Daily Star logoBusiness



Bacolod City, Philippines Saturday, March 24, 2018
Front Page
Star Business
Opinion
Sports
Star Life
People & Events
New tax reform law increases
purchasing power of Filipinos
BY MARK L. GARCIA

 

With higher take-home pay due to the implementation of Tax Reform for Acceleration and Inclusion, or TRAIN law this year, a bank executive said yesterday that more chances were also opened for people to avail of housing and car loans, especially in Bacolod City, where real estate and automotive industries are growing.

Wilbert Yu, assistant vice president and Sales Channel head of the Visayas Auto Loans of BPI Family Savings Bank, said the new tax law has an effect of an increase in the purchasing power of every individual and has led to creating more opportunities for them to avail of loan programs in banks.

“With the adjusted price units and salaries, it is now easy to avail of loans with BPI’s low interest rates," he said during the media roundtable discussion in Bacolod City yesterday.

BPI also started the Loan Madness event yesterday at Robinsons Place Bacolod, that has been ongoing in the city for about 19 years, Stephen Maglasang, BPIFSB senior manager and Sales Channel head for the Visayas Housing Loan, said.

During the event that will end on March 25, two types of loan programs will be offered, namely housing and auto loans.

SLIGHT INCREASE

Yu discussed the effect of TRAIN on the auto loan services of BPI and despite the increase in excise tax, interest in loan payments monthly only showed a slight increase.

He added that, a car which costs below P600,000 has an increase of P12,000 while those costing P600,000 to P1 million increased by P28,000. Pick-up cars showed a decline in price as they have no excise tax as they were categorized as a truck type of vehicle.

The report also showed that luxury cars costing P4 million and above have also decreased in price by P120,000.

However, in terms of payment of auto loans, there is only a slight increase of P200 to P500 monthly, despite the increase of prices through BPI’s auto loan service.

Maglasang also said that, apart from affordable auto loans, housing loans should also be an option, as Bacolod is the city in the country with the highest search traffic for properties.

Maximo Eleccion, BPIFSB area business director for Visayas, also said that both the real estate and automobile industries are expanding in Bacolod as more real estate companies are coming in, while auto dealers continue to expand inside and outside the city.

“There is a big market for auto and housing loans in Bacolod due to its growing population, many employment opportunities, and more high paying jobs like the Business Process Outsourcing," he said.

Maglasang said it is high time to invest in land or housing as they are cheaper in their pre-selling stage.

“Your P1M here has a bigger land cut compared to Cebu and Manila where it will only give you smaller areas," he said.

In applying for housing loans, BPI made a mobile application called BPI Family My-Own-Home App to easily apply for a loan, monitor it and get the house a person wants through processing things in a smartphone, he added.

“This app also features a simple readiness test to determine whether the client is financially ready or not," Maglasang said.

Eleccion also said that through this Loan Madness, BPI can help people fulfill their dreams through giving them affordable loan offers for cars and housing.*MLG

 

back to top

Business
ButtonNew tax reform law increases purchasing power of Filipinos
Button‘No documents on ship-recycling project, only letter of intent to SP’
ButtonDAR turns over FMR in Valladolid