All loans can be divided into 2 types: unsecured and secured.
A secured loan is called so because it is approved on the basis of collateral. An urgent deposit account or real estate. The interest rate is lower because there is lower risk compared to uncollateralized loans.
An unsecured loan is called so because it does not have collateral. Banks and lenders take into account the information and credit history that they will receive from you. Interest rates are higher due to risk.
Cons and Pros of Secured loan
• Submitting an application and obtaining permission is easier (due to security);
• Access to large amounts of your loan;
• Extension of payments accepted.
• Failure to pay contributions in full may result in your security being withdrawn;
• There are some secured loans that charge early repayments.
Cons and Pros of Unsecured Credit
• Easy and Quick method to get a credit;
• Flexible loan repayment terms
• Applicable only if you have a good credit history and regular sufficient income
• For this type of loan, interest rates are higher.
This is a report on the credit history of the borrower. Lenders take these reports into account to determine if you can be trusted, whether you repay the loan in full.
They also use this to determine conditions if you get approval.
Yes, you can get a loan even your credit history is bad.
The process will be more complex and you will need to fill out a ton of paper documents, additionally more thorough data verification and longer latency. Below are a few tips you can follow to succeed in getting your loan approved even with a bad or negative credit history:
• Be very careful when filling out the required documents.
• Send requirements as early as possible
• You should not request more than one loan at a time
• Spend time searching and considering the best possible lenders
Such online services do not work for free, they take their percentage of the transaction. Therefore, it is more profitable to independently find a lender and take a loan directly, without intermediaries. Our site will help you with this, you can easily and quickly compare all offers for the type of loan you are interested in.
The longest loan period is 30 years. These Home loans are offered by two banks on these terms:
– CommonWealth Bank
– Citystate Savings Bank
It is easy to choose the longest Home loan terms on our website. Select the “ Home loan ”credit type from the top menu in the “Loans ” scroll. All banks that provide this loan will be visible on the page. On Bank cards at the bottom there is a line ” Loan tenure” and the longest period which specified in this line is a maximum term of Home loan.
Since this type of loan is associated with large amounts of money and a large volume of documents, the term for making a decision by the Bank depends on two stages of verification. First, the Bank will check your solvency, this stage is no more than 5 working days on average.Then the Bank will need to check the documents for the land or property you are buying, as well as make an assessment of it. Here the terms depend on the Bank and the complexity of the transaction. If you buy a house from a private person, the Bank will also require their documents. This process takes an average of 10 business days.
However, if you purchase a new home from a Bank contractor, this procedure is greatly accelerated and on average does not exceed 5 working days.
You need to understand that the smallest interest rates have many restrictions. Perhaps the lowest interest rates are only valid for employees of businesses that are served in this Bank. Or it may be benefits provided by the state to certain categories of citizens. And it is possible that preferential terms on the loan are provided by the Bank if you buy a home from the Bank’s contractor.
Another important feature is that the lowest interest rates are not fixed for the entire loan period, but usually for a period no more than one year.
There is no single solution. If you need the lowest monthly payment, then take loan for the maximum possible period. If you are not sure that you will have a consistently high income, then take as little time as possible.
The rules for issuing a Salary loan vary depending on the bank. Some banks issue such a loan only to employees of accredited enterprises. Others give out to everyone if they are suitable for the requirements of borrowers.
It is possible to get a Salary loan online at banks that issue this loan to employees of accredited enterprises. This is due to the fact that the bank already has information about you and your income. And also you already have an account with this bank.
The maximum loan amount depends on your income and the duration of the loan. Under Philippine law, a loan payment cannot exceed 30% of income.
No, is not required for collateral.
The maximum period for which banks issue a salary loan is 36 months.
As a rule, initial approval of the application can be made from 10 minutes to 1 day, depending on the bank. Your final approval can be processed from 24 hours to 5 days. You just need to make sure your documents are completed when you submit them.
Credit funds can be issued immediately after the application is approved or 1-3 banking days after a successful phone check.
You do not require any collateral or guarantor to apply for a Personal loan.
When you apply for a loan, you can choose a payment method. If you chose to transfer funds to a bank account, then the money will be paid immediately after the loan is approved. If you decide to transfer money to an account with another bank, your loan funds will be sent to your account within 2 business days from the date of loan approval.
No, you don’t need to report money spent. You can use the money for a variety of personal needs, such as training, hospitalization, car upgrades, and paying bills.
Cash Loan, as a rule, is designed for small amounts up to 10,000 PHP and for a period of 1 month.
Such loans are issued by Payday lenders – micro financial companies. Interest rates are higher than those of Personal loans issued by banks. But the approval period is on average from 2 to 12 hours. Also a distinctive feature of such loans is the ability to arrange them through applications on the android.
Personal loans are often issued by banks. The loan term on average varies from 6 months to a year. The interest rate is quite reasonable and usually ranges from 14% to 20% APR. However, the term for consideration of the submitted documents will be from 1 to 5 days.
No, the car is your property from the moment of purchase, but remains the bank’s guarantee for the loan period. This means that you cannot sell the car, and you also have to pay for car insurance so that the bank can receive its money in any case.
Typically, interest rates are lower for new cars, because used cars less secure investment than new ones because they can break down or undergo repairs that will be more common than a new car. For new cars, interest rates are 2-5% lower and are the most popular way to finance cars in the Philippines.
