Top 4 Reasons BDO Personal Loan Applications are Not Approved
(Updated December 2022)
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, Bombay with umbrellas, and vendors, especially in sari-sari stores if worse comes to worst. Then recently, bank loans such as BDO Personal Loans are more accessible to many Filipinos.
BDO personal loans are one of the common bank loans Pinoys currently avail. 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.
BDO Personal Loan Eligibility
BDO Personal Loans are for 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. Meanwhile, P400,000 for self-employed and professionals.
In addition, self-employed applicants must submit more documents. They have to prove that they have been earned regularly for two years. On the other hand, the employed only need their payslip and COE to prove at least a year of employment.
Also, you need a mobile phone number and at least one landline phone. It is where the bank can contact you during office hours.
BDO Personal Loan Rate
Since the BDO Personal Loans can be unsecured, the interest rates are potentially higher. Plus, it will increase as the tenure goes shorter. The shortest unsecured loan is three months, and the longest is 36 months. While the longer tenure might seem the most affordable as the monthly repayment seems smaller, you will realize that you pay more in the long run.
BDO Kabayan Loan
BDO Personal Loan has also created the Asenso Kabayan Program for OFWs. They choose between secured and unsecured loans. However, unsecured loans have doubled interest rates compared to those secured with assets. The unsecured Asenso Kabayan Program charges 39.43 to 40.05% Effective Interest Rate per annum, while the secured charges 17.06 to 17.08%.
BDO Personal Loan Amount
Remember that you must loan only the amount you are confident to pay without sacrificing your basic needs. To know how much you can handle, use an online loan calculator. Though you can get a loan for as long as 36 months, choosing the one you pay soon without cramming is better. You can loan as low as P10,000 up to P 1,000,000.
BDO rejects their applicants because some people apply for very high loans they can’t pay. To know how much you can loan, use the loan calculator. Also, look at your payslip, check your take-home pay, and deduct your basic expenses. The amount left is the money you can use to pay the loan.
BDO Personal Loan Purpose
It is no joke to take a loan from a reputable bank. When you get a loan, be sure you are using it for the right thing. Also, don’t forget to 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 use the cash for debt consolidation or balance transfer, you should be mindful when getting more loans while still paying your personal loan to avoid accumulating more debt. If you have been experiencing snowballing debt due to the uncontrolled use of credit cards, cut your credit card while paying the personal loan used for consolidation.
BDO Personal Loan Processing Fee
When you get a loan, most people think your only fee is the interest rate, though 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 must pay on the agreed date. Yet if you have failed to do so, you will be charged 5% of the unpaid installment amount or P300. But it depends on whichever is higher.
BDO Personal Loan Process
Though it has been said that you use the loan for an emergency, you must know that the loan process takes seven to 10 days to be finalized and for your cash to be disbursed. Since it might take a week, it beats using it for emergencies.
BDO Main Office
If you wish to visit BDO Corporate Center, it is at 7899 Makati Avenue, Makati City.
Metro Manila: (+632)631-8000
Benefits of BDO Personal Loan
- 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 when 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 get a secured loan). You can also use the cash in any way you want.
- Top-Up Loan Feature – as long as you can pay diligently, you can avail of the loan’s top-up feature as long as you 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 pay because they don’t use a loan calculator. The loan calculator can help you make an informed decision as you will know how much you have to pay monthly with your chosen loan amount and tenure. Reflect if you can meet the repayment.
- Having a bad credit score – The credit score reflects your loan history. If you default on your previous loans, you will have less chance of getting your application approved. Make sure 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 fits your needs and get easily approved. Though banks are famous for loan products, other lenders can offer more flexible loans. Do not get the loan you first encounter. Learn to explore to find the right fit for your lifestyle and finances.
- Pre-qualifying requirements are incomplete – Your BDO personal loan application form plays a vital role. If you lack a single document, your request will not be processed. 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 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 leaving your house.