Business Loans for Startups in the Philippines
- By Venus Zoleta
- March 30, 2020
Finding good sources of funding is a critical step in starting a business. A small business loan from the government, a bank, or a private lender is one financing option for budding business owners. Business loans come in a variety of types that suit different business requirements. Before you start searching for the right loan for your startup business, it helps to have an idea of the types of business loans for starters. Doing so helps you understand your options better and easily find the loan that matches your needs. Below are the basic requirements and different types of loans for every business. Table of ContentsBasic Requirements When Applying for a Business Loan4 Types of Business Loans for Startups1. Term LoansWhat is a Term Loan?Is a Term Loan Right for My Business?Loan AmountMethod of FundingLoan TermRepayment ModeTerm Loan Options for Startups in the PhilippinesLoan NameLoan AmountLoan TermInterest RateRepayment Term2. Credit LineWhat is a Credit Line?Is a Credit Line Right for My Business?Loan AmountMethod of FundingLoan TermRepayment ModeCredit Line Options for Startups in the PhilippinesLoan NameLoan AmountLoan TermInterest RateRepayment Term3. Secured Business LoansWhat is a Secured Business Loan?Secured Business Loan Options in the PhilippinesSecured Business LoanCollateral4. Unsecured Business LoansWhat is an Unsecured Business Loan?Unsecured Business Loan Options in the PhilippinesUnsecured Business LoanLoan AmountLoan TermInterest RateRepayment Mode7 Considerations When Choosing a Business Loan1. Your Purpose for Borrowing Money2. The Loan Amount3. Method of Funding4. Loan Term5. Repayment Mode6. Collateral7. Interest RateFinal ThoughtsCompare Other Loan Options Basic Requirements When Applying for a Business Loan Prepare the following documents when applying for a small business loan. Valid…
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Online Loans in the Philippines: What Filipinos Need to Know
- By Venus Zoleta
- November 6, 2019
Struggling with getting approved for a personal loan? Wondering why banks always reject your applications? An online loan might just be the solution to meet your urgent financial needs. Online loans from private lending companies offer borrowers a good alternative to traditional loans from banks. They fill in the gaps in terms of convenience, application requirements, and ease of approval. Is an online loan the right choice? Before you borrow cash online, familiarize yourself with how online loans work and your options in the Philippines. Table of ContentsWhat is an Online Loan?Pros and Cons of Online LoansOnline Loan AdvantagesOnline Loan DisadvantagesLegit Online Loans in the PhilippinesACOM Quick Cash LoansAsteria Personal LoanAtome Credit Cash LoanCash Mart Personal LoanCashwagon Instant Cash LoanEsquire Financing Business LoanFirst Circle Business LoanGDFI Fast Cash LoansHome Credit Cash LoanLoan Ranger Cash LoanOnline Loans Pilipinas Cash LoanRadiowealth Finance LoansRobocash Instant LoansTala LoanVidalia Online LoansZenith Business LoanFinal Thoughts What is an Online Loan? An online loan is a non-traditional type of loan from a private lender that operates over the internet. It’s becoming popular among borrowers who need quick cash but lack the credentials to qualify for bank loans. Unlike government offices and banks, most online lenders don’t perform credit checks to determine a borrower’s capacity to repay a loan. Most online lenders require only a valid ID, while some may also ask for proof of income. The entire loan application process is done online—from filling out an online form on the lender’s website or mobile app to receiving approval. Loan proceeds are released and repayments are made through…
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Common Personal Loan Application Questions You Need to Prepare for
- By Venus Zoleta
- August 7, 2019
A personal loan application is like any job application. As a prospective borrower, you do your best to prove you’re a worthy candidate for the lender’s money. The loan application form is your resume, and the requirements you submit are like your portfolio. And then there’s the dreaded interview portion. Are you ready for it? Aside from the information you provide in the application form, the lender will need to talk to you in person or over the phone to verify your eligibility and documents, especially if you’re applying for a business loan. This is part of the background check or credit investigation that banks and lending companies conduct to determine a borrower’s creditworthiness. It’s also an opportunity for both parties (the lender and the borrower) to ask personal loan questions