RFSC Personal Loan Review: Consumer Friendly Non-Bank Loan

Written by Marc Adrian

RFSC is one of the longest-running private finance/lending companies in the Philippines. The company was established in 1964 and it pioneered (non-bank) offering car and appliance loans to Filipinos. Through the years, they have diversified their financial services granting an array of personal and business loan options to their customers.

Unlike banks and other financial institutions, their personal loan is more inclusive with less stringent requirements and competitive loan amounts.

While an RFSC Personal Loan is among the most consumer-friendly loans in the market today, does this mean you should consider this over other loans? Let’s do a deep dive on this loan product and see if RFSC Personal Loan is indeed for everyone. 

Feature highlights
Loan amount	₱10,000.00 - ₱100,000
Loan tenure	3 to 12 months
Interest rate	2.5% to 4.5% per month
Other fees	One-time 6% processing fee deducted from the approved loan amount. ₱200 notarial fee

Who is eligible for this loan?

• Filipino citizens not younger than eighteen (18) years of age
• Residency of at least two (2) years, except if you are a new homeowner
• Good character and reputation
• A source of income. If employed, you should have been connected with your current employer for at least two (2) years with a minimum basic monthly salary of ₱15,000.

What are the documents you need to submit?

• Two valid government IDs (if employed, pls include company ID)
• Proof of billing
• Proof of income (three month payslip)
• Residential, business, or employment employment address 
• Certificate of employment
• Business barangay/business/ DTI permit (for business owners).

Additional Requirements For PDC Collection Payments

The latest deposit slip (on the checking account) is not more than one week old.

What makes RFSC Loan different from other loans?

RFSC is a non-bank loan (because RFSC is not a bank), their loan offering is more pointed toward middle-income earners who have no outstanding credit history with banks. Anyone with a regular job, a payslip, and a salary of at least ₱15,000 can apply for this loan regardless of the profession.

Their loan application process is now done online, and a loan agent will get in touch with you via phone call to verify your documents and confirm your application. The whole process will take seven business days given that you have satisfactorily completed the documents and application. 

However, their personal loan is an unsecured loan with higher interest rates than banks. It’s the trade-off for being more inclusive since they are also exposing themselves to customers with risky credit profiles. The maximum of 12-month repayment terms is also less favorable for higher loan amounts. 

Speaking of loan amounts is smaller than what most banks can offer – a maximum of ₱100,000. And the actual loan amount you’ll be approved for will mostly be based on your income – the bigger your income is, the bigger your loan amount will be approved for you. 

What we like about RFSC Personal Loan (advantages)

• First of all, RFSC’s loan application requirements aren’t as stringent as banks. RFSC is an institution that fills that gap, providing financial products tailored more to the mass market.
• Their loan application process, though requiring a lot of paperwork, is more streamlined now with their online portal. 
• You can easily get back and forth with a representative once they get in touch with you. Some can be reached via email. 
• They have branches across the country, you can easily inquire about your loan or their services in person if you wish to. 
• They have a wide range of payment options. 

Things to consider before applying for this loan

Just because RFSC is an easily attainable loan product doesn’t mean you should go ahead and apply for it.

Private lending organizations might look like they are more consumer-friendly. However, expect higher interest rates, a more intrusive screening process, and unusual collection practices, in exchange for less stringent requirements and more inclusive eligibility.

The interest rate is the most crucial aspect of this loan that warrants due diligence. It isn’t ideal to drag your loan to its maximum loan tenure (12 months) because that’s equivalent to repaying an extra 50 percent of the principal amount – even if we base the interest on their lowest quoted rate of 4 percent. 

Does an interest rate that amounts to half of your loan makes sense to your cash flow? At the end of the day, it’s about managing to pay everything back with interest without debilitating your financial capacity. 

Given that you’re not too cash-strapped to afford to wait for at least a week to get a loan, this is the best loan option that you have in the market. It has the lowest interest rate, more flexible terms, and a bigger loan amount. You can better manage your cash flow by taking longer-term loans like the ones that RFC offers.