motorcycle loans are available at various banks and financial institutions. As with any other loan product, it is important to get a good deal on your motorcycle loan. This means having an idea of what your monthly payment will be based on the interest rate and terms of the loan.
You should also understand how much you can afford to pay each month so that you do not find yourself struggling financially due to high monthly payments. The best way to ensure you get a good deal on your motorcycle loan is by comparing rates from different lenders to determine which lender offers more favorable rates and terms for their customers. By comparing offers from several lenders, you can choose one that meets all your needs while meeting repayments comfortably.
Make Sure You Have The Capacity To Repay
Employment status and income level (or business). Lenders also want assurance that borrowers can repay their debts on time each month, which is why they look into applicants’ employment status before approving—especially if you’re applying as an individual with no steady income stream yet.
In addition, banks may require proof of income from previous months when assessing whether someone qualifies as a borrower.
Gather The Necessary Documents And Complete Your Application Form
Gather the documents that you need to apply for a motorcycle loan. You will then be required to complete an application form where you can submit your documents and other requirements. You can do this by visiting any branch of the bank in person or by mailing them to the address provided on their website.
List of Documents Required: (requirements may vary depending on your lender)
- Original and photocopy of 2 valid IDs (i.e., Driver’s License or SSS ID)
- Original and photocopy of TIN ID (i.e., BIR Taxpayer’s Identification Number)
- Proof of Income
- Proof of billing
Wait For The Bank’s Decision On Your Motorcycle Loan Application
You must wait for the bank to approve your motorcycle loan application. Once they do, they will issue a check for your down payment or reservation fee. Once they have processed that payment, they will issue another check for the total amount of the loan. After that, you must wait until all of these checks are cleared into your account before finally waiting for them to release the final check for interest.
With the right preparation, applying for a motorcycle loan Philippines is easy. You just need to know which bank you are going to apply with and gather all the necessary documents. Remember that each bank has requirements, so check their website before going there.
Frank is an energetic salesman. On his free days, he spends his time writing and reading about financial plans and educational loans to help the parents and the next generation gain more insight about multiple educational opportunities.