BPI Family Savings Bank, the country’s largest thrift bank, sees its car loans increasing this year as a rising middle-income class and sustained low interest rates continue to fuel demand.
Officials also see an increased demand for luxury vehicles with the entry of premium dealerships in Cebu last year.
“The improvement of economic status as reflected by the spending power of Filipinos, expansion of the middle-income class and the low interest rate regime has helped consumers own their dream cars,” said Jan Vincent Montifalcon, brand manager of BPI Family Savings Bank’s Consumer Loans Product Development and Marketing Division-Auto Loan.
“This has also triggered a shift among entry-level car owners to upgrade into the premium car line,” he said.
Wilbert Yu, senior manager of BPI Family Savings Auto Loans Division Consumer Banking Group-Cebu, said they saw an increase of nearly 20 percent, fueled in part by car owners in Cebu who upgraded their vehicles.
Above target
The thrift bank arm of the BPI concluded yesterday its three-day Auto Madness in Ayala Center Cebu, an event that brings the latest car models under one roof with loan rates at 3.63 percent per annum, comprehensive insurance and other offers.
The campaign showcased 23 card brands from entry-level to premium. The bank hoped to gather 500 car loan applications during the three-day auto show.
BPI Family Savings reportedly closed 2015 with a 19 percent growth in its total loan portfolio of P206 billion, surpassing its original target of P200 billion.
Auto loans and SME loans grew at a similar pace, 20 percent. Mortgage loans grew by 17 percent, and personal loans by 30 percent.