Bank Financing Insurance Penalty
By Hanna
Posted on Apr 29, 2021
Bank financing offers a high loanable amount that gives us the power to purchase our dream car. We usually opted to those financing that offers low interest with long payment terms, but after getting the loan approval many just sign alot of documents without understanding their Terms and Policy. In an auto loan, majority of financing requires insurance policy for their protection and for the protection of their client, but if you miss to have one, or late to submit it, you are subject for their penalty.
Here are the list of most well known financing and their corresponding penalty:
| BANK FINANCING | PENALTY |
| PS Bank | 2,500 after 30 days |
| RCBC |
Auto renewal /penalty: 1,500 |
| Banco De Oro Unibank, Inc. (BDO) | None |
| Eastwest Bank | None |
| Toyota Financial Services Phils. Corp. | None |
| Union Bank | None |
| Bank of Commerce | None |
| Maybank | None |
| UCPB / UCPB Savings Bank | None |
| BPI Family Savings Bank | 1 day late sub-auto renewal |
| Metropolitan Bank & Trust Co. | None |
| China Bank/China Bank Savings | 300 after a month |
| PNB Savings Bank | None |
| Security Bank Corp. | Auto renewal |
| Insurance Savings Bank | None |
| Orix Metroleasing & Financing & Finance Corp. | None |
| Asialink Finance Corp. | None |
| Asian Cathay Finance & Leasing Corp. | None |
| Global Dominion Financing Inc. | None |
| Malayan Bank | Auto renewal |
| Robinsons Bank | None |
| Sterling Bank of Asia | None |
| Asia United Bank | None |
| First United Finance & Leasing Corp. |
None |
| Philippine Business Bank |
With facilitation fee: 500 (always include in the quotation) |
Some lenders auto-renew their clients comprehensive insurance after failing to submit the banks copy, which is more expensive, compared to insurance of your choice while it has the same benefits. So you might want to review your loan terms and policy to avoid any penalty and future problems.