and make sure they’re fit for each other. Before that important call props up, anticipate the questions that the lender might ask, come up with sensible answers, and rehearse with a friend if you must. It’s better to be over-prepared than be caught off guard with an unexpected question during your interview. Here are the personal loan questions a lender typically asks that you should be prepared to answer. Table of Contents1. Can You Confirm Your [Personal Information]?2. What is Your Job and How Much Do You Make?3. Why Do You Need a Loan?4. How Much Money Do You Need?5. How Will You Repay the Loan?6. Do You Have Any Current or Past Loans?Final Thoughts 1. Can You Confirm Your [Personal Information]? The first personal loan questions that a…
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7 Reasons Your Personal Loan Application Got Rejected
- By Venus Zoleta
- July 3, 2019
Rejection of any kind is hard to accept—more so if it involves money. Case in point: getting your personal loan application denied. Your time and effort spent preparing your requirements and waiting anxiously for the loan approval all just went to waste. It makes you want to demand an explanation from the bank, lashing out like that memorable scene from that one movie starring Piolo Pascual. But no need to go berserk to try and reverse the bank’s decision. Cooler heads always prevail, so try to find out why they rejected your application and correct the problem. Personal loan providers in the Philippines base their credit decisions on a borrower’s financial information and their assessments from credit investigations and background checks. If you received a no from a personal loan provider, it’s likely due to the following reasons. Table of ContentsInsufficient IncomeUnstable Employment RecordLoan Amount is Too HighBad Credit ScoreToo Much DebtIncomplete and Inconsistent DetailsFailure to Meet Eligibility RequirementsFinal Thoughts Insufficient Income It doesn’t matter if you have enough money on your account. Banks will reject your personal loan application if your income can’t sustain the monthly loan repayment. They always require borrowers to meet a minimum annual or monthly income requirement. Before you sign that application form, check the minimum income requirement of the lender where you filed your loan application. In case you forgot to check the requirements before applying, do it now and see if your income documents matched the bank’s criteria. For example, to qualify for a BDO personal loan[1], you need an annual income of…
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Personal Loan Fees and Charges to Consider Before Borrowing Money
- By Venus Zoleta
- May 22, 2019
Choosing the best personal loan for you isn’t as simple as comparing interest rates and monthly installments. You also need to consider the personal loan fees and charges that add up to the cost of borrowing money. Some of these fees are avoidable, while others aren’t. Taking all these factors into account gives you a better idea which of your options will fit your budget and won’t charge you with expensive fees. Ultimately, this will keep you from incurring debt over time. Table of ContentsPersonal Loan Fees in the PhilippinesEffective Interest RateLoan Fees and Charges Included in the EIR Computation1. Monthly Interest Charge2. Processing Fee3. Documentary Stamp Tax4. Disbursement Fee5. Notarial FeeSample EIR ComputationLate Payment FeeEarly Payment FeeReturned Check FeeAmendment FeeFinal Thoughts Personal Loan Fees in the Philippines Effective Interest Rate The effective interest rate (EIR) is “the rate that exactly discounts estimated future cash flows through the life of the loan to the net amount of loan proceeds,” as defined by the Philippine Accounting Standards. The Bangko Sentral ng Pilipinas (BSP) uses this EIR definition as well. Put simply, it’s the rate that measures the actual cost of borrowing money. Personal loans with low interest rates in the Philippines have EIRs ranging from 10% to 30%. The EIR includes monthly interest charges and service fees such as processing fee and documentary stamp tax. Here’s a closer look at these personal loan fees. Loan Fees and Charges Included in the EIR Computation 1. Monthly Interest Charge This is the interest rate applied to the total amount due or outstanding balance…
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Drowning in Debt? How to Eliminate the Common Types of Debt
- By Venus Zoleta
- April 25, 2019
