Securing an auto loan efficiently is key to driving home your dream car without unnecessary delays. Asia United Bank (AUB) offers competitive auto loan products designed to make vehicle ownership accessible. However, a smooth and swift approval process hinges significantly on submitting a complete and accurate set of requirements. This detailed guide outlines the essential AUB Auto Loan requirements, breaking them down by applicant type, along with crucial tips to ensure your application sails through for fast approval. Understanding these prerequisites beforehand can save you valuable time and effort.
Understanding AUB’s Approach to Auto Loan Requirements
AUB, like other financial institutions, requires specific documents and criteria to assess an applicant’s creditworthiness, capacity to pay, and the value of the collateral (the vehicle itself). The requirements serve several purposes:
- Identity Verification: To confirm the applicant’s legal identity.
- Income Verification: To establish a stable and sufficient source of income to meet monthly loan amortizations.
- Financial Standing Assessment: To review the applicant’s financial health, including existing debts and credit history.
- Collateral Valuation: To determine the fair market value of the vehicle being purchased, which dictates the maximum loanable amount.
- Compliance: To adhere to banking regulations and anti-money laundering policies.
Providing all necessary documents in a clear and organized manner significantly expedites AUB’s evaluation process, leading to faster approval.
General AUB Auto Loan Requirements for All Applicants
Regardless of your employment status, certain fundamental requirements apply to all AUB Auto Loan applicants:
- AUB Auto Loan Application Form: Duly accomplished and signed. Ensure all fields are filled accurately and consistently.
- Valid IDs (Photocopy):
- Two (2) valid government-issued IDs with photo and signature (e.g., Passport, Driver’s License, SSS/UMID ID, PRC ID).
- For married applicants, IDs of both the principal borrower and spouse (if co-borrower) are typically required.
- Proof of Billing (Photocopy):
- Latest utility bill (e.g., electricity, water, phone, internet) under the applicant’s name and residential address. If not under the applicant’s name, a barangay certificate or a notarized waiver from the homeowner may be required.
- This helps verify your residency.
- Marriage Contract (Photocopy): If applicable (for married applicants).
- Proforma Invoice/Quotations from Dealer (for Brand New Vehicles): This document from the car dealership details the vehicle’s price, specifications, and payment terms.
- Deed of Sale, OR/CR, and Pictures of Vehicle (for Used Vehicles):
- Deed of Sale: Proof of ownership transfer.
- Original Receipt (OR) and Certificate of Registration (CR): Latest registration documents of the vehicle.
- Pictures of the Vehicle: Clear photos showing the front, back, sides, interior, and odometer reading.
- Initial Appraisal Report: Some used car applications might benefit from an initial appraisal from an accredited appraiser, though AUB will conduct its own.
Income-Specific Requirements for AUB Auto Loan Applicants
The documents required to prove your income and financial capacity vary based on your employment type:
A. For Employed Individuals (Local & Overseas)
- Certificate of Employment (COE):
- Original copy, signed by HR or authorized personnel.
- Must state your position, length of service, and annual compensation (basic salary, allowances, and bonuses).
- Latest Payslips:
- Photocopies of your payslips for the last three (3) months.
- Latest Income Tax Return (ITR) / BIR Form 2316:
- Photocopy of your BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld) for the previous year.
- Bank Statements/Passbook (Optional but Recommended):
- Photocopies of bank statements or passbook entries for the last 3-6 months, showing consistent salary deposits. This strengthens your application.
Special Requirements for Overseas Filipino Workers (OFWs) / Seafarers:
- Employment Contract: Valid and duly authenticated employment contract (POEA-verified for land-based OFWs).
- Proof of Remittances: Remittance receipts or bank statements showing consistent remittances for the last 3-6 months.
- Seafarer’s Book and Travel History (for Seafarers): Photocopies of relevant pages.
- Special Power of Attorney (SPA): If you appoint a representative in the Philippines to process the loan on your behalf. This SPA must be notarized and consularized/apostilled if executed abroad.
