Many of you have already heard of Home Credit, especially when buying gadgets, appliances, and furniture you can’t afford – at that moment. What some of you don’t know is that Home Credit also offers cash loans to good-standing users.
It’s really a catch to Filipinos during this quarantine season as many of them (us), sadly, aren’t recognized by the Social Amelioration Program (SAP) of DSWD or cash aids by DOLE, OWWA, or other recognized-body of the government. Because of this, our kasimanwas turn to loan apps such as Tala, Cashalo, and especially Home Credit for their financial needs. But, is it really for you?
Home Credit promises a loan you can use as fast as one minute with minimum requirements. Here’s what you need to know before taking a loan during the COVID pandemic.
Disclaimer: I am not affiliated with Home Credit. This review is taken from my own personal dealings with the company.
What is Home Credit?
Contrary to popular belief, Home Credit is basically a franchise that started in Czech Republic before shifting its headquarters in the Netherlands. They are present in 11 countries (Central and Eastern Europe, Asia, and North America) and finally opened their institution here in the Philippines in 2013.
For the first few years, Home Credit offers in-store financing of electronics and appliance purchases to qualified consumers by letting these individuals pay monthly installments.
Within an inordinate length of time, they began to offer cash loan assistance to Filipinos. In 2017, I clearly remember their cash loans are offered to Manila residents only. The year after that, they rolled out this assistance program to good-standing customers around the Philippines before offering it to QUALIFIED Filipinos.
See how I used the word QUALIFIED? Let’s talk more about it below.
There are 7,000+ partner stores nationwide to easily accommodate your requests and questions.
Products of Home Credit
Home Credit offers various products but it all boils down to a buy-now-pay-later option (with a minimum down payment) where allowed to take your products instantly.
Standard Loan
The Standard Loan is Home Credit’s non-cash loans done through in-store purchases of cellphones, computers, tablets, laptops, or home appliances. It’s a flexible loan where you need to oversee your down payment (at least 20% of product price), origination fee (3% of the financed amount), and length of repayment (9, 12, 18, 24 months, or open contract) to set your monthly installments.
Commodities
According to Home Credit, their offer is limited only for mobile phones, tablets, laptops, computers, furniture, home appliances, and electronics
Available loan amount on price of goods
- Cellphones – up to P50,000
- Electronics – up to P100,000
- Appliances – up to P100,000
- Furniture – up to P100,000
Repayment terms
9, 12, 18, and 24 months or opt for an open contract. An open contract lets you FULLY pay the item anytime. If you plan to pay full earlier than expected, let an agent know and they can re-compute your payment plans.
For example, Home Credit allowed me to pay for a consumer device (I bought an EPSON L360 printer in 2017) within 12 months, but I finished paying it within three (3) months only. It was an open contract and they lessened my interest rate as well!
Down payment terms
Upon approval of application, the customer should make a down payment of at least 20% of the product if the financed amount is more than P5,000. If the financed amount is lower than P5,000, Home Credit will only ask for at least 10%of the product price. What’s more, you’ll pay an origination fee which is 3% of the financed amount.
Loan interest
There is no definite interest rate on your loans. It all depends on factors such as the price of the product, your down payment, and payment terms. You can use their loan calculator to get an idea of how much will you be paying Home Credit.
For example, you’ve purchased a mobile phone worth P50,000 and made a down payment of P20,000 – leaving you P30,000 as a base liability. However, you have to pay the loan interest as well. We’ll have a sample table below with computations.
| Liability | Loan Terms | Base Payment | Home Credit Monthly Installment | Difference |
|---|---|---|---|---|
| P30,000 | 9 months | P3,333 | P3,436 | P103 (which is 3.09% of your base payment) P3,333 + (P3,333 x 0.0309) = P3,436 If you can see above, your Home Credit Monthly Installment is 103% of your base payment |
| P30,000 | 12 months | P2,500 | P2,577 | P77 |
| P30,000 | 18 months | P1,600 | P1,718 | P52 |
| P30,000 | 24 months | P1,250 | P1,289 | P39 |
Requirements
- First, you need to be a Filipino aged 18 to 68 years old to qualify.
- Have a stable income whether that’d be from being employed (at least 3 months) or self-employed. Home Credit also accepts businessman, pensioners, or those receiving regular remittance.
- Two valid IDs, with at least one (1) bearing your current address.
- Primary IDs: SSS, PRC, Driver’s license, Voter’s ID, Passport, UMID
- Secondary IDs: Bank account statement, Brgy. Certificate/Clearance, Certificate of Employment, Credit/Saving Card, Company ID, Electric bill, Mobile phone bill, Water bill, PAGIBIG/HDMF ID, PhilHealth Card, Phone bill, Postal ID, Remittance Slip, Salary Slip, TIN, NBI Clearance
It’s a known fact that Home Credit can be a little bit stringent on its application process. For a business, that’s just normal. They need to attest to your ability to pay their financing products within a specific given time. I’ll offer some tips below on how to get your loan approved fast without any hiccups along the way.
