New Types of Credit Lines. When and Why Are They Used?

With the development and integration of the global banking market, credit institutions began to provide more services to transnational corporations. Thus, in the credit policy of large banks with an international branch network, there began to arise conditions, in accordance with which credit line nominees were given the right to choose the country, currency and borrowing interest rate. This type of credit line is called the “multi-currency credit line.”

In most cases, the credit line is provided to one particular borrower, in which case it is personal. However, in practice there are cases when banks establish a credit line for a group of borrowers (most often for the parent and subsidiary companies). At the same time, each borrower is responsible for his part of the loan (of course, if the contract does not provide for joint responsibility or one borrower provides a guarantee for the other). Such a system allows a holding company to exercise more flexible management – to obtain a loan through a division that has the best conditions in terms of economic activity, accounting and taxation.

Appearance of Different Types of Credit Lines

The meaning of multicurrency credit lines is that the borrower has the right to receive credit resources in any currency of the interbank market, which helps him manage currency risks.

International banking practice has also given rise to so-called multi-option credit lines – a combination of credit lines of a binding nature for a bank with the right of a borrower to choose various instruments of the financial market.

The flexibility of this type of credit lines gives the borrower the opportunity to choose the cheapest sources of resources in the necessary currency from a wide range of banking services. Most of these lines are provided exclusively for large customers, since administrative costs make these operations economically unprofitable for small transactions.

International Practice of Use of Credit Lines

In international practice, the most widely developed credit lines with the right to choose the conditions of borrowing. Foreign experience shows that credit lines can replace traditional contractual forms of credit resources.

The experience of American and European banks gained in establishing credit lines and their modes of operation, therefore, represents a huge potential for improving the services of the Filipino banks. However, the implementation of a number of credit operations in the Philippines is fraught with many difficulties. Multi-lines require the development of financial infrastructure, the formation of a solid structure of credit instruments, and high quality banking services. Since this infrastructure is at the initial stage of formation, such operations can be developed in the Philippines only in the future. For the time being, Filipino banks are forced to focus on guarantees for the return of credit resources and to choose the mode of operation of credit lines depending on the guarantee of repayment.

However, it is impossible not to see that credit lines are the most universal type of banking service. They are very convenient both for the bank and for the client, and the competitive position of the credit institution in the market depends on which more advanced forms of lending will be used in banking practice.

How to get some cash without leaving home in Philippines?

Find a leader in the microfinance market, the service is fully online 24/7, whose clients can always rely on us when money is urgently needed. That is why the company’s specialists have simplified the procedure for obtaining a microcredit, putting forward the minimum requirements for the borrower.

  • Age: from 18 to 75 years
  • Philippines citizenship
  • Availability of a passport and a bank card
  • Being in the Philippines

Today everything is convenient to do via the Internet, even paying a loan online is no longer a problem.

Guaranteed safety of quick cash loans

Data transmission from the client to our organization occurs through a secure channel, therefore, the confidentiality policy is strictly observed. In addition, before sending the funds to the card, it must be verified. What is this operation and why is it needed? In order to make sure that you own the card, not the scammers, the service checks it. One dollar account is automatically blocked. Transferring a three-digit code from the card is a safe action, so all online transactions are performed. All these nuances are important to know, regardless of whether you need to pay a loan from a bank or an MFI, financial literacy never hurts.

Advantages of microfinance money lenders:

  • Very fast processing of applications
  • Data storage reliability
  • You can repay the loan through the Internet
  • You do not have to pay extra money for registration.

How can I get a refund?

If you have already used the credit funds of our service more than once, but you probably know about all the lucrative offers and where you can pay the loan. But the useful information is always relevant, so tell again.

You can pay back the loan in the following ways:

  • Using the self-service terminal. Before payment you need to go to the personal information and check the information “sum to pay”. Next, we find the terminal and in the section “Banks and insurance”, we find the necessary service of a microfinance organization, select the option “Pay”.
  • Internet banking. Not only advanced PC users, but also beginners know how to pay a loan through online today. Pass authorization in your Internet banking, on the official website, take the details and make a payment.
  • Cash at the bank. This method is more suitable for conservatives in terms of payment for services. The main thing is to specify the details of the company that issued the loan to you. This is an example of how to repay a bank loan.
  • Through the personal account. After identification in the PM, you can always see the entire amount that is set to maturity. The most popular way for users to pay loan funds. You can pay the loan through the Internet by credit card without leaving your home.

Useful tips from kind financial expert

If you have difficulties with the repayment of debt, do not panic. Repayment of a loan with a loan is not an option, because you can always apply for a prolongation of 10, 20 or 30 days. Each user can extend the term as many times as necessary during the term of the contract. You can extend the time of payment through a personal account, in any branch of the bank through the registration of payment, as well as through the terminal.

Why is it advantageous to repay the loan early? Interest-free loan repayment is a benefit without overpayments. Everything is simple in this case, interest on the contract is charged for the actual number of calendar days of using the loan.

How to pay credit from the card? The algorithm is quite simple: in your account, online without leaving home. Using the prompts, select the options you need and pay the loan with a credit card. So is the repayment of the loan through the Internet.