At a glance:
- Prioritize understanding costs like interest rates, downpayments, processing fees, and loan terms when comparing installment loans.
- Transparency in loan comparisons helps you choose the loan that best fits your financial needs.
If the Vivo V3 Pro 5G is the phone of your dreams, we can’t blame you, luv. Its sleek design, ZEISS Professional Portrait Camera, and12GB + 512GB RAM are just some of the features that’ll make any techie’s mouth water.
However, gadgets that are as powerful as this one never come cheap. Don’t let that discourage you, though, because you can easily afford it through manageable monthly payments with an installment loan, or a buy now, pay later payment method.
Don’t know which lender to choose? Well, there are different factors you should consider, the most important one being the cost of the loan. What are the fees and interest rates involved in getting these loans?
In this article, we’ll compare our Tonik Shop Installment Loan (SIL for short) and competitor’s – let's call it “Installment Loan X” - to help you decide how to finance not just your dream phone, but any major purchase.
Tonik Shop Installment Loan Vs. Installment Loan X
You’re probably thinking, “I’m reading this on Tonik’s website. This must be biased!” Not at all, luv. Like our Tonik’s SIL, we aim to be as transparent as possible so that you can make the best decision.
See the differences between Tonik’s Shop Installment Loan and Installment Loan X in terms of interest rates, downpayments, processing fees, loan terms, and other fees:
| Interest Rate | Downpayment | Processing Fees | Other Fees | |
|---|---|---|---|---|
| Tonik Shop Installment Loan | 4.5% fixed add-on monthly interest rate | Minimum of 10% - higher downpayment, lower monthly payments | None | None |
| Installment Loan X | 0%-5.99% per month | None | 0.5% or PHP150 monthly processing fee (for phones with 0% interest promo) | 3% origination fee |
While Home Credit’s Product Loan offers an undoubtedly enticing 0% interest rate for certain smartphones, it’s important to note that they still charge a monthly processing fee of 0.5% or PHP150 (whichever is cheaper), or a 3% origination fee for products not applicable to the 0% interest promo.
Tonik’s SIL may require a minimum 10% downpayment but paying that downpayment can also result in lower monthly payments. In fact, paying a bigger downpayment is advisable for that reason!
Note for Lee-Anne: Source for Interest rates: Product Loans by Home Credit | Flexible Financing
Whichever You Choose, We Want You to Win
Like we said earlier, luv, we’re not here to make you blindly choose Tonik’s SIL. Our goal is to help you make an informed decision.
Whichever loan you end up with, make sure that it’s the one that best suits your needs and your financial standing.
Now, ready to get the phone of your dreams? See you at our partner stores, luv, and happy shopping!
