Finance

Finding the Best Personal Loans in the Philippines with No Collateral

Are you in need of cash real quick? A personal loan can be the answer to your problems. Loans such as the BDO Personal Loan can give you the financial respite the you need without requiring collateral. Most banks are now offering these and the requirements are getting easier to follow. Here’s what you need to know about applying for a personal loan without collateral.

What are the types of personal loans?

You can use your personal loan at your discretion, whether if it’s for travel, medical fees, or travel purposes. The one that doesn’t require collaterals is called an unsecured loan, which is readily offered by most banks in the Philippines.

What are the terms?

You enter an agreement with the bank to repay your loan over a certain time period, which could be up to two years, depending on the bank. Payments are on monthly terms, with rates that also vary according to the bank. BPI Personal Loan has an interest rate of roughly 26%. There’s a personal loan calculator you can use to know exactly how much you need to shell out.

What is a personal loan calculator?

If you apply via website, you can find an online calculator which will provide the monthly amortization you need to pay. You just fill out the fields and the calculator will produce the rates for you instantly.

What are the fees and charges?

You can choose to settle your fees at an earlier date, although this can result to fees, usually a percentage of your initial loan amount. If you fail to make your payment in time, you will be charged late payment fees around 5% a month.

Am I eligible?

In order to qualify for the loan, you need to be at least 21 years old and not more 65 years old upon loan maturity. You should be a Filipino citizen and have a home and/or office landline. Employees should have a minimum gross monthly income of PHP 15,000 (depending on the bank) while self-employed individuals should have at least two continuous years of profitable operations in the same line of business and a minimum gross monthly income of PHP 30,000.

What are the requirements?

If you’re an employee, the bank will ask you to submit a government-issued ID bearing your photo. This includes passport, driver’s license, PRC, and SSS. Some banks will require secondary IDs such as Postal. You will also need to submit minimum of 3 months original pay slip or the latest Income Tax Return or BIR Form 2316.

If you’re self-employed, you will also need the IDs above. You have to submit BIR Form 1700/1701 as well as your audited financial statements for at least the last 3 years. Lastly, you have to hand over your DTI Business Permit or SEC Registration.

If you hit the eligibility criteria and you can submit the documents needed, you can easily get a personal loan, with approval as fast as 24 hours. Check out BDO Personal Loan and offers from other banks to find out the best loan for your needs.

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