Here Are The Installment Options For Your Next Electronics Or Appliance Purchase

Written by Marc Adrian

A new type of consumer financing provider is gaining steam in the local retail scene in the Philippines, primarily providing customers more flexible payment options for big-ticket purchases. While their services are really not uncommon, the way it’s extended to the consumers is something that has never been done before. 

Want a new fridge? No need to shell out a huge chunk of cash anymore, Home Credit can split your payment into a 12-month installment plan. And the best thing is, you can apply and get approved for it on the spot (in some partner retail stores).

That’s just one of the wide range of financial services that they offer today. If you want to learn what other options are on the table that you can avail from commodity loans, here’s a quick rundown of those.

What are commodity loans?

This type of loan has existed in the Philippines for a long time now, exclusively being offered by appliance and shopping centers. Today, it has come front and center with the internet making it more accessible to anyone who needs it. 

But just what exactly are commodity loans? In case you aren’t aware yet, it provides an option to turn your big-ticket purchases into light monthly installments. 

While there are existing various providers for this type of financing that can only be accessed through their retail centers, there are now providers that you can reach online at your convenience.

Who are the Commodity Loan providers in the Philippines?

To date, there are four prominent providers online for commodity loans, and they are the following:

• Home credit
• AEON Philippines
• Cashalo

What are their services?

At its core, there are two types of loans offered by commodity loan providers – they’re the same across all providers. However, their loan specifics such as interest rates, payment terms, and application process can vary 

There are two core financial products offered by commodity loan providers, which are the following:

• In-store financing 
• Cash loan

Here’s a quick break down of each commodity provider’s products and services:

Home credit

They have two types of commodity loan offerings, both of which you can apply for online. 

1. In-store financing (0% installment)

This product is loosely offered to consumers with a minimum requirement. It’s a payment option available for big-ticket purchases in their partner merchants. Loan approval will only take a few minutes provided that you have the complete requirement. 

Features
Eligible products	Mobile phones, Phone accessories, Laptops, Computers, Home Appliances, Furniture, and Electronics
Loan Term	6, 9, 12 months
Cash out / downpayment	At least 20% of the overall amount of the purchase, plus 3% service fee.
Interest rate

What are the requirements?

There are only a few requirements for this type of service:

1. Must be a Filipino citizen
2. Right to a productive age (18 to 68)
3. Stable income (at least 3 months employment for employees)
4. 2 valid IDs

How to apply for this type of loan?

1. Verify your eligibility through their website. Once you’ve qualified for the pre-screening, they will recommend a partner store that’s near you. 
2. Visit their partner store and bring the completed requirements mentioned above.
3. Choose your product and submit your documents to the partner merchant. 
4. Wait for the loan approval on the spot. 
5. Pay the required downpayment amount. 

2. Cash loan

A fast cash loan offered by Home Credit. The application can be done online or in-store and approval can be as fast as 15 mins. The money will be disbursed through bank transfer or remittance and the process is hassle-free.

Features
Loan amount	Subject to Home Credit’s assessment. Different borrowers may have different maximum and minimum amounts.
Term	18 months to 36 months
Interest rates	12.825% per month

How to be eligible for a cash loan?

Only applicants who have an existing Home Credit loan (in-store financing) are eligible for this type of loan. 

What are the requirements?

If you meet the requirement above, you only need these two documents to apply.

1. 2 valid IDs. One should have your address on it. 
2. Bank document containing your account number for cash disbursement. This is only applicable if you want to receive your funds through your bank.

How to apply for a cash loan?

There are 3 ways to apply for their loan

Via phone

1. Contact the following numbers from Mondays to Sundays 8am to 5pm.
2. After the phone processing, wait for an SMS from Home Credit notifying of your loan approval. It contains your loan account number and a link to the website where you can download your contract. 
3. Click the link or type it on your browser’s address bar.
4. On the web page, enter your loan account number and phone number, then log in. 
5. Click “view” right beside the Consumer Loan Agreement line item. Read the documents and understand the terms and conditions thoroughly. 
6. Tick the box after you’ve read the terms and conditions then click next. 
7. An OTP will be sent to your phone via SMS. Enter that code on the website as the last step and to finish your application. 