B. For Self-Employed Individuals / Business Owners
- Business Registration Papers:
- Photocopies of DTI Certificate of Registration (Sole Proprietorship) OR SEC Registration with Articles of Incorporation/By-laws and latest General Information Sheet (GIS) (Corporation/Partnership).
- Mayor’s Permit / Business Permit for the current year.
- Latest Audited Financial Statements (AFS): Photocopies of AFS for the last two (2) years, stamped “Received” by BIR.
- Income Tax Return (ITR): Photocopies of your personal ITR (Form 1701) for the last two (2) years, stamped “Received” by BIR.
- Bank Statements: Photocopies of bank statements for your primary business and/or personal account(s) for the last six (6) months, showing consistent transactions.
- List of Major Suppliers and Customers: With contact details, to verify business operations.
C. For Licensed Professionals (e.g., Doctors, Lawyers, Accountants)
- Professional Regulatory Commission (PRC) ID: Photocopy.
- Latest Income Tax Return (ITR): Photocopies of your personal ITR (Form 1701) for the last two (2) years, stamped “Received” by BIR.
- Bank Statements: Photocopies of bank statements for the last six (6) months, showing regular income and expenses.
- Clinic/Office Address and Contact Details: If applicable.
Additional Requirements and Considerations
- Credit History: While not a document you provide, your credit history is a critical “requirement.” AUB will access your credit report from credit bureaus. Ensure you have a good credit standing with no adverse records (e.g., loan defaults, bounced checks).
- Down Payment: Be ready to provide proof of your down payment (e.g., bank certificate, official receipt from dealer). Most auto loans require a minimum of 10% to 20% down payment, depending on the vehicle type (new vs. used) and bank policy.
- Vehicle Age (for Used Cars): AUB typically finances used vehicles that will not be older than 8 to 10 years by the time the loan fully matures. This means if you’re applying for a 5-year loan, the car should not be older than 3 to 5 years at the time of application.
- Comprehensive Car Insurance: AUB will require comprehensive insurance coverage for the vehicle, with the bank as the loss payee. You can usually choose your preferred accredited insurance provider. Proof of payment for the first year’s premium will be required before loan release.
- Co-borrower/Guarantor: In some cases, especially if your income or credit standing needs bolstering, AUB might require a co-borrower or a guarantor. They will also need to submit their IDs, income documents, and undergo a credit check.
Tips for Fast Approval of Your AUB Auto Loan
Submitting all requirements is one thing; ensuring they lead to fast approval is another. Follow these tips:
- Complete and Accurate Submission: This is the most crucial tip. Double-check all forms for consistency and accuracy. Ensure all copies are clear and legible. Incomplete or erroneous applications are the primary cause of delays.
- Organize Your Documents: Present your documents in an organized folder. This makes it easier for the loan officer to review and process.
- Pre-qualify (If Possible): While AUB may not have a formal pre-qualification program for auto loans, you can have an initial discussion with a loan officer about your eligibility before gathering all documents.
- Disclose All Financial Information: Be honest and transparent about your income, existing debts, and financial obligations. Non-disclosure can lead to rejection.
- Maintain a Healthy Credit Score: Pay all your existing debts (credit cards, other loans) on time. A strong credit score signals reliability.
- Avoid New Debt Applications: Try not to apply for new credit cards or loans just before or during your auto loan application, as this can temporarily lower your credit score.
- Be Responsive: Be ready to promptly provide any additional documents or information AUB might request.
- Know Your Capacity: Only apply for a loan amount that you are confident you can comfortably repay, considering all your existing expenses.
Conclusion
Navigating the AUB Auto Loan requirements need not be a complex task. By meticulously preparing all the necessary documents according to your applicant type and following the tips for a smooth process, you can significantly enhance your chances of fast approval. A clear understanding of what AUB needs to assess your application will streamline the entire journey, bringing you closer to driving your desired vehicle sooner. Diligence in documentation is your first step towards efficient vehicle ownership.
