All Articles With Category : Loans

The latest and the best financial news, tips and tricks.

How to Find the Best Housing Loan : A Step-by-Step Guide

In a ZipMatch homeownership survey, 32% of young Filipino professionals said they were not sure about their financial capability to purchase a home. Also, four out of 10 respondents said they did not have ample savings even for a down payment. This shows how much Filipinos, especially millennials, need to be educated about their various options for financing a new home. A housing loan is one of them. Getting a loan from a bank or government institution can help you buy or build your dream home without blowing your budget and entire savings. But not all home loans will suit you. This is why it is crucial that you take steps that will enable you to choose the right housing loan. Table of Contents1. Find Out How Much You Can Afford to Repay2. Use a Housing Loan Calculator3. Consider Only Home Loans Where You Will Qualify4. Shop Around for Interest Rates That Will Work for You5. Consider the Housing Loan Fees6. Get Pre-qualified for a Housing Loan 1. Find Out How Much You Can Afford to Repay Being a responsible borrower means being self-aware of your financial situation. You do not want to find yourself in a messy situation where you’re struggling to pay your monthly amortizations just because of a wrong choice of loan. Worse, it could lead to foreclosure and losing your precious investment. So be proactive. Before you go hunting for the best housing loan and apply for one, be sure you know your financial capability. Do a reality check. How much money are you making? Do…

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What You Need to Know for a Successful Housing Loan Application

Are you planning to make a housing loan application?  If yes, this article will help you understand the basic concepts related to the mortgage that you need to consider. Table of ContentsThe Monthly PaymentThe Down PaymentThe Types of Interest RateLoan TenureWhat Else to Consider for a Housing Loan Application? The Monthly Payment For a housing loan, you must have sufficient income to get the loan approval. The monthly payment should be at most one-third of your income. Anything more than that makes your application process for a housing loan more difficult. Philippine banks generally do not approve loans that result in a monthly amortization of more than 30 percent of your monthly gross income. If you wish to know how much you are going to pay every month, an amortization schedule is recommended. It helps to save your time and free yourself from the hassles of computing the amount which varies with each payment. An amortization schedule is a table with the details of the amount of each payment allocated to the principal and interest. Early in the schedule, the majority of each periodic payment is the interest. After that, the majority of each periodic payment is put toward the principal. You can use an online amortization calculator to find out your monthly payment. Just provide the information regarding your total loan amount, interest rate, and payment terms.  The Down Payment What is a down payment? It is the amount of money you pay upfront when purchasing a home. Your down payment influences the home price you can afford. Generally, the banks in the Philippines require at…

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Writing a Business Plan for Securing a Loan: A Step-by-Step Guide

Banks that provide personal loans for businesses in the Philippines require prospective borrowers to submit documents that prove their credit worthiness. Applying for a business loan? A requirement you must pay attention to is the business plan, a proposal that covers all the nitty-gritty of starting your business. It’s your solid proof of your business’ high-profit potential and your ability to pay off your loan. Many aspiring entrepreneurs who don’t have time to prepare a business plan just wing it for the sake of fulfilling the bank’s loan requirements. Don’t make that mistake. Writing a business plan does take time and effort. If you’re serious about improving your chance of getting approved for a loan, you have to make it as comprehensive and detailed as possible. Here are six steps to guide you through creating your business plan for a personal loan in the Philippines. Table of ContentsStep 1: Define your business concept.Step 2: Research your market and industry.Step 3: Create a business plan outline.Step 4: Develop the main sections of your business plan.Step 5: Add supporting information.Step 6: Review and proofread.Final Thoughts Step 1: Define your business concept. Every business starts with an idea, and yours has to be developed into a clear business concept. Doing so will keep you on track while drafting your business plan. A business concept should include these details: Mission and vision – Why you are putting up this business? Target market – Who will buy your products or services? What problems or pain points of your target customers you want to address? Product…

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Negotiating Lower Payments on Your Car Loan

A new car is a large financial responsibility. You’ve got the fluctuating prices of fuel, payments on insurance, and the repayment of the loan you took out when you purchased the car. Juggling the repayment of a car loan is a struggle if improperly managed. While you’ve already reduced costs in every single corner of your financial life in order to make room for the car, you cannot predict every other expense that comes at you. So how can you make owning a car less of a financial burden? Here’s a few tips on negotiating lower payments on your car loan. Table of ContentsA Higher DownpaymentWork your BankIn-house Financing?Loan ModificationFinal Thoughts A Higher Downpayment Banks are a little more lenient with lending these days, and the rate at which people do pay back their loans (in general) in 2015 is at 80%. The requirement to get a car loan is pegged at Php 40,000 household income (not monthly income), and most banks ask for 20% of the car’s amount as a downpayment. The 20% is a minimum. You can go as far as 50% of the car’s total amount in order to pay less on your monthly amortization, and allow you to pay off the loan in a much shorter span of time – usually within three to five years with constant payment. Work your Bank Some families have long-standing accounts with banks. If you or any members of your nuclear family have an account with a bank, you may be able to get quicker approval on a loan, and…

