Car Loan

Guidelines for Car Loan

  1. Applicant fills out an application form
  2. The applicant must be a Thomec member and a tenured employee in the University and must not be more than 60 years old at the time of application.  An applicant who is more than 60 years old shall be subject to a shorter amortization period.
  3. The member applicant must have at least 100 paid up shares
  4. The member with less than 10 years in service must have a co-maker who is also a member of ThoMEC with ten years of service.
  5. The maximum loanable amount shall be based on the price of the car but not to exceed Php One Million Five Hundred Thousand (Php 1, 500, 00.00).  The car loan can be availed of only from ThoMEC accredited car dealer.  Loan will be released and paid directly to the car dealer.
  6. The three (3) years LTO and the first year comprehensive insurance shall be included in the car dealer’s price quotation and shall be for the account of the applicant/borrower.  The aforementioned may be considered part of the loan provided it does not exceed the total loanable amount of Php 1.5M.  Succeeding comprehensive insurance shall be required which shall be for the account of and may be arranged by the member/borrower.  However, the member/borrower shall advise ThoMEC that he/she shall secure his/her comprehensive insurance at least one month prior to the expiration of the previous year’s insurance.  Otherwise, the borrower authorizes ThoMEC to get comprehensive insurance in his/her behalf and chargeable to his/her account.
  7. The member applicant shall be required to sign a Promissory note with Chattel mortgage agreement.  Any expenses to be incurred in the said area shall be for the account of the member-borrower.  In lieu of a chattel mortgage fee, the borrower shall be required to secure a “Loan protection program” (LPP or Credit life) from ThoMEC every year until the loan is fully paid.  The premium for the LPP shall be based initially on the amount of loan and from the loan balance every year thereafter until loan is fully paid.
  8. The applicant must still meet other qualification requirement such as capacity to pay and minimum net pay. Member must submit his/her latest 3 pay slips.
  9. The Original copies of the LTO Official Receipt (OR) and the Certificate of Registration (CR) of the acquired vehicle shall be kept by ThoMEC and will be released upon full payment of the loan.  The succeeding registration of the vehicle shall be for the account of the member-borrower.
  10. The member applicant may choose payment terms from 12 to 60 monthly amortization or 24 to 120 semi-monthly amortization which shall be paid through auto-debit and/or Post dated checks (PDCs)
  11. The interest rate for the loan shall be given to the applicant.  
  12. Normal or standard discounts offered by the dealer shall be enjoyed by the member/borrower.  This loan is available only for brand new cars.