Home Credit Cash Loan Application: Its Pros and Cons Plus Useful Tips

Published: August 17, 2021 | Updated: September 2, 2021 | Posted by: Moneymax | Personal Loan

home credit cash loan application l Moneymax

“Is that a housing loan?” is a question you’ve probably asked after seeing the Home Credit logo. Don’t worry, it’s not something related to real estate, but it is a non-traditional type of lending in the Philippines. And chances are you’ll end up finding yourself deciding whether to apply for a loan from it or not. Read on to learn how Home Credit loans work and if they’re a suitable option for you.

Who is Home Credit? 

home credit cash loan application - home credit logo

Home Credit Philippines[1] started its operations in 2013 as a money-lending service. As part of Home Credit Group, a global consumer finance provider, Home Credit slowly became a popular payment option for big-ticket items like home appliances and gadgets. And since then, the company expanded its operations to include cash loans.

Loans are available to Filipino citizens only, 18 to 68 years old, with stable income as employees, entrepreneurs, self-employed professionals, or pensioners. Home Credit Philippines offers two types of loans: a non-cash loan through in-store financing and a dedicated cash loan through its mobile app.

What is Home Credit Consumer Loan?

home credit cash loan application - how does home credit work

Home Credit gained popularity from its core financial product, the standard loan. It’s a non-cash loan that allows borrowers to purchase big-ticket items like laptops, cellphones, gadgets, musical instruments, furniture, and home appliances payable via monthly installments. Anyone can apply for a standard loan, even non-credit card owners.

This made Home Credit a popular paying method when shopping for electronics in the Philippines. Its standard loan is straightforward: shop for the item you want, purchase it with the help of a sales agent, wait for the loan decision (approval takes as fast as 10 minutes), pay the down payment, bring home your item, and pay the installments every month.

Key Features of Home Credit Standard Loan

  • Loan amount: Up to PHP 100,000 for qualified purchases
  • Interest rate: Varies depending on the purchase price, chosen down payment, and chosen repayment term. Home Credit doesn’t publish its interest rates. But based on computations using its online calculator, its rates range from 29.28% to 73.13%.
  • Repayment terms: Loan periods vary between 6 to 24 months.
  • Down payment: There’s no prescribed down payment, but Home Credit recommends paying the highest down payment possible for lighter monthly installments.
  • Loan fees: Processing fee worth 3% of the loan amount
  • Requirements: At least two valid IDs, at least one being a primary ID and one with a home address
  • Store availability: Any of Home Credit’s 3,500 partner stores
  • Brand availability: Samsung, Oppo, Acer, ASUS, Toshiba, LG, Nokia, Microsoft, Lenovo, Sony, Huawei, and more electronic brands

Consider the pros and cons of getting a personal loan online from private lenders to make the right decision. Compare and apply here through Moneymax.

home credit cash loan application - Moneymax CTA

What is Home Credit Cash Loan?

home credit cash loan application - how to apply cash loan in 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 own business, renovating your home, upgrading your appliances, or paying for your kids’ tuition.[2]

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

  • Loan amount: PHP 10,000 to PHP 150,000
  • Interest rate: Depends on the offer from Home Credit
  • Repayment terms: 18, 24, 30, and 36 months
  • Requirements:
    a. At least two valid IDs, at least one being a primary ID and with a home address
    b. Any bank document such as deposit slip, passbook, or bank statement that shows the borrower’s savings account number

How to Apply for a Home Credit Cash Loan

There are three ways to apply for a home credit cash loan. Choose the one that’s the most convenient for you.

1. Apply via My Home Credit App

home credit cash loan application - via mobile app

Step 1: Log in to your app. If you don’t have it on your phone yet, download it via the Google Play Store.

Step 2: Once you’re on the home page, click the Cash Loan banner.

Step 3: Indicate your preferred loan amount and specify the desired number of months for loan repayment. After reviewing the details, tap Continue.

Step 4: You’ll be directed to the application form. Supply your personal information and have your two valid IDs ready.

Step 5: Make sure that all details are correct and accurate. Once you’re good, tap Submit.

Step 6: After one to two minutes of submitting your application, you’ll see the status of your application. If your application has been approved, your screen will show the Sign the Contract button.

Step 7: Tap the said button to sign your cash loan contract. Once you’ve signed the contract, you’ll receive a text message from Home Credit detailing how you will claim the loan proceeds.

