A loan facility designed to finance the acquisition of a brand new motor vehicle; proceeds thereof shall be payable to the vehicle dealer. This loan is secured by chattel mortgage of a private vehicle under the name of the borrower.
Interest and Term
Below are the Nominal Interest Rates per term as of June 1, 2024, approved by the Board of Trustees. Interest is computed based on the diminishing balance of the loan.
Effective interest rate (EIR) is the actual interest rate the borrower pays on the loan after taking into account fees/charges (e.g. documentary fee, filing fee, etc.) incidental to the loan availment.
| Term (Months) | Nominal Interest Rate (Per Annum) | Effective Interest Rate (EIR)* |
| 12 | 7.75% | 10.12% |
| 24 | 8.50% | 9.95% |
| 36, 48 & 60 | 8.75% | 9.59% |
*Assumed Loan Amount is P100,000.00
Loan Amount
Maximum loanable amount is equivalent to seventy percent (70%) of the fair market value of the vehicle acceptable as collateral on first mortgage, subject to Single Borrower’s Limit (SBL) and Take-Home-Pay (THP) policy of the member.
The borrower shall provide an equity equivalent to at least thirty percent (30%) of the fair market value of the vehicle acceptable as collateral. Car Equity Loan may also be applied subject to available Single Borrower’s Limit and take-home pay of the member, as applicable
Requirements
- Proof of source of income (e.g., latest one (1) month pay slip, pension pay slip, etc.)
- Any government-issued ID
- Accomplished loan application form duly endorsed by authorized signatory of corporate member
- Car dealer’s quotation
Loan Proceeds
The proceeds of the loan will be made payable immediately after the presentation of the new CR and the official receipt (OR) under the name of the borrower with the mortgage duly annotated thereon. However, understanding that the release of the Certificate of Registration (CR) from the Land Transportation Office (LTO) are not readily issued, the Association shall release the 90% of the proceeds to dealer even if CR is not yet available, a 10% of the total value of the vehicle shall be released to the dealer upon submission of CR duly encumbered in favor of Mesala Inc.
