If you are an Overseas Filipino Worker and in need of a quick and easy loan, Chinabank may be the perfect bank for you. With its wide array of products and services tailored to OFWs, you can check out some existing loans depending on your needs. Please check out the procedure, requirements, and other details on how to apply for a Chinabank OFW Loan so that you can get started on your application process right away.
Also Read: 13 Best OFW Loans in the Philippines (Banks and Government Agencies)
It’s important for an overseas worker (OFW) to set aside money for their family. Having a budget is very important in order to minimize the impact of unexpected expenses. Aside from school tuition and medical bills, other factors such as the cost of living can also affect your finances.
It can be incredibly expensive to live in a foreign country. However, if you apply for a Chinabank OFW loan, you can acquire an additional budget that will be incredibly advantageous in both the short and long term.
Despite its negative reputation, getting a loan can be very helpful in managing your finances. It can be very time-consuming and requires discipline. However, it’s also very beneficial to have the right loan for your needs.
Applying for a Chinabank OFW Loan
A personal loan is a type of loan that people, including OFWs, can use to cover unexpected expenses such as repairs and hospitalization. There are two kinds of loans available: secured and unsecured. Although both types of loans have the same terms and conditions, the interest rates are usually higher for secured loans.
Chinabank offers personal loans with no collateral to qualified individuals. The amount of the loan is usually from Php 20,000 to Php 1 million. The interest rate is charged on a monthly basis, and the payments can last for up to 48 months.
Eligibility
To be eligible, you must have or be a/an:
- Individuals from the Philippines or foreigners who have lived in the Philippines for three years are eligible (foreigners qualify if the loan purpose is the acquisition of a Condominium Unit)
- Residential real estate property as a source of security
- A minimum of Php 30,000 in gross monthly family income is required.
- If employed, the employee must have worked for the company for at least two (2) years.
- If engaged in business, must be operating profitably for the last 2 years
- At the time of loan maturity, the borrower’s age must be at least 21 years old and not more than 65 years old.
Types of Chinabank Loans
Chinabank has two types of loan offers a home loan and an auto loan. Home loans are the most common type of loan offered. This is used for repayment, but the latter is utilized to purchase a new vehicle.
In the following sections, we’ll go over the features, requirements, application process, and benefits for each of the loan categories.
Chinabank HomePlus Loan
One of the main reasons OFWs take out a loan is to invest for the long term. And what better way to do that than to invest in a house? This is where Chinabank’s HomePlus Loan comes into the picture.
Here are the various ways OFWs can benefit from this loan type:
- Purchase of a lot or a house and lot
- Home construction
- Home renovation
- Residential property purchase reimbursement
- Refinancing of an existing home loan
Why Take Out a Home Loan with Chinabank
Chinabank offers a home loan program that’s hard to pass because of the following:
- High loan amount
- Flexible payment terms:
- Up to 25 years for a house and lot
- Up to 15 years for vacant lots
- Up to 10 years for condominium units
- Low-interest rates. You can also choose to have your interest rate fixed for a period of one year, five years, or 10 years, which will protect you against future rate hikes.
The company adds value to every home loan collaboration by taking the time to understand your home financing requirements. They go beyond rates and terms to provide value. They ensure to provide their clients with the following:
- Dealings that are completely transparent. There are no hidden fees involved.
- Processing in a timely manner.
- China Bank Insurance Brokers, Inc., a subsidiary of China Bank, offers low insurance premiums to customers.
- Loan payments are made simple and straightforward using an automated debit arrangement.
- Advisory services in connection with the acquisition of real estate. They work with accredited, reliable house builders and can assist you in purchasing a home that you can afford and love.
China Bank HomePlus is a great alternative for people who are looking to purchase a lot or build a home. It can be used for both residential and commercial purposes and/or to:
- Make improvements to your home.
- Reimburse the recent purchase or construction of a residential property.
- Refinance an existing housing loan with other financial institutions.
Requirements for a Chinabank HomePlus Loan:
Before you can start working with Chinabank, you will need to provide the bank with some supporting documents. These documents will help them process your application.
