Friday , June 22, 2018

ATM card is most popular collateral for Filipinos

HOW do Filipinos secure a loan?

Surprisingly, it is through the “sangla ATM” scheme, according to the central bank.

In the recently released 2014 Consumer Finance Survey participated by 18,000 households all over the country, the Bangko Sentral ng Pilipinas found out that the “sangla ATM” practice was the most used collateral of borrowers at 39.9 percent. The rate is higher in Central Visayas at 61.8 percent. This means or six out of 10 pawn their ATM cards to lenders.

Nationwide, land is the second most used collateral at 22.5 percent, appliances at 11.7 percent, vehicles at 7.7 percent and harvest at 6.0 percent.

“We have found out that it’s actually the Sangla ATM that is the most popular collateral among Filipinos,” said BSP Economic Statistics Director Rosabel Guerrero, who presented the results to local stakeholders at the BSP Cebu office yesterday.

The same survey also revealed the top three assets of Filipino families are home appliances with 90.6 percent of Filipinos owning them, house (75.5 percent), and vehicle (27.5 percent). In Central Visayas, houses came out as the top asset (81.1 percent), followed by home appliances (78.5 percent), and vehicles (22.2 percent).