Life's a journey filled with commitments that are mostly decisioned on the basis of availability of monetary resources. Events such as higher education, marriage, home renovation generally require a good amount of financial resources. In most cases, mere savings and other liquid assets are not sufficient enough to meet the requirement. In such situations, we decide to borrow to meet ends meet. Lending products such as Car or Housing loan fulfill a substantial part of the requirement. They help us in procuring a tangible asset by providing a monetary backing.
On the other end, we have new age products such as Credit Cards and Personal Loans which have made life very convenient. Since they do not come with any strings attached in terms of being associated with a tangible asset, they can be used for a plethora of requirements. While it may not be advisable to make large ticket purchases with a Credit Card owing to the interest charges incurred, a Personal Loan comes handy for all those large value dealings. Some of the most common uses of this loan have been provided below.
- Loan/Credit Consolidation
- Home Renovation
- Medical Expenses
- Vacation Expenses
- Buying appliances/electronics
In the Philippines, this loan is available for applicants with a stable income. Professionals, Salaried, Self Employed and people earning monies from rental income/commission are eligible to avail this loan in the country. Let's discuss further on the crux of this topic, personal loan for the self employed.
Personal Loan for Self Employed
Self employed people are those who either own a business or provide a service which earns them an income. People falling in this category do not necessarily earn a fixed income like their salaried counterparts. The income earned is completely dependent on personal or collective efforts and other macro factors such as market conditions. Banks in the Philippines encourage self employed individuals to apply for loans.
The terms, rates and benefits offered remain uniform for people falling in this category. All banks and financial institutions offering personal loans extend the offer to non-salaried class with a good credit history. Self employed aspirants generally apply for a personal loan for reasons such as business expansion, procurement of goods, setting up an office and so on.
Features & Benefits of Personal Loan for Self-Employed
The loan amount can be utilized for a wide range of needs and no questions are asked on the manner in which you would like to utilize the loan amount. It can be used for a host of personal expenditures as long as it's legal.
Competitive Interest Rates
The rates offered are highly competitive and affordable. For as low as 1.00 percent as Monthly Add on rate, one can look forward to applying without having to worry about incurring excessive costs associated.
Flexible Repayment Term Options
Repayment of the loan is divided into Equated Monthly Installments(EMIs) with a view to offer convenience to the customers. Loan repayment tenor options starts at just 6 months and can go up to 48 months depending on the bank in question.
No Collateral Required
Unlike other loans which requires a collateral to secure the loan amount, a Personal Loan does not require a security. The approval of the loan is purely done on the merits of the income and credit history. Some banks do offer loans on the basis of collateral which is purely dependent on the prevailing conditions during application.
Minimal Fees & Charges
Fee components such as processing charges are nearly negligible and directly deducted from the loan proceeds before disbursal. Self employed individuals can also be eligible for a waiver on the basis of prevailing offers and promos.
Eligibility Criteria for Self Employed Availing Personal Loans
- The applicant should be a Filipino residing in the country/Foreigners who are able to fulfill certain prescribed criteria.
- Should be at least 21 years old with an upper limit of 60 years (Some banks may provide some relaxation in this regard).
- There may be restriction on the basis of geographical area. Applicants working in approved areas will be eligible.
- Only people with acceptable and stable sources of income are eligible to get a Personal Loan.
- A min. gross monthly/annual income criteria should be fulfilled to qualify. The business should be in operations for a stipulated number of years with profits.
- ID with Photo. Driver's License, Passport, PRC, SSC are some of the commonly accepted documents in this regard.
- SEC Registration and/or DTI Business Permit.
- Audited financial statements for a certain number of years(previous).
- Latest ITR(Income Tax Return)/BIR Form 1700/1701.
The document list provided above has been provided by taking into consideration, the most commonly requested paperwork by banks in general. The actual set of documents differs from bank to bank. Make sure you get a checklist before application so that there is no delay in submission at your end. You can find an up to date list on this website under the Personal Loan section. Click on the bank to understand the requirements.
Top Bank in the Philippines Providing Personal Loans for the Self Employed
- BDO Personal Loan
- BPI Personal Loan
- Maybank Personal Loan
- Security Bank Personal Loan
- HSBC Personal Loan
- Choose your applications carefully. Applying with multiple banks simultaneously hampers your credit and may have an overall impact on the way applications are processed.
- It's paramount to understand the product, its feature and benefits. Choosing to apply for a personal loan with a particular bank must include a deep scrutiny of the pros and cons. Do not just look at just the interest rates. Give it a holistic view.
- Compare product offerings from various banks before selecting the bank you want to apply with. This site maintains detailed and latest information about the banks offering personal loans in the Philippines.