Getting a loan for self-employed: Manual

January 30, 2020 | By | Reply More

Getting a loan for self-employed causes usually a lot of questions for those who just think about it and are unaware of all the nuances and real possibilities. We all are common people: some of us earn more when the others less or enough but could be better. The fact is that we want more and NEED more and more money for a better life. Loans for self-employed is not a rare thing at all. To have your own business or hobby that makes you happy and brings good income is great but still, it happens when we need money for something urgent or just at the moment.

Personal loan for self-employed is a real solution. Imagine that you want to buy a car for more opportunities or simply offset the unexpected costs? Quick cash loan works for everyone, but remember to take care of your credit history as well. 

To obtain credit, it is necessary to pass a classical procedure – to show and verify your reliability. Traditionally, everything comes easy and fast, however, if the borrower is self-employed, the case might become knotty. Despite the whole picture, you should not think that you will not have an opportunity to get this essential for your financial assistance. Continue to read, and you will discover how to apply for self-employment loan including all possible rates and major requirements.

Loan for self-employed Philippines
Loan for self-employed Philippines Cashwagon

Loan for Self-Employed: Be Brave and Nothing Will scare You

It’s notorious that the self-employed people have traditional fear connected with the availability of employment proof papers which they need to submit to be able to apply for such an important credit.  Anyway, these papers are not usually required. The only thing you should have is just the document that has the information about your income in preference to the last.

Moreover, look through the list of other special documents you should submit to the banking entity:

  • Personal document of identification;
  • Provide our payments for the previous three months;
  • An income tax return is required as well;
  • Certified financial statements in the past 2-3 years including SEC or DTI registration

Is it possible to get a loan for self-employed without it (Income tax returns)? That is a very widespread question currently everywhere which requires additional explanation. Yes, personal loan for self-employed with no income proof is also available today. In this situation, the lender can offer the potential applicant the variant with the secured personal loan using the mortgage and the related documents on it. It is apparent that the home loan for self-employed is widespread in many countries today.

Loan self-employed requirements

  • Be more than 21;
  • Have the Philippines citizenship 
  • Qualifying gross income specified by the bank you apply to
  • The availability of good credit history.

Eventually, there are also special fees you should add when it comes to getting a loan. The bank you apply to usually includes interest fees and other payments as well. As a result, you take what you need but in the end, you pay a bit more. And this is a real way all banks work.

This is what an applicant faces applying to banks:

  1. Expenses for the whole procedure, known as a processing fee is charged in the process of lending (giving a loan). This one is a fixed payment in the Philippines which varies starting from P1,200 to P2,600.
  2. Payment in case of pre-termination that is usually charged when you can repay your bills faster than the bank expected. Traditionally, the sum varies from 5-8%. 
  3. Late payment penalty is used when the borrower misses his payments per month. The numbers vary from 3-8%. 
  4. The Bureau of International Revenue requires a tax for a documentary stamp when it comes to over P250 000 loans. That will be evaluated ass P1 per every P200
  5. Charge for every bounced check.

Cash loan for self-employed – Basic Causes

It’s important to see and understand what are the key causes and reasons for taking a loan for self-employed. Do you think it’s really necessary to apply for a loan right now? Are you certain that bank establishment is the right place for taking credit? Are you sure you will cope with all those bills? When you say “Yes”, then don’t hesitate more and do what you think is right for you. Loan for self-employed in the Philippines can be necessary for various purposes and intentions. So, as a rule, Filipinos apply for a loan when they have the following situations:

Loan for Educational Payments

Education is a complicated thing, not only because you have to learn and study, but also because you have to pay for it. However, you have a great benefit, if you have the education you wanted for so long. Students usually get money as a loan and after that, they repay it after getting their first job. Lending cash for this reason in the Philippines is a very popular trend today, as everyone understands the importance of this investment for their future. Banks react positively when dealing with such a borrower and approve the loan quicker.

For Medical Purposes

No one is on the safe side when it comes to our health. Unpredictable troubles can occur at any moment of our life. People might need additional money to cover important medical expenses. That is the exact time when we start thinking about a quick loan. If you have such a solution, use it, and forget about putting it away for later because this entails your health.

