CASH LOAN BASICS
How it works and what you need to know

January 11, 2022 | by HC Mutual

What is a cash loan?

A cash loan is a multi-purpose loan that you, the borrower, receives in cash. Also known as a personal loan, this type of loan is unsecured and does not require any sort of collateral in stocks, fixed assets, or property. In the end, the cash loan is backed only by your assurance to repay your lending bank, cooperative, or financial institution.

How do cash loans work?

When you take out a cash loan, your lender charges interest for loaning you money. Loan repayment is done through monthly installments – paying the amount you borrowed along with interest. Depending on the terms of your cash loan, this credit period can range from 6 months up to 24 months.

Since personal loans are unsecured, the interest rates can run as high as those found in credit cards. These interest rates may be fixed or flexible, depending on your lender’s terms and assessment of your credit history. Some lenders have an increasing interest rate throughout longer payment terms.

Be prepared for life’s ups and downs.

We are here to support you in taking care of what’s important to you, whether in good days or in challenging times. The HC Mutual KayaMo Cash Loan is a fast, multipurpose loan that you can turn to without touching your hard-earned savings. 

  • Loan release within 24 hours of approval
  • Interest rate as low as 0.88% (add-on)
  • Hassle-free cash disbursement through direct bank deposit or USSC Super Padala Remittance at over 800 USSC Branches nationwide

What do you need to know about cash loans?

Your loan,
your needs.

With a wide range of offers available, cash loans differ from lender to lender. Even those with the same interest structure can vary in requirements, fees, and penalties. It’s best to compare a selection of offers to see what matches your current needs, capacity, and financial situation.

Your credit
history matters.

Your chosen lender determines your creditworthiness based on your income, credit score, and other outstanding debts. Their assessment affects your borrowing limit, or the amount you can receive, and the loan interest rate. As cash loans are based on the promise of repayment, lenders look for those who have an established history on-time payments, stable income, and a low income-to-debt ratio.

Your monthly
responsibility.

Borrow only what you need and repay your loan as soon as possible. Before taking a loan, you should note how much you need to pay over the entirety of the loan. This lets you to plan and budget for the upcoming months to avoid late fees and extra interest charges.

Cash loan tips and reminders

Thinking of taking out a cash loan? Here are some things to remember so you can maximize its advantages while maintaining healthy finances. 

  • Compare loan offerings as these can vary in requirements, fees, and penalties.
  • Deal with only reputable financial institutions that are registered under the DTI and SEC.
  • Your credit history makes a difference. From your income, credit score, and other outstanding debts, lenders can get a sense of your creditworthiness.
  • Your credit assessment affects your borrowing limit, or the amount you can receive, and the loan interest rate.
  • Make sure to pay your loans on time to avoid incurring late fees and extra interest charges.

Overall, cash loans are a quick way to fund anything from emergency expenses to travel costs to large purchases. However, cash loans are still only a short-term source of financing with high interest rates. It’s always best to maintain healthy, sustainable personal finances to the best of your ability for the long term.

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