One of the last things anyone would like to happen: having too much debt. But it does happen when debt is managed poorly. It’s bad for one’s mental health as it is to the wallet. And so, taking proactive steps to solve this financial difficulty is a lot better than wallowing in anxiety and worrying over your unpaid obligations. It all starts with having a firm resolve to pay off what you owe, regardless of the types of debt you have and how you went into debt. Here are the common types of debt in the Philippines and how to pay them off, so you can get your finances back on track. Table of ContentsCredit Card DebtHow to Pay Off Credit Card DebtCar LoansHow to Pay Off a Car LoanDebt to Family and FriendsHow to Pay Off Debt to Other PeopleFinal Thoughts Credit Card Debt PHP 297.49 billion—that’s how much credit card debt Filipinos have as of February 2019, based on data from the Bangko Sentral ng Pilipinas. Apparently, unpaid credit card balances are among the types of debt that are easiest to accumulate. One seemingly harmless swipe in a cafe can snowball into hard-to-manage debt that can go as much as six-digit figures. Three things make credit card debt among the most challenging types of debt to pay off: high monthly interest rates (ranging from 2% to 3.54%), low minimum monthly repayments (ranging only from 3% to 10% of the total outstanding balance), and other credit card fees on top of the unpaid balance. Read more: 5 Reasons Why…
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Top 10 Reasons Why Filipinos Get a Personal Loan
- By Venus Zoleta
- January 23, 2019
Although hard work and financial discipline pay off eventually, the amount of time that we need to save money for a certain financial goal weighs us down. Just exactly when will you have the money to go on that much needed R&R, to buy her that diamond engagement ring, to enroll your child in school, or to pay for maternity bills? The list of questions goes on, and the answer is almost always uncertain. Money plays a crucial role in every decision and every event in most people’s lives. However, unexpected events, such as hospitalization, instantly lead to an immediate need for an amount that you probably don’t have. If you don’t want to delay your plans any further or when a situation requires money, a personal loan can give you financial flexibility. Here are the 10 best reasons to get a personal loan that can positively impact your family and your well-being: Table of Contents1. Education2. Medical Emergencies3. Appliances / Electronic Gadget4. Home Improvement / Repair5. Business6. Travel / Vacation7. Vehicle Purchase8. Wedding9. Emergency Fund10. Balance Transfer / Debt ConsolidationFinal ThoughtsWhere to Apply for Personal Loan 1. Education Education is an important investment, whether it’s pursuing higher studies for your career advancement or funding your children’s college education to secure their future. While education is a basic right in the Philippines, many families cannot afford it. If you want your child to get topnotch-quality education at a premier university, be prepared to spend more than a hundred thousand pesos every year. Saving up for your child’s college tuition fund is something…
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Beware of Loan Sharks: How to Avoid Illegal Lenders
- By Venus Zoleta
- November 28, 2018
Ever heard of Sangla ATM? Sounds risky as it is, but many fall victim to this illegal lending scheme. Almost 40% of Filipinos borrow money by using their ATM cards as loan collateral, based on the Bangko Sentral ng Pilipinas’ (BSP) Consumer Finance Survey. Loan shark syndicates operate in the Philippines, taking advantage of borrowers who are desperately in need of money. Dealing with a loan shark not only puts you in a worse financial situation but may also cause so much stress and anxiety. It may put your life in danger, too. How do you make sure you aren’t transacting with a loan shark when borrowing money? Know the warning signs of loan sharks and how to avoid them. Table of ContentsWhat is a Loan Shark?How to Detect Loan Sharks1. Excessive Interest Rates2. ATM Card or ID as Collateral3. No Formal Loan Contract4. No Record of Repayments5. Harassment and ViolenceHow to Avoid Loan Sharks in the PhilippinesFinal ThoughtsCompare Other Available Loan Options What is a Loan Shark? A loan shark is an unlicensed lender that offers loans at extremely high interest rates for short periods. Their lending practice is predatory, often targeting borrowers with bad credit history, offering very bad terms, and using threats and violence to collect debts. How to Detect Loan Sharks Loan sharks in the Philippines share several traits in common. Here are the telltale signs that a lender is illegal and should be avoided. 1. Excessive Interest Rates Preying on their victim’s desperation, loan sharks charge ridiculously high interest rates that can go over 100%….
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Should You Get a Personal Loan to Travel?
