There’s a certain risk involved if your salary covers exactly everything on your daily expenses list. Without a concrete and regular savings plan (even an informal one), emergency situations may leave your bank account in its double digits. Plus, there’s a chance you might need to find a place to get money from right away. Thankfully, it’s easier now to avail of personal loans with good terms here in the Philippines. You can avail of personal loans ranging from P30,000 to P1,00,000 depending on the financial company you choose.
Whether it’s for medical bills or paying for your child’s tuition fee, there will always be a perfect personal loan plan for you.
Here’s a short and simple guide to getting your first personal loan:
Consider your monthly salary and budget
Before availing a personal loan, any financial institution will ask for your regular monthly salary first. This is to ensure that you are in fact capable of paying off your loan properly. While most institutions insist on a minimum of P20,000 as a monthly salary, there are banks where you can get loans even if you’re only earning P12,000 per month.
The perfect personal loan is the one that is easy to pay in your own case. In the end, the only things that will dictate how much you’re loaning and how long you’re going to pay it for is your financial capability.
Understand that availing of a personal loan entails a big reallocation of your monthly expenses. You do have money but you still have to pay it off every month for however long you decided on. But don’t fret! Just make sure you have a solid personal budget plan for the next few months and try to be as diligent as you can with logging your expenses.
Get all the requirements ready
Getting a personal loan isn’t just showing up to a bank or financial institution with your valid ID. Once you’ve decided where you’re going to get a loan, visit their website for a complete list of requirements and eligibility factors. Employees as young as 21 can avail of a personal loan, while some financial companies require you to be at least 25 upon loan maturity. Banks also require their borrowers to have a personal checking account.
Note down all the fees
Make sure that you’re aware of all the fees involved in the process. Processing fees, documentary stamps, and notarial fees are some of the ones you’ll be encountering if you choose to loan more than P250,000 (depending on your chosen financial company). Also be aware of how much the late payment fee is, as well as the pre-termination fee if you must need to change the terms of the loan such as shortening the contract from 18 to 12 months.
Lowest interest rate doesn’t always mean best deal
It’s easy enough to say the place with the lowest interest rate is the one to get but actually, there’s a lot more to that. Some institutions may have a larger interest rate but can offer a bunch load of perks like a free refrigerator. We’re not kidding. Some financial companies even offer you the option to just start paying a few months after you loan.
Read a lot of reviews and testimonials regarding the place you’re going to loan from. Read about how fast and secure their services are, how quick they can give you the loan, and the fees involved in such.
If you’re set on getting a personal loan, you can get one here.