There are times when you would need cash, almost immediately. Financial crisis can be related to travel, existing bills, debt consolidation, new purchases and many other things. For testing times, a personal loan can be quite handy. Also called a salary loan, a personal loan is a short term advance, usually for a period of three years or less. The borrower needs to have a stable job for application, and the loan amount is dependent on his salary, which is why it is called a salary loan. Here are the other things that you need to know!
Personal loans can be both secured and unsecured. Unsecured loans come with a higher interest rate, but you don’t need to attach any asset for the application. On the contrary, secured loans are best suited for people, who are sure of repaying the debt on time. The interest rate depends on a number of other factors, as well, and in the Philippines, you will anywhere between 1 and 3%. Please note that there is a small processing fee for the personal loan application, which must be paid. If you intend to repay the loan in advance, you will also need to pay a corresponding fee for the same, along with the full amount and interest. Most loans are meant for 12 to 18 months, although the period can extend up to 36 years. If you are working abroad and need a quick advance, you can choose to apply for OFW loan, which has similar terms.
Applying for a personal loan is relatively easy, and you can expect an approval within 7 to 10 days. Keep in mind that the lender has complete authority to decide on the loan approval. It is also advisable that you complete the paperwork in advance. Besides the Tax Identification Number, SSS/GSIS No and employment details, you must also have a valid address along with a postpaid telephone number. In most cases, lenders aren’t bothered about the purpose, as long as you are capable of paying the money back on time. If you don’t have a credit card, you can still apply for a personal loan, although borrowers with credit cards get quicker approvals.
With salary loans, you can handle a lot of your financial issues with ease. Also, such loans have flexible payment terms, and you will find many portals, where lenders and other factors can be compared together. Make sure that you read the terms and conditions in detail, especially with regards to penalties and repayment aspects.