Motor vehicle and home loans continue to soar

CEBU, Philippines — Amid the volatile interest rates, Filipinos’ interest to own a car or vehicle and real estate continues to soar.

The Bangko Sentral Ng Pilipinas (BSP) reported an increase of motor vehicles and motorcycle loans by 10.5 percent, and 4.2 percent for real estate related loans in March 2023.

This prompted universal banking institutions, like Metrobank, to offer more attractive car and home loans to customers as the economy starts its recovery posture from the pandemic-caused slump.

Metrobank announced its lowest rate and waives up to P50,000 in fees for approved car and home loan applications through its limited offering dubbed “Your Dream is on Us” which runs until June 30, 2023.

The country’s second-largest private universal bank offers a loan with low-interest rate of 9.11 percent per annum for five years on a one-month advance payment scheme, with P50,000 off for bank-related fees.

The bank also offers other perks to entice consumers, such as pre-qualification for a Metrobank Toyota Mastercard, which offers a three percent fuel rebate at participating Petron stations, a 10 percent discount on genuine parts and accessories, and labor at Toyota dealers, among others.

Likewise, for home loans, aside from P50,000 waiver on bank fees, its only charges 6.50 percent per annum fixed for one year.  Similar to auto loans, home loan takers are also automatically eligible to get a Metrobank Credit Card.

According to BSP, outstanding loans to residents, net of RRPs, rose by 10.0 percent in March from 9.9 percent in the previous month.

Consumer loans to residents rose by 21.3 percent in March, the same rate as in the previous month, with the expansion in credit card, motor vehicle, and salary-based general-purpose consumption loans.

The sustained growth in credit is supported by sound Philippine banking system conditions. Looking ahead, the BSP will continue to monitor domestic liquidity dynamics to ensure that credit conditions remain in line with its price and financial stability mandates.