For A Cab Driver In Dire Financial Trouble, A Taxi Loan Is The Answer
Did you know that taxicabs have been plying the Philippines’ various thoroughfares since the 1970s and 1980s?
From one model in those years, many more emerged as taxicabs after the automotive industry started flourishing when Martial Law was lifted in the mid-1980s.
Aside from Metro Manila, there are taxis in the cities of Baguio, Iloilo, Bacolod, Cebu, Cagayan de Oro, Davao, Iligan, General Santos and Tacloban.
In the 1990s, Asian Utility Vehicles or AUVs began doing double duty as taxis too. Aside from being low on maintenance costs, these units also offer a large seating capacity.
Today, a lot of older taxicabs are powered by LPG or liquefied petroleum gas. This has been a strategy implemented by both cab drivers and taxi companies to cope with the high price of gas.
Taxi Drivers Are No Strangers To Financial Woes
Like many self-employed Filipinos, taxi drivers have their own set of worries, too. These include family and personal affairs, as well as global and national concerns that impact their livelihood.
Being without formal employment, taxi drivers might be hard up developing credible credit.
But today, select lending companies recognize the plight of taxi drivers and offer a product called the taxi loan, tailorfit to the needs of cab drivers.
What Is A Taxi Loan
A taxi loan is a loan product where the borrower secures a loan based on the amount of the taxicab he or she is driving.
Making the taxi loan a highly practical loan for cab drivers is the fact that select lenders do not require the vehicle itself to be left with the loan company
Thus, the cab driver can still ply his routes and earn his living, while at the same time paying the interest and the principal on the loan.
There are many other requirements that are needed to avail of the taxi loan.
But the first important matter that needs to be ascertained is the credibility of the lending institution. Taxi drivers should do an extensive background investigation on the loan company where they intend to avail of the taxi loan before entering into an agreement with them.