Did you know that you can invest your money with Vidalia Lending Corporation (VLC) in the Philippines?
If you want to save some money for the short term — anywhere between 6 months and 18 months — your typical options are high-yield savings accounts and term/fixed deposits. But in the Philippines, interest rates for these kinds of accounts with local banks are not really anything special. I mean, I don’t recall seeing anything which made me sit up and pay attention. The fabulous savings interest rates currently offered by ING Philippines being the only exception – which is, by the way, where I keep the bulk of our Emergency Fund. I will write about my experience with ING Philippines another day perhaps.
But back to Vidalia Lending Corp… If you don’t already know, VLC PH is a peer-to-peer (P2P) lender (or sometimes also known as crowdlending).
Is Vidalia Lending Corp PH a scam?
Vidalia Lending Corp. is regulated by Securities and Exchange Commission (SEC) with License No. CS200813771 and Certificate of Authority No. 279 issued October 2008. Incorporated with registered office at Unit 601 Summit One Tower #530 Shaw Boulevard Mandaluyong City, 1552 Metro Manila Philippines.https://vidalia.com.ph/about/
So I’m guessing that’s a no?
Steps to invest with Vidalia Lending Corp PH
1. Open an account
Updated February 12, 2020: Recently, Vidalia removed their investment form page from their website. When I asked, they said it was temporary. So if you click on the link below, you may not find the web form there anymore and you will understand why that is the case.
You apply online by visiting the following web page and by submitting all the required information about yourself using the web forms supplied: https://vidalia.com.ph/invest/info/. I think you also have to submit a copy of 1 valid government-issued ID. In my case, I think I submitted a scanned PDF copy of my passport.
Then you wait… They will send you some product information documents and they will require your confirmation that you want to proceed. As soon as you agree, they will send you instructions to fund your investment account with VLC PH.
2. Fund the account
The minimum you can invest is ₱5,000. You will require an active bank account to send and receive funds to and from VLC PH, of course.
VLC PH will send you a list of VLC PH bank accounts with various local banks and their respective account numbers for you to deposit money / to fund your investment easily.
If you have a savings account with BDO, for example, VLC PH also has a BDO deposit account that you can simply transfer your funds from for no extra charge at all (free) and all completed in realtime.
This is the current list of banks (as of December 2019) that VLC PH accepts deposits/investment funds:
- BDO Unibank
- Bank of the Philippine Islands (BPI)
- Metropolitan Bank & Trust Co. (Metrobank)
- Philippine National Bank (PNB)
- East West Banking Corp.
- Land Bank of the Philippines
- Security Bank Corp.
- China Banking Corp.
- PS Bank
As soon as you complete the fund transfer into any one of their bank accounts, you just send them the details of the fund transfer together with your name, if it is not already on the transfer details.
3. Received confirmation
VLC PH will send you confirmation that they have received the funds matching your account and they will send you an email with the details of your investment. There will be a PDF attachment of the same details that you can download and/or print for your own records and/or for safe keeping.
Depending on the tenure of your investment, which could be anything from 2 months to 12 months, you now just wait for the maturity date to arrive, and get paid back your original investment PLUS earned interest.
Check How Much You Can Earn
On their web site, on this page, go to the bottom of the page (mobile view) and look for the “Check How Much You Can Earn” calculator.
The screenshot below shows the rate of return you can expect for investing ₱5,000 for just 6 months:
That’s a whopping 8.5% rate of return just for waiting 6 months! No local bank I know can match this kind of ROI.
Of course there is a great risk involved. Although VLC PH claims to be regulated by SEC, nothing is guaranteed or certain about your investment with them; especially more so when it involves the lending business. It’s not less risky than lending money to a friend! :-)
As my partner always says,
Only invest what you can afford to lose.