Personal loan philippines has powerfully grown in recent years to become a popular financial solution, especially among Gen Y, Gen Z and the middle class in the Philippines. This is the suitable choice for emergencies to solve immediate financial difficulties without too much pressure of repayment. So what is a personal loan philippines? If you are in need of the loan, here is everything you need to know.
A personal loan means a loan from a lender that can be used for almost any purpose, including paying for emergency bills, daily expenses, home or appliance repairs, travel or wedding expenses, buying a car, buying a house or even opening a business, etc.
Personal loans can be offered by the online lending institutions, local banks, and credit unions. The loans will be disbursed in full in one go and you must pay both principal and fixed interest payments every month until the loan is repaid in full.
Personal loans are used for a variety of purposes
Basically, the banks only offer one type of personal loan that you can use for any purpose. However, many lending financial institutions in the Philippines offer different types of personal loans such as salary loans, online cash loans, short-term loans, etc. The loan terms, requirements, and interest rates vary depending on the type of loan.
Most lending institutions have similar requirements for personal loans, but the criteria may vary. Here are some common factors to consider before applying for a personal loan.
Debt-to-income (DTI) ratio, expressed as a percentage, represents the amount set aside for debt repayment out of total monthly income of a person. You need to look at DTI to determine your repayment ability, thereby deciding the suitable loan amount and repayment term. Furthermore, lenders may also use DTI to predict the borrower’s repayment ability. Typically for lenders, DTI of a person is ideally below 36%.
Consider your debt-to-income ratio to choose the right loan
Some scam organizations pretend to be financial institutions to defraud. To avoid losing money, check their business license at the Securities and Exchange Commission (SEC) of the Philippine or the Department of Trade and Industry of the Philippines (DTI). You should also check the reviews about such institution on Google, on social networks or ask people around.
You should learn, investigate and compare interest rate before applying for loan. Interest rate on personal loan philippines normally ranges from 10% to 15%. Accordingly, you may choose the lender that offers the most competitive interest rate.
The steps to apply for a personal loan are very simple with no significant difference among different institutions. As long as you have a smart phone or computer connected to the internet, you may visit the website or access loan application and carry out the following steps:
Step 1: Fill in the application form completely and accurately with your personal information. This information normally includes: full name, legal ID, bank account, ID photo of the same person for verification, etc.
Step 2: Wait for the system approval, normally from 30 minutes to several hours.
Step 3: If the result is successful approval, you will be immediately disbursed on the same day.
3 short steps to apply for personal loan philippines
Finally, you should be a responsible individual borrower in the Philippines by repaying your loan in full and on time. Repeated on-time payments will improve your credit score.
If you are in need of personal loan philippines, MoneyCat will be a smart choice for you. As one of the largest and leading financial institutions, MoneyCat understands personal loan philippines in particular and personal finance in general. Accordingly, we can recommend to you the most suitable loan for your financial situation and solve your problems without too much financial pressure.
Contact MoneyCat if you are in need of applying for personal loan philippines, or have any questions about any financial issues. We are available 24/7 to help you.