A lot of people who need extra funds often go for unsecured or non-collateral loans. Primarily, this is because unsecured loans providers are easy to find. Also, you won’t have to worry about surrendering any asset to borrow the cash that you need.
Nevertheless, getting a secured or collateral loan still makes a great choice, especially if you’re in a bind and require a huge amount of money. In this case, working with a reputable loan provider, such as South Asialink Finance Corporation (SAFC), is a wise move.
The company is known for its vehicle collateral loans. So if you have a car or a truck, this one’s for you. Moreover, South Asialink Finance Corporation has financing products for those who are looking to buy a car or a truck. Here’s what you need to know about the SAFC loan.
Who is South Asialink Finance Corporation?
Founded in 2003, South Asialink Finance Corporation or SAFC is a former division of Asialink Finance Corporation. SAFC is a private financing company that offers retail credit to individuals and small and medium enterprises (SMEs).[1]
Currently, the company operates mainly in Southern Luzon, from Laguna Province to Bicol Region. As of November 2019, there are 42 SAFC branches in the whole area of South Luzon and Cebu.
What are the SAFC Loan Products?
If you’re curious to know what loan products you can avail of, here are SAFC’s collateral loans and financing products.[2]
1. Car Loan
If you need emergency cash, you can have your car as your collateral. You’ll just have to submit your vehicle’s original OR/CR to avail of the South Asialink Finance Corporation car loan.
2. Truck Loan
If you have a truck that you’ve been using for business, you can use its original OR/CR as collateral to secure a high-value loan.
Related article: Zuki by SB Finance: How to Get a Loan in Just a Few Taps
3. Second-Hand Car Financing
Planning to buy a car but can’t afford a brand-new unit yet? Go for a second-hand car! SAFC can help you buy a pre-owned car with its second-hand car financing product.
4. Truck Financing
If you need a truck for your business’ logistical operations, you may get it through SAFC’s truck financing scheme.
How Much Can You Borrow with SAFC Loans?
For all products of SAFC, the loanable amount will depend on the value of the vehicle. At present, the company can lend money equivalent to 70% of the vehicle’s fair market value.
What are the Interest Rates of SAFC Loans?
The interest rate will largely depend on the type of loan or financing product that you’ll get. Here are the rates:
- Car Loan: 1.1% per month
- Truck Loan: 1.2% per month
- Car and Truck Financing: Starts at 1.3% per month
Where Can I Use an SAFC Loan?
Because SAFC loans are mainly designed for SMEs, you can definitely use the loan proceeds for business purposes. Nevertheless, SAFC assures borrowers that they can also use the cash for personal reasons.
1. Additional Capital for Business
If you’re planning to add more products to your inventory but don’t have enough money, use your vehicle’s OR/CR to get additional funds. Likewise, you can use the SAFC business loan proceeds as start-up capital in case you’re starting the business from the ground up.
2. Purchase of a New Vehicle
SAFC’s financing products can help you get a car that you can use for personal purposes or a truck that you can utilize for your business.
3. Home Renovation
Planning to add another room to your house or to replace the roof? You can use the cash that you’ll get from this loan!
4. Education
Whether you’re paying for your kid’s tuition or you just need to get them new school gadgets, the money that you’ll get from an SAFC loan will surely be more than helpful.
What are the Benefits of Getting an SAFC Loan?
Getting a loan or using a financing product from South Asialink Finance Corporation has some undeniable benefits, such as the following:
1. High Loan Value
Depending on the fair market value of your vehicle, your car or truck loan may yield a large amount of cash proceeds, especially if you’ve just bought it recently. As mentioned, you may borrow 70% of your vehicle’s value.
2. Low Interest Rates
Unsecured loans usually have high interest rates because there are no assets pledged. But with secured loans, such as those offered by SAFC, you’ll pay lower interest since you’ll put your vehicle as collateral.
3. No Need to Surrender the Vehicle
If you’re using your car or truck as a source of income, you don’t have to worry about surrendering your unit. All SAFC needs is the original OR/CR of your vehicle.
4. Straightforward Application Process
The loan requirements are simple and easy to comply with. Moreover, the application process can be done online, which is a convenient and safe option, especially these days.
Read more: All Digital, No Hassle: How to Get an ING Loan in the Philippines
What are the Disadvantages of Getting an SAFC Loan?
