Last Updated on April 13, 2017 by Marie Bautista
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Do you want to put up a small business but
don’t have the right cash to get you started? Are you planning to buy a new car or a house you can call your own? Or is your daughter
is in need of paying his college tuition but you’re out of budget?
don’t have the right cash to get you started? Are you planning to buy a new car or a house you can call your own? Or is your daughter
is in need of paying his college tuition but you’re out of budget?
Personal
loans can be a good option or even your life saver especially when an emergency
comes up.
loans can be a good option or even your life saver especially when an emergency
comes up.
If you came to be in any sort of financial
need, a personal loan can give you the right amount of resources to get you
through. That includes business needs, car financing, housing loan, education,
vacation expenses, medical expenses, wedding expenses and the list goes on.
need, a personal loan can give you the right amount of resources to get you
through. That includes business needs, car financing, housing loan, education,
vacation expenses, medical expenses, wedding expenses and the list goes on.
Although a personal loan may seem to be
easy and simple to opt and get, you need to keep in mind the following
guidelines to make it certainly beneficial on your end:
easy and simple to opt and get, you need to keep in mind the following
guidelines to make it certainly beneficial on your end:
Know
the basics, do your research and gather as much information you can get
the basics, do your research and gather as much information you can get
There are five basic things you need to
understand before availing a personal loan:
understand before availing a personal loan:
Interest
rate. This is the cost of borrowing money from the
lender which is expressed as a percentage of the loan amount. It is basically
the measure of how much return lenders will get from you.
rate. This is the cost of borrowing money from the
lender which is expressed as a percentage of the loan amount. It is basically
the measure of how much return lenders will get from you.
Processing
charges. Aside from interest rates, lenders often
add up some charges for processing your loan. This is how they get to pay their
agents and all the costs obtained from making the loan possible.
charges. Aside from interest rates, lenders often
add up some charges for processing your loan. This is how they get to pay their
agents and all the costs obtained from making the loan possible.
Prepayment
charges.This is the amount you pay to your lender
as a form of early repayment of your loan to take advantage of lowering the
interest rate. The higher your prepayment, the lower the interest rate.
charges.This is the amount you pay to your lender
as a form of early repayment of your loan to take advantage of lowering the
interest rate. The higher your prepayment, the lower the interest rate.
Penalty
charges. You need to be crucial about paying your
monthly dues on time. If and when you are unable to pay on time, lenders often
penalized you with additional charges.
charges. You need to be crucial about paying your
monthly dues on time. If and when you are unable to pay on time, lenders often
penalized you with additional charges.
Collateral.
Though sometimes not required, collateral is
something that you pledge to your lender to secure repayment of the loan. It
could be in the form of any considerable property like your car, your house,
land property, and the like.
Though sometimes not required, collateral is
something that you pledge to your lender to secure repayment of the loan. It
could be in the form of any considerable property like your car, your house,
land property, and the like.
Compare
loan packages
loan packages
It’s better that you have a list of choices
to help you make an informed decision and to help you get the best deal.
Discuss with the lenders the interest rates that they offer, ask about the
prepayment charges and penalties.
to help you make an informed decision and to help you get the best deal.
Discuss with the lenders the interest rates that they offer, ask about the
prepayment charges and penalties.
Moreover, keep in mind to not settle with
only a few options. There are a lot of loan providers such as banks, lending
companies or even private individuals. Comparison sites can also help you
compare loan packages from several banks or lenders. It can help you save a lot
of time and effort, and ultimately make the process a lot easier for you and
provide you with the best loan product fit for your needs.
only a few options. There are a lot of loan providers such as banks, lending
companies or even private individuals. Comparison sites can also help you
compare loan packages from several banks or lenders. It can help you save a lot
of time and effort, and ultimately make the process a lot easier for you and
provide you with the best loan product fit for your needs.
Choose
reputable lenders
reputable lenders
To give you a better idea, below are some
of the most reputable banks in the Philippines offering personal loans:
of the most reputable banks in the Philippines offering personal loans:
Banco
de Oro (BDO)
de Oro (BDO)
Easy payment terms, low interest rates, fast
processing time, reward points, are the basic personal loan features that this
company has to offer. BDO has topped total capital accounts in the recent years
and has gained the highest market share in the fourth quarter of 2013.
processing time, reward points, are the basic personal loan features that this
company has to offer. BDO has topped total capital accounts in the recent years
and has gained the highest market share in the fourth quarter of 2013.
Bank
of the Philippine Islands (BPI)
of the Philippine Islands (BPI)
BPI offers a collateral free personal loan
and has flexible terms to help you pay your loan at your desired term. It has a
widespread branches across the country with online services that will make it
easier for you to pay.
and has flexible terms to help you pay your loan at your desired term. It has a
widespread branches across the country with online services that will make it
easier for you to pay.
Land
Bank of the Philippines
Bank of the Philippines
If you are working as regular or permanent
Government employee, Landbank allows you to avail a salary loan program. Land Bank
is a government financial institution with its profits used for developmental
programs and initiatives.
Government employee, Landbank allows you to avail a salary loan program. Land Bank
is a government financial institution with its profits used for developmental
programs and initiatives.
Consider your current financial
situation
situation
It is often recommended that you make sure
you get a loan that doesn’t go over 30% of your income. Before signing up for a
loan, ask yourself this simple question: “Would I be able to pay the entire
loan without missing a single payment?” If the answer is no, penalty charges
and interests may accumulate and will make it much harder for you to pay the
entire loan. Bottom line is, borrow what you can pay.
you get a loan that doesn’t go over 30% of your income. Before signing up for a
loan, ask yourself this simple question: “Would I be able to pay the entire
loan without missing a single payment?” If the answer is no, penalty charges
and interests may accumulate and will make it much harder for you to pay the
entire loan. Bottom line is, borrow what you can pay.
This
article is exclusively written for Mommy Unwired by MoneyMax.ph, the
Philippines’ leading financial comparison portal which helps Filipino consumers
make the right financial decisions as they compare the best credit card, home
loan, broadband plan, and more—fast, comprehensive, and free.
article is exclusively written for Mommy Unwired by MoneyMax.ph, the
Philippines’ leading financial comparison portal which helps Filipino consumers
make the right financial decisions as they compare the best credit card, home
loan, broadband plan, and more—fast, comprehensive, and free.
Well,, Yeah,,, it is so easy to lend,but it is soo hard to repay.. !