Cash Loans
Home Credit Cash Loan is just like any other cash loans without any collateral. You are also given flexible repayment terms from 15 days to 36 months. Three years ago, this product is only available for Metro Manila residents. But now, ANY Home Credit customers around the country with existing Home Credit loan account and GOOD PAYMENT HISTORY can avail the said product.
Commodities and available loan
Cash loans usually start at P10,000 – Home Credit’s minimum loanable amount. The maximum loanable amount usually depends on the offer given to you. Mine was P16,000, P18,000, P25,000, and P40,000.
If you’ve paid your loans on or before the deadline, you’ll get a nod from Home Credit to increase your loans. Other than that, you can only claim your cash loans via the Home Credit App.
Repayment terms
You are given a flexible repayment term ranging from 15 days to 36 months. Fifteen days, really? If you pay your loan in full within 15 days, they’ll waive all your interest fees. For instance, you loaned the amount of P40,000 and decided to pay the said loan in one week. Since it’s within the two-week waiving period, you can pay P40,000 right on, right there.
Loan interest
Interest rates vary according to the loanable amount and payment terms. From my experience, it’s usually 0% to a whopping 200+% for 36 months. For early payers, you may benefit from interest re-calculation through the form of Full Early Repayment (FER) and Partial Early Repayment (PER), according to Home Credit. For late payments, you are charged with the following fees:
- Collection Charge: Php 200
- Due 30 days after: Php 400
- Past 60 days: Php 600
- Past Due 90 days: Php 800
I remember loaning an amount of P25,000 for 24 months and P40,000 for 36 months which was recalculated for PER. I think I paid (at least) around P900 to P1,200 a month. That’s why I finished early.
Requirements
Requirements are pretty much the same, but Home Credit only offers this product to customers with good credit history.
- Existing Home Credit Loan with good credit
- Two valid IDs, with at least one (1) bearing your current address.
- Primary IDs: SSS, PRC, Driver’s license, Voter’s ID, Passport, UMID
- Secondary IDs: Bank account statement, Brgy. Certificate/Clearance, Certificate of Employment, Credit/Saving Card, Company ID, Electric bill, Mobile phone bill, Water bill, PAGIBIG/HDMF ID, PhilHealth Card, Phone bill, Postal ID, Remittance Slip, Salary Slip, TIN, NBI Clearance
- Bank document and account numbers if loan is sent via bank
Home Credit Card
Expect a similar Visa-based credit card that can be used at 40 million establishments in over 200 countries where Visa is accepted. I have not applied for their CC product because I didn’t need to, so, I practically won’t know if this is good or not. Let me know if you have any experiences with it!
Features and benefits
You can turn your purchases to monthly installment for products worth P3,000+ at low interest rates. Some partner merchants will even let you avail of 0% interest rate for monthly payments. It’s also a no-need-to-dip or swipe the card payment as all you need to do is to tap your Home Credit Card number on accredited POS terminals.
Other features include:
- Smile Rewards Program for discounts and freebies.
- Accepts Cash Advance in various ATMs
- Expect extra protection with EMV Chip, PIN verification, 3D-Secure, and SMS alerts
- Enrolled in Card Protection Program and Insurance
- Get 1% rebate or cashback
Credit Card Fees and Charges
New rates are effective starting from August 1, 2020 and you can view them here.
Requirements
Usually, Home Credit will notify you if you are qualified for their credit card when you’re an existing customer. If you’re a new customer, you need to apply for a standard/commodity loan before getting a chance to be offered a Home Credit Card.
- Existing Home Credit Loan with good credit
- Two valid IDs, with at least one (1) bearing your current address.
- Primary IDs: SSS, PRC, Driver’s license, Voter’s ID, Passport, UMID
- Secondary IDs: Bank account statement, Brgy. Certificate/Clearance, Certificate of Employment, Credit/Saving Card, Company ID, Electric bill, Mobile phone bill, Water bill, PAGIBIG/HDMF ID, PhilHealth Card, Phone bill, Postal ID, Remittance Slip, Salary Slip, TIN, NBI Clearance
Promo Products
There will be 0% rate installment promos, cashbacks, and freebies from time to time. Check out their Promo Products page for the latest ones on board. Take note that these promos will have:
- Different deals and offers
- Limited partner stores (usually in Metro Manila only)
- Given only a specific period of time
Home Credit also has Raffle Promos from time to time. For instance, HC App users will get a chance to win this and that and more.