If Locally Employed:
- Application Form with attached 2×2 ID picture
- At least 2 Valid IDs
- Marriage contract (if applicable)
- Latest Income Tax Return
- Certificate of Employment with Compensation and Tenure
If Self-employed (sole proprietorship):
- Application Form with attached 2×2 ID picture
- At least 2 Valid IDs
- Marriage contract (if applicable)
- DTI registration
- Audited Financial Statements for the last 3 years
- Bank Statements
- Company Profile
- Complete list of customers and suppliers with contact person and number
If Self-employed (partnership/corporation):
- Application Form with attached 2×2 ID picture
- At least 2 Valid IDs
- Marriage contract (if applicable)
- SEC Registration, Articles of Incorporation, and By-Laws
- Audited Financial Statements for the last 3 years
- Board/Partnership Resolution / Secretary’s Certificate
- Current General Information Sheet (GIS)
- Company Profile
- Complete list of customers and suppliers with contact person and number
How to Apply for Chinabank HomePlus Loan
1. To get started, you can use the Chinabank loan calculator to figure out how much you’ll have to pay each month.
2. Once you check and approve the monthly fees offered, print and then fill out the application form for the HomePlus Loan here.
3. Visit the nearest Chinabank branch and submit your application form together with the other requirements.
4. Wait for the approval of your loan application, and once you’re approved make sure to pay your dues on time.
It is possible to preserve a solid credit standing in this manner for future transactions, such as additional loans or when applying for a credit card.
Chinabank Auto Loan
Aside from purchasing a home, purchasing a car is one of the most practical and significant investments that you can make. Not only does it provide you with a car that is more practical and comfortable, but it also provides you with a number of other advantages.
A personal vehicle enables you to depart and arrive at a specific location on time, as well as to safeguard you and your family. Having a car outfitted with a safety feature, on the other hand, has the added benefit of helping to prevent accidents.
Even though purchasing a car is normally pricey, there are a variety of ways to obtain one without breaking the bank.
Why Take Out an AutoPlus Loan with Chinabank
Because of the following factors, Chinabank’s auto lending program is difficult to pass:
- Very low-interest rates
- Very low monthly amortization
- Very low down payment
- Longer payment terms
When it comes to auto loan collaborations, the company adds value by taking the time to understand your auto financing requirements. They go above and above in terms of providing value to their customers. They make certain to deliver the following services to their customers:
- Dealings that are completely transparent; there are no hidden fees involved.
- Processing in a timely manner.
- China Bank Insurance Brokers, Inc., a subsidiary of China Bank, offers low insurance premiums to customers.
- Loan payments are made simple and straightforward using an automated debit arrangement.
- Advisory services in connection with the acquisition of your dream car. They work with accredited, reliable auto dealers and can assist you in purchasing a car that you can afford and love.
If you’re looking to purchase a new or used vehicle, then China Bank AutoPlus is a great alternative. However, it’s not just for the purchase of new or used cars. You can also use it to:
- Within 30 days of the acquisition of a brand-new car, the cost of the vehicle will be reimbursed.
- Take advantage of a loan against your vehicle that can be used for a variety of purposes.
Requirements for a Chinabank AutoPlus Loan:
Before you can begin working with Chinabank, you will need to provide several supporting documents to the bank. Providing them with these documents will aid them in the processing of your application.
