What is a Quick Loan?
A Quick Loan is a service or program offered by bank companies or non-bank financial institutions (NBFI) to clients or individuals who would like to borrow a specific amount of money for their basic necessities, desires, or to simply fulfill their financial goals. Quick loans are immediately processed and issued through a simple process that allows borrowers to receive their loans as soon as possible.
What is a Quick Loan Interest Rate?
In general terms, an interest rate, pertains to the amount that is charged by a lender to a borrower in a percentage form, on top of your principal loan for a specific period of time. An interest rate of a loan is usually marked every year and expressed as Annual Percentage Rate (APR).
All individuals or borrowers who availed any type of loan are responsible for paying back the amount borrowed including the accumulated interest and any additional fees associated with the amount loaned.
Despite the varying interest rates that regular types of loans provide, low Quick Loan Interest Rates are more likely to persuade clients to avail of a loan product. These Quick Loan Interest Rates refer to the same interest rates of regular types of loans but the only difference is that it is usually lower.
Regular and Quick Loan Interest Rates in UnionBank
Regular loan interest rates are fixed charges agreed upon the Quick Loans Promissory Note and Disclosure Statement signed by the borrower. The interest of a regular type of loan is calculated daily depending on the loan’s decreasing balance.
The regular interest rate of UnionBank is between 8% and 11% for Housing types of loans which the bank basically considered as fair rates. The Quick Loan Interest Rate is based on prevailing rates which make it an affordable loan that people will have an easy way of repaying.
Additional fees are expected to be paid as you process a Quick Loan service from UnionBank. These processing fees depend on the respective amount of loan you try to avail. They are as follows:
Loan Amount | Processing Fee |
PHP 10,000 and above | PHP 2,000 |
PHP 5000 to PHP 9,999 | PHP 500 |
PHP 2000 to PHP 4999 | PHP 300 |
PHP 1000 to 1999 | PHP 100 |
The processing fee is deducted before the loan proceeds are released to the borrower.
Conclusion
The lower the interest rate is, the more the borrower’s repayment is made lower. The borrower will not just have the privilege to pay less upon borrowing over time but with a low interest rate, he will. also be encouraged to loan again if deemed necessary. Simply put, it will be an advantage once a borrower manages to not just merely apply for a quick loan but would also be coupled with a lower interest rate.