With the current rise of COVID-19 cases in the Philippines, our usual routine suddenly encountered a long halt. Everyone is instructed to stay at home, stay healthy, and to stay vigilant amidst the stress and panic brought about by the pandemic. For the most part, people seem to be doing okay, save for most of our kababayans who are in no condition to handle the sudden offset of the E.C.Q. Yes, going through scheduled set of days for groceries and lining up for hours outside a pharmacy may seem like an unneeded occurrence, especially for us Filipinos who have no patience or tolerance for long lines, however, it cannot be helped, especially as we are all expected to comply with the rules and regulations of the enhanced quarantine period. Now, the extended quarantine period isn’t the only concern that most Filipinos have. The financial intake of employees seems to be taking a huge hit as well, due to the fact that work and productivity has been lessened due to the quarantine. Of course, work-from-home has been implemented for most corporate jobs (including online meetings and task dissemination), but even with that implementation, not all of the work projects can be accomplished, especially for those which would require logistics and physical appearance.
In such case, many of us are looking for ways to add a few amounts to our already dwindling savings. Some of us are even going as far as to borrow money from our neighbors, just to make ends meet. Borrowing money is absolutely an acceptable and understandable plan, but surely, there must be better ways to acquire a helpful amount without any risk of a high interest or an earful from impatient neighbors (you wouldn’t want to disturb the peaceful, neighborly relationship, after all). Well, worry no more, as we’ve enumerated a few secure ways for you to acquire a loan. Especially during this long quarantine period, no other resource is as critical as cash, since it is well-needed for purchasing food supplies and hygiene products. Choose one which would best work for you and plan out your steps accordingly, as this may either make or break your budget during the whole ECQ period:
1. Through Bank Loans
We know what you’re thinking, this is probably the most obvious choice. Of course, where else would you be able to borrow money from, other than a bank? But obvious as it may seem, in reality, not all people are really familiarized with the process of a bank loan and with the current situation, most banks are closed or on a skeletal work schedule so your loan application might get long delays. So to start off, we will begin with the basics.
What is a Bank Loan?
Simply put, it is the extension of money from a bank to another party with the agreement that the money will be repaid. When we say “another party,” it may either refer to an individual or to a group of people who are hoping to borrow a particular amount. Nearly all bank loans are made at interest, meaning borrowers pay a certain percentage of the principal amount to the lender as compensation for borrowing. Think of that percentage as a form of transaction fee. This is usually how banks earn money from managing loans, they charge a certain amount, taken from a chunk of the loan. Take note that most bank loans have a maturity date, somewhat of a deadline to which the borrower must have already repaid the loan. Another word for bank loan is bank advance.
How Do I Get a Bank Loan?
The process and requirements differ from bank to bank, however, there are a few common factors to consider when applying for one. A few of these generalized requirements are:
- Proof of Income for Salaried Employees – Also known as the BIR Form 2316 or W2, it is critical for it to be signed by your employer’s authorized representative.
- Proof of Identification – This may include your passport, your driver’s license, your voter’s ID, your company ID, etc.
It is important to note that depending on your earnings and proof of income, the amount you’ll be allowed to loan would vary. There is nothing to worry about, however, as surely, you may already have an idea of the amount that matches an average of your earnings. The bank would make sure that you’ll be able to pay back the amount in installments, interest included, so do not panic about being given a loan which may either be too low or too high. Remember, applying for a loan isn’t just about submitting a bunch of requirements, you’ll also be screened or interviewed by an authorized bank representative. Listen to the rules and technicalities, to avoid any confusion with the payment options.
2. Through a Government Loan
Mostly focusing on the business aspect of things, a government loan (also known as a government-backed loan) is a program by the government to provide the needs of individuals, businesses, and communities. These loans provide capital for those who may not qualify for a loan from a private lender. A similar thing about bank loans and government loans is that they do not just cater to individuals, but rather, to groups of people as well. This was formulated by the government to help improve the overall national economy and quality of life of its citizens, encourage entrepreneurship, and to provide protection against and relief from disasters (as with the current pandemic, caused by COVID-19).
How Do I Get a Government Loan?
The following may be required in order to apply for a government loan:
- A Filled Up Application Form
- Income Tax Returns for the last three (3) years (if applicable), with positive income in previous year
- Latest interim financial statements (if applicable)
- Simplified Bio-data of key officers (Major Owners and President/Manager)
- Proof of billing for business and residence
- Copy of last six (6) months Current Account statements
- Copies of two (2) valid government issued IDs with pictures
Again, this may vary, depending on policy changes within the government itself. Be sure to inquire with your local officials for more information.
3. Through Quick Cash Loans
Now, we will be cheating a bit here. Unlike the first two options, this isn’t really much of a loaning process, but more of a pawning process. If you really are running out of cash, be sure to check out your pre-loved jewelries and visit the nearest Cebuana Lhuillier branch near you. Cebuana Lhuillier provides the country’s leading pawning service to Filipinos in need of instant cash, offering a 40% higher appraisal rate VS other pawnshops hence, higher take home. Their 2,500 branches accept an array of items, from jewelry to gadgets, as a collateral. The company’s core business has evolved with the needs of its clients and thus, made itself well-known, even across the globe.
Commonly accepted items are:
- Platinum jewelry and watches
- Laptop computers
How is the Process?
- Visit any Cebuana Lhuillier Pawnshop branch and present the item to be pawned.
- Advise the branch personnel if you agree with the appraised value and net proceeds.
- Sign the pawn ticket on the space provided.
- Count the money received and secure the pawn ticket, which is required to be presented during renewal or redemption of the pawned item.
You may also check out Cebuana Lhuillier’s official website for more information: https://www.cebuanalhuillier.com/pawning/.