Getting the best loan deals

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DEFINING your financial goals will help you improve your life and prepare for your future. Having a decent home, car, money and business can be a personal goal that can be achieved with the help of financial institutions.

Financial goals can be short-term, medium-term and long-term, which means managing your money for savings, investments or expenses. The pandemic has taught us the importance of having emergency funds in situations such as job loss or hospitalization. When caught unprepared for such incidents, people tend to borrow money from relatives and friends.

Banks and financial institutions have a variety of lending products. Once you have decided on the amount to be borrowed, make sure you manage your money and pay on time to avoid paying a higher interest rate. Check their requirements and loan details. You can also look for loans that can be applied online.

Maintaining a good credit history is a plus. You need to study and compare the products of different institutions, as well as the interest rates in the market. Calculate the cost and make an estimate. Choose the right loan amount and evaluate your ability to pay and never neglect. Always think about the cost of interest, the initial amount borrowed, the interest rate and the duration.

Cash loan

Banks provide a cash loan, which is a short-term loan with fixed interest rates and a fixed term of 12 to 60 months. The money can be received in a lump sum and then repaid with regular scheduled payments.

A personal loan is an unsecured credit based on your employment history, repayment ability, income level, occupation and your credit history. Known as a consumer loan, it can be used to pay for immediate needs.

Business loan

At the height of the lockdown, some companies closed their stores and others laid off their employees. Banks have helped small and medium-sized enterprises (SMEs) by providing business loans or SME loans. Lending limits are significantly higher on a business loan than on a personal loan.

Mortgage Loan

Some bank customers have failed to repay their mortgages due to the pandemic. A mortgage is a secured loan taken out to buy a home and use it as collateral. Mortgages offer high interest rate financing depending on the number of years of payment. Having a decent home is a dream come true for every family in the Philippines.

Car loan

Applying for a car loan has become easy even before the pandemic. Banks have offered flexible payments on car loans that have benefited many Filipinos abroad and young professionals. Car loans are secured loans where the vehicle itself is used as collateral. The average car loan interest rate in the Philippines is 6.56% to 31.76%.

The Covid-19 pandemic has cleared the streets, as people were not allowed to go outside. Have you considered having your own car, in times of need, especially when you have to rush to the hospital.

To be eligible for a car loan, you must be 21 years old and not older than 65 when your car loan expires. The minimum monthly wage or household income is P30,000 to P50,000 and you must have two years of employment or a profitable business.

Which to buy new or used?

The Bank Philippine Islands (BPI) said that a new or used car has its advantages and disadvantages. “It’s worth thinking about because it is a decision that will affect your finances for the next several years.”

“Whichever you choose will really depend on your budget. But BPI Family Auto Loan flexible financing packages will always make it more affordable and easier to own,” BPI said.

The BPI pre-processing requirements checklist includes a duly completed application form, two valid IDs and income documents, such as three-month pay slips, an employment certificate (COE) showing salary, position and length of service, and a recent income tax return (ITR).

BDO Car Loan provides financing for a brand new or used car for either personal or business use. Customers can take advantage of competitive prices and receive loan approval within 24 hours. The BDO said the auto loan calculator allows customers to calculate a loan package that fits their budget.

“To make monthly payments more manageable, choose a loan term that works best for you. For lower monthly amortization, you can choose to maximize loan duration,” BDO said.

Metrobank said getting a new car can be a smooth ride when you have the right partner. Metrobank offers personalized services to suit your goals, preferences and budget.

“Owning your dream car should be easy when you can extend your loan term to five years. We offer prices that are among the most competitive in the market,” he said.

Paying off a car loan can be a medium-term goal and paying off all your debts is the best financial goal.

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