- By Venus Zoleta
- October 18, 2018
Travel now, pay later. The mere thought of it elicits both excitement and fear. You can get a travel loan to fund your trip, visit your dream destination, and pay it back when you get home. At the same time, you’re scared it would lead to uncontrollable debt. In the Philippines, banks and private lenders offer travel loans to Filipinos who don’t have enough money to travel within the country or abroad. Although a travel loan covers typical travel-related expenses such as flights and hotels, there’s also a special type of personal loan called the travel assistance loan that caters to tourists, immigrants, and students who need to fulfill their visa application or show money requirements. Some travelers get this type of personal loan because of its low-interest rate, as well as flexibility in terms of repayments (as opposed to forking out lump-sum cash). Should you borrow money from a lender for travel? If you’re choosing between a travel loan and another financing option in the Philippines, ask yourself these four questions to make a sensible decision. Table of ContentsHow Much Does My Trip Cost?Can I Afford to Pay Off a Travel Loan?Is My Travel Purpose Worth Borrowing Money For?Which is Better: Travel Loan or Travel Credit Card?Final Thoughts How Much Does My Trip Cost? Figure out how much your trip will set you back. Include all travel essentials in your computation—from airfare and accommodations to tours and shopping. Cut on costs where you can, like choosing budget hostels instead of three-star hotels. Set your travel budget within your means—it…
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Bad Money Habits That Ruin Your Credit Score
- By Venus Zoleta
- August 8, 2018
A credit score may not be as widely talked about in the Philippines as in other countries, but its importance can’t be underestimated. Your credit score spells the difference between getting approved and declined for a credit card or loan. Unknown to many, there’s an established credit information system in the Philippines through Republic Act 9510. This enables lenders to assess a borrower’s credit risk and decide how much to lend and at what interest rate. A critical factor in a lender’s credit decision is the credit score, which is computed based on a borrower’s payment history, types of credit used, and new accounts opened, among other criteria. Your financial habits cause your credit score to go up or down, affecting your chances of hitting your goals, like starting a business or buying a home or a car. Keep a good credit score by breaking any of these bad money habits. Table of Contents1. Making Late Payments2. Defaulting on Your Loan3. Stopping Your Credit Card Payment4. Maxing Out Your Credit Card5. Making Credit Card Cash Advances6. Closing Your Credit Card7. Not Using Your Credit Card At All8. Applying for Multiple Credit Cards or Loans9. Ignoring Your Credit ScoreFinal Thoughts 1. Making Late Payments Your credit payment history makes up 35% of your credit score. This includes late payments on your loans, credit card bills, and insurance premiums, as well as the amount and frequency of your payments. Procrastination is bad for your finances. The longer you delay your payments, the worse your credit score will be. Make sure to pay…
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6 Terrible Reasons to Take a Personal Loan
- By Venus Zoleta
- May 7, 2018
Used for a variety of financial needs, a personal loan typically comes with a low interest rate. In fact, personal loan interest rates in the Philippines (ranging from 1.20% to 1.94%) are even lower than credit card rates (2.00% to 3.54%). This is why it can be tempting for some Filipinos to apply for a personal loan. Borrowing money from a bank is actually a good idea to meet your financial goals—as long as you’re doing it for the right reason. Can you relate to one of these five awful reasons to get a personal loan? Think twice before you send your loan application to the bank. Table of Contents1. You Need Money for Your Daily Expenses2. You Want to Buy Your Dream [Insert expensive yet unnecessary purchase here]3. You’ll Host a Lavish Event to Impress Your Family and Friends4. You Badly Need a Nose Job5. You Need to Fund Your Gambling Habits6. You’re Borrowing on Behalf of Someone ElseFinal Thoughts 1. You Need Money for Your Daily Expenses It’s still several days before payday, but you’re already broke. You’re desperate to find a way to make ends meet, and the idea of getting a personal loan is becoming irresistible. Guess what—that’s just a band-aid solution to a serious financial injury. Borrowing money while living from paycheck to paycheck will quickly put you in a vicious debt cycle. When you take out a loan, you’ll have to repay it in monthly installments. If your income can’t cover your everyday living expenses, how much more paying off a loan every month?…
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How Fast Cash Loans Work
- By Carlo Miguel Castañeda
- June 7, 2017
