Manila, Philippines

Where to Get Cash Loan with Very Low Rates?

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My boss might kill me if I tell you this:
You can get cash loans from your credit cards at very very low rates. By very very low I mean 9-12% annually.

Compared to usual bank rates of 26% to 35% for a personal loan, or to 42% or higher if you do cash advance from the same credit card.

Here’s how:

Of course, assuming there’s a REAL need for it, like investing in a farm perhaps? Don’t just get the loan if you’re not going to use it for something productive and will bring cash inflow in the future. Don’t get loans on a whim.

The rate of 9% to 12% is almost the same as a secured loan, but here, you don’t need any collateral. And as we’ve mentioned before, don’t just pay attention to your amortization, pay attention to the interest rate!

You can get an SSS Salary Loan for 10% annually but the maximum loan is just around PHP32K.

For bank employees, the usual rate for a salary loan under your company benefits is 4% to 8% so I’d say not bad right? But not all of us are bank employees.

So probably the next best thing is through a cash loan using your credit card. Some banks call it call-for-cash, insta-cash, cash-installment-plan etc. But how?

  • Be the most boring card customer they’ve ever seen. Like use your card but don’t let the card issuer earn any amount from you, no interest, no finance charges, to the point that even the annual fee is fully waived or 50% discounted.
  • Maintain your card in good standing. Always pay in full, always on time. This is crucial.
  • By above, I mean be a transactor. Do not just pay the minimum amount due, pay the total amount due. By doing so, the card issuer does not earn any interest from you. No finance charges for paying partially, not even a late fee or overlimit fee.
  • When you avail of installments, get the 0% ones in shops (keep the tenor to a minimum by the way). Don’t convert your balances into installments with interest rate.
  • The card issuer will see you as a very good customer credit-wise, but you’re not a profitable one. You do not revolve, you’re not credit hungry, etc. In short, a top tier boring customer.
  • Then the card issuer will do anything it can to earn from you. That’s time they shall call you and offer you a cash loan for a really really low rate.
  • They will do this so that they can earn some interest from you. And if you have an actual need for the money, then voila! That’s opportunity + preparedness = luck for you.

I used mine to buy a small farm in the province. Got the farm, title transferred, using an unsecured loan, thanks to my credit card. No need for down payment, the farm was not even used as collateral.

Easy-peasy Japanese-sy.

That’s the importance of maintaining a good credit history with your banks and card issuers.

That’s also the importance of not showing them that you can barely make your ends meet and that you don’t revolve on your credit cards, left and right, month-on-month. Doing so will mean you’re credit hungry, you’re a risky customer and banks will just offer you more credit albeit at a high rate since you’re more probable to default.

They don’t need to give you loans at low rates since you already availed of credit with high interest rates.

If you show them you don’t need a loan now and you pay your cards in full, they might just offer you a loan with very low rates, just so they can earn some amount from you.

As with all loans, be responsible in using it.

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 Filipino Personal Finance

5 Responses

  1. Geri says:

    This really depends on the marketing and sales strategy of the bank. It can go either way really, and the only way to find out is get in touch with your issuing bank, and tell them of your expectations (same rate, higher limit). It can be that since you've availed before, they'll say it was a one time limited offer.

    But usually, banks are nicer to repeat availers, especially those who handled their loan well. They don't want to lose you as a customer, hence offer you same or even lower rates since you've proven yourself to be a low risk worthy customer.

    Goodluck and hope you get the best rates.

  2. Anonymous says:

    Hi, would you know if banks will offer you the same rate if you avail of the same loan after paying off a previous call for cash loan provided that the account is still in good standing? I am planning on getting the loan now or wait for my credit limit to increase and hopefully get a higher loan amount rather than get another loan after a year.

  3. Kash Martinez says:


  4. Kash Martinez says:

    I have a company that rendered cash loan. Visit us for more information.

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