Taking a loan is one of the most common ways to get funds, which may be used to purchase a car, a home, or establish a small business, among other things.
To avoid errors, it is best to obtain a loan only from a recognized and regulated financial institution when in desperate need. This would include banks approved by the SEC to provide Filipino lending services. Applying for a loan with the Rizal Commercial Banking Corporation, or RCBC, is one of the best alternatives in this respect among different banks.
What is an RCBC loan?
RCBC loans are entirely financed by the RCBC bank, a prominent universal bank in the Philippines that offers a diverse range of market-leading goods and services, including business and consumer lending. RCBC provides fair interest rates and simple repayment alternatives to help you fund any of your personal or commercial needs. These requirements might include college costs, house remodeling, purchasing furniture, home appliances, gadgets, travel, debt repayment, and other special events, beginning your own business, obtaining extra funds for development, or engaging in other commercial operations.
The Yuchengco Group of Companies (YGC), one of Southeast Asia's oldest and largest conglomerates with over 60 firms, owns most of the Rizal Commercial Banking Corporation. It is the country's leading private domestic bank by assets, with approximately 444 branches and 2,492 ATMs and ATM units as of the end of March 2022. It is one of the largest private domestic banks in the Philippines. The Rizal Commercial Banking Corporation (RCBC), founded in 1960, is one of the Philippines' central universal banks. Its headquarters are located at G/F, Yuchengco Tower, RCBC Plaza, 6819 Ayala Avenue, Makati City, Manila. RCBC provides various financial products and banking solutions to meet various borrowing needs, including personal, home, and vehicle loans. Depending on the bank's credit evaluation of your playing ability, you may be allowed to borrow a total loan of up to ₱1,000,000 to meet your financial obligations.
What are the major types of RCBC loans?
RCBC offers a variety of loan packages, each with a distinct loan length, which may be roughly classified as personal and business loans.
Personal, house, and vehicle loans are available to borrowers under this category.
Personal loans
Personal loans are multi-purpose loans that may be used for various reasons. It can be used for large purchases, medical bills, tuition fees, vacations, renovations, auto repairs, debt repayment, working capital, and emergency expenses. It is accessible to both employed and self-employed applicants who can borrow a minimum loan amount of ₱50,000 and a maximum loan amount of ₱1,000,000. The available loan term is 6, 18, 24, and 36 months. The monthly interest rate is 1.7%.
Home loan
The Rizal Commercial Banking Corporation is a bank in the Philippines that provides public housing loans. The RCBC home loan allows you to acquire a lot, a house and lot, a condominium unit, or a townhouse. It also enables you to refinance existing loans, build a house, get your housing bills refunded or refinanced, and even repair your home. The loan amount might be up to 80% of the property's appraised value, with no lock-in term and an annual interest rate of 6.38%. In addition, the loan period ranges from one to twenty years.
Auto loans
RCBC Car Loans are easily accessible to consumers residing in the Philippines, with low annual interest rates and variable loan quantities. An interested person can obtain a loan for as little as ₱300,000 and as much as ₱5,000,000. For a 20% downpayment and durations ranging from 12 to 60 months it provides an outstanding balance for borrowers. The loan amount determines whether it provides low monthly amortization or high.
Corporate loans
Corporate loans and corporate wage loans are included in this category.
RCBC provides the following corporate loans:
Rizal Biz access line. A "short-term revolving credit line" is intended to provide additional operating capital.
Revolving credit line. Its goal is to meet a company's general working capital needs.
Standby Letters of Credit. It attempts to give credit to suppliers, distributors, and retailers with guaranteed payments on items requested.
Import and domestic letters of credit. With this offer, the seller would be assured payment as long as the bidder followed the requirements.
Trust receipt financing. According to the bank, the purpose of this business loan offer is to provide clients with ample time to process and sell their products under favorable conditions.
Export Advance and Foreign Bill Purchase Facility. This loan offer intends to give an amount sufficient to finance exports.
Shipping guarantee. With this loan offer, the company will receive financial assistance while customer collections are pending.
Medium and long-term business loans. This loan offer is the first step in expanding or developing a firm by expanding, upgrading, or acquiring new equipment or facilities.
Corporate salary loans
Salary loans are non-collateralized, salary-deductible credit lines available to workers of qualified businesses. Employees are given extra perks with RCBC salary loans, including access to cash loans ranging from ₱20,000 to ₱1,000,000. These loans include low-interest rates and flexible payment durations of 6, 12, 18, 24, 30, 36, 48, and 60 months.
How to apply for an RCBC loan?
A gadget with Internet connectivity may be used to apply for an RCBC loan (personal loans are processed in the bank). A loan applicant should gather all the requirements and submit their application correctly. An RCBC loan application can be made at the bank by filling out a loan form or online by visiting the bank's official website.
Applying at an RCBC branch
To get started with the application process:
Proceed to the RCBC branch closest to you.
Ask for a loan form. Request a form carrying the loan structure you're interested in.
Find out the requirements.