There are quick loans that work for the times when you need cash quickly, and the best possible way at times is to get a fast cash loan. This is a type of loan that you can get from banks or from accredited lending institutions. Loans like these are short-term and can sometimes have a higher rate of interest than personal loans. Last year, the Bangko Sentral ng Pilipinas (BSP) reported a 40.6% growth in salary-based consumer loans, which may be due to the fact that a lot of banks have cut down processing times and lowered interest rates. Table of ContentsHow do fast cash loans work?What are the requirements for a fast cash loan?How much is the interest rate?Where to get a fast cash loan?Final thoughts How do fast cash loans work? Fast cash loans like salary loans or quick loans mean that you can get approvals on a loan in as fast as ten minutes of applying to within a few days, which is the convenient part. A number of banks offer salary loans at a caveat: the company you work for must be accredited with the bank in order to process a salary loan request. The requirements are less stringent than other consumer loans, owing to the fact that they require accreditation before being able to service clients. There are also lending institutions in the country that provide the same service, but unlike banks, some of these institutions will require more documentation prior to approval. What are the requirements for a fast cash loan? Because these loans are on…
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7 Costly Mistakes You Make When Getting a Personal Loan
- By Moneymax
- February 24, 2015
At least one point in an adult’s life, we take out a loan to buy things, pay for things, or even start a business. Personal Loans are a wonderful solution when you need fast cash with no collateral and a few questions asked. Sometimes, you get approved for your personal loan almost immediately. Lenders these days boast of 530 minute approval to cashout, while some still take 24 hours up to 5 business days or a week to process loan applications and approvals. But not everyone makes use of these personal loans to their fullest potential. Instead of gaining more, those people end up losing money and putting themselves in even bigger debt. This can cause not just financial problems, but problems at home as well. Of course, not all the mistakes we make when we take out a personal loan lead to debt, bigger financial problems, or divorce. Some of them are just minor enough to cause inconveniences, like prolonged application processing and so on. However, these are the costly mistakes you would still do well to prevent: Table of ContentsCompulsion BorrowingNo Long-term PlansIncomplete PaperworkIncomplete DisclosureBorrowing for Someone ElseIgnoring the Fine-PrintForgetting to Compare Compulsion Borrowing Think before you get a loan! Getting a loan is a huge commitment. It’s like entering a relationship. Just because a family member told you that you had gained weight doesn’t mean you need to run to the bank and get a loan so you can Zumba it up, enroll yourself in a CrossFit class, or even get yourself some medical treatment to get…
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PSBank Flexi Personal Loan Application
- By Moneymax
- February 4, 2015
Everyone has that something they want to make happen. Some things happen easier than others, but what about when you want to expand it a little more, to put a little more money into an endeavor you believe is worth the time and the finances you put into it? This is where a personal loan comes in. Personal loans allow you to finance things closer to your heart or unforeseen expenses that you urgently need to meet. One of the options available to you is PSBank’s Flexi Personal Loan. Table of ContentsWhy get PSBank Flexi Personal Loan?What is Prime Rebate?Application Requirements Why get PSBank Flexi Personal Loan? PSBank’s Flexi Personal Loan has been changed to include “With Prime Rebate” as part of its title. But it holds the distinction as the first (and only) personal loan that doesn’t require collateral, includes a revolving credit line, and a fixed-term loan. Apart from these, they also offer day and night banking via ATMs. The revolving credit line will allow you to make increases or decreases on the amount you took out on a loan depending on how much you have already paid. Note that a fixed-term loan means you are required to make payments towards the amount you borrowed over a certain period of time. In PSBank’s case, the amortization for the loan is either 24 or 36 months. What is Prime Rebate? The Flexi Personal loan also comes with the Prime Rebate function, meaning that borrowers can earn rebates or savings when you make an excess payment or pay in advance…
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How a Personal Loan Can Help Your Financial Goals
- By Moneymax
- January 16, 2015
Tired of borrowing money from friends? Want to give your overworked credit card a break? You might just be the ideal candidate for a personal loan! This convenient service is offered by the most reliable banks in your area and gives you access to extra cash without years and years of debt. With the help of MoneyMax.ph, you can check out all the best deals on personal loans and compare the most affordable rates available. MoneyMax.ph isn’t just good for helping you compare personal loans. Here we’ve got a visual guide for all the different ways you can put a personal loan to good use.
