ORCR means "official receipt and certificate of registration," and Sangla means "to pawn". It is a type of loan where the borrower can easily obtain a loan by presenting their car's original certificate of registration and official receipt (ORCR). Here, the registration papers for the car act as security. The lending product has a higher loan approval rate. However, it also has a major drawback. If the borrower fails to complete his loan repayment, the lender will be able to seize the vehicle legally.
What is an ORCR Sangla loan?
An ORCR car loan offers a secured loan option to vehicle owners who need immediate cash. There is no option to avail of an unsecured loan using your ORCR. Using your car's ORCR, you will be granted a loan amount depending on the fair market value of your vehicle. You do not need to take out your automobile for a direct exchange if you apply for an ORCR Sangla loan. Only the ORCR documentation will be needed to apply for this loan. ORCR Sangla loan features low-interest rates ranging from 1.3% to 2.5%, depending on the age and type of car registered on your ORCR. Payment terms can also extend to 48 months for more manageable monthly payments.
How does an ORCR Sangla loan work?
ORCR Sangla loan is a type of automobile title loan, and title loans are secured personal loans, which means you must provide collateral to qualify for this loan. In this case, the collateral you will use as the title is your car's ORCR. To qualify for an ORCR car collateral loan, the vehicle you intend to use as collateral must be registered in your name and free of encumbrances (must be fully paid). The market value of your vehicle determines the amount you can borrow. Once accepted, you might receive up to 80% of the current market value of your vehicle. The greater the worth of your car, the greater the amount you can borrow. However, unlike most auto title loans, the ORCR Sangla loan does not compel you to forfeit your vehicle. Instead, you can keep using the vehicle. All you need to bring is a copy of your vehicle's ORCR.
Where can I get an ORCR Sangla loan?
ORCR Sangla, also known as a car pawning loan, has been in the target market for several years. Many lenders have proven to be a reliable source to avail of this lending product. If you search for an ORCR Sangla loan online, you will be matched with dozens of banks and private financial organizations who have an excellent track record with ORCR loans. However, a major problem exists in determining which of them is the best and what exactly makes some lenders better than others. Here is a list of some ORCR Sangla loan lenders in the Philippines:
Radiowealth Finance Corp.
They began as a radio and automobile maker and have since grown to become one of the country's most recognized and reputable lenders. Radiowealth Finance Corp. (RFC) began as a small radio repair shop in 1930, expanded into appliance assembly, pioneered appliance finance, and currently offers a wide range of financial solutions, including ORCR car collateral loan and salary loan.
RFC accepts OCRs as collateral for the RFC business loans. These loans are divided into three categories:
Working capital loans. Which are available to established business owners who require only liquid funds.
Business expansion loan. Which is for established business owners seeking to expand by purchasing additional assets (equipment).
Franchise financing loan. This is for prospective business owners who require additional funds to launch their franchise firm in the Philippines.
The total loan amount for all these is at least ₱10,000, with your car's ORCR serving as collateral. The loan length ranges from 3 to 36 months.
Maybank Philippines Inc.
Maybank is a well-known commercial bank that provides services to retail, commercial, and corporate customers. Maybank Philippines Inc. (MPI) offers a broad range of financial services and products, including personal, salary, commercial, and corporate loans. They also offer deposits, e-banking, credit cards, car pawning services, cash management services, money transfers, trust and fiduciary accounts, and other related financial products and services. MPI has been on all three major islands of the Philippines (including Makati City) for the past 20 years. They have approximately 73 branches nationally and 93 offsite and on-site ATMs.
Suppose you need to raise funds for personal or corporate purposes. In that case, their refinancing option allows you to utilize the ORCR of your existing vehicle as collateral, even if it is up to 10 years old. The maximum loanable amount for this loan is 60% of the appraised value of your vehicle, processing takes three days, and the loan tenure is up to 24 months. However, keep in mind that this product is exclusively available to business owners. If your primary source of income is employment, remittances, or investments, you should look into other options.
Global Dominion Financing Inc.
Global Dominion Financing Inc. (GDFI) is a financial organization that has championed innovative loan facilities with easily manageable interest rates and accessible payment options. Borrowers can use it for automobile purchases, business capital, education fees, home improvements, car pawning, and urgent medical needs. While OFW loans have traditionally been the company's best product, they are now one of the leading providers of ORCR Sangla loans. They provide affordable secured loan products for customers who own a car (private car or PUV), truck, or tricycle and need fast cash. The interest rate is 1.2%, the payment term is 3-36 months, and the loanable amount is up to 80% of your car's current fair market value. Processing time is around three days when all the prerequisites are met.
