About Rural Bank of Bagabag Inc.
The Rural Bank of Bagabag (N.V.), Inc. was founded in 1968 to encourage rural development through loans and other financial services.
The Rural Bank of Bagabag Inc., with its banking services, has been able to accomplish a name for itself in the last four decades. Growth in rural towns was gradual due to a lack of cash in the area and a lack of outside investment. However, with initial support from the Bangko Sentral ng Pilipinas (BSP) and its issued deregulations, the bank was able to grow faster.
With its financial services, the bank serves the needs of communities like fishers, farming families, cooperatives, merchants, entrepreneurs, and even pensioners. With its strategic planning and expansions, the bank has established multiple branches to support agricultural and rural development in the country.
Pros and cons
Pros
- The bank’s loan approval procedure is simple and quick.
The bank offers low-interest rates and flexible payment arrangements.
They don’t require a lot of documentation for processing loans.
They provide financial services to low-income individuals.
Cons
The bank offers very limited loan products.
They mainly focus on small and medium businesses, so large enterprises might not benefit from them.
Products
The bank offers various products to the people living in Philipinnes. The category includes services like loans, deposit accounts, and other financial products.
Loans
The Rural Bank of Bagabag offers various loan services. The approval process takes up to 5-12 hours. Different loans come with different requirements. Interest rates vary for all types of loans. In general, the applicant must provide a photocopy of ID (preferably TIN) with signature and picture of the borrower, the latest 2×2 ID picture of the borrower, birth certificate, marriage contract (if married), photocopy of proofs of income along with expenses (pay slips, certificate of net pay, remittance slips, bank statements, bill payments, sales, and purchase ledgers). The bank offers the following loan products:
- Agricultural loans. Agrarian reform beneficiaries, farm organizations, and cooperatives are given loans for agricultural and rural reform goals. Secured loans have interest rates ranging from 12% to 15% per year, whereas unsecured loans have a rate of 21%. The terms range from 30 to 180 days.
- Salary-based consumption loans. Unsecured loans for various consumption reasons are provided to clients mostly based on a monthly wage, pension, or other fixed pay.
- Other consumption loans. Other consumption loans are given to borrowers to cover other personal and household expenses such as utilities, healthcare, and educational fees, with no salary, pension, or fixed remuneration as a repayment system.
- Small and medium enterprise loans. Major sectors of the economy (i.e., trade, industry, and services) are eligible for loans, including the practice of one's profession, tourism-related operations, and agri-business. Applicants must have the following documents: copy of articles of incorporation and by-laws, DTI trade name registration, Mayor's/business permit, and other government agencies license/permit, income tax return (ITR), and most recent financial statements, preferably BIR-filed.
- Housing loans. Users can also apply for a housing loan with the Rural Bank of Bagabag. They can use this loan to acquire lots for building residential houses and also for home improvements. To be eligible, the applicant is required to submit the building plan and bill of materials.
Deposit accounts
The bank offers its customers deposit account services to deposit money and earn regular interest. It provides two deposit accounts: a regular saving deposit and a certificate of time deposit. The regular saving deposit offers interest up to 0.5% per annum. Here, the minimum amount to open an account is ₱100, and the minimum amount to earn interest is ₱500. The time deposit account offers better interest rates. However, the account comes with an initial lockdown period, which means the amount you deposit here cannot be withdrawn at will.
Other services
The bank offers other financial services like money transfers, POS, etc. Users can receive money from domestic and international senders using the Western Union transfer facility. However, customers can only send domestic payments using this service.