2. Apply via Phone

You can also apply for a Home Credit Cash Loan via phone. Just call any of the following Home Credit hotlines:

  • (02) 7753 5714 – Telesales Hotline
  • 1 800 10 234 3000 – Smart, PLDT, Sun, TNT
  • 1 800 8 905 0303 – Globe and TM

Follow the instructions of the telesales agent to finish your Home Credit Cash Loan application. For contract signing, remember the following steps.

Step 1: Wait for the text message that will indicate the status of your application. If your application is approved, the text message will have a link that will direct you to the contract.

Step 2: Click the link to go to the log-in page of your contract. Once you’re there, type in the Loan Account Number found on the text message. You’ll also be required to type in the mobile number that received the text message.

Step 3: After providing the details mentioned in Step 2, click Log In. You’ll then be directed to the cash loan contract. Read everything carefully, especially the Terms and Conditions.

Step 4: After reading the contract, click the check box in the Terms and Conditions section. Then, click the Next button.

Step 5: You’ll be redirected to another page that requests a One-Time-Password (OTP). Check your cellphone to see if you’ve received the OTP. Type the OTP into the box and then hit the Submit button.

Congratulations, you’ve signed the loan! The next page will show the steps on how you can claim your loan proceeds.

3. Apply via Partner Stores

An in-store Home Credit Cash Loan application is also possible. Here are the steps:

Step 1: Choose any of Home Credit’s partner stores.

Step 2: Approach a Home Credit sales associate at the store. If you’ve received a loan offer from Home Credit and you want to use it, show the text message from Home Credit. Don’t forget to bring your two valid IDs.

Step 3: Let the sales associate process your application.

How to Claim the Home Credit Cash Loan Proceeds

Once your home credit loan application has been approved, you’ll receive a confirmation via text message. You can claim the proceeds of your loan in two easy ways.

1. Get the Cash Through Bank Transfer

The cash will go straight to the nominated bank account. Check Home Credit’s website to see if your preferred bank is in its list of partners.

2. Pick Up Cash From Home Credit

Claim your cash at any of Home Credit’s partner centers. Bring your two valid IDs when claiming the money. Cash pick-up is FREE, so be wary of sales associates who ask for certain fees before the disbursement of the money.

Important note: The cash loan contract will be cancelled if the proceeds are not claimed within seven days.

Read more: Common Personal Loan Application Questions You Need to Prepare for

What are the Benefits of Home Credit Loans?

Still on the fence about sending that Home Credit loan application? Perhaps knowing the benefits of this loan will help you make a decision.

1. Easy Home Credit Requirements

You only need two valid IDs to apply for a Home Credit Cash Loan or standard loan. You can also improve your chances of approval by presenting any available document that proves your financial capabilities.

2. Quick Approval

home credit cash loan application - quick loan approval

As an instant loan provider, Home Credit can make loan decisions in under 10 minutes for standard loans and 30 minutes for cash loans. Some customers reported getting approval within an hour which is longer than the advertised approval speed, but still quicker than most loan providers.

3. Flexibility

Home Credit loans allow you to customize your payment plan. From determining the amount of your down payment to choosing an agreeable repayment term, these features can help anyone with a limited budget to afford a big purchase through monthly installments without using a credit card.

4. Easy Loan Management

Borrowers can download the Home Credit app to help 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 rep for any questions and concerns.

5. Early Repayment Option

Home Credit Philippines allows customers to repay the full loan amount before the term ends. This gives the advantage of not paying any interest and fees if the full repayment is made within 15 days after contract signing.

6. Loan Insurance Option

Borrowers can also avail of loan insurance coverage from Sun Life Grepa Financial, Inc. for their Home Credit loans. At the untimely death of the borrower, Sun Life will cover 120% of the loan. The beneficiaries won’t be burdened with the outstanding balance, and they may receive an excess cash benefit.

What are the Drawbacks of Home Credit Loans?

If there are advantages, there surely must be disadvantages to a Home Credit Loan. Here are some things to take note of.

1. High Interest Rates

Paying high interest is the biggest trade-off with Home Credit loans since you’re still borrowing from a private lender. You can refer to its standard loan calculator, but most borrowers reported getting high interests for their loans. Home Credit also doesn’t release detailed information about its loan terms unless you’re a client.

