Car Loan How To Get? And How To Pay Car Loan?
Car Loan
Car Loan: Have you now completed your Car loan’s monthly installment? After your car loan has been paid in full, you probably need help figuring out what to do. Although you may believe that the car is now yours, the bank that funded the loan technically still owns the vehicle. To be the legal owner of the car, there are a few things you need to accomplish.
Also Read: Check Out The Tonik Flex Loan | Have A Need Cash ASAP
What to do After Paid Car Loan in the Philippines
Step 1: Confirm Required Documents Car Loan
After your last Car loan payment, the bank will let you know when your original collateral documents are ready for release, usually 10 to 15 banking days later. Call the bank’s customer care hotline to confirm your full payment and find out when the documents will be available for pickup if you haven’t heard from the bank after that time.
Verify that your vehicle registration is current and valid before picking up your documents from the bank. The bank won’t disclose the records if there are any outstanding penalties.
Offer valid through Car Loan 2024
Would you want to win ₱2,500 in free Giftaway cash credits? Take advantage of a Moneymax Security Bank Auto Loan!
To begin, click the banner above. You are qualified for the welcome gift once you are authorized and take out the loan.
The Moneymax Security Bank Auto Loan Giftaway promotion is available as a welcome gift until July 8, 2024. Apply right away!
Step 2: Ask the Bank for Your Collateral Documents
To obtain the necessary paperwork, visit the branch where your car loan account was scheduled and show a legitimate ID:
- Two copies of the Chattel Mortgage Release
- Secured Note accompanied by Chattel Mortgage
- Original LTO Encumbered Certificate of Registration (CRE)
- Receipt official (OR)
You can go to the main office of the bank that funded your car if you bought it in Metro Manila. Ask the bank to send your paperwork to the branch of your choice if you are in the province. You could be required to complete a request form and send it, together with a valid ID, to any branch or via email.
The collateral documents must be individually claimed by each registered owner whose name appears on them. If the registered owner is unable to do so, a representative may pick up the paperwork on their behalf. The following documentation must be given to the bank by authorized representatives:
- The legitimate ID of the borrower
- Representative’s legitimate identification
- Original, signed power of attorney or authorization letter (SPA)
Step 3: Request the Registry of Deeds to Cancel Your Chattel Mortgage
Also Read: Requirements For Cup Loan Program
To terminate your chattel mortgage, go to the Registry of Deeds office where your vehicle loan was registered. The Promissory Note with Chattel Mortgage has the Registry of Deeds’ address—usually, the Land Registration Authority office or the city or municipal hall houses this office.
📋 Conditions for Chattel Mortgage Cancellation at the Deed Registry
- Completed application for registration [1]
- A copy of your current identification
- Every collateral document that the bank has issued
Keep in mind that visiting the Registry of Deeds in your car is not required.
After submitting your specifications, pay the fee—which is based on the amount mortgaged—at the cashier. The length of time it takes to cancel a chattel mortgage varies depending on the city and municipality. Some will tell you to come back in one to three days, while others will take only a few hours.
As soon as it’s prepared, you’ll get a copy of the promissory note, the official receipt for the cancellation payment, and the Release of Chattel Mortgage with a “Cancelled” stamp from the Registry of Deeds.
Fund significant purchases, events, and accomplishments with a #UNOnow Loan 🙍
Purchasing tools, devices, and gear for business or the workplace? Are you getting ready for a big life event like a baby or wedding? Are you trying to find ways to pay for your child’s tuition?
Examine the options available from UNO Digital Bank if you’re looking for both ease and large loan amounts. You can borrow money with a #UNOnow Loan for as little as ₱10,000 and as much as ₱500,000, with a 2% monthly interest rate. It can be repaid in six, twelve, twenty-four, or thirty-six monthly installments.
Use Moneymax to apply for a UNONow Loan right now!
Step 4: Visit the LTO to get an encumbrance cancellation
Your vehicle registration is still shown as “encumbered” at this time. What does an encumbered certificate mean? It indicates that it is subject to a debt, such as a vehicle loan.
So how can you get rid of “encumbered” from your CR? Visit the LTO branch that issued your initial Certificate of Registration – Encumbered (CRE) to remove this status. The specific LTO branch is located in the upper section of the document.
📋 Conditions for Mortgage Cancellation at the LTO
Before you visit the LTO office to have an encumbrance removed from your car registration, get ready the necessary paperwork:
- Original registration certificate accompanied by an encumbrance
- The most recent official receipt for payment of other fees and the Motor Vehicle User’s Charge (MVUC)
- Release of Chattel Mortgage properly noted in the Deeds Registry
- Official Receipt from the Deeds Registry
- Motor Vehicle Inspection Report (MVIR) Completed [2]
The following steps will help you get out of the “encumbered” status at the LTO:
- Go to the counter to have the encumbrance canceled, then provide the evaluator with the necessary paperwork.
- Hold on till your name is called. To pay the fees, proceed to the cashier. Once the money has been made, you will receive an official receipt.
- LTO processes applications in one or two hours. Go to the Releasing counter when your name is called to pick up your new Certificate of Registration (encumbrance-free), license plate, stickers, and any other paperwork that may be needed.
The amount of the LTO’s encumbrance cancellation charge ranges from ₱280 to ₱350. When you renew your LTO car registration, file for your mortgage cancellation to avoid paying additional LTO fees.
Step 5: Get a New Policy for Auto Insurance
The car is legally yours as soon as you have the LTO Certificate of Registration with the “Encumbered” status removed. Best wishes!
Remember to renew your auto insurance before you hold a party to commemorate your achievement. Maintaining the car’s insurance will provide you with financial security against accidents now that you are the lawful owner.
Get free estimates from many insurance providers with Moneymax if you bought your insurance from the bank that financed your automobile but would like to think about other options:
Every time you go to the gas station, if you own a car, you undoubtedly hope that the steadily rising cost of fuel will eventually subside. We’re happy to inform you that Moneymax is holding a raffle where you may win a ₱10,000 Petron e-fuel card!
To enter the raffle by July 1, 2024, simply click the banner above, get a free quotation for auto insurance, and fill out the form. July 4, 2024, will mark the selection of the winner.
Are you going to be one of the 20 fortunate winners? Participate in the raffle right now!
By DTI Fair Trade License, Series of 2024, Number FTEB-193883.There are terms and conditions.
Final Thoughts Car Loan
You now understand what to do following your auto loan’s full repayment!
Your fresh, unencumbered LTO Certificate of Registration serves as evidence of your ownership. Save a photocopy of this document in a secure location. If you ever decide to sell your car, you could need it.
