All You Need to Know About Personal Loan
Personal loans are the most popular loans in the Philippines today. This particular loan is usually utilised to pay for immediate financial needs like medical emergencies, large debts on credit cards, tuition fees, starting a business and the like. Like all other loans, personal loans in the Philippines also bear a certain interest as agreed on by the two parties; the lender and the borrower based on the borrower’s eligibility to take the loan. These interest rates vary from one lender to another and are on most occasions, quoted on a monthly basis.
You are eligible to apply for a personal loan if you are employed and have a steady flow of income. These loans allow you to take lump sum cash for whatever your need may be.
To apply for and avail a personal loan, the borrower must provide the lender with their employment & salary information and valid proofs of identity for the purpose of assessment. Employment and salary related information can be provided through either income tax returns (ITR) or salary slips from the employer. After the required documents are submitted, the turnaround time is approximately 2 to 3 banking days to hear from the bank or the lenders if your request for the personal loan is approved and a day or two more for the payout of the loan. Personal loans are quick and easy as it is an unsecured form of loan which does not involve collaterals or assets as security against the loan.
It is not uncommon to get a personal loan in the Philippines. It is extremely easy considering the fact that one can find numerous banks and financial institutions who are giving out loans to borrowers who request for one. The rates of interest on these loans are competitive as well.
Repaying a personal loan is very simple, straightforward and affordable. It helps you plan your finances better because you know the amount you will be paying off towards the loan every month.
Some of the features of this loan include:
Fixed rate of interest during the entire loan tenor - This essentially means that the amount of your monthly installments will be fixed. This amount will not change until you finish repaying the loan.
Fixed tenor - This ensures you know exactly how many installments you want to pay and exactly when you will finish paying off the loan.
Specific principal payments every month - Since a part of the monthly installments will cover the principal amount as well, the high interest rates will not keep you in debt over prolonged periods of time.
It is very easy to avail these loans as well; not just in terms of availability and requirements but with simplifying the application process to a very large extent as well. You need to be 21 years old, a Filipino citizen and have a permanent residence or a place you operate your business from.
For your application request to be approved you must also have a minimum income requirement which again varies from one lender to another. Most often than not, lenders look at how long you have been with the company you have been working for to be able to determine if you can repay the loan or not.
Loan calculators that are easily available online, help you understand the amount you are eligible for based on your earnings and also the monthly installments that you will be repaying by simply putting in the tenure of the loan and the loan amount into the calculator.
Applying for personal loans has just become easy over the years. Nevertheless, Philippines has seen a steep rise in the application for personal loans online because of the convenience it entails.
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