Via App

1. Download the Home Credit app and log in to your existing home credit account. 
2. A cash loan offer banner will be shown on your home page or dashboard if you are already eligible for one. Click “Apply Now”.
3. Enter the amount you wish to loan and choose the term (length of loan)
4. Add insurance coverage only if you prefer to have it. 
5. Once filled up, the app will calculate the amount of your monthly installment. 
6. Click “Apply Now” at the bottom if you agree with the loan specifics. 
7. You will be taken to the loan summary page which shows a breakdown of your loan details. Click continue. 
8. Verify your mobile number by entering it on the text box provided. Click “Verify”.
9. You will receive an OTP code via SMS which you need to enter to confirm your number. 
10. You will be taken to the cash personal information page. It contains your personal information, just click “Confirm” to complete the process. 
11. Your application will be approved in 5 minutes. Open the app again by then and click on “Application Status” button to check your loan. 
12. Once your loan status says approved, you will then need to fill up your cash disbursement information and you will get your funds disbursed in the next business day. 

How to pay for your loan

Payments are done through the following channels:

Cash payments

• SM Bayad Center
• 7-11/ECPAY
• Cebuana Lhuillier
• M. Lhuillier 

Cash/Online payments

• RCBC Commercial Banks

Simply present your loan account number and your payment. The payment will be posted within 3-business days. 

To check the status of your payment, you can find it in your Home Credit app or by logging on to https://homecredit.ph/payments/ using your loan account number.

Aeon Philippines

This provider has some similar offerings as Home Credit, but they have more diverse consumer-specific loan products that range from cash loans to even a vehicle loan. But for the sake of comparison, we will discuss their most prominent product which is the Appliance loan, since the application process and requirement are the same for the rest of their in-store financing services.

Features
Eligible products	Mobile phones, Phone accessories, Laptops, Computers, Home Appliances, Furniture, and Electronics
Loan Term	6, 9, 12 months
Cash out / downpayment	At least 20% of the overall amount of the purchase, plus 3% service fee.
Interest rate

Appliance loan

Unlike Home Credit though, AEON is not that visible since it mainly caters to appliance retail chains in the country but they also offer installment plans for gadgets such as smartphones and laptops. 

Features
Eligible products	Mobile phones, Phone accessories, Laptops, Computers, Home Appliances, and Electronics
Loan Term	6, 9, 12 , 24months
Cash out / downpayment	Appliances - 10% Smartphones - 20% Laptops and other gadgets - 10%
Interest rates	Appliances - 2.95% per month Gadgets - 3.3% per month
Processing fee	3% or ₱500 of the total amount of the purchase, whichever is higher.

What are the requirements?

While their website may have stated that they only require 2 valid IDs, most of the time they will also ask for supplemental documents to verify the applicant’s repayment capacity:

• Two Valid IDs
• Proof of income such as 1 month payslip, bank statement, remittance, or passbook for the last 3 months
• Proof of billing

How to apply?

There are two ways to apply for their loan, the first one and the most common one is the in-store application: 

1. Proceed to any of AEON’s partner stores and bring the required documents mentioned above.  
2. Fill out the forms provided by the AEON booths at their partner stores and submit them with your documents. 
3. Wait 2 to 3 hours for the approval.
4. Pay the required cashout based on the category of your purchase. 

Or you can also apply through their app, here’s  how:

1. Download the app from App or Play Store
2. Register and upload the documents required by the app.
3. Wait for the approval of your account (a few hours to 1 business day)
4. Proceed to the partner merchant you’ve chosen through the app to claim and pay for your purchase. 

 

How to pay for your loan

Use your AEON Instalment Plan Agreement Number whenever you pay through the following accredited payment channels.

