It is not a strange scenario for a house to be in urgent need of improvement while the owner does not have the funds for the project. Sometimes, taking the money for home improvement out of the person's saving account is not an option. Plus, some people do not have savings at all. Hence, taking a home improvement loan is a usual case scenario.
What Is a Home Improvement Loan?
This type of loan enables a person to borrow some money from the bank at a set interest rate and with an obligation to repay it within a certain period. This home improvement loan is usually unsecured as it does not imply collateral. This means a lender can't seize any precious thing in case if the borrower does not keep up with the payment plan. Consequently, unsecured loans are riskier to the bank or any other lender and therefore come with higher commission rates.
Usually, the Philippines can borrow an amount ranging from $1,000 to $20,000 or an equivalent to this sum in PHP for a home improvement exercise. The borrower will be obligated to make monthly payments until the total amount plus interest is repaid. The repayment period can last up to five years in some cases. Although lending money at the time of need seems to be a beneficial process, it has some disadvantages.
Advantages and Disadvantages of Unsecured Home Improvement Loans
Advantages
- The monthly repayment amount is fixed which makes budgeting clear and easy;
- You are not risking to lose your property as you do not need to provide it as collateral;
- The funds will arrive shortly after you are deemed eligible for the loan;
- Your home will be improved right when you need it.
Disadvantages
- To get this type of loan a borrower must have an excellent credit score;
- The monthly repayments are usually not flexible, so a borrower is obligated to complete payments within each deadline;
- Failed payments for your home improvement loan will result in a lowering of a credit score and high charges;
- Early loan repayments might lead to a large fee.
Home Improvement Loans in Philippines
Before requesting the home improvement loan online, one should carefully calculate how much he can afford to repay every month. Ordinarily, when taking a home improvement loan Philippines, borrowers tend to ask for longer repayment periods, which makes monthly repayments smaller. Mind that in such a case the loan rate becomes higher.
You can use free tools to check your credit score before proceeding to apply for the loan to see if you are eligible. Doing this will let you know the likelihood of obtaining the best home renovation loan deal.
Cashcat Offers Financial Assistance to Homeowners
We provide Filipino homeowners with all the needed lending options to cater for their renovations. The process of obtaining funds is easy and just entails completing an application online. Home improvement loans are granted and credited straight to the bank account or card of the Philipinnes above 21 years of age upon approval.
Cashcat lets homeowners choose preferred credit conditions within their abilities. Furthermore, payment methods are flexible too. Loan repayment fees will be updated if you wish to pay off your loan earlier than planned. Also, the same will be done if you want to postpone payments.
Home Loan Assistance Cashcat Offers
The loan options offered by Cashcat can help you cover:
- Home construction;
- Home renovation projects;
- Expansion of residential building;
- Major home repairs;
- Refinancing:
- Home improvements.
The funds will be available for you to spend quickly after verification and approval. There are no extra payments or hidden fees. The loan conditions are straightforward and easily understandable for every Filipino citizen. It is noteworthy that failure to meet these conditions would severely affect credit ratings of the borrower. Hence, make sure you read the loan terms before finalizing the loan request.
Why You Should Take a Home Loan from Cashcat
Fast service
To apply for a loan, you should only feel the application form and wait for approval. The whole process if very fast and in case of approval you can receive the money within one day.
Availability
As a resident of the Philippines, you do not need to look far and wide to get a loan to improve your home. Cashcat only requires you to provide two valid means of identification, and all is set.
Convenience of service
Cashcat does not require Filipino residents to use their homes as collateral. Also, we do not need a guarantor before offering you a loan because we want to simplify the process.
Home Improvement Loan Requirements
As previously stated, not much is needed to obtain home loans from Cashcat. You just need to:
- Be a legal resident of the Philippines;
- Be between the ages of 18 and 65;
- Be able to provide two valid means of identifications;
- Complete the application form.
Home Improvement Loan Process
The importance of knowing the exact amount needed for your home improvement is obvious – you should understand how much money to borrow. However, your future expenses are not the only thing to pay attention to. As a borrower, you also should honestly estimate your credit score, bank account statements, and insurance coverage to determine if you can handle the repayment of the loan you want to apply for.
However, it is easy for Filpino residents to get their loans from Cashcat because we make the home improvement loan process smoother than obtaining regular bank loans, which can be tedious and demanding. To benefit from our service just follow these simple steps:
- Check if you are eligible for the home loan;
- Fill the application form for the home improvement loan online;
- Provide means of identification;
- Wait while we review the information provided by you;
- Select your preferred loan option;
- Wait ‘till you receive the funds.
At Cashcat, we ensure to deliver funds right after approval because we understand that your need for home improvements might be urgent. Also, existing Cashcat customers can complete their applications for home renovation in two minutes, which even less time than Filipinos new to the platform will need. We have provided funds over and over again for hundreds of people in the Philippines, and we are confident that our platform can assist you too.
Contact Us Today for Your Home Loan
We are happy to help you deal with the financial needs of your home improvement project. Please note that we do not need to come to your place of employment or your home before approving your request as banks do. It is noteworthy that banks in the Philippines usually have to come to inspect your workplace or your house to determine the home equity so they can use it as collateral. Furthermore, banks require you to provide:
- Tax certificates and receipts;
- Insurance documents;
- Mortgage receipts (if applicable);
- Reports that show forecasts of your earnings;
- Papers on your collateral;
- Valid identification documents;
- Your physical presence for an interview.
The entire process takes time ranging from a couple of days to a month, which is undesirable if you are eager to start the project quickly. They do these because they need to verify your employment history, financial status, history with law enforcement agencies, etc. Generally, obtaining bank loans is not easy, and it takes good advice to get one.
Fortunately for Filipino residents, Cashcat offers a safe and convenient way to receive credits without the need to provide the personal data mentioned above or to be monitored. Therefore, do not hesitate to borrow from Cashcat!