In short
Some other terms are regulator words with a precise legal meaning, like EIR and PPSR. Others are a single bank's own shorthand for a fee, like CMF.
A few terms buyers search for are not actually used by name on any Philippine lender's page in this guide. Examples include a literal "LTV" label or a bank purchase order.
This glossary says so plainly rather than guessing at a definition.
- Terms sourced to a bank or regulator page
- 17
- Terms not used by name at the banks compared
- 2 (bank PO, LTV)
- Terms not confirmed anywhere reachable
- ATD, CMAP (both omitted; see gaps)
Rate and payment terms
These are the words that show up on a bank's own rate table or promissory note. They describe how interest is quoted or when it is charged.
- OMA (One Month Advance)
- A rate-quoting column on Metrobank's own car loan rate table, shown alongside an "In Arrears" column; each carries its own add-on and effective rate for the same term (Metrobank).
- In arrears
- The other rate-quoting convention on Metrobank's table, contrasted directly with OMA; interest and payment are worked out on that different basis for the same loan (Metrobank).
- Advance
- BSP's own Truth in Lending FAQ states that "advanced interest may be collected," meaning collecting interest upfront is allowed, unlike the add-on or straight-line computation the same FAQ calls prohibited for disclosure (BSP).
- Add-on rate
- A whole-of-term interest rate some banks quote alongside a separate effective rate; BPI states both for the same loan (60-month brand-new: add-on 31.01% vs effective 11.19% p.a.). BSP's FAQ states add-on and straight-line methods are prohibited as a disclosure method, so add-on functions as a marketing quote, not the regulator's required cost figure (BPI; BSP).
- EIR (Effective Interest Rate)
- The BSP-required disclosure of the true cost of borrowing, computed as Annual EIR = (1 + i)^n − 1 on the loan's actual cash flows, disclosed under the Manual of Regulations for Banks before the loan is signed (BSP).
- Balloon
- A payment structure with lower regular installments and one large lump sum due at the end of the term. Toyota Financial Services names its own product Balloon Payment Plus; RCBC separately describes its Auto Loan Flexilite as carrying a balloon or residual payment option (Toyota Financial Services; RCBC).
Fees and taxes on the loan itself
These are charges layered on top of the loan amount, mostly tied to registering the bank's security interest in your car. See the chattel mortgage guide for how that registration works.
- CMF (Chattel Mortgage Fee)
- Security Bank's own fee, described as covering documentary stamp tax, a processing fee, and a notarial fee. Security Bank states no peso amount for it (Security Bank).
- Chattel fee
- The short form of CMF; EastWest lists "Chattel Mortgage Fees" among its own charges, also with no amount stated (EastWest).
- DST (Documentary Stamp Tax)
- A government tax on the loan instrument itself. BDO charges PHP 1.50 for every PHP 200 of the loan amount, and Metrobank states the same rate for its own promissory notes (BDO; Metrobank).
Every term for your car
| Pay over | Cheapest bank | Monthly | Total interest | Total paid |
|---|---|---|---|---|
| 12 months | BDO | ₱86,757 | ₱41,089 | ₱1,291,089 |
| 18 months | BDO | ₱59,140 | ₱64,525 | ₱1,314,525 |
| 24 months | BDO | ₱45,800 | ₱99,189 | ₱1,349,189 |
| 36 months | Maybank | ₱32,003 | ₱152,100 | ₱1,402,100 |
| 48 months | UnionBank | ₱25,135 | ₱206,500 | ₱1,456,500 |
| 60 months | UnionBank | ₱20,967 | ₱258,000 | ₱1,508,000 |
Example car, ₱1,250,000, brand new, at the bank with the lowest monthly for each term. Total paid includes the down payment, not insurance or one-time charges.
Documents and registries
These cover the paperwork a bank holds or registers while your car is still mortgaged to it.
- OR/CR (Official Receipt and Certificate of Registration)
- The two vehicle documents a bank holds during your loan. BDO calls the encumbered version the "LTO Certificate of Registration Encumbered (CRE)"; Metrobank states plainly, "The OR and CR will stay with the bank until you pay off the loan" (BDO; Metrobank).
- PPSR (Personal Property Security Registry)
- The Land Registration Authority's online notice registry under the Personal Property Security Act (Republic Act 11057), used to register a lender's security interest over movable collateral, including vehicles (Land Registration Authority).
- bank PO
- Not used by name on RCBC's or EastWest's own auto loan pages, the two compared for a bank-to-dealer "purchase order" document. Neither uses that term for any car loan document.
Pricing and promo terms
These show up on a car brand's own promo page, not a bank's, and describe how the sticker price and down payment are presented.
- SRP (Suggested Retail Price)
- The sticker price a car brand states before any promo discount. Isuzu's own promo page lists the D-MAX RZ4E 4x2 LS AT at SRP PhP 1,699,000 before a PhP150,000 cash discount (Isuzu Philippines).
- All-in downpayment
- A promo down payment figure that bundles other upfront costs into a single number. Ford's own Ranger Wildtrak offer presents a PhP250,000 Cash Discount or a PhP69,000 All-In Down Payment as alternatives, not combinable (Ford Philippines).
- Low DP (Low Down Payment)
- One of four alternative, non-combinable promo options in MG's own Rainy Day Promo (MG Motor Philippines).
Eligibility and ratios lenders check
These are the numbers a bank runs against your income and the car's price before it approves you. The credit score guide covers the rest of that check.
The car loan calculator works out the monthly payment behind an LTV figure.
- DBR (Debt Burden Ratio)
- Per Metrobank's own article on how loan applications are assessed, your total monthly debt obligations divided by your gross family monthly income (Metrobank).
- LTV (Loan-to-Value)
- Not used as a literal term on any lender page in this guide, though the concept is standard. EastWest describes financing "up to 80% of the selling price," and BPI describes financing "up to 85% of the purchase price," which is what LTV means elsewhere, just without the acronym on either bank's own page (EastWest; BPI).