What crosses your mind when you think about loans?
Surprisingly, 77% of the adult population believe that loans are beneficial for them and their family. This is based on the 2015 baseline study done by the Bangko Sentral ng Pilipinas (BSP).
While it is true that loans are beneficial for us, it is still a financial responsibility that has to be chosen and handled well. However, choosing the right loan which best fits your need and finances must be done seriously.
You are probably reading this because you are considering bank loans as your financial resort. Almost 50% of adult Filipinos get their loans from banks. Banks offer various loans however, it has its limitations too when it comes to serving every Filipinos.
Philippine National Bank Quick Facts
The Philippine National Bank has been established on July 22, 1916, as a government-owned banking institution. It has survived both WWI and WWII and even became the first universal bank in the country.
By 1989, PNB became a private company. Now, most of its stocks are under the ownership of Lucio Tan Group. PNB currently has 670 branches and offices, 960 ATMs, and 72 overseas branches.
OFWs are known to always give the best for their families. And when it comes to convenience, most of them dream to buy a car for their loved ones.
However, this is only offered to Filipinos working in Hong Kong and Saudi Arabia who are 21 to 65 years old. You must also have been working abroad for at least two years.
You can borrow from P 400,000 up to 80 percent of the purchase price of the unit. Take note that the actual loan amount and interest rate will still be at the bank’s discretion.
PNB offers home loans to Filipinos and natural born Filipinos with another citizenship ages 21 to 65 upon the maturity of the loan.
This loan can be used for purchasing a property, home construction, house renovation, and refinancing. This means that you can also use this loan to pay off an existing loan.
The loan amount will depend on the property’s location and property to be purchased. Usually, properties within Metro Manila are given a higher loan amount since properties in the metro have skyrocketing prices.
The Interest Rate is Fixed Interest Rate ranging from 5.75% to 10.75%. The longer the term, the higher the interest you have to pay.
Looking for a way to finance your car? PNB has a car loan for both Filipino citizens or Foreigner based in the Philippines.
You can borrow at least P150,000 up to 75% of the appraised value for a used car and P300,000 up to 80% of purchase price for brand new units.
The older the used car, the shorter term you will be able to get a loan in PNB. The interest rate for PNB Sure Wheels Auto Loan is fixed ranging from 9.36% to 23.39%.
When choosing a credit card, you shouldn’t just focus on the rewards, rebates, and freebies. You also need to know the fees and charges to avoid bill shock.
- Account Maintenance Fee is P200 a month or the amount of total balance.
- Advance Renewal Card Request Fee is P750.
- Card Replacement Fee is P400.
- Cash Advance Fee is 5% of the Cash Advance Amount which you have withdrawn.
- Certification Fee from the bank is P200.
- Late Payment Fee is P300 on top of your bill.
- Lost Card Fee is P400
- Rush Card Processing Fee is P300 to get the card in five (5) days. you have to pay to P1,000 to get the credit card in just one (1) day.
- Rush Delivery Fee is P200 to receive the card in 1 to 3 days. You will be charged with P500 to get the card delivered in your doorstep in a day.
What to Consider with PNB Loans?
- PNB Loans are not for every OFWs. You have to reside in the country specified for the offered loan.
- Auto loans require a wide coverage of insurance. Take note that the fee for insurance is not included in the loan amount you will get.
- The appraisal fee is nonrefundable. This means that whether you continue the loan or not, you have to pay for it.
- Rushed credit cards can be costly.