Chris Dominguez
You have the car but you don’t have the cash so what to do? You can sell your car for one and with it, it’s sentimental value to you, the ease of transport it offers, and reassurance that you wouldn’t have to do another long and expensive process of buying for your new ride once you have the funds to purchase a new one. You can opt to trade all of these OR you can just apply for a Sangla ORCR, trade your car registration for quick cash and hold on to your car for the entire duration of the payment term.
Great, huh? But one question you’re probably asking yourself right now is; what are the valid loan purposes for this specific loan product?
1. Business
There are providers that only specifically offer Sangla ORCR (or car collateral loan, as they call it) to loan applicants who will be using the cash for business. These providers are mostly banks although there are some private financing companies who offer this too.
This loan purpose can be divided into 2 categories:
Business Start-Up – For those who do not have any business yet but are planning to start a new one. This can also pertain for those who have just started up a business and are looking for capital to properly establish the foundations of the business.
Some of the Known Providers: Radiowealth Financing Inc. (Specific to applicants planning to become franchisees)
Business Expansion – For those who already have a business and are looking to expand their operations and/or purchase new assets, or simply need liquid funding to fulfill orders. Applying for a loan product with this purpose is usually a bit tedious as the provider will most likely require various documents to prove that the business is not only operational but also stable.
Some of the Known Providers: Maybank Philippines, Inc., Radiowealth Financing Inc.
2. Vehicle Purchase
You want an additional car, perhaps for the wife/husband or for your kid who is about to turn 18 – but you do not have the cash and, naturally, you would not want to sell your current car. If this is your current situation right now, then this would be the purpose for your loan application.
There are some providers who themselves are selling cars, specifically repossessed cars. They usually market the cars the usual way; marketing them with fixed prices and the first one to confirm their interest would get the unit.
Some of the Known Providers: GoDrive (Secondhand and Brand New units) and Toyota Financial Service Philippines (Brand New units)
And then there are those who prefer to sell cars via auction, which, as you know, means the highest bidder wins.
Some of the Known Providers: Security Bank
There are also those who will simply offer financing a car of your choice from a different provider of your choice, in other words you can pick your car dealer and negotiate with them yourselves and once that’s done, the loan provider will be the one providing the funds. More work on your end but will definitely lower your interest by a lot.
Some of the Known Providers: GoDrive
Note also that when we say “Vehicle” we are not only referring to Sedans and SUVs as there are even some providers that can process Sangla ORCR applications with your car as collateral for the purpose of purchasing either a tricycle or truck. This can also work the other way around; use your tricycle/truck as collateral for the financing of a new car.
Some of the Known Providers: Global Dominion Financing, Inc. (GDFI)
3. Personal
The cash that you need will be used to pay some debt? For emergency use? For leisure? Or perhaps you are simply looking to purchase something that is not a car and the price is a bit beyond your monthly income? Your loan purpose will fall under this category, then.
You can also interpret this as “It doesn’t really matter what you will use the loan for” kind of a loan purpose. Providers who accept this loan generally accept any reason for your loan application as long as you can complete the requirements and prove that you have the financial capacity to pay the loan back.
Some of the Known Providers: Bank of the Philippine Islands (BPI), United Coconut Planters Bank (UCPB), Global Dominion Financing, Inc. (GDFI)
Takeway
As with other loan products, you can avail Sangla ORCR for various purposes. It’s real only difference compared with the others is, of course, the fact that it is secured. For certain, you already have an idea as to what you are going to use the money for, all that needs to be done now is to find a provider that can cater to your specific loan need.