Home Credit Review: Surprising Facts to Know About Its Loans

Rouselle Isla

Rouselle Isla

Last updated November 11, 2022

Need cash for an emergency or for starting a personal passion project? Dreaming of that long overdue home renovation or appliance upgrade? Need a financial boost to pay for your household expenses? Make these plans a reality by getting a cash loan or signing up for a Buy Now, Pay Later plan through Home Credit.

Customers can enjoy Home Credit’s 0% interest offer on over 100,000 items in flexible payment terms. If you avail of this offer, you’ll be paying manageable monthly installments based on the item’s standard price with no interest on your payments. 

You see, not all debt is bad. A loan can actually be helpful, as long as you get it for the right reason and manage it properly. When you get a loan from legitimate companies like Home Credit Philippines, you can stay on top of your finances and learn a lot about financial responsibility. 

In this review, find out if a Home Credit installment is suitable for you and the different ways it can help you manage—or even improve—your finances.

What is Home Credit? 

Home Credit Philippines[1] began its operations in the country in 2013 as part of the global consumer finance expert Home Credit Group. Its core business provides non-cash, no-collateral, in-store financing to qualified customers for appliance and mobile device purchases via monthly installments. 

The country’s leading Buy Now, Pay Later provider, Home Credit is available in more than 13,000 shops of more than 9,000 partner retailers nationwide. Wherever you are in the Philippines, you can easily find Home Credit in over 880 malls. 

Home Credit has provided more than 18 million loans to 9 million customers in the Philippines. More than 70% of these loan applications were processed via Home Credit’s digital channels.[2]

As of October 2022, Home Credit has served almost a million new customers; over half are women, and over a quarter is in the younger age bracket. 

Is Home Credit Legit?

Yes, it’s a legitimate company. Home Credit Philippines is licensed by the Securities and Exchange Commission (SEC) and regulated by the Bangko Sentral ng Pilipinas (BSP). This means Home Credit is authorized by the government to engage in business under corporate and investment laws in the Philippines.

How Does Home Credit Work in the Philippines? 

Home Credit has a quick and straightforward loan process.

If you’re shopping in-store at a partner merchant, just bring a valid government-issued ID. Choose the item you want to buy and make a down payment. You can then bring home your new appliance or mobile device and pay the remaining cost in monthly installments. 

Filipinos 18 to 68 years old who are employed, self-employed, pensioners, recipients of regular remittances, or business owners are eligible to apply for a Home Credit loan. 

What is a Product Loan in Home Credit?

home credit review - what is a product loan

With Home Credit’s product loan, you can buy big-ticket items and pay for them in affordable monthly installments. The great thing about this Home Credit loan is you don’t need a credit card to pay in installments. You only need a valid ID to apply for a product loan (the same goes for Home Credit’s Cash loan). 

Enjoy fast loan approval when you apply via the Home Credit app, which takes as fast as 1 minute for both product and cash loans. You can improve your chances of approval by presenting any available document that proves your financial capabilities.

Payment terms are also flexible. There are many ways to pay off your loan, such as auto-debit arrangement, over-the-counter, and online partner channels nationwide. 

Can I Borrow Money from Home Credit? 

home credit review - can i borrow money with home credit

Home Credit also provides instant cash loans for any financial need. You can use the loan proceeds for different purposes, such as starting your personal project, renovating your home, upgrading your appliances, or paying for your kid's tuition.[3]

It must be noted, though, that the Home Credit Cash Loan is available only to existing Home Credit customers with a good record. If you’ve already used other Home Credit services, see to it that your history with the company is spotless before you apply for this kind of loan. 

Key Features of Home Credit Cash Loan in 2022

  • Loan amount: ₱3,000 to ₱150,000 
  • Origination fee: ₱500 (upfront charge for the loan application processing)
  • Interest rate: Starts at 1.83% monthly add-on rate for a 12-month loan 
  • Repayment terms: Six to 60 months
  • Requirements: At least one valid ID with current home address and is not expired

How Much Cash Loan Does Home Credit Offer?

If you’re an existing Home Credit customer, you can borrow anywhere from ₱3,000 to as much as ₱150,000 and pay in six to 60 months. This makes the Home Credit Cash Loan suitable for both short-term needs (such as emergencies) and long-term plans (such as investments).

Note that the amount and terms may vary for each customer depending on their payment history and behavior. 

Is the Home Credit Cash Loan Worth It? 

Yes, it’s a legit loan product from a legitimate loan provider. However, there may be fraudsters who use the name of Home Credit to scam people or make illegal or fraudulent transactions. Make sure you’re transacting only through official Home Credit channels and with authorized Home Credit representatives. 

Home Credit Review: 5 Reasons to Consider a Home Credit Loan

Some people aren’t so keen on personal loans for fear of incurring debt. However, as mentioned, not all debt is bad. Getting available credit can be a good thing, as this will help you buy items you need right now on affordable and flexible payment terms. 

Even if you can pay for something in full, you can invest this money in other things instead if you purchase with credit. And you can achieve a good credit score if pay your loan on time, making it possible to enjoy lower interest rates and faster approval on your future loans.