Launching one more business 

You have a great idea and know-how to realize it – that’s really superb, but a considerable sum might be required to make it come true. Here is only one challenging thing for every newbie in the business are to go through the tight path from your idea to its realization, known as the final stage and success. Having some funds can convert your motivation into something more and it is the case when a loan for a self-employed person can work greatly.

Making a family

When you love, you want to cover the whole world with it and care about everyone you love in your beautiful family. The desire to celebrate your relations and make them official might require extra expenses, it sounds a bit in a blunt manner, but let’s be down to earth a little. Such a holiday is usually expensive not only in the Philippines but everywhere. At the average people spend P500 000 to make this day remarkable and memorable. Well-planned wedding budget and an additional sum of money can change the whole picture for the better.

Loan for Self-Employed in the Philippines and Readiness to Carry the Responsibility

Loan for Self-Employed in the Philippines from Moneycat PH
Loan for Self-Employed in the Philippines from Moneycat PH

It’s a considerable responsibility to take a loan. When for certain grounds you are not able to pay back the whole sum, you can spoil your ideal credit history and make your credit score lower and no more attractive for lenders. Loan for self-employed online with bad credit history is also possible but it makes take some time to find such a lender who will give you the money you need and it is just another story. Be careful with your wishes and real capabilities as no one knows what the future will carry you later. 

Generally known that credit history including the score influences totally your accountability and attractiveness in the eyes of different lenders. It’s a certain measure which helps the banks to evaluate your readiness for the next loan and general reliability. Be more serious about your score and confident that you are capable to repay the sum.

Remember to double-check your balance 

Firstly count what you have already had, and only then consider applying for a loan. Make it your rule. Besides, such kind of double control will help you to better understand the level of your desires and its matching to your real possibilities. Hold to the budget you totalled. Put down all the numbers in a notebook or laptop to see it better. It is recommended to review it from time to time in order to be confident that you are inside the boundaries.

Be attentive when reading the terms

Banks always offer their clients different options and terms, just choose what is eligible for you and take your money. Still, everyone should be careful and read all the specified terms several times to understand hidden nuances. After that, it will be better to negotiate some matters in order to be sure you grasped the information properly. Today instant loan for self-employed is not usually the best choice if you apply in the bank for it, there are more lending companies online in the Philippines which are ready to help quickly and without traditional bank’s red tape.

Plan out and control your budget

We all want to get to know how to improve our income regularly and what ways exist for it. Let’s imagine that you changed your job or found a new way of earning extra money. In this situation, it will be reasonable and critical to control the sum of cash you obtain and spend in order to cope with your bills easy.

Be more down-to-earth when it comes to your abilities

In other words, try not to overestimate your abilities. After you took the money in the bank, it may meems to you that all your concerns and problems are in the past. It happens that people continue to find some extra money when they have already had the loan in order to start one more project. 

Of course, it is great if you know what to do and how to cope with the whole pile of work and borrowings, but be careful with the estimation, or, it’s better to say overestimation of your abilities. As if you started the ball rolling, you will have to stop it later. Stay away from multiple debts, as this way is very slippery. 

Getting a loan for self-employed: Further Actions

It can take too much time to get a personal loan especially when you deal with banks. Once everything is ok, and you finally got your money, the happiness and relief will come to you. Well, what are the major steps here?

  1. Look through the diversity of options and possibilities offered by both banks and online credit companies in the Philippines. Find out the best deal for yourself with the conditions you like. 
  2. Apply only after checking all the requirements. It is great that in the Philippines, people can do it via the Internet.
  3. Approval is almost here just wait a bit. As soon as you made a request, the financial organization will check your docs, acceptability and creditworthiness. The bank or company will let you know when it arrives at the decision. 
  4. Get cash for your needs. Just choose the way of getting it: on your deposit account or with a check.
  5. Be obedient with your payments and debts. Payback regularly every month without delay to close this matter as quickly as possible. 

So, as you can see from all the above and general information you know, it is not a problem to get a loan for self-employed in the Philippines, Sri Lanka, or in some other country of the world. Simply read a lot about various choices and select the best for yourself. If you are very busy persona and do not have enough time to surf the Internet searching for the following information, you can use the specially designed loan for the self-employed app and look through in such way.


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