Updated March 30, 2017
Nowadays, to be able to survive here in the Philippines, we have to resort to loans. Since we are a family oriented country, most of us will do anything to see our relatives getting the comforts we can best give, even resorting to loans just to give what they want.
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Facts about Personal Loans
- Unsecured Personal Loans
There is no need for any collateral to acquire a personal loan. The process and the terms may also be shorter depending on the lender.
- Has a fixed range
Depending on the money lender you choose, personal loans usually have a narrower fixed range. It is capped only at a certain amount.
- Usually, has a fix interest rate
Most moneylenders use fixed interest rate with personal loans as these loans usually have shorter terms.
- Terms can be in shorter period
Personal loan terms are usually shorter and smaller than secured loans.
- Usual bait used by scammers and loan sharks
Since many use personal loans, Filipinos are easy preys to those who are willing to offer more in times of great financial need. Loan sharks will offer loans with bigger interests rates that are almost impossible to repay.
Lenders have various considerations when approving loans.
Here are the factors affecting your personal loan approval:
- Credit Score
This reflects your credit history and if you are able to handle your past loans and debts efficiently. Banks are the strictest institution when it comes to credit score. Your credit score is based on your past loans and transactions. If you have failed to pay your loans diligently, and this includes credit cards, it will be reflected as a poor credit rating. While it is financially transparent when it comes to loans and payments, it does not include your personal information.
Of course, this comes as an obvious concern for lenders. You must apply for an amount that you can handle when repayment comes. Lenders usually use the debt-to-income ratio as it can tell your capacity to handle such an obligation.
- Employment History
If you have a history of usually changing jobs in less than three months, then the lenders will notice this as a red flag. Lenders want to loan to those with job stability as this proves that you have a regular income.
- Realistic Loan Amount
Use a Loan Calculator to give you an idea on the amount of loan and repayments you can handle. When you see the repayments, you can evaluate your financial status if you can meet the terms. Consider that you still have a household to finance, mouths to feed and work to go to.
- Accurate Information
Lenders will know if you are lying about your information. It is better to come clean and try your luck rather than be blacklisted by lenders. You may not get approved by certain lenders but you are considered as their possible clients in the future.
How to get your Personal Loan Approved
- Shop around to compare lenders
There are more lenders in the Philippines that you can imagine. Among these lenders are various institutions such as banks, private lenders, corporations and online moneylenders. They have different loan products, interest rates and repayment terms. Before you apply for a loan, make sure to take time and shop around for the best lender that fits your current need.
- Use an online Loan Calculator
With an online loan calculator, you will have an idea on how much you can apply for, the amount of repayment you will have to pay according to schedule, and how much the lender might be willing to loan.
- Fill up your application form with accurate information only.
The information you put in your application form will be used to evaluate your capacity to get a loan. You might fool a lender and get a higher loan, but you will have a hard time repaying. Also, if you get caught, you will have a hard time getting loans from that lender.
- Submit your application with other required documents. Keep photocopies and sofcopies of other relevant documents at hand.
During verification, lenders appreciate borrowers who can readily provide more relevant documents when asks. This also makes an impression of being a professional.
- Wait for the lender’s reply and answer promptly.
Always check your email and spam emails. Some lenders have further questions for evaluation and prompt replies will help the lender process your loans faster.
- Be patient, some lenders take 2 to 3 days while banks take at least a week to give their approval.
Verification takes time, however, there are certain lenders who can provide loans in just a day such as Cash Mart. another way to get easily approve is to be a loyal client of a lending company. It does not only give you a higher chance of approval every time you get a loan from the same provider, but it also speeds up the process.
Cash Mart offers various flexible loans which best fits your financial needs at the most affordable interest rate. Experience the fastest loan process in the country with Cash Mart.