Your guide to getting a loan using car or truck OR/CR as collateral

MANILA, Philippines — Even in these difficult and unusual times, Filipinos may find themselves in situations where they may need to address unexpected financial needs, such as upgrading the business, paying tuition fees, or facing medical expenses.

When rainy days like these happen, Filipinos may not have enough cash on hand. They then get tempted to borrow from loan sharks or max out their credit card.

This shouldn’t be the case as there’s a more viable and reasonable option where they wouldn’t end up being in the red. This is a collateral loan.

Here, we’ll talk about some of the things they need to know about putting up collateral and getting the money they need.

1. What’s collateral?

According to finance website Investopedia, collateral is a valuable asset that one pledges as security for taking out a loan. This is so financial institutions are assured that borrowers will keep up with their responsibility in repaying the loan.

Collateral comes in the form of real estate, one’s savings and investment account, or in some cases, one’s personal vehicles, like cars or trucks.

But did you know that another valid form of collateral is your car or truck title? It’s true! One such institution that accepts car titles as collateral is Global Dominion Financing Inc. (GDFI).

2. What’s a collateral loan?

When a loan is guaranteed by valuable assets that you own, this becomes a collateral loan, or otherwise known as a secured loan.

A secured loan decreases the risk for lenders and makes sure that borrowers keep up with their payments. What also good about collateral loans is that they can allow for bigger loan amounts at more lenient terms, like lower interest rates or longer loan terms.

In this vein, GDFI is especially instrumental in providing diverse options for getting your loan with ease and with an interest rate as low as 1.30%. 

3. Your car OR/CR as collateral

We all know that beyond its actual value, the point of having a car rests in its utility, whether that be in personal travel or for business use, like delivery, transport and rental services, for example.

While the traditional way of putting up collateral means the lender exchanging property for money, with GDFI’s Car Collateral Loan, this doesn’t have to be the case.

Your official receipt or certificate of registration (OR/CR) can suffice as a form of security. This way, you get to receive your cash and keep your car.

4. Fast, simple application

With Car Collateral Loan or OR/CR Loan as fast becoming the best choice for quick cash, the ease you enjoy with having a car for your professional or private life doesn’t have to cease.

And since credit history does not hold any bearings for your qualifications as a borrower, approval and disbursement processes become a cinch.

All you need to apply for the loan are the following:

• Any 2 valid ID’s (Government Issued)
• Proof of income (If employed – 3-month payslips; If with business – business permit; If remittance – latest 3 months proof of remittance/receipt)
• Water or Electricity Bill
• Copy of latest OR/CR
• TIN number
• additional supporting documents for special cases

After collecting all these documents, all that’s left to do is submit the official loan application and wait for approval and disbursement.

With GDFI, the whole process can be cut down to only three business days.

All this is part of GDFI’s purpose of providing accessible financial products and services to empower Filipinos and their families in reaching their life goals.

For more information, visit their website at https://gdfi.com.ph