Chattel Mortgage for a Car Loan: What Is It and Its Benefits
By Hanna
Posted on Feb 01, 2019
Let’s say you’re aiming towards a goal, whether it is traveling in at least two countries in a year, or being avail to purchase a car, finances should be kept at bay to reach any of it. Whether for personal use or for business operations, one cannot undermine how vital it is to have a vehicle, having one is a worthy investment. But, seeing how the cost of goods keeps on rising to date, buying one can be quite expensive. In this situation, financing institutions come in handy to aid your purchase. There are different types of loans one could avail for car financing yet, a chattel mortgage is one of the most common and most utilized. If you are planning to obtain a new car, here’s what you need to know about chattel mortgage and how it would benefit you.
What is Chattel Mortgage?
In simple terms, a chattel mortgage is a loan provided to a borrower (you, for instance) with a movable asset (vehicles, boats, yacht, mobile homes, and business machinery) that acts as a security to the loan. The most common use of chattel mortgage is for purchasing vehicles either for personal use or for business purposes. The lender finances the amount needed to obtain the car or any form of movable asset and the borrower utilizes the asset for the whole duration or term of the loan, and upon finishing it, the title of the asset is then awarded to the borrower. For every bank in the Philippines, various requirements are needed for you to secure one. It is recommendable to canvass three banks to see which scheme works for you, in the best way possible.

Benefits of obtaining a chattel mortgage
- A loan of lower interest rates
A consumer loan is another type of loan one can avail in times of financial crisis. This type of loan is an unsecured one. When you say unsecured loans, these are loans that are not backed with assets or any form of collateral that a bank can repossess in cases of default payments. Unsecured loans often go with high-interest rates to cover up the cost and the inevitability of the borrower’s incapacity to pay for the loan. Since chattel mortgage are backed with any movable asset (your car, for example), interest rates are lower compared to that of an unsecured one. This can help you with managing your cash flow and for other expenses as well.
- Deductibles on interest expenses and taxes
This benefit would significantly impact business owners. Although it may depend on how your accounting system works, generally it will affect your interest expenses, depreciation expenses and even deductibles for taxes.
Transactions regarding finances and investment are confusing, to begin with. Talk to the nearest bank or financial institution of your liking and ask necessary questions. With proper guidance and knowledge, one can think of ways to keep the business growing or means of achieving a personal milestone.
Car GPS Tracker
UCCP EON PILIPINAS
Sportline Tuning & Style Magazine Auto Show
UCCP Lord of the Wheels
DISTAS 2017 District Assembly
All About Wigo 1st Anniversary
What is TPL or CTPL Car Insurance
What is Comprehensive Insurance?
Anti-Distracted Driving Act (ADDA) effective TODAY July 6, 2017
Choosing the Cheapest Car Insurance
Car Insurance Philippines
List of Traffic Violations in the Philippines
Do I Really Need to Buy Car Insurance?
Top Fuel Efficient Cars
Bank Financing Insurance Penalty
Car Registration Renewal in Philippines
What You Must Know About Plate Issuance
Self-driving cars: Changing the world, one road at a time
4 Things to Do When Your Car is Towed
What Would Happen if you Flee from a Traffic Enforcer on Duty
How to Deal with Christmas Rush and Avoid Traffic
How to Maximize Fuel Efficiently
Cleaning Different Types of Steering Wheels
License Renewal in Philippines
Different Types of Fuel
Car Loan Applications: Tips and Tricks
What does kilometer post mean
Types of Drivers License in Philippines
Proper use of side mirror while driving
How To Determine Car Registration Expiration
How to Avoid Car Accidents
How to Change Car Oil
Traffic Sign or Road Sign
What will you do when you got into car accident
Chattel Mortgage for a Car Loan: What Is It and Its Benefits
Basic Car Maintenance to Learn
Knowing the difference between personal loans and car loans: Which is cheaper?
When To Replace Headlights
Commuter Carpool Saves Time and Money
Why refrain from making modifications to your car
Embrace the Art of Eco-Driving with These Steps
How to be a SaferDriver
The crash of five car dealership outlets amidst coronavirus
Change in bus routes under GCQ
Fate of PUJs under GCQ
Manual vs Automatic Cars: The Best For The Road
Diesel vs. Gasoline: What Factors Should Matter?
Car Blessing in the Philippines
Understanding the Different Types of Car Insurance
Stay Protected with the Right Car Insurance Policy
How to Get Your Car Blessed in Antipolo and Manaoag
Most Commonly Ignored Road Signs and Why It Shouldn’t Have Remained Ignored
Things you need to know before taking the LTO Exam
LTO Reviewer (Tagalog)
Why Left Lane Hogging Should Be Avoided
What is the meaning behind the driver’s license restriction code?
A Guide on How to add Restriction Codes to your Driver’s License
A Detailed Guide On Comprehensive Car Insurance
Why Do You Need Car Insurance Participation Fee
Guide on how to get Autosweep and Easytrip RFIDs
Why you should consider getting an RFID
Flooded Car? Here Are The Things You Should Do if Your Car Gets Caught in A Flood
Tips and Tricks for Washing a Flooded Car
Step by Step Guide to Insurance Claims for Flooded Car
Knowing Your Wheels: Differentiating SUV, AUV, and MPV
How to load your auto sweep / easy trip RFID
Why Car Plate Took So Long to Release?
When is the best time to renew car insurance?
Best Payment Option for You When Buying a Car
Safety First: The Crucial Duties of a Car Owner Through Safeguard Duty
Vaccination cards can now be used for local travel
Is Less Fuel More: Full Tank vs. Half Tank
Is It Bad to Turn Off Car Engine Immediately After Parking?
A Beginner’s Guide to LTO Online Driver's License Renewal and Registration
What is PMS in Car?
A Refresher: Number Coding Scheme in Metro Manila
A Detailed Guide on Where to Buy 2nd Hand Car in the Philippines
Declared Regular and Special Non-working Holidays for 2023
A Beginner’s Guide on How to Parallel Park a Car
How to Make Your Car Engine Rat-free
Traffic Update: A Detailed Guide on LTO’s Online Portal
An Ultimate Guide To Things To Do In Case Your Car Gets Flooded
What is the difference between Third Party Liability and Comprehensive Car Insurance?
How To Extend The Life of a Vehicle
The Ultimate Guide to Understanding Car Insurance: Everything You Need to Know
Shifting to the Single Ticketing System for Traffic Violations
9 Reasons Why Car Insurance is a Must-Have for Every Driver
What is a Hybrid Car?
What are the Benefits of Using Electric Vehicles in the Philippines?