How to Get a Line of Credit in Cebu, Philippines
The Philippines, officially known as the Republic of the Philippines, is located in southeast Asia in the western Pacific Ocean. Cebu is one of the Islands of the Philippines and has a population of just over 3 million. The capital of Cebu is Cebu City. It is the second largest city in the Philippines. Cebuano is the native language, but Filipino is widely spoken. English is taught in schools and is used in business.
There are many domestic and foreign banks in Cebu and providing your credit history is acceptable to lenders, and you have financial stability, it is moderately easy to get a line of credit in Cebu, Philippines.
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Instructions
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Contact your own bank in Cebu, if you have one. You will find it easier to get a line of credit as the bank already knows your financial status. Alternatively, search online for major banks in your area. The largest domestic bank is the Bank of Cebu. Other banks in Cebu, Philippines, both domestic and foreign, include the Philippine National Bank, Banco de Oro, Union Bank and HSBC (see Resources for a list of banks).
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Call several banks to find out their requirements, interest charges and other fees associated with getting a line of credit in Cebu, Philippines. Expect annual interest rates to be in the region of 6 to 12 percent. Charges relate to processing fees (approximately Philippine Peso, or Php, 1,500) and Documentary Stamp Tax (Php 1 per Php of loan amount). Both are usually deducted from the loan.
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Choose the bank in Cebu where you want to get a line of credit. Make an appointment to visit in person. Ensure you tell the bank that you want to get a line of credit and be clear about the reason and the amount. Banks in Cebu offer lines of credit from Php 50,000 to Php 500,000. Repayment periods can be between six and 36 months. Your finances should be order as you will need to confirm you can afford the repayments.
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Visit the bank in Cebu with your documentation. Documentary requirements will vary depending on whether you are visiting your own or another bank. Banks in Cebu, Philippines--foreign or domestic--require substantial information before granting lines of credit. These include your last six months bank statements, proof of address, proof of employment and latest income tax return (showing your tax identification number). If you are married, take a copy of your marriage certificate, and if self-employed, your business permit.
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Complete your application form and give your documents to the banker. Original documents will be checked, copied and returned. The bank will start processing your application and checking your credit history. Processing times vary. If you are applying to get a line of credit from your own bank, the procedure is likely to be faster and may be approved on the same day, otherwise wait for approval via mail.
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Check your documents once they arrive from the bank to make sure you have the line of credit you want and the terms and conditions suit. Sign the forms and return to the bank to complete the process and get your line of credit.
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Tips & Warnings
You can check prevailing interest rates offered by the Philippine Central Bank. at www.bsp.gov.ph/about/overview.asp, and you can get an idea of what to expect.
Use large, well known banks in Cebu to get your line of credit. There are many companies offering loans, but it's likely their charges and interest rates will be much higher.
You can also apply online to most large banks to get a line of credit. If you apply to your own bank, you may not need to meet in person. Other banks will still need to see your documents before processing your application.
References
Resources
- Photo Credit philippines flag button image by Andrey Zyk from Fotolia.com
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Comments
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rules and regulation pls.