Insurance Products
Home Credit offers health and credit coverage when something happens to you that causes incapacitation of loan payment. This offer is valid for those with Home Credit existing loan where the company covers 120% of the initial amount in case of death of the borrower. Home Credit also offers health insurance to cover medical expenses in selected hospitals and clinics. Please talk to you HC agent for this. I’ve never availed of this type of product.
How and where to pay your Home Credit Loan
Refer to this chart on how to pay your Home Credit loan!
My Home Credit Review
I have availed three Home Credit products since 2017 (printer and cash loans). Yes, the popular lending business has gotten into me as well. This is what I think about them.
Application – 4.8/5
I have no qualms when applying for a Home Credit Loan. Actually, I was accepted at first try when trying to buy a printer that busted overnight when printing personal photos. That day, I bought an EPSON L360 for Php7,000+, but I’ve got only Php3,000+ in my pocket. So, I opted for a Home Credit loan. Overall, my total payment was Php9000+ for 9 months without subtracting my down payment.
For application, I have:
- 2 government IDs
- Proof of income (Company payslip)
- Down payment of P3500 (nearly a half of the price to buy)
The process was smooth and fast given it was 6PM at Robinson’s Jaro.
The second time I applied for Home Credit was for a cash loan of Php16,000. Why, you ask? Got curious. It was my first time to apply for a cash loan. Anyway, I got something lower than that, since I don’t need the whole amount of Php16k.
I had a good payment history since I finished my previous loan in just three (3) months’ time.
Like my previous application, the process was seamless and very quick! I had it deposited via BPI for that matter. I got my loan in just 30 minutes, I guess. My third application for Home Credit was a higher amount than the previous one. When your credit score with them is pretty high, you’ll receive a much larger amount in the future – and some benefits, freebies, or promos (insurance coverage, cash allowances, etc.).
Noticed from friends and other Home Credit applicants:
Many of them claimed that Home Credit is unfair when it comes to applications. I don’t know but they said it’s a bit unfair despite them completing the said requirements. They are strict – I know that – after all, Home Credit is a business entity.
I’ll post some TIPS BELOW ON HOW TO GET YOUR HOME CREDIT LOAN APPROVED FAST. I think I got the gist on its application process after hearing my friends’ complaints and wiring my own experiences.
Paying Home Credit – 5/5
I have no problems paying Home Credit since I jot down all my monthly expenses in a journal. That way, I get a better view when to make payments. Home Credit prefers payments made three (3) days before your due date and I think it’s fine.
Many, though, were annoyed that Home Credit’s customer service kept calling them non-stop – including their loan character references.
I never get to experience that.
Maybe, it’s because I make advance payments. Usually my next due is two to three months from the current month we’re at.
I use GCash, by the way. It’s easy, fast, and convenient for me. I don’t have to go to Robinson’s Jaro, 7-11, or to the bank to make an over-the-counter imbursement.
If you don’t have GCash yet, get it here.
What’s more, GCash reflects real-time payment of your Home Credit loan. Expect an SMS to confirm your transaction (5 to 10 minutes) and an update on your balance via Home Credit App (6 to 24 hours).
Customer Service – 1/5 for online chat, email, and calls / 4/5 for face-to-face agents
This is the most problematic area Home Credit is facing – customer service. It’s true that their online chat agents drop you off while on the line. It’s true they won’t listen to you when they answer your calls or emails. Sometimes, they would make a sarcastic remark or murmurs over the phone.
Home Credit is generally good; however, it has bad customer service. I do hope they continue to improve this department on their company. Sometimes, I think they’re rude because they’ve been bombarded by lots of bad-mouthed customers as well.
Have you seen their Facebook posts where customers ill-talk them? I get it. But, as the face of the company, their customer representatives should better handle all the hot wires thrown at them.
It’s super rare to encounter a kind, understanding, and calm HC agent.
But, I like the Home Credit agents back in Robinson’s Jaro. I say hi to them, hehe. Sometimes, they take the extra mile to get your documents approved there. They have a chatty and informal way of talking to you, though, which an introvert like me gets chills all the time.
Products – 4.5/5
I’ve been using Home Credit throughout the years and I love how they expand their products to customers. I remember some of their financial services are only available for Metro Manila residents – but, look at that. I can finally avail of all of it even though I’m from Iloilo. So far, their products are good.
Communication – 3/5
Okay, so I’m weirded out how their communication is not really syncing in with each other. Their SMS, email, and app notifications often come in too late from one after another.
For instance, I’m offered a cash loan assistance for COVID-19 via SMS in the morning (application is valid for two days only). I’ll get that message via email in the afternoon and three days later from the app only. By that time, the offer has already expired.
Take note: you get your cash loan via the Home Credit App. So, it’s always expired when I open the app. During those initial two days, I’ll have to wait for the offer to popup on my dashboard. Nada.
