Personal Loan in Philippines
Owing to its flexibility of being availed for a plethora of financial reasons, Personal Loan is the most popular loan apparatus in Philippines today. As the name suggests, this is a multipurpose loan that can be considered for anything that is legal and acceptable. Unlike its counterparts in the retail loans segment such as Home or Auto loan, this is not associated with a tangible asset such as procuring a car or a house. Some of of the most common conditions for availing a Personal Loan have been provided below.
While the list above is infinite, we’ve provided the most popular reasons people take a personal loan.
In the Philippines, nearly all major home grown and multinational banks offer this loan as a part of their retail lending portfolio at competitive rates and terms. One can get up to P2 million as personal loan with a loan repayment tenor of up to 3-4 years provided by banks depending on what the borrower chooses. The interest rates start at just 11.50 %(non EIR) per annum along with applicable fees and charges.
For those of you new to the world of Personal Loans and curious to know more, let's tell you how it all works. Based upon your requirement and post scrutiny of your application, the lender will approve and disburse the loan amount. You’re required to payback the borrowed amount along with the applicable interest charges over a predefined period known as the loan tenor. The amount is based on the principle of EMIs(Equated Monthly Installments) where the value remains fixed each month, throughout the tenor.
Personal Loan Application Process
The application process is quite simple with easy documentation. Let's understand how it works, explaining the steps in a detailed manner.
- As a loan aspirant, you will first scrutinize various products available in the loan market and decide to apply with a specific bank that is the closest to your requirement.
- The next step will be to approach the bank and make an application. Most of the banks let you apply online, over their website. You can also choose to walk into the nearest branch to submit the application physically.
- During the process above, you will be required to fill the application form and provide all the required documents such as ID & income proof, ITR(Income Tax Returns) to name a few. The originals may be required to validate the authenticity.
- After submission and provision of the paperwork, the bank carries out multiple checks on various fronts. The standard time taken for loan processing is around 5-7 working days.
- Based on the decision, the bank will consider approving or rejecting the loan application. If approved the terms and conditions of the loan will be communicated before signing the loan contract and disbursal.
How To Get a Personal Loan Easily In Philippines
Getting a loan can be a cakewalk, if you as an applicant keep the following points in mind before and during the application process.
Compare Rates & Terms on the Web
Comparing online helps immensely to zero down on the products you would like to apply with. Use a neutral source online that provides unbiased view of a particular personal loan option, making it easier for you to avail one.
Do not apply with multiple banks at the same time
Choose the lenders carefully. Applying with more than one bank at the same time can go against your credit and has the potential to bring down the scores. Scrutinize the loan offers from all angles and apply only for ones that come close to your expectation.
Maintain a Good Credit History
Having a credit that is marred by defaults in the past or late payments can go against you when you apply. It may even lead to rejection of the loan application. Bring all your loan payments up to date and ensure credit cards do not carry heavy balances. When you apply, lenders check the credit history to look for cracks that can result in bad credit for them.
Apply For A Realistic Amount
Do not get lured by the quantum of loan offered and apply for an amount that you cannot afford to payback. Weigh your requirements and ask for the amount that you will really need. Remember, it's a loan and every penny will be billed interest charges which you’re obliged to pay.
Keep All Documents in Place
Before applying, speak to the bank representative and make a checklist of the documents required to process the loan. Make photocopies, arrange them in a folder, cross verify with the bank authorities and submit them during at the time of applying. This task helps in saving a day or two which you would have taken otherwise to arrange the required paperwork.
Top Banks To Look Out For Faster Loan Approval in Philippines
Since the processing involved in this loan is not as sophisticated like a housing loan, most of the banks do not take more than 7-10 business days to make a decision on the loan application. If approved, the disbursal happens in the next 1 or 2 days after signing the relevant contract. Let's look at some of the most agile banks that approve loan pretty fast.
|Bank Name||Turn Around Time(TAT)|
|Robinsons Bank||3-5 Business Days|
|Eastwest Bank||5-7 Business Days|
|Maybank||5-10 Business Days|
|HSBC||5 Business Days|
|PBCOM||3-5 Business Days|
Personal Loan Rate Comparison By Banks
Lets look at some of the offers from banks with the lowest interest rates for Personal Loan in Philippines.
|Name of the Loan||Interest Rate(Monthly)|
|Standard Chartered Personal Loan||1.10%|
|BPI Personal Loan||1.20%|
|BDO Personal Loan||1.25%|
|Security Bank Personal Loan||1.39%|
|Sterling Bank of Asia Personal Loan||1.45%|
How Bankbazaar.ph Helps in Getting The Best Personal Loan in Philippines
Getting a Personal Loan can be tasking if you’ve not chosen the right one. Since repayments is relatively a long time affair, you do not want to feel disgruntled of having signed up for an inappropriate one. There is a variety of offers available in the market today. Not all of them can meet the intrinsic needs which is specific to the borrower. Therefore, it's important to make it a point to carry out enough checks and balances that helps you in getting the best personal loan deal.
In order to plan your loan, you need a repository of loan related information to begin with. bankbazaar.ph is your one-stop-shop for all the information you require, under a single window. We maintain a comprehensive and up to date information of loan offers from various banks which helps in weighing the pros and cons of the product being offered. One can also lookup for latest rates and charges which equips you with sufficient information to negotiate the best deal with the bank you’ve opted for.
Also Check: Personal Loan Interest Rates from Leading Banks