BPI unit sees 20% growth in auto loans

BPI Family Savings Bank, the country’s largest thrift bank, sees its car loans jumping by a fifth this year amid a surge in vehicle purchases on the back of a growing economy.

Felipe P. Carlos, BPI Family Savings Bank vice president and head of auto loan division, told reporters last week that the bank’s auto loans have risen by over 20 percent to date.

“We’re doing better than the industry,” Carlos said.

In 2013, car loans secured from the Ayala group’s thrift bank grew “a little lower than 20 percent,” he said.

But auto loans have since picked up as car companies launch new models this year.

“We’re lending much more this year than last year,” Carlos said.

Latest Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) data showed that vehicle sales at end-April rose 22 percent to 69,737 units.

In April alone, sales jumped by a fifth year-on-year to 18,094.

“What pushes auto sales further is the availability of financing,” Carlos said.

The executive said lending for automotive purchases comprise up to 30 percent of BPI Family Savings Bank’s loan portfolio. Housing loans took up 50 percent of its portfolio while the bank’s Ka-Negosyo business loans for small and medium enterprises accounted for the rest.

To further boost its portfolio, the bank last week launched the “BPI Family Auto Loan 10 percent Money Back” promo, where clients can get a rebate after the five-year term.

The promo, which will run from June 4 to August 31, is not only a loan but also an investment, bank executives said, citing “significant” returns with “a little extra” payment.

For this promo, the add-on rate (AOR) is 52.90 percent, higher than the average of 47.43 percent for regular car loans.

Juan Miguel A. Santiano, BPI Family Savings Bank auto loan senior brand manager, said the earning rate would be about 17 percent a year, compared with, for instance, a time deposit rate of only 1 percent per annum.

This promo targets car buyers who have “more cash than usual but don’t know where to put their money,” Santiano said.

Under the promo, clients will have a 10-percent rebate if they would get another loan from BPI Family Savings Bank within six months after the auto loan has been fully paid.