My Home Credit review score
Overall, it scored 4/5 (3.96/5, actually) for me. Home Credit is generally not that bad, but, sadly, their customer service is…really, not that good. I do hope they’ll improve that aspect of the business.
If you ask me whether I’ll continue using Home Credit – the answer is, yes. I just hope I’ll have fewer interactions with their agents though. Or, I’ll just limit myself to Robinson’s Jaro Home Credit agents.
Now, for the tips!
How to get your Home Credit loan approved fast
I’ve heard some of my friends saying that Home Credit has a strict application process and not many can avail of their loan. But, how did I get through the first time and succeeded on the next, and next, and next?
Don’t lie about your loans
Did you know Home Credit will study your credit history via the Philippine Credit Information Corporation? As a lending corporation, they have the right to do so. That’s one way to safeguard their finances – as well as yours. Don’t try to borrow money if you can’t afford to pay it on time. What’s more, never take a loan just to pay off another loan. Your liabilities will just mount up.
Present a lot of requirements
Other than the 2 IDs, I presented Home Credit my proof of income and a little financial statement for the past three months of my work. For proof of income, you can have:
- Payslip
- Bank statements
- Social security or pension certification (you can get it from the institution itself like SSS, GSIS, etc.)
- Tax returns
- Annual income tax returns for self-employed individuals and business owners
- Worker’s compensation letter from employer
- Royalty statements if you’re an artist or what
- And more!
You can even declare some assets such as own house, car, computers, other gadgets. This is simply a talk or discussion with an agent. They’re not going to treat it as collateral for your loan.
How many is many? As many as you can think of. Sometimes your effort of putting up those requirements will win against the agents of Home Credits. They might even put up a good word for you.
Pay a lot more during down payment
If you want to get a nod from Home Credit, you must put up a good face and say you can pay more than 20% of the down payment for the goods purchased. Why not 30% or 35% of the price of goods? At least you’ll have a lighter monthly installment by then.
Pay bills on time – the earlier, the better
If you’re planning to take a loan from Home Credit again, you need to make sipsip and be pabida sa kanila right now with your current loan. They’ll give you sweeter and better offers in the future. What’s more, they’ll improve your credit score at the Credit Information Corporation.
Things to remember when taking a loan
We get it-you’re in for the money. But taking a loan means a hefty responsibility to follow through. Only take a loan if it’s necessary!
What will you do with that money?
So, Home Credit offered you, like say, P100,000. What will you with money that’s not yours, to begin with? You’re borrowing it. Then you have to pay that amount with interest. Think first before running to the nearest Home Credit store!
- Do you really need a loan to pay off some expenses?
- Can you currently pay your current liabilities with just your budget?
- Could you still live comfortably if you pay with your own money?
- Are there other ways to pay your current debts without accruing interest?
- Do you think you can still delay your payments?
Take what you can afford (to pay back)
Don’t take a loan which you obviously can’t pay especially when your due is near. If you think you can’t manage Php20,000, then opt for smaller amounts like Php3,000.
Don’t get a loan when you have other loans
You have other liabilities to pay, so, why will you get another loan if you can’t even finish paying the first few ones? Many people make the mistake of taking a loan just to finish off a current loan. And they’re stuck in this loop, cycle, or wheel of never-ending loan-borrowing life.
Pay earlier = smaller interest rate, pay later=higher interest rate
For instance, you need to pay Home Credit’s loan of Php40,000. If you can pay within 15 days, they’ll waive off your interest. But, if you opt to pay that amount within 36 months, Home Credit will calculate your payment with higher interest rates. In the end, the company might make a charge of a hefty P80,000.
Decide whether the company’s payment plan works better for you
Using the example above, are you willing to pay monthly installments for three (3) years, with a total of P80,000. Let’s draw out an example scenario.
Let’s say, Isaac earns P30,000 a month as a freelance writer. His laptop got busted and needs to buy a new one. Then, he found a laptop worth P40,000 and needed to buy it now because he needs to work pronto.
Isaac paid 25% or P10,000 as a down payment for the product and thought about his payment plans. He has Php30,000 in his bank account and will be earning another Php30,000 next month. Will he take the chance and pay in full? That would leave him P30,000 after payment.
But what of his other needs? Compounding a payment might deprive him of his other needs. While the better option is to pay now and worry no more of future payments, he can opt for a more flexible payment of 24 months.
He can set aside around Php1,300 for his monthly installment (or, he can pay more if it’s an open contract) for two years while enjoying the rest of his earnings in other commodities.
Just think about it
In the long run, you need to make a smart decision whether taking a loan is really for you. I’ll talk more about Home Credit, loans, and other financial matters soon on glorymoralidad.com! This article is already jam-packed with information. Please refer to Home Credit if you have other questions! I’m just reviewing their products. That’s all.
Disclaimer: I am not affiliated with Home Credit. This review is taken from my own personal dealings with the company.