SB Finance Car4Cash
With SB Finance's Car4Cash service, you can borrow from ₱100,000 to ₱2 million using only the ORCR of your vehicle. They are affiliated with the Security Bank. The loan terms are flexible — you can repay this secured loan in the Philippines in 12, 18, 24, or 36 months. When you use Car4Cash, you just have to submit the hardcopy of your ORCR, and the bank will retain it until the loan is fully paid off. However, please, remember that SB Finance only accepts cars manufactured after 2011. Interest rates begin at 1.25%, but the rate you receive is determined by the age of your car and the period of your loan.
Asialink collateral loans
Asialink's ORCR collateral lending program accepts many vehicles, including automobiles (model 2000 and up), trucks, PUVs, PUJs, taxis, tricycles, motorbikes, and multicasts. Like with other similar ORCR products, there is no need to surrender your automobile. Asialink accepts bikes and tricycles from the following manufacturers as collateral: Honda, Suzuki, Yamaha, and Kawasaki. Interest rates begin at 1.25%.
Types of ORCR Sangla loans in the Philippines
There are four types of ORCR car collateral loans offered in the Philippines. A brief description will be given for each to help you understand how it works. This will also help you in deciding exactly which category your case falls into if you want to apply for an ORCR loan. All of these categories, however, require certification of your official receipt and vehicle license receipt with the land transportation agency. Confirming data is much more difficult if your ORCR mother file is located outside your application's city. It may take longer to process in this situation because they must verify authentication to other financing branches.
Unsecured financing
With your authentic ORCR and a few documents, you can acquire a loan without mortgaging your vehicle's possession to the lending company. The process to apply for such loans will be discussed later on because all forms of Sangla ORCR loans have the same application process.
Car impounding
Among the four categories of Sangla ORCR loans, this option provides the borrower with the quickest cash loan proceed. Using this product, you will be able to receive your loan amount in 1-3 hours. Some major benefit here is that there is no need to stand in line, attend long interviews, or submit multiple documents to get a loan. To get your loan, all you need to do is surrender your automobile, and leave your keys along with the original ORCR.
Used car financing
This is ideal for individuals looking to purchase a used automobile. Lenders offering this loan will only accept vehicles manufactured in 2000 or later. The loan borrower in this category will have to submit the original ORCR of the vehicle, but they should always request a copy from either the car dealer or seller for safety purposes. Because they might have to submit it during the banking proceeds. Furthermore, due to the involvement of a third party (the seller or dealer), this form of loan takes substantially longer to process.
Car loan refinancing
In automobile refinancing, the lending institution will take over the loan from the bank, financing company, or in-house car dealer. This is also known as the payout balance. To avail of this option, the remaining loan balance from the bank or private financier must be at least 20% of the entire value of the financed vehicle. This means the borrower must complete a payment worth 80% of the car's current market value.
How to apply for an ORCR Sangla loan in the Philippines
If you're interested in getting a Sangla ORCR loan Philippines, follow these steps:
Collect all relevant information
Obtain your vehicle's ORCR and conduct some online research to determine how much your vehicle is worth. This will prepare you for the upcoming application process for the Sangla ORCR loan.
Complete an application online or in person
Depending on the lender, you might be eligible to apply for a Sangla ORCR loan online or in person. You can either download the online application form or visit the nearest branch and ask for an application form. After this, you have to fill out the form, where you'll need to provide basic information about yourself, like your personal and contact details and your vehicle's type and model.
Get your vehicle assessed
After that, you will submit your application form, and the Sangla ORCR loan lender will point you toward an appraisal location. You'll take your vehicle there so they can assess its worth and calculate how much money they can lend you.
Complete and sign the loan papers
Once the car has been assessed, the lender will present you with a loan offer. Then you have to read all the details and accept it. After accepting the offer, complete and sign all the paperwork, read the documents carefully, and contact the lender if you have any questions. After you've applied and submitted your paperwork, it takes just 3-4 working days for your ORCR Sangla loan to be ready for disbursement.
Receive your money
Once you accept the offer the lender will start the loan disbursement process. In many situations, you can get your loan proceeds from a Sangla ORCR loan lender on the same day. This also depends on whether your automobile has been appraised and the loan documentation has been completed.
Who is eligible for an ORCR Sangla loan?
ORCR car collateral loan borrowers must be Filipino citizens between the ages of 21 and 65. They must have a source of income and possess a car in their name free of bank encumbrances, with a valid ORCR. Business owners, proprietors, and organizations can also use the ORCR of their commercial vehicles such as trucks, cabs, UVs, and vans to obtain the ORCR Sangla loans. Furthermore, commercial vehicle ORCRs have an interest rate starting at around 1.5%.