You can avoid paying a high interest by taking advantage of your credit card’s 0% installment feature. You won’t be paying an interest using a credit card, as long as you always pay your bills in full and on time. If cash or credit card payment isn’t an option, consider getting a low-interest personal loan. Of course, you can always just save up instead.

If you’re expanding your choices, you can explore other loan options using Moneymax’s comparison platform. You can also apply for a loan through it.  

compare personal loans through Moneymax

2. Easy Way to Earn Debt

The problem with buying gadgets, appliances, and similar items is that they are depreciating assets, which means they lose their value over time. Usually, the owner isn’t making money out of them, except when buying a phone for your business use or a laptop for your freelance career.

If you purchase a high-ticket item through a loan with a high interest rate, make sure you have enough income to sustain the monthly payments. Otherwise, you’ll find yourself struggling to find ways to repay your installments.

3. Rejection for Delinquent Borrowers

Just like any lender, Home Credit checks the credit history and score of borrowers with the Credit Information Corporation. This means you’re likely to be rejected if you have unpaid loans reflected on your credit report.

4. Consequences of Late Payments

It’s not enough that you pay on the due date itself. Home Credit recommends paying the monthly installments at least three days in advance. Making late payments can lead to extra fees and the possibility of getting declined when you apply for another Home Credit loan.


Home Credit Loan FAQs

1. What are the payment options for Home Credit Loans?

Paying Home Credit installments is as easy as applying for its loan. Just like paying for utility bills, it accepts over-the-counter loan payments at different bills payment centers and remittance centers in the Philippines.

  • SM Business Centers and bills payment counters in SM malls
  • Bayad Centers
  • ECPay outlets (7-Eleven, Shopwise, True Money, RD Pawnshop, etc.)
  • Cebuana Lhuillier
  • M Lhuillier
  • RCBC
  • GCash

Borrowers should only make cash payments at the aforementioned accredited payment channels, except for RCBC that also allows funds transfer via its ATM and online banking facilities. Check and credit card payments are not accepted.

2. How will I know if I’m qualified for a Home Credit Cash Loan?

As mentioned, only existing Home Credit customers with good payment standing are eligible for a cash loan. To see if you’re eligible for a cash loan offer, download the My Home Credit app via Google Play Store and register.

3. My Home Credit Cash Loan application was rejected. Can I apply again?

Absolutely! Home Credit says that you may apply again for a cash loan when you receive an offer from them. Applicants are encouraged to check the latest offers available on the My Home Credit app.[3]

But if things don’t go well with your second application, don’t lose hope! Similar cash loan offers are available at other reputable lending companies in the Philippines, such as Tala and Citi. Check out our partners and look for a cash loan that suits your needs and lifestyle.

4. I want to check my remaining balance/months in my account. How should I do that?

There are two ways to stay updated on your account. 

Via My Home Credit app

  1. Log in to your app.
  2. Select My Account to view the summary of your account and transactions.

Via My Payment Portal on Home Credit’s website

  1. Visit the Home Credit website and go to My Payment Portal.
  2. Look for Sign to My Payment.
  3. Type in your Loan Account Number and Date of Birth.
  4. Click Log Me In.

Final Thoughts

Home Credit loans can definitely help you get out of a tough spot, but be wary of their pitfalls. Before you apply for any type of loan, always consider how it will affect your finances, especially if the lender employs high-interest rates. Explore more affordable loans and other financing alternatives first before you decide to dive right into a sea of debt. 

Compare Other Personal Loans

Below is a list of trusted personal loan companies and their loan features. Compare your options and apply through Moneymax!

Personal Loan ProviderFeatures
Citibank Personal Loan
Get a Citibank Personal Loan with Moneymax
  • Fast approval time in as fast as 24 hours
  • Loan amount of up to P2 million
  • Flexible payment terms of up to five (5) years
EasyRFC Multi-Purpose Loan
Get EasyRFC Multi-Purpose Loan with Moneymax
  • Fast approval time in as fast as 24 hours
  • High loan amount of up to P150,000
  • Payment term of up to 12 months
SB Finance Personal Loan
Get SB Finance Personal Loan with Moneymax
  • Get approved within five banking days
  • High loan amount of up to P2 million
  • Flexible payment terms of up to 36 months
TALA Personal Loan
Get TALA Personal Loan with Moneymax

  • Fast approval time in as fast as 24 hours
  • Quick cash loan up to P15,000
  • 24/7 application using an Android phone