Philippine National Bank (PNB), UnionBank and Banco De Oro (BDO) all offer business and personal loans. Included in personal banking are personal loan, housing loan and auto loan.

Let us start with a BDO’s personal loan. They have a separate personal loan both for local employees and for OFW called Asenso Kabayan Program. One can get a loan amounting to a minimum of PHP 10,000 to PHP 3 million payable in terms of 6, 12, 18, 24 and 36 months. Monthly add on rate is about 1.25% to 2.0% and the effective rate per annum is from 25.98% to 41.71% depending on what type of program you are in.

The difference between PNB, UnionBank and BDO loan by CompareKing PH

Bank Purpose of Loan Loanable Amount

Interest Rate Repayment Scheme

BDO loan Purchase or construction, renovation house, or property investment.

Maximum loan up to 80% of the appraised value of the property or apply for a minimum of P500, 000.

1- 3 yrs 7.75%p.a.4- 5 yrs 8.00% p.a.6-10 yrs 10.00% p.a.11-15 yrs 11.25% p.a.15-20 yrs 11.50% p.a.

Monthly installment with payment terms of up to 20 years. Option to make first payment sixty (60) days after the release of loan.First payment due in 60 days after release of loan, subject to applicable interest.

Home Loan

Bank Purpose of Loan Loanable Amount Interest Rate Repayment Scheme

PNB loan Purchase of Lot, House & Lot, Condominium unit, TownhouseHouse Construction, Home ImprovementRefinancing / Take-out of existing loans

Maximum loanable amount shall be the lowest of:Actual NeedPaying capacity (up to 30% of gross monthly income can be used as amortization)Up to 80% of the appraised value of the property for house & lot, townhouse & condominiumUp to 60% of the appraised value of the property for lotMinimum

P750K for purchase of house & lot, townhouse & condominium – within Metro Manila; P500K – other areas outside Metro Manila

P500K for purchase of lot within Metro Manila; P200K – other areas outsi

1- 3 yrs 7.75%p.a.4- 5 yrs 8.00% p.a.6-10 yrs 10.00% p.a.11-15 yrs 11.25% p.a.15-20 yrs 11.50% p.a.

Monthly installment with payment terms of up to 20 years. Option to make first payment sixty (60) days after the release of loan.First payment due in 60 days after release of loan, subject to applicable interest.

Bank Purpose of Loan Loanable Amount Interest Rate

Repayment Scheme

BDO loan Purchase or construction, renovation house, or property investment.

Maximum loanable amount shall be the lowest of:Actual NeedPaying capacity (up to 30% of gross monthly income can be used as amortization)Up to 80% of the appraised value of the property for house & lot, townhouse & condominiumUp to 60% of the appraised value of the property for lotMinimum

P750K for purchase of house & lot, townhouse & condominium – within Metro Manila; P500K – other areas outside Metro Manila

P500K for purchase of lot within Metro Manila; P200K – other areas outsi

5.25% fixed for 1 yr6.25% fixed for 2-3 yrs6.75% fixed for 4-5 yrs10.00% fixed for 10 yrs10.50% fixed for 15 yrs11.00% fixed for 20 yrs

Monthly Principal and Interest which shall be adjusted upward or downward depending on the interest rate to be charged for a particular interest periodPayments can be made via Automatic Debit Arrangement or Post Dated Checks

Bank Purpose of Loan Loanable Amount

Interest Rate Repayment Scheme

UnionBank loan Lot Purchase – 15 yearsPurchase of house and lot, townhouse, condominium – 20 yearsHouse construction and improvement – 20Years

Minimum loan amount of P500,000Up to 80% of appraised value of property

Prevailing rate at the time of loan release; fixed for 1 year to 5 years at the borrower’s option, subject to review thereafter

Monthly amortization of principal and interest via Post Dated Check or Automatic Debit Arrangement

An appraisal fee of P3,500 is paid upon application of a housing loan. PNB has the lowest interest rate of 5.25%. It also offers the lowest minimum loanable amount of P200,000.

All three banks offer the same maximum loanable amount of 80% the appraised value and maximum term of loan of 20 years. It takes at least 10 working days to process a housing loan.

Bank Loanable Amount Collateral Down payment

Interest Rate or Loan Term

Payment Scheme

PNB loan Maxa. For Brand New/Refinanced Vehicles – up to 80% of the cash list or purchase priceb. For Second-Hand Vehicles – up to 75% of the appraised value

Chattel Mortgage

Arrears/1Mo. Advance)12 Mos 5.43% 4.73%18 Mos 7.52% 6.81%24 Mos 10.74% 9.92%36 Mos 17.32% 16.35%48 Mos 22.96% 21.94%60 Mos 33.28% 32.01%

Equal monthly amortizationPayments can be made via Automatic Debit Arrangement and Post Dated Checks

Car Loan

Bank Loanable Amount Collateral Down payment

Interest Rate or Loan Term

Payment Scheme

BDO loan Brand New – Minimum starts at P100,000;Up to 80% of selling priceUsed Car – Minimum starts at P100,000;Up to 70% of appraised value or selling price

Minimum down payment of 20% (for brand new) or 30% down payment (for used cars);

Brand New Car – Minimum of 12 months, maximum of 72 monthsUsed Car – Minimum of 12 months, maximum of 48 months

Payment options of 1 – 6 yrs for brand new car and 1-4 yrs for used carPay monthly amortization via Automatic Debit Arrangement from your BDO account or issue PDCs.

UnionBank loan Minimum loanable amount is P200,000 while the maximum loanable amount is dependent on the borrower’s capacity to pay.

Min. down payment of 20% and max.term of 60 months for brand newdown

flexible terms up to 60 months

payment will vary depending on the year model of the unit and max.term of 48 months for second hand vehicles

For auto loans, the BDO loan gives reward points that are redeemable at SM Department Stores. It has the longest loan term of 72 months for brand new cars. PNB offers the biggest loan amount for used cars at 75% of the appraised value. UnionBank has the highest minimum loanable amount of P200,00 and only accepts up to 3 years old used cars.

BDO offers a specialized loan for other purchases. The minimum loanable amount is P10,000 and the maximum is P3,000,000. This loan’s term stretches from 3 – 36 months. The interest rate of this kind of loan is higher than the housong and auto loan. The perk of this loan is that it is not limited to residencial and automobile purchases.

Standard requirements are consistent among the three. The borrower must be either employed or self-employed, must be at least 21 years old, but not older than 65 when the loan matures and with good credit standing. The same fees are paid. The required documents are basically the same. Brand new or second hand units may be purchased by the borrower. Monthly payments may be automatically debited from a personal bank account. Loans are also available to non filipino citizens and overseas workers.

Want to learn more about loans? Click the following link: BDO Loan

CompareKing PH News/Blogs “http://www.compareking.ph/personal-loans/pnb-unionbank-bdo-loan-compareking-ph/”. The difference between PNB, UnionBank and BDO loan by CompareKing PH. December 7, 2013. CompareKing PH.