A personal loan is a way to get funds when you need it the most. It fulfills your immediate monetary requirements. Personal loans can be taken at a rate of interest. You can apply for a personal loan from banks or financial institution in the Philippines. Government agencies and banks offer OFW loan in the Philippines for many purposes.
Types of Personal Loan
- Secure personal loan: It requires collateral like house or car as a security to take the loan.
- Unsecured personal loan: You are not required to put any collateral. Unsecured personal loans are common in the Philippines.
Interest rates vary bank to bank in the Philippines. The interest rate for salary loan varies between 1-3% fixed until the full repayment of the amount. In addition to it, processing fees are also charged. Loan terms can be of 3, 6, 12, 18, 24 or 36 months.
The borrower will be charged for late payment. If he fails to settle the loan until the due date, banks charge 3-4% per month.
Best Time to Take the Personal Loan
A personal loan is the best option if it results in your overall savings. Opt for it if you want to pay off debt, tuition fees or buy a house. Take personal loan in case of any emergency. You must be able to repay the loan on time. Here are few other situations where you can take the personal loan.
- Going for Higher Education
This is intended for taking a personal loan for a professional course when you require it on urgent basis. It helps if you are not able to provide admission related documents on urgent basis. This helps if you require a large amount of money and don’t want to give any collateral.
- Settling Huge Amount of Credit Card Balance
A personal loan can be used to settle a huge outstanding of credit card balance. Paying a minimum amount in credit card is not sufficient. Rates of interest on the charged bill are very high. In this scenario, you are advised to divert it as fixed EMI or personal loan. You get the flexibility to repay the loan in selected time frame.
- To Clear the Debt with High Rate of Interest
It is advisable to close the debt that has a high rate of interest. Personal loan gives you the flexibility to do that. This is also necessary for your good credit history. This score allows you to take the higher loan at lower rate of interests.
- Don’t take a personal loan if you want to buy a TV or car.
- Avoid taking a loan for holiday or travel expenses.
- Take the personal loan in case of any emergency.
- The loan must help you to value your savings.
- This lowest interest personal loan in the Philippines if taken to buy a house will reap fruits in the long term.
I hope that this piece of information is beneficial for you!