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Example Of Personal Loans

Filipinos, no matter how financially self-sufficient they are, will need financial help at some point in their lives. May it be for consolidating debt, funding a once-in-a-lifetime trip, emergency home repairs, medical expenses, etc. When the need arises, personal loans can be a timely solution that Filipinos are looking for.

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Written by: Piggyy

Rating

4.4/5
Security Bank

Security Bank offers attractive loan terms. Get this offer now.

Rating

4.1/5
Bank of the Philippine Islands

Avail of low interest rates with BPI. Do not miss this offer.

Rating

3.5/5

Loan Term

3 - 6 months

Est. APR

% 12/month

Loan Amount

Php8,000 to Php40,000

Since the potential uses of personal loans are almost limitless, it is crucial to understand which type of personal loan is best suited to what a borrower is facing.

 

What is a Personal Loan?

 

A personal loan is a type of installment loan that allows an eligible individual to borrow cash to meet personal needs. The borrower has to repay the principal amount along with the interest earned over the agreed-upon period, typically a period of 12 months to 36 months.  

 

In the Philippines, personal loans can be classified into two types: secured and unsecured.

 

Secured Personal Loans

Secured personal loans are those that require the borrower to use a specific item or personal property as collateral – home, car, stocks, and bonds just to name a few. This type of personal loan gives the lender the right to the asset until the loan is repaid. This means that the lender may sell the property to recover the money owed should the borrower fail to pay back the loan or meet the terms of the loan agreement. 

 

Unsecured Personal Loans

Unlike secured loans, unsecured personal loans can be obtained without the involvement of any personal assets as collateral; the loan is granted based on the borrowers’ ability to make regular payments. As such, higher interest rates may apply for every unsecured loan. Furthermore, additional documents concerning the borrower’s income, employment, and credit history will be needed to provide proof of financial capability to make repayments.  

 

Example of Personal Loans

 

The following are some examples of personal loans in the country and how they are used to assist Filipinos in making sound financial decisions:

 

Quick Cash Loans

Quick cash loans are short-term personal loan products that offer immediate access to funds – thus the name. The process of application and disbursement for this loan can take anywhere from 10 minutes to a few days.

 

OFW Loans

OFW loans are also categorized as personal loans. The loan program enables Filipino overseas workers to borrow money for whatever purpose it may serve. OFW loans are available in the country to ensure that the modern heroes of the land are able to receive the financial help they deserve. 

 

Salary Loans

A salary loan is a type of unsecured personal loan. This type of loan is intended to assist individuals with a regular salary, pension, or other fixed income in dealing with a financial shock or emergency that a single paycheck is unable to cover. Salary deductions are one of the repayment options for this loan.

 

Personal Loan Providers in the Philippines

 

Quick Cash Loans 

Cashwagon Cash Loan

  • Loanable amount of up to Php 25,000
  • Loan term from 3 to 15 months
  • Same-day approval

 

OFW Loans 

BPI Seafarer Loan

  • Loan amount of up to 2 million pesos
  • Flexible loan term options from 12 to 36 months
  • Get approval in 5 to 7 days 

 

Salary Loans 

Security Bank Salary Loan

  • Loan amount up to 1 million pesos
  • Loan tenure of up to 36 months
  • Loan approval in 3 to 4 banking days

 

Conclusion

Personal loans are widely accessible in the Philippines, providing extra cash to Filipinos who have exhausted their savings but still need to pay something on top of their regular bills and living expenses. 

 

All in all, it should be kept in mind that different personal loans have different interest rates, payment terms, and requirements. Therefore, it pays to understand what type of loan suits the situation and which companies have the best personal loan offer before proceeding with the loan application.

Rating

4.4/5
Security Bank

Security Bank offers attractive loan terms. Get this offer now.

Review

Rating

4.1/5
Bank of the Philippine Islands

Avail of low interest rates with BPI. Do not miss this offer.

Review

Loan Term

3 - 6 months

Est. APR

% 12/month

Loan Amount

Php8,000 to Php40,000
Review

Piggyy

״The secret of happiness, is not found in seeking more, but in developing the capacity to enjoy less״ - Socrates

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