Taking an OFW loan Philippines is not difficult, you can use our tips to do so.
Start by thoroughly researching the interest rates, keeping in mind that lenders do not advertise hidden fees and commissions. Online lenders often talk about low-interest rates to attract customers, but in reality, they hide the fees and charges. It is better to take your time and compare interest rates in several companies.
If the potential borrower is satisfied with the terms of the loan, you can move on to collecting a package of documents and filling out the application. It is desirable to prepare supporting documentation in advance, so as not to make mistakes when filling out forms. As a rule, the expert of the credit organization demands to show the bank account statement, the certificate of income, and a copy of a document, confirming the identity of the applicant.
OFW Loan Philippines Online
At the stage of creating an application for an OFW loan Philippines indicate personal information, including the phone number and working email address to which the client wants to receive letters. It is also a common condition to fill out a questionnaire with information about the applicant’s current ability to pay. The application form must contain only current and accurate information.
- The application undergoes a thorough check by the staff of the credit organization. The credibility of the income information serves as a guarantee of granting an unsecured loan because the lender needs to make sure that he will be able to repay the money given to the client. So do not try to hide or embellish your current financial situation, lest you get a loan rejection.
- The specifics of the process of checking the incoming loan application are determined by the financial institution. Modern large commercial banks use automated data processing systems before granting a loan for a small amount. Manual processing is done in the case of an application for a large loan. But in this case, the client may be required to provide guarantees.
- If we talk about the size of the loan, its calculation takes into account the income that will be received by the potential client in the near future. Specialists at financial institutions are constantly working to improve their unique list of questions and requirements for borrowers, taking current market conditions and the needs of the clients themselves as a basis.
Conditions for an unsecured loan
After receiving an application for an unsecured loan, the financial institution begins to check the client’s credit history to find out how the client has repaid previous loan amounts. The information obtained becomes the basis for a credit rating, the data from which allows you to assess the creditworthiness of the applicant.
Those who have a good credit rating have a better chance of getting an unsecured loan. Those who have not used credit, have borrowed a small amount of money, or have had difficulty paying back a loan at all and have a poor credit history can take steps to rebuild their credit rating. These preliminary steps will allow you to apply for an unsecured loan later.
It is important for any lender to get confirmation that the customer is getting enough money to repay the loan they are applying for. Therefore, it makes sense that when applying for a secured or unsecured loan, loan officers ask for proof of current income.
This will help them assess the client’s ability to pay and repay the new loan. First, a calculation is made of the debt-to-income ratio.
Income is usually confirmed by providing pay stubs, tax returns, and bank statements.
Which Loan Is Better in the Philippines – Secured or Unsecured
The desire to get a loan should not be spontaneous, it is necessary to carefully plan, assess your financial capabilities and weigh the pros and cons of its registration. After that, study the peculiarities of getting a loan from different lending institutions to select the best option. Currently, a fairly large number of Philippine banks offer a service of credit without a certificate of income.
Such loans have a number of features:
- Minimum number of documents.
- To obtain a quick loan it is sufficient to have a domestic passport. Bail and guarantors are also not required.
- Fast processing of the application.
- The less documents are subject to verification, the faster the result will be known. Most often, the processing time does not exceed 1-2 days.
- Higher interest rate and small credit limit.
- The bank assumes additional risks, providing money without proof of income. These risks are included in the terms of credit.
- Availability of positive credit history.
- Fast loans without proof of earnings can be obtained by persons who have previously established themselves as reliable borrowers. Unreliable clients will be denied credit.
Consider the list of banks
Loan management begins with choosing the best option, for which the counselor is asked the following questions:
- How much credit can be obtained? To get a reasonable answer from the counselor, it is better to have the last year’s wage statements of all working family members to calculate income;
- What interest rate you may be offered? Too low an interest rate should alert you, as the bank never misses its income. Surely the bank’s income is caught up in the accompanying services of the loan. If you’re talking about an interest-free loan to buy appliances through a store with which the bank has a cooperation agreement, interest-free loans don’t exist. Banks are far from being patrons of the arts. The cost of interest and services is already built into the cost of the product, which is easy to check at your neighborhood store. Ask for a printout of the calculation of the amount of interest for the entire chosen period of the loan.
- Find out what services are provided by the commercial bank in processing and supporting the loan. Get a cost estimate for all of these services (credit counseling, loan application review, opening a loan account, loan account maintenance, collateral inspection, and appraisal, cash loan origination fee, loan support, deposit insurance, collateral insurance…). The optimal amount of monthly payments to the bank from the monthly family income – 15-25%, it’s verified in practice, if it turned out more – there may be financial problems
- What currency the credits are issued in? It’s most reliable to get credit in rubles. When the exchange rates are not stable, you can lose a lot of money on converting.
- Do you need guarantors and how many people It is better to choose a OFW loan Philippines without guarantors, or with a minimum number of them? Guarantors are jointly and severally liable for repayment of the loan, interest, and all penalties for the entire period of the loan. You can unintentionally set people up.
- For how long are loans taken out. Try to compare your income with your choice of loan type and term.
- What stores does the commercial bank work with, and whether they have the products you need? Many banks have storefront loan counseling and processing points;
- What is taken as collateral, or loans are given without collateral? The equipment or car you are buying is also taken as collateral.