With that, here’s why a Home Credit loan is worth considering: 

1. Hassle-Free Loan Application

home credit review - hassle-free loan application

With thousands of partner shops in the country and only one valid ID requirement, it’s easy to buy the gadget or furniture you need. Loan approval also takes as fast as 1 minute. 

2. 0% Interest on over 100,000 items

You can enjoy Home Credit’s 0% interest on products ranging from home appliances and furniture, gadgets and smartphones, bicycles and motorcycle accessories to electronics and hardware, sports equipment and apparel, and many more, at all participating stores, even with no credit card.

With this zero-interest offering, you pay manageable monthly installments based on the item’s standard price with no interest rates added to your payments.

3. Flexible Payment Terms 

You can get furniture or gadget upgrades at an affordable down payment and pay for them in easy monthly installments of six to 24 months.  

4. Rewards for Timely Payments

Home Credit helps you become more responsible with your finances while building your financial credibility. If you settle your payments on time and have no track record of delays, Home Credit might offer your last month of payment for free on regular transactions, making it an attractive reward for customers who have a good record with Home Credit.

Note that this is not applicable for installment plans that are under the 0% Interest promo.

5. Value-Added Services

Aside from non-cash financing and cash loans, Home Credit also provides value-added services such as HCProtect for Home Credit-financed devices. This device protection plan offers hassle-free repair or replacement of your device in case of liquid damage, cracked screen, or accidental breakage.

Home Credit also offers Creditor Protection Insurance, a life insurance cover that pays for unpaid loans left by the borrower and provides beneficiaries with financial support.

And with Home Credit’s Health Secure, you get protection against personal accidents and COVID-19 and vaccine-related complications. 

6. Access Cash Loans in the Future

Home Credit also offers cash loans to its customers. However, before you apply or get approved for a cash loan with Home Credit, you need to have an existing product loan first. 

If you need an instant cash loan for your financial needs, Home Credit can offer you this cross-sell product after your product loan. You can use the cash loan proceeds for different purposes, such as starting your personal project, renovating your home, upgrading your appliances, or paying for your kid's tuition.

Home Credit Loans FAQs

1. What items can you purchase via Home Credit? 

You can purchase any item from the Home Credit products list at partner stores and pay through installment without a credit card.  

  • Mobile phones
  • Computers and laptops
  • TV and appliances 
  • Gadgets and electronics 
  • Home Improvement
  • Sporting goods 
  • E-bikes and scooters 
  • Musical instruments 
  • Motorcycle needs
  • Events and Celebrations
  • Car repair and maintenance
  • Farming needs
  • Medical needs
  • Dental Care
  • Cosmetic Care
  • Optical Services

2. How much is the down payment on purchases made via Home Credit? 

Customers are usually required to settle a 30% down payment when getting an installment plan through Home Credit.  

Home Credit recommends making the highest down payment possible, so you can enjoy lighter monthly installment payments. However, existing customers with good payment history and behavior can purchase the item they want with no required down payment.

Use the Home Credit loan calculator[4] to know how much you'll pay monthly based on your down payment and length of payment. You can also inquire with Home Credit sales agents at any partner stores. 

3. Can I buy more than one item at the same time?

Yes! You can purchase a maximum of three items, provided they’re not the same item type. It’s still subject to approval, though. 

4. How much is the interest in a Home Credit Cash Loan?

Home Credit’s interest on cash loans starts at a 1.83% monthly add-on rate (for a 12-month loan). Borrowers can download the Home Credit app to check if they have an offer and can submit a cash loan application online. 

Having the app helps them stay on top of their loans and avoid missing due dates. They can view their loan details, payment schedule and status, and loan offers, among others. They can also chat with a customer representative for any questions and concerns about their cash loans.

5. How can I avail of the Home Credit 0% interest offer?

home credit review - how to avail of 0% interest offer

Watch out for announcements on Home Credit 0% interest offers on the Home Credit official website and social media accounts. Alternatively, visit any partner store or log in to the My Home Credit app to see the latest deals and featured items you can get at zero interest. 

Read more: 

Final Thoughts

Is Home Credit good? To summarize this Home Credit review, Home Credit is a great option if you don’t have a credit card and want to buy big-ticket items and pay in affordable installments. It’s also a quick and easy way for existing Home Credit customers to apply for a cash loan for their planned or unplanned expenses. 

Home Credit’s financial products can be beneficial for Filipinos, especially young adults and starting families who want to achieve their financial goals and take control of their finances.

Applying for loans and paying them on time helps build your credit score and teaches you to be financially responsible. Remember that every late payment negatively affects your credit score, so pay on time as much as possible. 

DISCLAIMER: This article was created in partnership with Home Credit Philippines. While we are financially compensated for this collaboration, we ensure to maintain our editorial integrity to provide you with the best recommendations that can help you make smarter financial decisions.

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Sources: 

Rouselle has over eight years of writing experience in the personal finance niche. She has written feature stories, articles, and how-to guides on various personal finance and trending lifestyle topics. And when not writing or editing articles, Rouselle likes binge-watching Netflix shows and fixing herself a nice, tall glass of iced coffee. Follow Rouselle on Linkedin.