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What To Do When Comparing Personal Loans
- By Moneymax
- January 14, 2015
Looking to get a personal loan? You may be looking for alternative sources of funding for a big life purchase, such as your child’s tuition or a lengthy holiday abroad. You may be looking for extra funds to start a business for some long-overdue home repairs. Banks and lending agencies in the Philippines can surely help. Provided your financial history meets their expectations, you can borrow the money you need with a personal loan. Personal loans work very differently from other types of credit, such as credit cards and mortgages. Here we give you the most important details you should look for when you go shopping around for a personal loan: Table of Contents1. Type of loan2. Loan tenure3. Monthly Flat Rate4. Annual Percentage Rate (APR)5. Total Repayment Amount 1. Type of loan Naturally, the best personal loan for your purposes will greatly depend on your current financial status. You may be looking for the most basic type of loan, with monthly interest and regular repayments made over a stated period of time. Examples of these include installment loans, debt consolidation, and tax loans. You might also be interested in a loan that also gives you more immediate access to emergency cash in the meantime. If this is what you’re after, you may opt for either a credit line or personal overdraft instead. 2. Loan tenure Every loan you get approved for is a firm and binding contract with your lender. Your loan tenure, or the period of time in which you will be making your monthly repayments, is an…
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Consumer Loans Fuel Car Purchase Increase
- By Moneymax
- January 7, 2015
According to data just published from the Bangko Sentral ng Pilipinas, Pinoys have increased borrowing by an incredible 21% compared to the previous year. It is now at the eye-watering amount of P849.7 billion. Borrowing to buy homes or cars as well as other loans against salaries has all increased. The biggest riser was real estate with a jump of 25%. This is not all worrying news. The increase in the number of pesos borrowed by consumers is driving spending in restaurants, at the mall, and on other leisure activities. This consumer spending is a major driver of the economy. How can anyone afford to repay all of these loans? Almost everyone does. Banks record this percentage of non-repayment and report it to the Central Bank of the Philippines, which then informs the public. The number of bad loans is only 5%. Did you also think there would be a reduction in traffic? P217.4 billion was borrowed by Filipinos across the nation to buy four-wheeled vehicles. As the prices of homes, cars, and seemingly everything else go up – how can you survive? By saving whenever you can. You can start right here. Did you know that 9 out of 10 Filipinos pay too much for their car insurance? Make sure you don’t lose out by comparing 14 insurance providers and saving money now with MoneyMax.ph.
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Car Loan vs. Personal Loan: Which is Better for you?
- By Moneymax
- November 25, 2014
When you opt for comfort and convenience, purchasing a car of your own, whether new or second-hand, is a good preference. However, not even a majority of the population in the Philippines can afford to buy a car alongside its daily expenses – it never comes cheap. But as they say, “You only get what you pay for.” When you purchase a car, you buy convenience, comfort, ease and a big investment. When you don’t have enough money in your bank account to buy a car, you’d only go for car loans. The less widely known option is taking out a personal loan. So when buying a car, should you go for a car loan or a personal loan? Here are factors to consider: Table of ContentsCar Loan VS Personal LoanPayment TermsInterest RatesNew vs. Used CarCredit ScoreThe Repossession Question Car Loan VS Personal Loan Car loan is actually one of the types of loan, structured to factor in the depreciation of a car’s value over time. Car loans often require you to make a sizable down payment early into the term – the bigger your deposit, the lower your succeeding monthly payments. Personal loans, meanwhile, can be either secured or unsecured: the former is backed by assets you already own for the lender’s security, while the latter is determined solely on the basis of your credit status. Payment Terms In either case, you would need to pay attention to vital details like the cost of your monthly payments, interest rates, and payment terms. Usually, the first thing you look for in-car…
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