Easy loan in the Philippines – before we begin to understand how to take a loan from a loan company, let us give a brief definition of it in simple words.
A loan is a transfer of money by a financial and credit institution to an individual or a legal entity on conditions: for each type of credit, there are different conditions for obtaining and the requirements that the company imposes. For example, car loans and mortgages can be given only on security, which is usually the purchased property. Such purpose loans are subject to compulsory insurance, both of the property itself and of the life and health of the borrower.
- In general, consumer credit can be issued without pledge and without insurance, and only with one document – a passport.
Easy Loan In the Philippines
Should you get a bank credit?
Should I get a bank credit? This is a very important question, which must be asked each person who is going to go to the lender to get a loan. His financial position in the future directly depends on it.
Consumer credit refers to a loan at a certain interest rate in the financial-credit institution in order to purchase a desirable thing, property, etc., which at the moment has no money, and under the loan for the opening of the business will be understood as a loan on the opening of the business. On reflection, we can reason that the feasibility of obtaining a bank loan depends directly on the purpose for which one wants to take the loan.
If a bank loan is needed to purchase something, property, etc. just to satisfy one’s desires, personal needs, and wants, then there is no point in getting oneself into a debt hole. That is, taking a loan for something you can live without simply because other people have it is the height of stupidity and foolishness.
- The exception to this would be taking out a car loan and a mortgage. If a person completely lacks the ability to save money for this property, then taking out a loan for these purposes can still be justified.
- True, the expediency of a car loan can also be questioned, and, here too, it is necessary to pay attention to its purpose. If you need a car just to “rub the nose” of neighbors and friends, and to “scratch” his self-esteem, it is better not to spoil your financial situation. And if the car is needed in order to start earning money in one way or another, taking a car loan.
- If a loan is taken in order to start your own business, then such a loan, on the contrary, will give a person the opportunity to earn and create a good source of passive income. And the cost of paying for such a loan will be more than justified. But this is where you should think about how you will pay back your loan if your business goes bankrupt. Otherwise, you will simply be unable to pay off your debts.
The main conditions for a loan
All financial companies have virtually identical loan terms and conditions, the most important of which we will discuss below.
- Documents required for obtaining credit – to obtain credit in a bank, it is necessary to have a passport of the Philippines citizen. However, it happens that some banks may also give a loan to persons who simply have a temporary residence permit. This is not prohibited by law, but in practice, it happens very rarely.
- There is also a mandatory and additional package of documents for obtaining a loan: the standard mandatory set is almost everywhere the same in the banking sector; an additional set of documents each credit organization its own, and sometimes differs from the set of bank competitors.
- Age from 21 to 65 – as a rule, for people under the age of 21 and over 65 years the bank refuses to grant credit. However, some banks make an exception and give loans to persons under 75 years old, provided that at the end of the credit agreement their age will not be more than the specified number of years.
- Presence of an official and constant job – no bank will not give a loan to a person who is not officially employed and does not have a permanent income sufficient to repay the loan. To confirm your employment, the credit organization will need to provide a certificate, certificate of state registration of you as an individual entrepreneur, or registration of your firm in the form of LLC, etc. In addition, the certificate of earnings of the borrower and guarantor is necessary so that the bank could actually assess what amount of the loan you can count on.
- Good credit history – every self-respecting bank necessarily pays attention to the credit history of the borrower. The presence of repeated delinquencies in repayment of loans in the past in 100% of cases will be grounds for a refusal to grant credit, as well as the absence of your data in the Bureau of Credit Histories. If you have been refused a loan ten minutes after the application, then you can be sure that the reason was your bad credit history, as banks check the data from the Bureau of Credit History in the first place. Credit is your permanent and necessary expenses for many months and even years, which will have a very negative impact on your financial situation. Therefore, if you are going to take credit, make sure to follow the following 5 rules in order not to regret the deed very much in the future.
If it is possible, it is better not to take out a loan at all
If you will adhere to this rule, then you simply do not need to follow the rest. And it refers, first of all, to obtain a loan to meet your own needs and requirements. These usually include consumer credit for the most expensive and unnecessary things, which a person acquires either because he wants to, or in order to be “like everyone else” or “like everyone else.
You should take credit only for things that make life very difficult, and for things that will help you earn and create passive income. And taking a loan just because you want to, or to be “like everyone else” is, to put it mildly, very stupid.