Personal Loan Philippines

There are many kinds of loans available in the Philippines, and in that long list, almost all credit providers offer personal loans to their clientele. It is a multipurpose loan that can be used in financing education, medical emergencies and even travels or purchasing some basic needs. It is a form of cash advance payable in terms of as short as six months to as long as thirty six months.

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Secured an unsecured personal loan Philippines

A personal loan is categorized into two types namely; secured personal loan and unsecured personal loan. The difference between the two is with secured personal loan, you need to own a car, house or even a land title and use these as collateral to obtain a loan. Although there is a higher risk of forfeiting your collateral to the lender, the interest rate is much lower.

Unsecured personal loan is the popular type of personal loan and known also as payday loan, cash loan or salary loan. The other loan provider also has their own names like EZ loan, Extra Credit and others. Unlike a secured personal loan, it is non-collateral loan and the approval of loans is based through one’s credit history or income. This is very prominent with credit card holder and their credit history is the standard basis. Salary or payday loans are based on annual income and an ATM card is a prerequisite item.

Requirements personal loan Philippines

Self – employees can avail a loan if their business is profitable for the last 2 years and has been in operation for 2 to 5 years. Overseas workers with fixed income can benefit from their peso or dollar account and used it to get a personal loan.

Banks or credit providers require documents in securing a personal loan and each has its own list of requirements. But the standard requirements are certificate of employment, 2 valid IDs, Income Tax Return, utility and credit card billings for employed applicants. A self-employed applicant needs to submit bank statements, business papers, financial documents and credit card and utility billing in order to apply for a personal loan Philippines.

CompareKing PH News/Blogs “http://www.compareking.ph/credit-cards/pick-credit-card-philippines-compareking/”. How to Pick a Credit Card Philippines by CompareKing PH. December 7, 2013. CompareKing PH.