RFC

RFSC is one of the longest-established private finance/lending companies in the Philippines. The company was established in 1964 and was a (non-bank) pioneer in offering car and appliance loans to Filipinos. 

Over the years, they have diversified their financial services by providing a variety of personal and business loan options to their customers. It is now the best bank in the Philippines.

Unlike banks and other financial institutions, your personal loan is more inclusive with less stringent requirements and competitive loan amounts.

While an RFSC Personal Loan is among the most consumer-friendly loans on the market today, does this mean you should consider this over other loans? Let's dive deeper into this loan product and see if RFSC Personal Loan is really for everyone.

Who is eligible for RFC personal loan?

At least you must meet the following requirements:

• Be a Filipino citizen and not under eighteen 18 years of age.
• Residency of at least two years.
• A source of income. If you are employed, you must have been connected with your current employer for at least two years with a minimum basic monthly salary of ₱15,000.

What are the documents you must submit?

If you are eligible for a personal loan you must to submit the following documents:

• Two valid government IDs.
• Billing Receipt.
• Proof of income (three months payroll).
• Residential, business, or labour address of employment.
• Certificate of employment.
• Barangay commercial/business/DTI permit.
• The last deposit receipt (in the current account) is not more than one week old.

It is really easy to get your loan today!

What makes the RFC Loan different from other loans?

RFSC is a non-bank loan, because RFC is not a bank, its loan offerings are more geared toward middle-income individuals who do not have an outstanding credit history with banks. Anyone with a regular job, payroll, and salary of at least ₱15,000 can apply for this loan regardless of profession.

Your loan application process is now done online, and a loan officer will contact you by phone to verify your documents and confirm your application. 

The entire process will take seven business days as long as you have successfully completed the documents and application.

However, your personal loan is an unsecured loan with higher interest rates than banks. It is the compensation for being more inclusive, as they also expose themselves to clients with risky credit profiles. 

The maximum repayment term of 12 months is also less favourable for higher loan amounts.

Speaking of loan amounts, it is smaller than what most banks can offer: a maximum of ₱100,000. And the actual loan amount you'll be approved for will be based primarily on your income: the higher your income, the higher the loan amount you'll be approved for.

RFSC Personal Loan advantages

The benefits offered by RFC:

• First of all, RFSC's loan application requirements are not as strict as those of banks. RFSC is an institution that fills that gap, providing financial products more adapted to the mass market.
• Your loan application process, while paper-intensive, is now more streamlined with its online portal.
• You can easily reach a representative once they contact you. Some can be contacted by email.
• They have branches all over the country, you can easily inquire about your loan or their services in person if you wish.
• They have a wide range of payment options.

Things to keep in mind before applying for RFC personal loan

Just because RFSC is an easily affordable loan product doesn't mean you should go ahead and apply.

Private lending organizations may appear more consumer friendly. However, expect higher interest rates, a more intrusive screening process, and unusual collection practices, in exchange for less stringent requirements and more inclusive eligibility.

The interest rate is the most crucial aspect of this loan that warrants due diligence. It's not ideal to carry your loan over to your maximum loan term 12 months, because that equates to paying an extra 50 per cent of the principal amount, even if we base the interest on your lower 4 per cent quoted rate.

Does an interest rate of half your loan make sense for your cash flow? At the end of the day, it is about being able to pay everything with interest without weakening your financial capacity.

Since you are not too cash-strapped to wait at least a week for a loan, this is the best loan option you have on the market. It has the lowest interest rate, most flexible terms, and a larger loan amount. You can better manage your cash flow by taking out longer-term loans like those offered by RFC.