|Terms||Add-On Rate per Month||Effective Interest Rate||Annualized Rate|
RCBC Bankard’s Cash Loan facility allows select and pre-qualified RCBC Bankard Principal credit cardholders of good credit standing to convert a portion of their available credit limit to cash.
A Cash Loan availment can be paid in installment terms from 3 to 60 months based on the prevailing Cash Loan interest rates. Applicable rates and terms may vary per offer, per cardholder.
A cardholder can apply for a Cash Loan through any of the following:a. Calling the RCBC Bankard Customer Service hotline at 8888-1883 for Premium cardholders and 8888-1888 for Non-Premium cardholders.b. If sent an offer via e-mail or SMS link, clicking on the link and completing the application as instructed.c. If offer is received via Outbound call, confirming acceptance of Cash Loan offer. Note that all calls are recorded for reference.
The loanable amount for Cash Loan will be based on the cardholder’s available credit limit (but not to exceed 90% of available credit limit to allow buffer for applicable interest and fees). Minimum Cash Loan transaction amount is Php10,000 and the maximum is Php500,000.
RCBC Bankard reserves the right to approve or reject applications for Cash Loan and has no obligation to disclose reasons for the rejection or disapproval of Cash Loan requests. RCBC Bankard has the sole discretion to approve only a portion of the amount applied for.
A Cash Loan application can no longer be cancelled once approved.
The approved Cash Loan amount is automatically deducted from the cardholder’s available credit limit.
Upon approval of the Cash Loan application, RCBC Bankard can (a) deliver the check directly to the cardholder’s registered billing address; (b) credit the cash loan proceeds to the cardholder’s RCBC bank account or (c) credit the cash loan proceeds to a non-RCBC bank account. For Cash Loan proceeds that will be disbursed to a non-RCBC account, RCBC Bankard can: a) deposit the check to the cardholder’s indicated bank account provided the account name matches the cardholder’s name in the system, or b) credit the proceeds through a PESONet fund transfer. The cardholder will hold RCBC/RCBC Bankard free and harmless for any error in the crediting of the Cash Loan proceeds when the same is made to the account number that the cardholder has provided.
A one-time processing fee of P150.00 will be charged to the cardholder’s account if preferred cash disbursement is through RCBC bank deposit. For non-RCBC bank deposit, PESONet funds transfer, or check delivery, the cardholder will be charged P250.00. The processing fee will not be deducted from the Cash Loan proceeds and will be posted on the nearest statement date.
In case cardholder provides an invalid deposit account number, a reprocessing fee of P100 shall be charged to the cardholder in order to reprocess the Cash Loan fund disbursement. The reprocessing fee will not be deducted from the Cash Loan proceeds and will be posted on the nearest statement date.
The computation of interest and principal components of the monthly installment shall be based on diminishing balance computation, and the interest and principal portions will not be equal from month to month.
For all loan installment availments including Cash Loan, the first amortization shall be deferred for up to 31 days from the date of loan disbursement. An Extra Interest equivalent to the initial interest will be collected from the cardholder due to the longer payment period provided in order to repay the Principal Amount.
The Extra Interest is computed by multiplying the Principal Amount with the applicable monthly Effective Interest Rate (EIR) and then dividing the amount by a fixed 30 days. The total amount would then be multiplied with the actual number of days within the posting month.
The Extra Interest will be part of the first monthly amortization.
The Monthly Installment Amount is computed by using a monthly factor rate that is applied on the Principal Amount and Extra Interest. The monthly factor rate is based on EIR and term of the loan and used as a guide in deriving the Monthly Installment Amount. Sample illustration of the Monthly Installment Amount is as follows:Loan term: 3 months
Monthly Monthly Amortization Extra Interest Interest Interest Due Principal Due Outstanding Principal Balance 0
10,000.00 1 3,561.01 233.30 233.30 446.60 3,114.41 6,885.59 2 3,561.01 - 153.76 153.76 3,407.25 3,478.34 3 3,556.01 - 77.67 77.67 3,478.34 0.00
If the cardholder decides to pre-terminate or pay the Cash Loan installment plan in full before maturity, a pre-termination fee of Php 500.00 or 5% of the unpaid principal amount (whichever is higher) will be charged.
Cash Loan availments and its monthly amortizations are non-reward points earning.
In cases of suspension, cancellation and/or non-renewal of the RCBC Bankard credit card due to non-payment or breach of any of the Terms and Conditions governing the issuance and use of the RCBC Bankard credit card, RCBC Bankard shall automatically render all the outstanding obligations of the cardholder under the RCBC Bankard Cash Loan facility due and demandable without need of prior notice.
- Monthly interest rate, late payment penalty and other charges to be applied to the Cash Loan facility shall be determined by RCBC Bankard.
The abovementioned Terms and Conditions for the implementation of the RCBC Bankard Cash Loan facility may be amended and supplemented by RCBC Bankard from time to time, as may be deemed necessary.
Enhanced Implementation of the Truth in Lending Act (Republic Act 3765)
The State protects its citizens from a lack of awareness of the true cost of credit to the customer by assuring a full disclosure of such cost and other terms and conditions with a view of preventing the uninformed use of credit.
As such, a disclosure statement is a required attachment to the loan contract. It shall include, at a minimum, the following information:
- Total amount to be financed
- Finance Charges and all others charges incident to the loan
- Net proceeds of the loan
- Schedule of Payments
- The percentage that the finance charge bears to the total amount to be financed expressed as Effective Interest Rate (EIR)