INDIVIDUAL BORROWER (BASIC REQUIREMENTS):
- Application Form
- Two (2) valid IDs
- Latest Income Tax Return / BIR 2316
- For Employed
- Certificate of Employment with Compensation and Tenure
For Self-Employed
- DTI Registration
- Audited Financial Statements (last 3 years)
For Foreigner
- Alien Certificate of Registration
For OFWs
- Certificate of Employment / POEA Contract
- Proof of Remittance (last 6 months)
- Payslips (last 6 months)
- Seaman’s Book (if applicable)
PARTNERSHIP (BASIC REQUIREMENTS):
- Application Form
- Two (2) valid IDs of Co-Borrower / Signatory
- Latest Income Tax Return of Company and Co-Borrower / BIR 2316
- Two (2) Original and Notarized Partnership Resolution (bank format)
ADDITIONAL DOCUMENTS:
- SEC Registration
- Articles of Partnership with By-Laws
- Audited Financial Statements (last 3 years)
- Current General Information Sheet (GIS)
- Trade References (at least 2 with contact details)
REQUIREMENTS FOR REIMBURSEMENT:
- Original LTO Certificate of Registration and Official Receipt
- Original Sales Invoice
- Original Delivery Receipt
- Original OR of Full Payment
REQUIREMENTS FOR SECOND-HAND PURCHASE:
- PNP Motor Vehicle Clearance Certificate
- Original LTO Certificate of Registration with Official Receipts
- Original and Notarized Deed of Sale
- Insurance Policy with OR of premium
How to Apply for a Chinabank AutoPlus Loan
1. To begin, you can use the Chinabank loan calculator to figure out how much you’ll have to pay each month.
2. Once you check and approve the monthly fees offered, print and then fill out the application form for the AutoPlus Loan here.
3. Visit the nearest Chinabank branch and submit your application form together with the other requirements.
4. Wait for the approval of your loan application, and once you’re approved make sure to pay your dues on time.
Video: Personal Salary Loan from China Bank Philippines
Check out this video clip below which features a guide about personal loan for Filipinos from China Bank. The video tackles the requirements and process of applying for a personal loan or salary loan from this particular bank.
Frequently Asked Questions:
1. What Is A Car Loan?
The vehicle loan is one of the most often used financial instruments in the Philippines nowadays. Saving money and getting a car without spending a lot of money on transportation is a fantastic option. Because of the terrible state of the country’s transportation system, many people have turned to auto loans to purchase a vehicle.
2. How Does A Car Loan Calculator Work?
You may easily calculate your monthly payments by entering the information required to get started, such as the car’s cost and down payment, as well as the loan length. After you have completed all of these steps, the calculator will display the total interest paid over the course of time, as well as the monthly installments.
3. Car Financing: Is It Better To Get A Loan?
When purchasing an automobile, paying with cash is simply a dangerous proposition. It has a negative impact on your cash flow, and even before an average working Filipino can come up with that amount of money, the value of the car has already decreased. Car financing through a loan is the greatest option for anyone who wants to take advantage of the benefits of a car while also making sure that their cash flow is in good shape.
4. Are Used Cars For Sale Eligible For A Car Loan?
Most banks in the Philippines will grant you a loan for a used car. They can also finance a used vehicle in a typical manner or pay the insurance payment in advance to reduce their interest rate further. It is important for buyers to keep in mind, however, that the interest rate on a used automobile is higher than the rate on a new car.
5. Why Are Interest Rates For A Used Car Higher Than Brand New Cars?
Because of the higher risk associated with investing in second-hand vehicles, taking out a second-hand car loan is typically more expensive than purchasing a new vehicle. For this reason, they are more likely than other types of vehicles to have mechanical problems and require costly repairs, which could result in financial loss in the event of a repossession.
Interest rates for new and used automobiles differ significantly in the Philippines, with the former being significantly more than the latter. Usually, the difference is around 2% to 5%. Online lenders are now publishing the interest rates on past-due loans, which provides a general indication of how much the loan will ultimately cost in the long run.
6. What Is A Housing Loan?
Specifically, a housing loan is a sort of loan in the Philippines that is used to finance the purchase of the real estate. It can be received from a variety of sources, including banks, developers, and the Pag-IBIG housing fund, which is guaranteed by the government. In this post, we’ll discuss the numerous types of home loans available and how they differ from one another.
This will assist you in comprehending the various advantages and requirements associated with various sorts of housing financing. If you’re already in a situation where you can benefit from lower interest rates through refinancing, now is an excellent moment to do so.
7. How Do Housing Loans In The Philippines Work?
Loans for housing are often obtained through financial institutions in the Philippines. With the bank, you engage in an agreement in which you undertake to pay back the loan over a specified length of time.