Fill out the form if you're eligible.
Submit the form with the requirements.
Applying online
To begin the application procedure, navigate to the bank's official website. Find the menu. Now that you've decided on a loan package, select either personal or business loans. It is preferable to become acquainted with the specifics of the loan of one's choice, particularly its conditions.
Please, fill out the form, attach the relevant papers, and submit it.
What are the main requirements for getting an RCBC loan?
RCBC loan requirements are often determined by the loan offer that an individual is willing to accept, and various offers have varying requirements.
Personal loans
To apply for an RCBC personal loan, fill out the online application form or visit a branch.
If you are an employee
You must be a Filipino or a dual citizen.
While applying for a loan, you must be a minimum of 21 years of age but under 65 years old at the time of loan maturity.
You must own a cell phone, an office phone, or a home phone.
It would help if you were locally employed by a corporation registered under the SEC.
It would help you if you had a minimum employment tenure of at least two years with a gross monthly salary of ₱30,000.
If you are self-employed,
You must be Filipino.
At the time of the loan application, you must be a minimum of 21 years of age. At the loan maturity date, you should be under 65 years of age.
You must own a cell phone, an office phone, or a home phone.
It would be best if you had a business operating in the Philippines for at least three years with a minimum gross monthly income of ₱100,000.
According to the bank's official website, the document requirements for personal loans are:
Accomplished RCBC Personal Loan Application Form.
Certificate of Employment (COE) or latest ITR, two valid government-issued IDs, TIN, and utility bill.
Business Papers (DTI or SEC, Mayor's Permit), Latest ITR or Audited Financial Statements, or latest 3-month bank statement.
To be considered eligible for an auto loan with RCBC, applicants must meet the following requirements.
Applicants must be Filipino citizens or dual citizens.
They must be at least 21 years old at the time of the auto loan application.
They must be at most 65 years old upon auto loan maturity.
They must have a mobile number and an office landline or residence landline.
They should have a minimum employment tenure of one year and a minimum gross monthly income of ₱40,000.
Apart from that, you will also need the following documents.
RCBC Auto Loan application form
Certificate of Employment (COE) or latest ITR
Two valid government-issued IDs
TIN (taxpayer identification number)
Utility bills.
Completed RCBC auto loan application form.
Business registration with DTI(department of trade and industry).
Audited financial statements.
ITR (income tax returns) or bank statements.
Home loan
The applicant must meet the following requirements to be eligible for a home loan with RCBC.
For employed
The individual must be a Filipino citizen or a dual citizen if a foreigner, and be married to a Filipino citizen.
They should be between 21-65 years old.
They must have a mobile number as well as a residence or office landline.
They should have a minimum employment timeline of one year and a minimum gross monthly income of ₱40,000.
An OFW must have worked abroad for at least two consecutive years.
For self-employed
An applicant must be a Filipino citizen or a dual citizen. However, a foreigner must be married to a Filipino citizen.
They must be at least 21 years old upon loan application and at most 70 years old upon loan maturity. Like other loan offers, the applicant must have a mobile number and a residence or office landline.
The business should be in profitable operation for the last two years.
Document requirements for RCBC home loans
Completed RCBC home loan application form.
Copy of TCT and tax declaration
Bill of material.
For Employees
Certificate of Employment (COE) or the latest ITR
Two valid government-issued IDs
TIN
Utility bill.
For Self-employed
Business Registration with DTI
Audited Financial Statements, ITR, or bank statements.
Corporate loans
Corporate loans are accessible to Filipino residents between the ages of 21 at the time of application and 70 at the time of loan maturity. Applicants are expected to demonstrate a stable source of income, whether from a regular wage or a company. The following documents must be supplied for processing and evaluation:
Proof of identity, i.e., birth certificate, government-issued IDs
Proof of income, i.e., cash flow report, latest payslips.
Proof of business registration, i.e., SEC or DTI Registration, Mayor's Permit.
Collateral documents
Proof of residence or residence certificate.
Eligibility for companies
Must be a corporation that has existed for at least five years and a company registered under the Securities and Exchange Commission is only eligible to apply. It has to have been profitable in the previous three years and have at least 50 regular workers.
Eligibility for employees
Applicants must be:
Regular employees for over two years at least
Filipino or permanent resident foreigner
21 years old at least at the point of application and less than 65 years old upon loan maturity
Earning a minimum gross monthly income of ₱10,000
First monthly amortization should not be more than 30% of gross monthly income.
Corporate salary loans
The following are the eligibility criteria for applying for a salary loan.
For self-employed individuals
SEC Certificate of Registration Company Accreditation Application Form
By-Laws and Articles of Incorporation
The most recent General Information Sheet
Financial statements for the last three years that have been audited
Income during the last three years
Returns on taxes
Company Information
For employed individuals
Regular employees with at least two years of employment tenure.
Filipino or permanent resident foreigner.
21 years of age at application and below 65 years of age upon loan maturity.
A minimum gross monthly income of ₱10,000.
Amortization should not be more than 30% of gross monthly income.