Payment Channels	Over the Counter	ATM	Express Phone	Online
7-Eleven	₱15	n/a	n/a	n/a
All Day	₱15	n/a	n/a	n/a
Bayad Center	₱15	n/a	n/a	n/a
Cebuana Lhuillier	₱15	n/a	n/a	n/a
CVM Pawnshop	₱15	n/a	n/a	n/a
EC Pay	₱15	n/a	n/a	n/a
Expresspay	₱15	n/a	n/a	n/a
GCash	₱15	n/a	n/a	n/a
LBC	₱15	n/a	n/a	n/a
M Lhuillier	₱15	n/a	n/a	n/a
PayMaya	₱15	n/a	n/a	n/a
Pera Hub	₱15	n/a	n/a	n/a
SM Bills	₱15	n/a	n/a	n/a
Touchpay	₱15	n/a	n/a	n/a
True Money	₱15	n/a	n/a	n/a
USSC	₱15	n/a	n/a	n/a
Villarica	₱15	n/a	n/a	n/a
Security Bank	Free	Free	Free	Free
Union Bank	₱10	Free	Free	Free
Metrobank	₱25	Free	Free	Free
BDO	₱25	Free	Free	Free
BPI	₱35	Free	Free	Free
RCBC	₱20	₱20	Free	Free
AEON Head Office	Free	₱20	Free	Free

Cashalo

A fintech platform that operates completely online through their app. Their online platform has a more clear cut offering that customers can easily have access to just by downloading their app. Their platform offers financing services through Paloo, a credit processing and enablement services such as Credit Risk Underwriting, KYC verification, credit application processing & customer support, credit funding & disbursement, and payment collection.

Shop now and pay later

This is a loan offer that provides a financing option to their customers for big-ticket purchases through their partner merchants. 

Features
Eligible products	Mobile phones, Phone accessories, Laptops, Computers, Home Appliances, and Electronics
Loan Term	12 months
Maximum loan amount	₱20,999
Cash out / downpayment	20%
Interest rates	7.3% annually
Processing fee	none

Computation based on their loan calculator

How to apply

The application process is fairly simple. Upon downloading and registering for the first time in their app, you are already applying for pre-approval. 

After the registration and your account getting approved, you can proceed to the actual application process by doing the following:

1. Visit a Cashalo partner store and look for a Cashalo representative.
2. Log in to your Cashalo app and go to Cashacart.
3. Click on the Apply Now button.
4. Enter your total bill amount.
5. Review your downpayment and loan terms.
6. Accept the Loan Agreement and Promissory Note.
7. Receive a unique code via SMS and enter it in the app to confirm your application.
8. Wait for your loan approval in as fast as 10 minutes.
9. Once your loan is approved, proceed to the cashier and pay the downpayment. Upload your receipt and take home your purchase!

Cash loan

This is their core product offering and can be immediately applied for through their app. It’s easy, fast, and hassle-free. This cash loan, however, is a short term loan that doesn’t offer an amount more than ₱7,000 for first-time borrowers. 

Features
Loan amount	₱7,000
Term	1 to 3 months
Interest rates	7.5% per month

It’s easy and done entirely through the Cashalo app 24/7!

1. Log in with your mobile number.
2. Complete your profile.
3. Choose your loan amount and payment terms.
4. Wait for your loan approval.
5. Receive your money in 30 minutes through your dedicated bank account. 

Repayment

You can choose through the app how you prefer to pay for your loan and it will provide you in-app instructions on how to complete that through the following channels:

• Robinsons Bank.
• Online banking
• Over the counter via dragon pay’

Commodity loans have been around for over a decade in the Philippines offering an easier way for Filipinos to afford lifestyle items to improve our way of living. It’s an easy access loan, making it both a benefit and a liability.

Depending on where your finances stand, this can be a good or bad idea. Just like any other financial decisions that we do regularly, keep in mind how it will affect your cash flow. 

Does it make financial sense to pay for that smartphone or home appliance on installment? While purchasing it on installment at the moment may seem like a liberating financial move, will it make your monthly budget suffer in the long run? 

Alternatively, you can also apply for an online cash loan to provide you a more flexible option to consume your money. You can find some of the best online loans in the Philippines here!

Note: We will continue to add more commodity loan providers to our list in the future as more businesses make this financial service available to consumers.