BDO Unibank, Inc. is undeniably one of the largest universal banks in the Philippines. It offers a lot of services such as Leasing and Financing, Private Banking, Rural Banking, Insurance Brokerage, Investment Banking, and Stock Brokerage services.
Being a member of the SM Group, you can find a branch in every SM Supermall. This gives BDO clients the advantage as it opens on weekends unlike most banks in the country. However, does it offer the best loans to every Filipino?
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BDO personal loans have flexible loan amounts which range from P10,000 up to P1,000,000. This is more flexible than other banks’ offer. You can even top up your existing loan provided that you meet the bank’s qualification. On the other hand, BDO utilizes credit score checking to evaluate its borrowers.
Borrowers must be working in the current company for at least a year with a minimum salary of P120,000. The dispersal fee is P1,300 in addition to stamp duty. Loan process takes at least a week. If you are borrowing for an immediate need, then you may get a personal loan from a lender with a faster loan process.
Borrowers interested for BDO Housing Loan must be employed in their current company for the last 2 years as a regular worker with the minimum gross family income of P50,000 a month. The loanable amount ranges from P500,000 up to 80% of the value of the property.
While it only takes 5 days to get approved if you are in Metro Manila, it will take 10 days for those who live in the province. On the other hand, the interest rate changes every year.
The BDO Car Loan offers financing your vehicle from P100,000 up to 70% or 80% of the Vehicle Purchase or Appraised Price. With this, you can purchase either a brand new unit or a used car. BDO will also help you with your LTO registration through its “All in Financing Offer.”
On the other hand, the required minimum monthly salary if you want to buy a brand new car is P50,000. Additionally, you must be employed in your current company for the past two years. If you are self-employed, you must prove that you have been profitable for the previous two years. If you think that you can’t meet these requirements, then you have to look for another car loan product.
BDO offers two types of SME loans depending on the purpose of your borrowing. Will you need a capital to keep up with the business or to purchase a property for expansion? BDO is also one of the banks which offer flexible repayments. In case you can’t pay for the amortization, you can just pay the minimum amount required.
However, if you only want a micro-business, then you will have to get a loan from another lender. BDO’s minimum loanable amount for SME owners is P1,000,000. The process takes a week or two. You will also need a collateral.
Before applying for a credit card, it is better to know which one fit your needs best and not just your wants. BDO has credit cards types: Basic, Premium, and Elite.
There are various services and promos each card comes with, however, it pays to take time on reading the terms and conditions. Another thing to take note is the interest rate charged on the credit cards.
BDO credit cards also have a Cash Advance feature. This means that you can withdraw cash by using your BDO credit card. This instant cash advance loan has a steep interest rate which is charged daily until you have settled the full amount and the corresponding fees.
Questions to ask when applying for a BDO Loan
Do I have a good credit history?
Having a good credit history is vital to get a loan from BDO. This means that you should have been a good payer in your previous loans and past credit card bills. Lending is built mostly on trust. The bank wants to know if you can be trusted to pay on time to lessen the risk of default. By knowing your credit history, BDO can have an idea on what kind of borrower you are.
Do I have enough salary to be eligible?
BDO also requires a minimum income for each borrower depending on the loan you are applying for. This is to ensure that you have enough funds to pay off the loan you are applying for.
Aside from the required minimum salary amount, you have to also have to take note that there are other eligibility requirements. Take the time to know if you are eligible for the certain BDO loans you are applying for.
Can I provide additional assets?
You need to provide a collateral. Banks are risk averse, they prefer clients with collateral to make sure that they can still get the money they lend. If you think you have no collateral, then you will not be approved for secured loans.
Can I handle the amortization?
It is best to consider your current and future finances. Can you handle another financial responsibility with ease? Use a loan calculator to know if you can meet the repayment terms with the interest charge. If you fail to meet a repayment due date, you will be charged with additional penalties.
Do I have enough savings to pay off other fees aside from the interest rate?
What most people do not consider are the other fees aside from the interest rate. Yes, there are fees you must pay such as the processing fees and the tax duty stamps. These vary depending on the type of loan you are applying for.
It is best to read and do your research first before you apply for a loan, especially during emergencies. Do not just consider what the bank has to offer. You need to consider if you can handle getting a loan and paying every month.
If you need a short-term loan for a micro-business, then it is better to get a personal loan. Apply for an online loan from the best online lender – Cash Mart.