You also need to remember that getting a collateral loan may come with certain drawbacks, such as the following:
1. Possibility of Losing the Asset if You Fail to Pay
While not explicitly discussed, expect that your vehicle will be pulled out by the loan provider if you fail to pay the loan completely or meet the terms and conditions. After all, this is the general rule for collateral loans.
2. Low Assessment Value
If you’re putting an old car on collateral, expect that the loan amount that you’ll receive will be pretty low. Before you proceed with the application, we highly recommend that you reach out to SAFC first to determine the acceptable age of vehicles.
3. Approval Takes Time
The application process may be quick and easy, but the processing and approval of your documents may take a few days. Keep in mind that SAFC will still have to inspect your vehicle after your requirements have been evaluated.
What are the SAFC Loan Requirements?
The requirements will depend on the type of loan you’re applying for. Here are the documents that you need to prepare.
1. SAFC Car and Truck Loan Requirements
- Photocopy of OR/CR (original copy will be required upon loan release)
- Latest picture of the vehicle
- Stencil of motor number and chassis number (in blue form)
- Latest original copy of the Community Tax Certificate (cedula)
- TIN ID or any proof of TIN
- Documented proof of income (e.g. bank statements or payslips for the last three months)
- Basic documentary requirements:
- Completely filled out South Asialink Finance Corporation application form
- Three 2x2 pictures (most recent)
- Photocopy of 2 valid IDs
- Latest Proof of Billing (electric/water bill)
- Latest Proof of Residency (barangay clearance, police clearance, or NBI clearance)
2. SAFC Second-Hand Car Financing Requirements
- Photocopy of OR/CR (original copy will be required upon loan release)
- Documented proof of income (e.g. bank statements or payslips for the last three months)
- Two valid IDs of the seller
- Stencil of motor number and chassis number (in blue form)
- Offer to Sell documents
- Acknowledgment receipt
- Basic documentary requirements:
- Completely filled out South Asialink Finance Corporation application form
- Three 2x2 pictures (most recent)
- Photocopy of two (2) valid IDs
- Latest Proof of Billing (electric/water bill)
- Latest Proof of Residency (barangay clearance, police clearance, or NBI clearance)
3. SAFC Truck Financing Requirements
- Photocopy of OR/CR (original copy will be required upon loan release)
- Stencil of motor number and chassis number (in blue form)
- Two valid IDs of the seller
- Basic documentary requirements:
- Completely filled out South Asialink Finance Corporation application form
- Three 2x2 pictures (most recent)
- Photocopy of two valid IDs
- Latest Proof of Billing (electric/water bill)
- Latest Proof of Residency (barangay clearance, police clearance, or NBI clearance)
How to Apply for an SAFC Loan?
As discussed, the application process with SAFC is easy. Here are the steps you need to follow.
- On the homepage of SAFC’s website, click Loan Products.[3] You’ll be directed to the page that features all the company’s products. Pick the loan that you want to apply for and click Apply Now. Then fill out the South Asialink Finance Corporation application form.
- Scan or take a picture of the documentary requirements. Then submit the copy via SAFC’s official Facebook page (private message or Messenger only).
- Once the documents are evaluated, expect a call from SAFC for the scheduling of the vehicular inspection.
- After the inspection, wait for the approval of your loan within two (2) to three (3) days.
- Once the loan is approved, your check will be released.
Final Thoughts
Collateral loans make an ideal choice if you want to raise large funds either for your emergencies or personal endeavors. But make sure that the lender you’re dealing with actually has friendly terms. After all, your asset is at stake. Stringent terms and high interest rates may make repayments hard for you, which may result in the loss of your vehicle.
Only deal with reputable companies, such as SAFC. If you have some questions and concerns, you can reach South Asialink Finance Corporation at the following contact numbers: 09178578314/09171437222 (Globe), 09988442991 (Smart), or 7373-6560. You may also email SAFC at customercare@safc.com.ph.
If you want to explore loans from other providers in the Philippines, such as Metrobank, SB Finance, Tala, or RFC, visit Moneymax to quickly compare loan features and apply for a loan easily!
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Metrobank
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Sources:
- [1] About SAFC
- [2] SAFC Loan Products
- [3] SAFC homepage
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