The Philippines Car Loan Rates 2025 update is crucial because vehicle ownership costs have skyrocketed. With car prices and fuel costs rising, financing terms are now one of the most important factors for buyers.
For Filipinos who cannot pay for cars in full upfront, auto loans from major banks like BDO, BPI, and Metrobank make ownership possible. But even small differences in rates can mean thousands of pesos in extra payments over time.
What Are the Current Car Loan Rates From Major Banks?
Here’s a quick look at what the top banks are offering this year:
BDO (Banco de Oro):
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Interest Rate: 5.25% – 6.50% p.a. depending on loan term
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Tenure: Up to 6 years
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Highlight: Low downpayment promos with selected dealers
BPI (Bank of the Philippine Islands):
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Interest Rate: 5.50% – 6.75% p.a.
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Tenure: Up to 6 years
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Highlight: Flexible payment options with auto-debit arrangements
Metrobank:
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Interest Rate: 5.75% – 6.90% p.a.
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Tenure: Up to 5 years
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Highlight: Special deals for hybrid and EV purchases with reduced processing fees
How Do These Rates Translate Into Monthly Payments?
Let’s say you are financing a ₱1,200,000 car with a 20% downpayment over 5 years.
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BDO (5.25%): Monthly repayment around ₱18,200
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BPI (5.50%): Monthly repayment around ₱18,450
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Metrobank (5.75%): Monthly repayment around ₱18,700
The difference may seem small monthly, but over five years, choosing the right bank could save up to ₱300,000 in total payments.
Are There Special Promos for 2025?
Yes. Banks are competing aggressively to attract borrowers.
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BDO: Offering “low downpayment” promos as little as 15% with select dealers.
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BPI: Waiving processing fees for applicants who apply through their online portal.
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Metrobank: Giving rebates and discounts for customers purchasing hybrids or EVs.
These promos make loans more appealing, especially for young professionals and first-time car buyers.
What Are the Requirements to Get a Car Loan in 2025?
Across all three banks, the basic requirements include:
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Valid government ID and proof of residence
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Latest ITR or certificate of employment for employed applicants
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Bank statements or audited financials for self-employed applicants
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Proof of downpayment from the dealership
Approval usually takes 3–5 business days, though promos and pre-approvals may speed up the process.
Do These Rates Apply to Used Cars Too?
Yes, but terms are slightly different.
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BDO: Offers used car loans for vehicles up to 10 years old.
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BPI: Provides flexible terms for repossessed vehicles bought through their auctions.
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Metrobank: Finances used cars but with slightly higher interest rates (around 6.5%–7.2% p.a.).
With the used car market booming in 2025, many families are opting for financing pre-owned cars rather than buying brand-new vehicles.
How Do Car Loan Rates Affect EV Adoption?
Interestingly, financing is playing a role in electric vehicle adoption.
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BDO and BPI are experimenting with green loan programs, offering lower rates for EVs.
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Metrobank has partnered with select EV dealers to offer discounts on loan processing fees.
This aligns with the Philippine government’s push for cleaner transportation under the EVIDA Law.
What Should Buyers Watch Out for When Taking a Loan?
Interest rates are important, but there are other key considerations:
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Hidden Charges: Processing fees, insurance tie-ups, and documentary stamp taxes can increase costs.
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Tenure Length: Longer terms mean lower monthly payments but higher total interest.
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Downpayment: Larger downpayments reduce monthly strain and total cost.
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Pre-Termination Fees: Some banks charge penalties for paying loans off early.
Smart buyers compare total cost, not just the monthly installment.
How Does the 2025 Market Compare to 2024?
In 2024, average rates were closer to 5.0% p.a.. With slight increases in 2025, buyers are now paying more for financing.
This increase reflects global interest rate trends and higher inflation. Still, compared to credit card or personal loan rates, car loans remain one of the most affordable credit options in the Philippines.
Conclusion
The Philippines Car Loan Rates 2025 highlight how financing continues to shape the auto market. With BDO, BPI, and Metrobank offering competitive packages between 5.25% and 6.90%, choosing the right bank can save families hundreds of thousands of pesos over time.
Promos like lower downpayments, waived fees, and green loan programs also make it easier to own a car in 2025. For Filipinos, the key is to compare carefully, calculate total costs, and pick the loan that balances affordability with flexibility.
FAQs
What are the current car loan rates in the Philippines in 2025?
BDO offers 5.25%–6.50%, BPI 5.50%–6.75%, and Metrobank 5.75%–6.90% per annum.
Which bank has the cheapest rates?
BDO currently has the lowest entry rate at 5.25%.
Can I finance a used car with these banks?
Yes. All three banks offer used car financing, though rates are slightly higher than for brand-new cars.
Are there special perks for EV buyers?
Yes. Metrobank offers fee discounts, while BDO and BPI are piloting green auto loan programs with lower rates.
How much downpayment is usually required?
Most banks require 20% downpayment, though promos sometimes lower it to 15%.
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