In the Philippines, there are two types of housing loans available: public and private, which are described below. The former is provided by the government-backed PAG-IBIG as well as financial institutions. On this website, you may compare the lowest interest rates on a variety of loan products offered by various financial institutions.
The interest rates on housing loans in the Philippines vary based on which bank is lending the money. For instance, if you have a 20-year mortgage, the interest rate of the bank is 5.50%, while the security bank offers 5.25%.
If you take out a loan in the Philippines, you will have to make monthly payments on it until the entire amount of the loan is paid off. When starting out, most of your payments will be used to cover interest payments, but as time goes on, a larger portion of your payments will be used to pay down the principal balance of your loan.
Every month, the interest rate that you pay on your loan is computed depending on the amount of money that you owe on your loan.
8. How Do I Use A Housing Loan Calculator?
It is simple to calculate your monthly payments and compare the various mortgage rates given by different banks when you use a loan calculator to assist you. It will also inform you of the maximum amount of time you can borrow and the interest rate at which you can borrow the money.
9. What are some Housing Loan Terms?
Principal:
The total amount of money borrowed or owed on any sort of loan is referred to as the principal. Your principal will be reduced over time if you make regular monthly payments on a standard fixed-rate loan.
Down payment:
A down payment on a house-made by the buyer in order to secure the property. In the Philippines, the standard down payment for a bank-sponsored home loan is 20 per cent of the total loan amount.
Interest Rate:
In financial terms, interest is a rate that is charged in exchange for the usage of money. Interest rates are expressed as a percentage rate on an annual basis, which is referred to as the annual percentage rate (APR). For example, the annual percentage rate (APR) on BPI’s 10-year fixed loan is 8%.
Loan Tenure/Term:
This refers to the amount of time or term, expressed in “months” or “number of years,” that you must pay back your mortgage loan. It is common for mortgages to have a “tenure” of 30 years, which indicates that it will take 30 years to pay off the debt in its entirety. The typical loan length in the Philippines is up to 20 years, with some lenders offering longer terms. Generally speaking, the longer the term of your loan, the greater the interest rate.
Prepayment:
Paying off your loan in its entirety or in part before it is due is possible. Some financial institutions will impose a penalty for this, so be sure to read the tiny print.
Refinancing:
It is possible to pay off an existing mortgage with a new mortgage that has lower interest rates.
Foreclosure:
When a bank seizes your property and attempts to sell it in order to recover the outstanding balance on your loan, this is known as foreclosure. If you frequently fail to make your loan installments, you may find yourself in this situation.
10. Some Factors You Need To Be Aware Of When You Choose A Housing Loan
Margin of Finance:
The loan-to-value ratio is another term used to describe the margin of financing. Banks in the Philippines base the amount of money that a customer can borrow on several factors, including the applicant’s age and income bracket, the type and location of the property, and the current market value of the property.
80% of the total amount of finance is typically provided to borrowers. So, for example, if you want to apply for a housing loan to finance a P1,000,000 house in a prime location in Manila, you will be eligible for a loan of P800,000, which means you will have to put up the remaining P200,000 as a down payment yourself.
Early Termination Penalty:
Some mortgage lenders may apply an early termination penalty if the loan is paid off in part or in full within a specified time period, including if you refinance the loan with another lender.
This specified time period where you are liable to pay an early termination penalty is called the ‘lock-in period’. Depending on the term and size of your loan, this charge can be quite significant.
Fees and Charges:
Some of the fees and charges you can anticipate incur vary from bank to bank, however, the following are some of the more prevalent ones:
- Appraisal fee
- Registration expenses
- Documentary Stamp Tax (P1.00 for every P200 of the loan amount)
- Mortgage Redemption Insurance
- Handling and Notarial fees
Summary
Two of the most common investments every OFW aspires – a house and a car can be loaned through China bank’s loan programs. These products are easy to apply for, as long as you have all the requirements, meet the eligibility criteria, and of course, can pay diligently. After reading this guide, you might want to learn more about the other loans you can get from banks and other financial institutions, read them here.