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Pre-Owned Vehicle Loan


All Regular and Associate members of AFPSLAI who have complied with the requirements of the Pre-Owned Vehicle Loan and who have sufficient CCA/SD002 balance which they can offer as guarantee for the loan.


  • Covers the purchase of pre-owned vehicles (sedans, SUV, AUV, Vans LCV, high-end motorcycles and other vehicles similarly classified) from either an accredited dealer or individual seller.
  • Minimum loanable amount: ₱200,000
  • Maximum Loanable amount shall be equivalent to the lowest of these three (subject to ceiling of ₱1.2M):
    1. selling price;
    2. 70% of appraised value of the collateral; or
    3. the amount applicable to the borrower’s paying capacity
  • Loan term: 12 to 60 months.
  • Maximum term shall be regulated based on the age of the vehicle being financed such that the subject vehicle must not be more than 10 years old upon the target maturity.

POVL Calculator
Vehicle Selling Price
Down Payment
Loan Term

Amount to be Financed is:
Monthly Amortization is


To know your monthly amortization:
  1. Enter the selling price of the vehicle.
  2. Enter you desired down-payment (minimum of 30% of selling price).
  3. Select the number of years you want to amortize your loan.
  4. Click “COMPUTE” to know your monthly amortization or “RESET” to clear entries.

Please note that the computation above is only indicative. You may call us or visit any AFPSLAI Branch nearest you for the actual details.


  1. Borrower submits duly accomplished LAF, Promissory Note, ATD, MRI and Comprehensive Insurance (CI) application form, and pays the required appraisal fee.
  2. If submitted documents comply with all the requirements, Loan Specialist proceeds with the processing of loan.
  3. Loans Specialist coordinates with the car/vehicle dealer
  4. AFPSLAI conducts credit evaluation (background check and credit investigation) and appraisal.
  5. Upon approval of the loan, Loans Specialist coordinates with the accredited vehicle dealer of the approval and coordinates the release of the vehicle upon issuance of Letter of Guarantee (LOG).
  6. Loans Specialist requires the borrower to sign Deed of Chattel Mortgage (to be notarized) and collects payment for MRI, Comprehensive Insurance, DST, Chattel Mortgage and Encumbrance fees.
  7. Loan Specialist prints Loan Release Sheet and Disclosure Statement (LRS or drawdown) for member-borrower’s acknowledgement.
  8. Vehicle dealer releases the vehicle.


Q: Can we purchase any second-hand vehicles?
A: Member may source his pre-owned vehicle from AFPSLAI accredited car dealers of from individual sellers, subject to appraisal by any of the accredited appraisers of AFPSLAI.

Q: Are the specific conditions on the vehicle acquired?
A: Vehicle must not be more than 10 years upon target loan maturity, reckoned from the year model of the vehicle as reflected in the Certificate of Registration. Maximum term of shall be regulated based on the age of the vehicle being financed.

Q: What is the mode of payment?
A: The acceptable modes of payment are the salary/pension deduction and auto debit from borrower’s CCA/SDA02 account.

Q: What are the applicable fees?
A: The loan shall be subject to charge as follows, which shall be borne by the borrower; Appraisal Fee, Comprehensive Insurance, Mortgage Redemption Insurance, Documentary Stamp Tax, Encumbrance Fee and Chattel Mortgage Fee.