Unless you fully paid for your new car in cash, keeping up with payments is tough. After all, buying a new car is a major purchase, whether you're getting a small economy hatchback or a full-sized SUV. More banks are offering flexible payment terms, but BPI (Bank of the Philippine Islands) came up with a solution to make it lighter on the pocket.
BPI calls it Multiyear Protect. It is an all-in-one service that covers your financial needs and vehicle security from the start of the term, all the way to the end. They say that because Multiyear Protect bundles your monthly payment with your annual insurance costs all in one package. That means your insurance bill will be spread out during the course of your loan. Multiyear Protect also has Acts of God coverage, giving you better peace of mind. On top of that, Multiyear Protect offers zero cash out for insurance. This plan also effectively eliminates balloon payments.
BPI adds that Multiyear Protect also includes Guaranteed Asset Protection (GAP) insurance coverage. GAP provides up to P200,000 additional coverage, in cases where the vehicle suffers from total loss. Should this happen and your insurance claim is lower than the outstanding balance of your loan, Multiyear Protect will cover the difference of up to P200,000.
For now, Multiyear Protect is only for brand-new cars for private use. Motorcycles are not included. The minimum term or duration of the loan is three years and a maximum of five years. The smallest amount you can loan is PHP 500,000 and applicants must have a minimum income of PHP 40,000.
To apply, you can head to your nearest BPI branch with your loan requirements and fill up the necessary forms. You can view the requirements by clicking here. But if you prefer not to head out of the house right now, you can also apply for it online.