If you are in dire financial emergency or need to consolidate your debts, a personal loan might be useful. A personal loan is also called a salary loan and offers up to four times of your current salary for a short term. Here are some of the answers you want to know.
What are the types of personal loan?
Personal loans can be both secured and unsecured. With secured loans, you will have to place an asset as a collateral, while for unsecured loans, you don’t have an obligation. Since the lender has more risks with unsecured loans, the interest rate is higher.
What’s the interest rate?
Typically, the interest rate on personal loans varies between one and three percent, subject to a few terms and conditions. The loan term also defines the late. In general, most salary loans are given for a maximum period of 36 months, but if the term is longer, the interest rate will be considerably higher. Besides the basic interest rate on the salary loan, you will also need to pay for a fee for processing the application. If you are applying for personal loan Philippines, make sure that you check this cost. You will also need to pay for stamp duty, which is minimal.
What factors need attention?
You have to consider the final payment before you decide the loan amount and term. With some banks, it is compulsory to have a minimum income. You should also consider the approval time required by the lender, which shouldn’t exceed 10 days in the ideal case. The work status of the applicant is also an important factor. Every lender may set its own requirements, and it is best to read terms and conditions in detail.
Do I need a credit card?
Well, a credit card is not compulsory to get a personal loan, as long as you have the required papers and fulfill the necessary requirement. However, applicants with a credit card will get quick approval.
How to compare loans?
There are many portals that allow easy comparison, and you will find all the required details for each lender. Keep a check on the payment details, late payment fee, interest rate and other requirements. Take a personal loan, only when you can repay it on time, or else, it might impact your credit score.
If you are looking for BPI personal loan, make sure that you talk to their executives directly before agreeing to the terms and payment conditions.