(Updated Feb. 20, 2017)
Being Filipinos, we can’t deny that most of us will need to borrow money at least once in our lifetime. We borrowed from friends, relatives, neighbors, Bombays with umbrellas, and from vendors, especially in sari-sari stores if worse comes to worst. Then recently, bank loans such as BDO Personal Loans are becoming more accessible to many Filipinos.
BDO personal loans are one of the common bank loans Pinoys are currently availing, however this does not mean that it is for all. Some people get declined, and here are the things you should know about BDO loans.
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BDO Personal Loans are offered to Filipinos and Permanent Residents in the Philippines who have been living in the country for two years. You must be 21 to 70 years old with a minimum yearly salary of P120, 000 for employed and P400,000 for self-employed and professionals.
Self-employed applicants are required to submit more documents since they have to prove that they are actually earning at a regular basis for two years, while the employed only need their payslip and COE to prove at least a year of employment.
You also need to have a mobile phone number and at least one landline phone where the bank can contact you during office hours.
Since the BDO Personal Loans can be unsecured, the interest rates are potentially higher, and it will increase as the tenure goes shorter. The shortest unsecured loan can be three months, and the longest is 36 months. While the longer tenure might seem to be the most affordable as the monthly repayment seems smaller, you will realize that you are actually paying more in the long run.
BDO Personal Loan has also created the Asenso Kabayan Program for OFWs. They can choose between secured and unsecured loans, however the unsecured loans have doubled interest rate compared to those secured with assets. Unsecured Asenso Kabayan Program can be charged with 39.43 to 40.05% Effective Interest Rate per annum, while the secured are charged with 17.06 to 17.08%.
Remember that you must loan only the amount that you are confident to pay without sacrificing your basic needs. To have an idea on how much you can handle, use an online loan calculator. Though you can get a loan as long as 36 months, it is better to choose the one you can pay the soonest without cramming. You can loan as low as P10,000 up to P 1,000,000.
One reason BDO rejects their applicants is some people apply for very high loans they can’t pay. To have an idea on how much you can loan, use the loan calculator. Also, look at your payslip and check your take home pay, then deduct your basic expenses from it. The amount left is the money you can use to pay the loan.
It is no joke to take a loan from a reputable bank. When you get a loan, be sure that you are using it for the right thing and you will settle it at the agreed repayment schedule. You can use the loan for home renovations, tuition fees, furniture, gadgets, vacations, special events, and wellness. Even though you can also use the cash for debt consolidation or balance transfer, you should be mindful when getting more loans while you are still paying your personal loan to avoid accumulating more debt. If you have been experiencing the snowballing debt due to uncontrolled use of credit card, cut your credit card while you are paying the personal loan used for consolidation.
Most people think that when you are getting a loan, your only fee is the interest rate, though in reality, there is a dispersal fee of P1, 300 and stamp duty. It is better to clarify all the included fees before signing the contract. You must read the contract before signing.
Late Payment Fee
Of course you are supposed to pay on agreed date, yet if by any reason you have failed to do so, then you will be charged with 5% of the unpaid installment amount or P300, whichever is higher.
Though it has been said that you can use the loan for emergency, you must know that the loan process actually takes seven to 10 days to be finalized and for your cash to be disbursed. Since it might take a week or so, it beats the purpose of using it for emergency needs.
BDO Main Office
BDO Corporate Center is located at 7899 Makati Avenue, Makati City
Metro Manila: (+632)631-8000
- Asenso Kabayan Program is the Personal Loan offered by BDO for OFWs – There are loans available for OFWs and this greatly helps them since there are times that they need extra cash for their personal and family needs.
- Fixed monthly payment – With a fixed monthly payment, you can budget your finances ahead of time without worries if your next payment increases.
- Flexible loan amounts- You can borrow from P10,000 up to P1,000,000 depending on your salary and assets ( if you are getting a secured loan). You can also use the cash in any way you want.
- Top Up Loan Feature – as long as you are able to pay diligently, you can avail the loan’s top up feature as long as you can submit your new income documents.
Reasons You Can Get Declined
- Not using a loan calculator – Some people apply for a loan amount higher than they can actually pay because they don’t use a loan calculator. The loan calculator can help you make an informed decision as you will have an idea on how much you are required to pay monthly with your chosen loan amount and tenure. Reflect if you can meet the repayment.
- Having bad credit score – The credit score reflects your loan history. If you default your previous loans, then you will have lesser chance to get your application approved. Make sure that you diligently pay your loans to maintain a good credit score.
- Not doing enough research – With enough research, you can find the best loan that fit your needs and get easily approved. Though banks are known to have loan products, there are also other lenders who can offer more flexible loans. Do not get the loan you first encounter, learn to explore to find the right fit to your lifestyle and finances.
- Pre-qualifying requirements are not complete – Your loan application will not be processed if you lack even a single document. If it takes you too long to provide all the requirements, then do not be surprised if you get declined.
BDO Personal Loan requires a long list of needed documents and it takes a week or more to finally get the cash you borrowed. What if you are in a real emergency situation and you find yourself out of cash? Don’t wait for 10 days, get a loan from Cash Mart and receive your cash in a day without even going out of your house.