Below is a list of the eligibility and documentary requirements for this loan:
Eligibility requirements
To be eligible, an applicant must:
Be a Filipino citizen.
Be the owner of the vehicle.
Have a proven source of revenue.
Additionally:
The vehicle or truck must be owned and unencumbered by the agent user.
Only models from 2000 are acceptable for vehicle Sangla. Most lenders approve vehicles from any brand.
Any brand and year model is acceptable for a truck Sangla.
Documentary requirements
Completely filled application form.
Two primary valid government-issued IDs, with picture and signature.
One latest utility bill (a photocopy of the latest water bill or electric bill) of at least six months.
Copy of the vehicle'sORCR.
Proof of tax identification number (TIN)
Proof of documented source of lender's income:
If employed, include a certificate of employment from the current employer, company ID, Mayor's permit, the most recent pay stubs, and a payroll bank account statement.
If self-employed with a business (proprietor), you must have a Mayor's permit, a DTI registration, business papers, the company ID, and three months of bank statements.
How to repay an ORCR Sangla loan debt
ORCR Sangla loan Philippines offers convenient payment options. Borrowers generally have the option to pay back the loan and its interest in monthly installments. Depending on the lender and loan terms, the repayment duration can range from several months to a few years. Some lenders will let you pay off your loan early with no penalty. Payment can be made through the automatic debit arrangement, ADA, one of the most convenient payment options, which must be activated while applying for the loan, through quick cash transfer services, or offline over-the-counter payment. It largely depends on the lender you choose and your choice of payment.
Pros and cons of ORCR Sangla loans
It is worth checking out these pros and cons before applying for a loan.
Pros
Provides faster disbursements. When you desperately need cash, this loan is one of the most waiting stress-free cash loan choices. You won't need anything else because you have an automobile. Contact your local ORCR car collateral loan provider, meet the complete requirements, and collect the cash as soon as possible.
Offers possession of the vehicle. Loan borrowers can keep their vehicles, and lenders want the original copy of the ORCR.
Offers a fast application process. The basic requirements from ORCR Sangla loan providers in the Philippines are the same. Valid IDs, a genuine copy of the vehicle's ORCR, payslips, and a few corporate paperwork (if you own a business) are all required. A few simple prerequisites allow for quick loan processing.
Cons
Has high-interest rates. This implies you may have to spend more cash on repaying the loan and getting your automobile back. Some lending organizations provide a low-interest rate ranging from 1.5% to 3.5%, while others charge as much as 10% each month.
Has risks of low appraisals. If the loan company uses an old-fashioned technique of calculating car value, you could receive less than the vehicle's true value. This is why you should choose a lender with a good reputation for providing high appraisals.
Legal regulation of the ORCR Sangla loan industry in the Philippines
The Securities and Exchange Commission (SEC), the Lending Company Regulation Act (RA No. 9474), the Bangko Sentral ng Pilipinas (BSP), and other lending regulations govern ORCR Sangla loans. Lending restrictions include an acceptable interest rate charged to borrowers by financial institutions and annual loan limits. These regulations keep lenders from charging extravagant fees or usurious interest rates without prior notice.
The Bangko Sentral ng Pilipinas (BSP)
The Philippine Central Bank, or BSP, is responsible for maintaining price stability, a secure economic system, and a competitive payment system. It acts through its Monetary Board. As a central bank, the BSP controls and supervises ORCR Sangla loan lenders to ensure that unethical lending practices are avoided.
The Lending Company Regulation Act (RA No. 9474)
Before they can lawfully operate, lending organizations must register with the Bangko Sentral ng Pilipinas (BSP) and apply for an operating license with the Securities and Exchange Commission (SEC). The major purpose of this law is to protect customers from dishonest lenders who prey on people who need cash but cannot obtain it through any other channel.
The actual cost of an ORCR Sangla loan
The maximum amount that can be borrowed by a client and repaid over a 12 to 36-month period is 80% of the cost of the car. However, this also depends on the value of the vehicle. Furthermore, the interest rate can be as low as 1.5% per month or as high as 10% per month, depending on the lender you choose. The average loanable amount using an ORCR is between ₱10,000 to ₱1,000,000. There could also be an extra cost, like the application fee, the processing fee, the late payment charges, etc. This depends on the lender you choose.
Conclusion
An ORCR Sangla loan in the Philippines might provide immediate cash. However, you should save this option as much as possible for situations that require a substantial sum of money, such as emergencies. While the application process is simple and the cash is delivered promptly, repaying the loan can bring surprises due to the high-interest rate. As a result, we strongly advise you to weigh all of your options before making a decision.