Document required
As an employer, you will need to present the following documents:
Company accreditation
Application form
Certificate of registration from the Securities and Exchange Commission
Articles of Incorporation and By-Laws
Latest General Information Sheet
Latest three years of audited financial statements
Latest three years of income
Tax returns
Company profile.
As an employee, you will need to present the following documents:
Filled out and signed the salary loan application form
Signed three copies of the promissory note and disclosure statement
Photocopy of company ID and valid photo-bearing government-issued ID with birthdate and signature
Photocopy of the latest one-month payslip.
How to repay an RCBC loan debt?
Borrowers can return their RCBC loans by going to their local bank and paying their payments. Aside from that, there are over 2,500 M. Lhuillier branches around the Philippines, and borrowers may now use M. Lhuillier's offline bill payment services to settle their RCBC vehicle loans, house loans, or personal loans. For loan payments, you can use the ML Kwarta Padala (KP) form, which is accessible at all M. Lhuillier locations. Fill out the ML KP Form with the following payment information for bill payment.
Company Name: RCBC Consumer Loans
Account Name: Name of the Borrower
Account Number: Loan Account No.
Contact No: Mobile Number/Contact Information
Amount: Amount of payment and whatever other details are needed.
One can also settle monthly RCBC dues via RCBC online banking. Just do a one-time enrollment as the biller and proceed to pay your bill.
Pros and cons
When contemplating taking out a loan, it is essential to understand the advantages and disadvantages of such a loan to determine if you're capable of taking it.
Pros
Given its time around, RCBC has market experience.
The RCBC is an award-winning bank in the Philippines.
There's a wide array of products and services from which Filipinos can choose. Its flexible payment terms are a bonus.
Cons
RCBC loans require the individual to have a higher monthly gross income to avail of the loans.
Personal loans are to be processed in the bank as they are not available online.
Legal regulation of RCBC loans in the Philippines
According to the SEC, if a lender wants to offer loans to Filipinos, all the loan agreements must specify general terms that define the legal obligations of each party. The repayment schedule, contract breach, interest rate, loan security, and collateral must be clearly outlined.
Involved parties. This refers to the borrower and the lender. Their personal information should be clearly stated in the loan agreement. The information would typically include both sides' names, addresses, social security numbers, and phone numbers.
Choice of law. It is required where the loan agreement cuts across laws in two or more jurisdictions. This is where the laws governing a specific part of a loan agreement may differ from the same law in another jurisdiction. It is crucial to determine which laws will apply.
Severability clause. This means that the terms of each contract are independent of each other. Hence, if one condition of the contract is deemed unenforceable by a court, it doesn't imply that every requirement is unenforceable.
Entire agreement clause. This term defines the final agreement, and it supersedes any previous agreements that were made during negotiations, whether written or oral. In other words, it is the final say, so anything said or written before no longer applies.
The actual cost of an RCBC loan
The smallest loan amount available to an individual is ₱50,000, and they can borrow up to ₱1,000,000. The loan amount, however, is subject to bank approval and is calculated depending on the income verification provided.
The effective interest rate for cash loans in the Philippines typically ranges from 1.25% to 15%. The EIR is the rate used to calculate the cost of borrowing money. The following fees and costs are included in the EIR:
Monthly interest charge. This could vary depending on the loan offer in which one has taken an interest. However, the personal loan interest is at a fixed rate of 16.08% per annum, with a 1.40% per month add-on. The interest rate is applied to the total amount owed, including any unpaid personal loan fees and levies. Borrowers continue to pay interest until the loan sum is paid in full, compounded monthly.
Processing fee. The processing charge for an RCBC loan offer is ₱1,500 for a loan of ₱150,000.00 or 1% of the approved loan amount above ₱150,000, which is deducted from loan revenues.
Late payment fee. The late payment fee is 5% of the amount owed yearly, or ₱300 whichever is greater.
Returned check fee. In RCBC loans, the returned check cost is ₱500 per returned check.
Bank Certification fee. The certification fee for an RCBC loan is ₱100 per request.
Documentary stamp tax fee. The documentary stamp tax for RCBC loans is ₱1.00 for every ₱200.00 over the loan amount authorized loan amount or fraction thereof, whichever is greater. Applicable to approved loan amounts of more than ₱250,000 or business purposes.
Conclusion
RCBC provides a one-stop shop for Filipinos searching for a reliable source of financial services. With decades of delivering good service to Filipinos on its side, choosing which bank to go to for a loan should be a simple option.
Applying for an RCBC loan is simple and may be completed independently. The RCBC loan is an excellent way to obtain finances. Another benefit of RCBC loans is their cheap monthly amortization.
There is, however, a pressing need to understand how a loan would influence your finances before asking for one, especially if the lender's interest rates are high. This may be accomplished by utilizing the loan calculator on the bank's website.
If you have any questions about RCBC lending facilities, you may contact any of their nearby locations or their official website to learn more. Contact the bank via the domestic toll-free numbers listed on its website.