What is A Personal Loan and How Can I Benefit from It?

shutterstock_67456093The road to financial freedom requires commitment, time and some effort. Applying for a personal loan in the Philippines can surely help you achieve the things that you want. It can help you fund your education or pay for that dream vacation to London or it can help you pay for your debt through debt consolidation. Personal loans are short term loans that have shorter repayment schemes. In the Philippines, banks offer repayment schemes of 12-36 months. When applying for a personal loan in the Philippines be sure to check the rates and chargers before signing a contract.

Personal Loan as a Means to Consolidate Debt

Personal loans are “cash advances” that can help you achieve financial freedom. If you are knee-deep in debt or you just want to get rid of all the hassles of managing several credit accounts then you can try applying for a loan and then ask your lender to structure that loan for debt consolidation. By combining all your outstanding credit into a single account with low interest rate you will reduce the payment and become debt free faster.

Banks in the Philippines may or may not require collateral or a guarantor. More importantly you can even apply online. Be sure to consider factors like processing fee which may be 3%-4% of the loan amount, documentary stamp which is P1 for every P200, late payment fee of P200-P500 a month, bounced check fee of P1,000, closure handling fee of P2,500 and a loan disbursement fee of P120 when looking for a loan provider. However, the fees and chargers may vary depending on the credit provider.

While the whole process of applying for a personal loan in the Philippines is not so complicated you still need to accomplish the necessary forms and submit all the requirements on time in order for your loan to be approved.

Looking for a hassle-free personal loan? Check out iMoney’s comparison table to compare personal loans in the Philippines.

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