Home Credit has a bad reputation to me before I even tried availing their services. My brother made me one his reference person when he applied for a phone. He had missed some payments, so Home Credit calls me like 24/7 to follow-up on his due. From that moment on, I swear that I will not avail any of their loans.
A twist of fate came. Our 7-year old washing broke down when laundry is more than a dozen basket full. To make it even worse. It's the start of the rainy season. We don't even have enough cash to pay the washing machine in cash. What now?
In Roxas (Isabela), a few establishment offers household appliances. There's S and J, Adessa, Everest and Robinson's Appliance. These establishments also offers installments as payment mode. The tie breaker is the establishment's ability to offer post-purchase support.
APPLICATION PROCESS
My mother convinced me that we should purchase our washing machine from Robinson's Appliance in Xentromall Roxas. Through Home Credit. Yes, through Home Credit. Since, I was the one with a good credit standing my name is used for the application. Home Credit promised a fast approval. All you need is are identification cards and a list of reference persons. 10 persons to be exact.
I signed up my application form. I think what made my application process is indicating an auto-debit payment scheme. Approval came within 20 minutes.
Once approved, your fingerprints will be scanned and now you can pay 30% of the principal amount of the unit your are purchasing then you are ready to take home the unit.
A welcome kit will also be given to you which will contain:
- Transaction receipt of the purchased item (photocopy this as thermal printed receipts fades easily)
- Loan Agreement
- Payment Schedule - this is where loan details is broken down, see sample below
- Acknowledgement Receipt of Sunlife Grepa Financial Insurance - yes, to get you covered for any untoward events
- Auto-debit Arrangement Enrollment Form/Auto Debit Arrangement (ADA) - if you availed of the feature
Two days later, you will receive a call checking and verifying the details of the loan you have availed. I wish Home Credit will invest on training their call center agents to speak more natural.
PAYMENT SCHEDULE
I have been prompt in paying my dues. My deadline is every 5th of the month but bank debits happens every 2nd of the month. As explained to me, it should be this early to facilitate the clearing period. There was an instance that my bank account was not funded. So what I did was pay the due at SM's payment center. Did I receive a call from an collecting agent? Yes, I received 2 calls reminding me to pay.
Pros:
Fast approval of application
Convenience of payment
Friendly staff (you can also contact them if you have concerns regarding your loan)
Payment status/transactions can be viewed online
Responding online chat agents (might require waiting)
Last payment is waived when payment is paid on time (applicable for Robinson's Appliance)
Allows installment even without credit card
Cons:
High interest (almost 30% of the item you purchased)
Will I recommend Home Credit? Yes, in terms of the ease of application and other facilities they offer. No for the high interest. On the brighter side, availing micro-loans like this will develop your skill on budgeting and sticking to it. So thank you, Home Credit.
What's your Home Credit story?
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