Documents confirming income and identification are the main requirements for obtaining a car loan.
Application form with filled in fields.
Copy of Passport or any ID (SSS ID, Driver’s License, Voter’s ID)
Working borrowers must submit documents: certificates from the place of work or COE, a copy of payslip for 2 months, income tax return from BIR or ITR within 1 year.
Self-employed applicants must submit documents : a copy of the ITR with THE bir stamp , a copy of registration with the DTI or SEC, and a copy of financial statements for a period of at least 2 years .
After buying a car, you need to pay for insurance.
Initial registration is usually done by agents, so you get a copy of OR / CR. You must remember that the initial registration is valid for 3 years, so after that you need to renew it annually in LTO.
Yes, of course. Some banks will take as collateral your car, which is already in your property at the time of applying for a car loan.
Filipino who is going to work abroad. Documents for issuing OFW loan:
• 2 valid IDs related such as passport and OWWA ID
• Copy of visa
• Consularized certificate of employment
• Flight ticket and details
• Transfer confirmation
• POEA overseas employment certificate – get this from the POEA office in your area
• For seafarers, the latest contract
• Billing confirmation
• Proof of residency
Yes, today many banks and financial institutions provide loans to Filipinos, even if they are abroad. The loan approval process will take longer than if you were in the Philippines.
Typically, you should apply for an OFW loan when you already have an OWWA passport and other documents confirming your OFW status.
BPI issues an OFW loan for up to 36 months.
Most banks and credit organizations do not require collateral, but there are favorable offers on loans secured by property.
No, for this type of loan, collateral is not required, since it is assumed that the client needs money urgently, and processing the collateral takes a long time.
Microfinance organizations provide such a loan using the site or mobile application. In this case, your application will be reviewed within th 2 hours. And the money will be credited to the account within 24 hours. Banks provide this loan within 5 days.
Banks and financial institutions do not require a report on the money spent that was issued as emergency loans.
Banks do not accept household appliances, phones, designer bags as collateral, unlike some pawnshops. Also, banks often have interest rates for this type of loan do not exceed 3%, and at pawnshops interest rates usually vary from 3% to 7%.
The maximum term is 12 months.
To obtain a Jewelry loan, you need a document proving your identity and the jewelry left as a collateral. No other documents are required.
The bank sells your jewelry at auction.
This type of credit can be used by farmers and fishermen, micro and aqua- and – agri projects of local government units.
• Peoples Organizations
• Farmers Organizations
• Agrarian Reform Beneficiaries Organizations
• Other Conduits such as Co-ops, Rural Banks and NGOs.
Document requirements may vary depending on the Bank, but this list usually includes:
1. A copy of the certificate of registration, cooperation / registration statutes and statutes / regulations (for and for submission by the communication Service);)
2. Farm plan and budget (if applicable)
3. Business plan (if applicable)
Usually the term is from 1 year to 5 years , some banks provide credit for up to 10 years .
Do I need to provide a loan for collateral?
There are different options for loans, both with and without collateral.
You may be able to get a soft loan for programs:
– Fund for improving the competitiveness of agriculture (ACEF)
– Program for financing agriculture and fisheries
– or others .
In this case, no collateral will be required and interest rates will be low.
It’s easy and done through the application on your mobile phone or through the site. Register using your mobile number; fill in your profile with the necessary personal, work and bank details (for verification and payment); and click apply!
If you are a new customer, you must receive a credit decision within one banking day after applying. For regular customers, you can make a loan decision faster, since most of your information has already been verified.
You will receive a system generated SMS advice on the status of application.
You can get your money credited directly to your Bank account. You will be asked to enter your Bank account number in the loan application.
Yes, you can repay the loan ahead of schedule. Although there will be no deductions from your current payment, there will be other benefits such as a good credit rating and discounts for future loans.
Education loans are provided by:
• Commission on Higher Education, GSIS and SSS;
• Financial organizations and commercial banks;
• Social organizations such as the Invested – investment platform.
– Financial organizations and banks can provide a loan amount of up to 30 000 PHP.
– Commission on Higher Education , GSIS and SSS usually provide loans whose amount does not exceed 20,000 PHP.
– Commission on Higher Education, GSIS and SSS issue loans at 6% p.a.
– Financial organizations and banks provide student loans of 20% p.a. or more.
In 2020, deferred payments are possible when using a loan on the Invested platform.
The basic requirement is that you must be a public school teacher or administrative staff at DepEd. There are also restrictions on the region, as, for example, Sun Savings Bank’s DepEd Teachers and Employees ’Loan – only for persons who are working in Region 7.
The interest rate varies from 6% per annum to 18% per annum.
The maximum term for this type of loan is 36 months.
Small businesses in the Philippines can be determined depending on the size of the assets, the amount of equity and the number of employees. Enterprises can also be determined depending on the number of employees. Small businesses employ between 10 and 99 workers.
The maximum loan term without collateral is not more than 5 years, however, if a company can provide collateral, this period can be much longer.
• 1 year working business.
• Register with DTI or SEC in the name of the borrower.
• Mayor’s permission registered in the name of the borrower.
• The borrower is the main shareholder or owner of the business.
• The borrower has a current account of at least 6 months, which is used.
• The borrower has the right to sign checks.
To date, the maximum amount of this loan is PHP 10,000,000.