Applying for a Bank Loan in the Philippines

Banks that Offer Loans in the Philippines

When taking a bank loan, borrowers will have to look out for the loans that offer the lowest interest rate because over time, the interest can be expensive for the borrower and when borrowers take the loan with the lowest interest, the lesser they will have to pay in installments each month on top of the principal loan amount. 

Here are the banks that offers the lowest interest rates for bank loans in the Philippines:

• PBcom (Philippine Bank of Communications) 1.58%
• RCBC (Rizal Commercial Banking Corporation) 1.30%
• Maybank 1.50%
• Citi Bank 1.26%
• HSBC (Hong Kong Shanghai Banking Corp.) 1.21%
• BPI (Bank of the Philippine Islands) 1.20%

To be eligible for a bank loan, these are typically the requirements that are required:

• Must meet the age criteria (21 years old to 65 years old)
• Proof of income (Payslips, Income Tax Return (ITR), Certificate of Employment (COE), or Audited Financial Statements)
• If employed or self-employed, borrower must meet the minimum income requirements
• Provide a government-issued ID
• Other requirements that banks may need

Bank Loan Purposes

Borrowers will need a bank loan for different purposes and it could be an emergency need and immediately required, or non-emergent and borrowers have the capacity to wait for some time until the loan is approved. 

These are the different reasons why borrowers might need to apply for a bank loan:

• Medical Emergencies
• Tuition Fee Payments
• Car Purchase
• Home Remodel or Home Construction
• Fund Major Life Milestones

Modes of Payment

To pay a bank loan back, there are different ways for borrowers to do so and this can be arranged in the beginning of the application process:

• Post Dated Cheques (PDCs)
• Auto Debit Arrangement (ADA)
• Over The Counter Payments 

Conclusion

Filipinos should not be daunted by the idea of not being able to get approved of a bank loan without even trying yet. There are different banks in the Philippines that offer different kinds of loans for whatever borrowers need. The key is in finding the right bank loan for all of your needs that is not going to hurt your ability to pay the principal plus the interest later on.