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CASH LOAN 101: Because it pays to be informed!

CASH LOAN 101:
Because it pays to be informed!

September 24, 2020 | by HC Mutual

What is a cash loan? Is it different from a personal loan?

A cash loan, also commonly known as a personal loan, is an unsecured loan (meaning it does not require collateral such as a car or a house) that can be used for almost anything: from home renovation, emergency medical bills, or even capital to start a small business. Unlike secured loans, personal loans are backed only by your promise to repay the lender, which ranges from banks, peer-to-peer lenders such as a cooperative, and other financial institutions like HC Mutual.

What you need to know about personal or cash loans

When you take out a personal loan, the lender will charge interest as a fee for lending you money. Effectively, you will be repaying the amount you borrowed plus interest through monthly repayments over a set time period. Because personal loans are unsecured, interest rates often go as high as those for credit cards. (However, some lenders may offer lower rates under certain conditions, e.g. if you already have a savings account with that particular bank).

Advantages: they are easier to apply for than auto loans or a mortgage, and you get the cash upfront as a lump sum in a matter of days—handy if you need cash quickly
Disadvantages: spreads the cost of a purchase over several months or years

To know your eligibility as a borrower, lenders usually look at your income, credit score, and other standing debts. The amount you can borrow usually depends on your income and your existing account with the institution (if applicable). To get the best offers on personal loans, it’s best to have a history of on-time payments, a steady income, and a low income-to-debt ratio.

Common features of a personal loan

Interest rates may be fixed or determined by the lender based on your creditworthiness and length of loan

Paid back in fixed monthly payments typically over the course of 6, 12, 18, or 24 months

Some loans may feature increasing interest rates for longer payment terms

PREPARED FOR ANY OCCASION.

The HC Mutual KayaMo Cash Loan is a fast, multi-purpose loan you can avail without touching your hard-earned savings.

Get preferential interest rates for personal loans up to P500,000*
Same day cash release via direct deposit
Applications 100% online for safety and convenience

*Depending on total amount of paid up subscriptions with HC Mutual

4 TIPS FOR GETTING A PERSONAL LOAN

Get pre-qualification from multiple lenders
You can do this to find out how much each lender is willing to loan you given your credentials, and their terms and conditions. (Doing this will not affect your credit score. Learn more about credit scores here.) Use these to compare your offers from multiple lenders to see what’s best for you.

Read the fine print
Did you know that indicated interest rates do not fully reflect the loan’s true cost? It is always best to have all the information before you make a decision, and lenders are required by law to give you these if you inquire:

Other charges to get the loan such as closing fees, origination fees, processing and document preparation fees
Charges related to loan servicing, such as late payment fees or NSF fees (overdraft or non-sufficient funds)
Benefits, such as payment holidays

CASH LOAN TIP:
Some lenders charge prepayment penalties for overpaying or paying off the loan earlier (e.g. paying in full in 6 months for a 12-month loan).

Compare offers
When comparing loans, make sure you’re looking at similar offers with the same type of interest rate structure. Here are some things to consider:

CASH LOAN TIP:
For some lenders, it actually costs you less to borrow more, meaning you pay less interest and get more of the loan value by getting a slightly bigger loan.

Save on personal loans
Personal loans are monthly liabilities. Know how much interest you’ll have to pay over the whole life of the loan, and how long it will take you to pay off given your monthly budget. Our advice: Only borrow if needed, planned and budgeted, borrow as little as possible, and repay as quickly as possible.

Make more frequent payments
Pay more than the minimum amount monthly
Set up automatic payments to avoid late fees and extra interest charges
Make bigger payments when you can

Conclusion

Personal loans may seem like a quick solution, but you still have to shop around and compare to find the right one that fits your need, your capacity, and your financial situation to make sure you maintain healthy and sustainable finances in the long term.

Going Beyond the Expectations

February 17, 2020 | by Marilyn Amoro, HC Mutual Member

My daughter and I had the pleasure of meeting the top executives of Homecredit Mutual Building And Loan Association. I’ve been a member of this association since 2010 and I’m honored to have a trusted partner for roughly 10 years. They’re one of the associations I’ve known that goes beyond their service.

Year 2016 when I gave birth to my youngest child thru c-section at the Las Piñas Doctors Hospital. I was unconscious all throughout as I passed out when I got right at the doorstep of the hospital. Sadly, due to severe pre-eclampsia, my delivery led to a heart and lung complication (pulmonary congestion) so I was sent to the ICU (Internal Care Unit) after staying at the emergency room. When I woke up, there were tubes in my body and had to take lots of medicine thru IV infusion. The delivery was successful but I had to undergo lots of tests. Many times, three regular doctors would always tell me the same thing over and over again when they visited me, that only a small number of women can outlive this case, stating only 2 out of 10 can survive. My OB-GYN told me that I was so lucky for having a second life that she even advised me to offer a thanksgiving mass once I get out of the hospital.

I’d wanted to be released from the hospital since day one because I know the longer I stay, the higher our bills would get.

While my baby daughter was declared healthy after staying for 2 days at the nursery section, I, in my weakest state, stayed in the ICU for 7 days to have my heart and lungs monitored. After being released from the ICU, I stayed in a regular room for 3 more days. Our hospital bills kept on increasing each day and it’s something that we didn’t expect. Thankfully, we had friends and loved ones who helped us go through that situation.

Homecredit Mutual Building And Loan Association provided financial assistance during that time, aside from the help we received from our relatives, friends and our immediate families. Without them, we couldn’t survive financially. Ms. Virgie Ventura, Homecredit Assistant Marketing Manager, even visited me in the hospital that time to check my condition. She met my family twice and I can vividly remember what she said, “You are blessed, you have a very beautiful family”.

I will always be thankful to those who have helped my family during that time, most especially those who have always prayed for my fast recovery. I still have the encouraging notes, letters and heartfelt text messages with me. When I look back, I still can’t believe I’ve surpassed that challenge in my life. It may have brought us to a financial and health difficulty but it gave us another source of inspiration to live. That day has changed my entire life as our littlest angel came to our lives. It all happened with a purpose and that purpose made our family much happier and made us more united (me and husband most especially).

It brought me to a realization that you will always be tested many times, but if you have trusted friends and reliable partners in life, things will be a lot easier to handle. They will go beyond what you expect them to do, it’s all because they care about you.

Ms. Virgie Ventura (Asst. Manager Client Services Dept.), my daughter, Raulyn and I