In case you are wondering how to Buy-Out your existing loan from City Savings Bank, I will share my recent experience in this post.
Short background story: I availed of the Salary Loan offered by the City Savings Bank last March 2021. I used the money as an additional financial resource (an add-on to my Mama’s money) to buy our lot in our hometown in Monkayo. The property was already foreclosed then, so I availed of it even if the interest was high.
My Reason for Buying Out
As mentioned, the interest was high. For the money I loaned, which was 350,000, the processing fee was 21k, and the monthly amortization was 7,800+. That is for five years.
Tagum Cooperative just had a MOA with our school; fortunately, I have already been a member since 2017. This gives me the edge of getting a higher net loaned amount because I do not need to pay a membership fee.
Tagum Coop forces you to save, HAHAHA, because before approving your loan, they will get 3k from your loaned amount, eventually earning interest. This, I think, is somehow helpful and practical. More to that is they add up lower interest rates.
Things to Remember in Buying Out
- You should get a Statement of Account (SOA) from the City Savings Account. Aside from the fact that it is one of the requirements for the Redemption Loan, you can also have an overview of the amount you still owe from the bank.
- There are many forms you should accomplish from the Tagum Coop. Like, it’s so MAKAPAL hahaha. It seems they are testing your persistence if you really want to avail of the loan hahaha!
- The third one is submitting the forms; you will be advised to sign all other documents. *Most of the forms should be signed by your HR Head for automatic deduction.
- For larger amounts beyond 500K, they need to inspect your property. They will escort you through the process, like taking pictures of your house and other assets.
- For the redemption process, they will schedule an appointment with you to pay the loaned money to City Savings. They will also escort you to the bank.
That’s it! If you have been following this blog, I have listed my goals for this year: settling my debts. So, this loan is for that and my upcoming dissertation writing journey.
May God bless my finances hehe and my goals for 2023! Whew!