It’s always prudent to have saved some extra money available in your bank. However, most of the time, especially during emergencies, what you have saved may not be enough to cover the load. If this happens, it’s always a welcome thought to have the ability to apply for a cash loan. Currently, there are a lot of personal loan options available in the Philippine market. But more often than not, the most important factors usually remain the same. The factors that you should consider in choosing the right personal loan for your needs would be interest rates, loanable amount, repayment terms, as well as approval speed and stringency of the requirements.
Go for Low Interest Rates
The requirements are usually the same across all banks when you apply for a personal loan. The loanable amount and repayment terms offered are quite similar among banks. But what generally sets them apart would be the interest rates they offer. Upon comparing, if a certain bank is offering lower interest rates for the same loan amount and borrowing period then it would be the better option. Currently, Maybank’s Enable Personal Loan offers the lowest interest rate available in the market today at 13.2% per annum for an amount of ₱200,000 which can be paid up to three years.
Check for the Highest Loanable Amount
The amount that you need to loan would vary depending on the situation. It can be as low as ₱10,000, or could even go up to ₱3,000,000, which some of the banks are able to offer. If the need arises, it’s better to have the capability to borrow the required amount that will cover most, if not the entire expense. Regardless of the purpose, your best option in terms of having the highest loanable amount will be BDO Personal Loan. They offer a maximum of up to ₱3,000,000 loanable amount, payable in 3 years.
Review Repayment Terms
Now that you have an idea of the total amount you need to borrow, it’s time to review which banks offer the best repayment terms. Let’s say an emergency occurred where you urgently need a substantial amount of ₱2,000,000. Considering your current expenses, it will be lighter for your finances if you take the loan with longest repayment terms. For the said amount, your best choice is to get a Citibank Ready Credit Personal Loan that allows you to repay the amount for up to 5 years.
Getting Approved Based On Requirements
Promptness is also a factor that you should consider when applying for a loan especially if the situation you’re in is critical. The urgency to have financial assistance or additional funds in order to get things going is of utmost importance. Fortunately, there are some banks such as Standard Chartered EZ Personal Loan that provides loan approval in as quick as 48 hours, with as little requirements or paperwork as possible.
Keep in mind that the important factors that determine the success of your application will be based on your income, job stability, loan amount, and more importantly, your credit score. Also make sure that once approved, you’re obliged to pay-up regularly and on time. Your diligence in doing so will shape your credit score which makes it less difficult to get approved should you apply for a loan in the future.