JUMPING on the bandwagon, I am now halfway into launching an ONLINE BUSINESS. I’ll share more details about it and other startup experiences here very soon. In the meantime, I’ll share how I managed securing additional capital through a CIMB Bank (mobile app) personal loan worth PHP30,000.
On the side, you might have observed that I have been writing lately about business ideas, and these all but come as part of my personal research and preparation for such a venture.
That’s one big advantage of blogging on my end — learning new things, getting them documented on one hand and monetized on the other.
I first learned about CIMB Bank mobile app after availing the high-interest GCash Save Money feature in which it is the partner bank. Speaking of the interest, the savings account offers as high as 3.10% to 4.00% per annum (far from the average of 0.25% in regular banks).
I tried the mobile app out of curiosity and learned even more about its quite impressive digital banking products. In the Philippines, the app offers various accounts which come with VISA debit card upon request and even long-term personal loans.
Apart from the usual SSS and PAG-IBIG loans, I also had a borrowing experience with BillEase and Akulaku, but with CIMB Bank, I should say, was a whole new experience and hence, worth sharing here.
 Commerce International Merchant Bankers (CIMB) Bank. Headquartered in Kuala Lumpur, Malaysia, CIMB Group is a leading ASEAN universal bank and one of the region’s foremost corporate advisors. It is also a world leader in Islamic finance.
CIMB Bank Philippines is the tenth and final geographical milestone in establishing CIMB’s presence throughout ASEAN. Opened in December 2018 and currently headquartered in Bonifacio Global City, it has transformed the Filipino banking experience with its all-digital, mobile-first bank, offering 24/7 safe and secure banking, bank account opening in just 10 minutes through smartphones, among others.
CIMB Bank does not have any physical servicing branch in the Philippines as it promotes the all-digital banking system, but it is regulated by the Bangko Sentral ng Pilipinas (BSP) and deposits are insured by the Philippine Deposit Insurance Corporation (PDIC).
 CIMB Bank Personal Loan Requirements. Based on what I experienced, it’s true that CIMB personal loan application via its mobile app takes around ten (10) minutes, or even shorter if you prepare beforehand your (a) SSS/GSIS number, (b) bank account number (or just your CIMB account), (c) valid ID, and (d) proof of income (I uploaded my BIR Form 2316).
In order to qualify for a personal loan, you must be:
- 21 years old and above
- not older than 65 upon loan maturity
- a Filipino and a non-US citizen
- having a Philippine mailing address and an active mobile number
- earning a minimum gross monthly income of PHP15,000
- if employed, tenured for at least 6 months, or 1 year of continuous employment, unless employed in the top 15,000 corporations
- if self-employed, operating a business for at least 1 year
If you are EMPLOYED, you need to upload any of these:
- 1-month payslip
- Certificate of Employment
- BIR Form 2316 (W2)
- BIR Form 1700
On the other hand, if you are SELF-EMPLOYED, you need to provide all of these:
- DTI or SEC Registration
- Mayor’s Permit
- BIR Form 1701 or latest 6-Month Bank Statement of the Owner or Business
 CIMB Bank Personal Loan Application Process. If you are an existing customer of CIMB Bank (which means you already have either a Fast Account, Fast Plus Account, or UpSave Account), you can apply for a CIMB Bank personal loan by following these simple steps:
- Log in to the CIMB Bank PH mobile app.
- Tap Product on the homepage, right on the footer menu.
- Tap Apply for a Product.
- Select Personal Loan.
- Fill in the preliminary details.
- Select your desired loan amount (between PHP30,000 – PHP1M) and tenure (minimum of one year).
- If you are approved for the terms and wish to accept, tap Next. You may also choose to cancel the loan application by selecting Leave Application.
- After you tap Next, you will be required to fill more personal details such as employment information and emergency contact.
- Sign your digital signature if you agree to the terms of the loan.
- Select your disbursement method. Select your bank and type in your bank account number.
- Upload your income document.
- Proceed with virtual verification.
- Once approved, an email with the loan contract and details will be sent to you.
It took me just a day before receiving both SMS and email notifications saying that my loan application got approved and the amount would be disbursed within the next two days.
Such may be different from one applicant to another, but the key to your fast and easy loan application approval is simply following the instructions and processes.
 CIMB Bank Personal Loan Interest Rate (Sample). CIMB personal loans come with unexpectedly high interest rates. As per their marketing, monthly add-on rates range from 1.12% to 1.95% which correspond to annual contract rates of 24%, 30%, or 36%, but my 24-month loan of PHP30,000 comes with a total contract interest of 45.64%.
There are three (3) items under Effective Interest Rate (Interest and Other Charges) – a fixed interest rate chargeable on the facility (20.88%), contractual interest rate (30%), and the effective interest rate (45.64%).
Apart from the documentary stamp tax worth PHP225, there’s also a disbursement fee of PHP500. Both fees are deducted from the disbursed amount. Hence, I received just PHP29,275.
So, with a loan amount of PHP30,000, I would be paying PHP1,771.42 for 24 months (PHP42,514.08 or with an added interest of PHP12,514.08).
 Final Thoughts. It can be a little regret as I didn’t expect the interest rate and other charges could be that high, but I just do hope the business would work so I could make loan repayments just on time.
After all, I tried cancelling the loan, but it was impossible already given the approval and release of the contract. I should have scrutinized more every single detail in the terms and conditions.
In the end, CIMB Bank personal loan can be still be a good option if there’s none other that offers lower interest rates in the market.
Equally, CIMB Bank does not require you any collateral for the loan. Most online loan providers offer shorter terms and availing one for an additional small business may not be that ideal.
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