The easiest and fastest way to apply for a personal loan in the Philippines

The easiest and fastest way to apply for a personal loan in the Philippines

What You Should Know About Personal Loans

What You Should Know About Personal Loans

When you need to borrow money you have a number of option: the bank, cooperative, credit card, home equity loan and even from a "bumbay" which either have a fixed or variable rate.

One option you may be considering is a personal loan, which can be used in a variety of different ways - to help with a small business, finance a home renovation, consolidate debt or even pay for a wedding or vacation. So what makes a personal loan different?

Personal loan carry fixed interest rates. That makes them different than, say, a home equity line of credit which usually carries a variable interest rate that can change when interest rates in the economy change. Variable-rate loans may look more attractive at first since their "initial" rates are often low. But the rate (and payment) may rise later, and may make the loan more expensive (and risky) over time.

You must pay them back in a certain amount of time. Most personal loans carry a fixed repayment period of one to five years. During that time you make fixed monthly payments. That makes them different than credit cards, which allow you to make a minimum payment that will barely make a dent in your balance. If you prefer the certainty of knowing when your debt will be paid off, a personal loan is the preferred choice.

Personal loan give entrepreneurs a chance to prove themselves. It's become more difficult over the past few years to borrow to start or jumpstart a young or small business. Brand new businesses, for example, aren't likely to find a bank that wants to give them a loan just because they have a great idea for a business. Banks often want to see sales and revenue figures, which newer businesses aren't likely to have. That's why some small businesses are turning to personal loans, which they obtain on the strength of their personal credit and finances, rather than that of the business.

Perfect for home improvement. A few years ago, if you wanted to build a deck or remodel your kitchen, your bank was probably more than happy to give you a home equity loan to fund your project. But now, between stricter mortgage loan requirements and home values down in many parts of the country, getting a home equity loan may feel like more trouble than it's worth. That's why many borrowers are turning to personal loans to fund home improvement projects. And unlike home equity loans, which often require interest-only payments for ten years before the borrower has to start repaying the principal, with a personal loan you'll know your project is paid for in a few years and you're ready to start a new one!

BDO Personal Loan Assistance Philippines

Personal Loan Philippines
Application Assistance Services

Requirements & Documents:
The requirements for Personal Loan Application varies from one bank to another. You will be informed.

Loan Amount:
From P10,000 up to P2,000,000 depending on your salary and/or Credit Card limit. Approximately the maximum approvable monthly loan re-payment is 30% of your gross monthly salary.

Available Loan Terms:
From 6 months, 12 months, 36 months and up to 48 months depending on the bank.

Basic Qualification:
- Must be 21 to 65 years old (end of loan term should be before your 65th birthday).
- Must have good credit standing. No historical defaults.
- If self-employed, business should be operational for at least 2 years.

Requirements for Employed/Salaried Individuals:
- Checking Account
- Latest Certificate of Employment (should not be more than 30 days old). Basic monthly salary, position and length of service must be indicated.
- 2 months latest payslips
- Latest ITR
- 2 Government issued ID (Passport, SSS, PRC, Driver's License, Voter's ID)
- 1 Company issued ID (front and back) with 3 specimen signatures beside the front copy of the ID
- Copy of recent Credit Card statement, if any

Requirements for Self-Employed Individuals:
- DTI/Business Permits
- 6 months bank statements
- Latest Audited Financial Statements with ITR
- Trade References