In the light of the economic situation, almost everyone had moments when a large amount of money was urgently needed. It is good if there are wealthy relatives or friends who are willing to lend money.

And what if no one can help?

Then pawn shops can come to the rescue. You can use your automobile as a car pawn in the Philippines. There are several pawn shops that accept cars as collateral. In this case, the loan amount will depend directly on the cost of the car.
The cost of your car depends on such factors as General condition, mileage, and other modifications. When you use your automobile as a car pawn in the Philippines, the lending company adds interest to the amount.
In the event that you still want to be able to use your auto, even if the ownership of it is laid down, you may need additional insurance. Consider it another cost to pay for the title loan itself. As a rule, the cost of a used car appraiser will not estimate more than 50% of the cost of a new car of the same brand and configuration.
And yet often this money that you can get by mortgaging a car is many times more than the loan amount if you leave gold jewelry as collateral.

What is the cost of such a credit?

The rate for car pawn in the Philippines typically is about 3-4% per month, but there are pawn shops that charge 10% monthly.
Interest rates of the most popular pawnshops for car pawn in the Philippines:

  1. Ncash Pawnshop-4-5% p. m.
  2. Tambunting Pawnshop – 4% p.m.
  3. MOTOPAWN – 3-5% p.m.

Up to 60% of assessed value
Up to 4 months

Interest rate
4-5% per month


Up to 60% of assessed value
Up to 4 months

Interest rate
4% per month


Up to 60% of assessed value
Up to 4 months

Interest rate
3% per month


Loan Calculator

Monthly payment
₱ 888.49
Total overpayment
₱ 661.85
₱ 10661.85

In addition, financial companies often charge a service fee for servicing the loan. The fee can be up to 1% of the loan being serviced, but it has a limit. If you can’t pay off your loan on time, you can extend it by paying only the interest that was accrued earlier.

What is more profitable than a loan from a pawn shop or a Bank?

Based on the amount of the loan interest rate, you can find loans with a lower cost in banks. But banks have strict requirements for borrowers to meet. The Bank will also need a set of documents and time to verify the information provided.
Therefore, if you have an official confirmed income and time to wait for the Bank’s decision, it is more profitable for you to use the services of banks.
If you do not have time to wait for the Bank’s response or you do not meet the Bank’s requirements, then the option with a pawn shop is the most suitable, since mobile loans or online loans will cost more.