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PHP5-Billion GSIS Emergency Loan Fund for Agaton Victims

After Yolanda struck a devastating blow to Visayas and Mindanao last November, both private and government sectors have implemented measures to alleviate the effects of the tropical storm, as well as to ensure preparedness for natural disasters that might hit the country in the future.  For instance, the government calamity fund was raised to P13 billion this year[1]. In line with these efforts, the Government Service Insurance System (GSIS) is extending emergency loans to members, especially those who were affected by tropical depression Agaton, the first storm to hit the country this year. A budget of PHP 5 billion is allocated for this initiative. As of January 25, the National Disaster Risk Reduction and Management reports a total of 64 people killed, 85 injured, and 10 others missing. Over 1.14 million people from over a thousand barangays in Visayas and Mindanao were affected. GSIS announced that it will provide emergency loans to 48,000 eligible members who were victims of the tropical depression, particularly those from provinces in northeastern Mindanao like Agusan Del Norte (including Butuan City), Agusan Del Sur, Lanao Del Norte (including Iligan City), and Surigao Del Norte. The municipalities of Asuncion, Carmen, Kalong, New Corella, and Tagum City in Davao Del Norte are also included. Table of ContentsHow to Apply?How to Qualify for an Emergency Loan?About GSIS How to Apply? The application period for GSIS emergency loans has been ongoing since January 24, and will be open until February 22. Those who wish to apply may do so in any GSIS branch or through the GSIS Wireless Automated…

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Banks Post 13.6% Growth in Outstanding Loans in October 2013

The Central Bank of the Philippines reported that outstanding loans of universal and commercial banks grew by 13.6% in October 2013. This is a slowdown from the 16.2% growth recorded in September. Looking at the data inclusive of reverse repurchase placements show that the October figure was at 13.5% compared to 14.9% in September. Loans for production activities grew by 12.3% in October, also a drop from the 15.3% recorded in September. This sector comprises more than four-fifths of the aggregate loan portfolio of banks. This growth was driven by increases in construction (which grew by 44.1%) electricity, gas and water (26.4%) and real estate, renting, and business services (20.1%). Transportation, storage, and communication loans accounted for the highest decrease for October (-3.6%) followed by agriculture, hunting, and forestry (-1.6%). Credit card and auto loans also saw an increase for this period. The 10.1% growth credit card loans and the 14.9% growth in auto loans helped drive the 11.2% consumer loans growth recorded in October from 10.7% in September. Low Non-Performing Loan Levels Also Seen The Central Bank also reported that Universal and commercial banks were able to keep their gross non-performing loans (NPLs) low. These banks were able to keep this figure low at 2.6% of total loan portfolio for September in 2013. Universal and commercial banks in the Philippines posted P 102.09 billion in NPLs in September of this year. This figure is lower than the P103.42 billion they posted last year. The total loan portfolio of banks for September of this year increased to P3.92 trillion compared…

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Things to Avoid When Applying for a Home Loan

Buying a house is one of the biggest decisions one can make. Having devoted plenty of energy and time for our down payment, researching and applying for a home loan begins. Despite this, there are still many real-life examples of home loan applications being rejected even when borrowers have the ability to pay for the down payments. Here, we list the things one should avoid when applying for a home loan. Read More: Are You Ready to Buy a House? Table of ContentsWhat Should You Avoid When Applying for a Home Loan?Which Purchases Increase your Debt-to-Income Ratio?Big Purchases Can Wait What Should You Avoid When Applying for a Home Loan? If you have found your dream house and a home loan is the only thing stopping you from getting it, here are some important dont’s when you are going to apply for a home loan: Don’t change your job before applying for a home loan. A stable career with a fixed income indicates your ability to pay the monthly amortization on time. Don’t apply for new credit cards. It is a hint that you are going to take on more debt in the coming days. It may be one of the reasons that you can’t pay your monthly amortization on time. Don’t make any purchases that will increase your debt-to-income ratio. In short, you need to make sure that you do not engage in any activities or purchases that add to your existing financial burdens. Any actions that increase the risk of your financial portfolio send an alarming signal for the bank….

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What You Should Watch Out for When Applying for a Housing Loan

Before the house-hunting begins, it is good to know your affordability and eligibility for the housing loans in The Philippines. When it comes to housing loans, one of our main concerns is to find out which banks offer the most reasonable and affordable interest rates. However, there are many criteria that should be given the utmost consideration since the house-purchasing is one of the biggest decisions we make in our life. Don’t be lured by the low interest rate of a housing loan, there’s no such thing as a free lunch, and a good lunch is not going to be cheap! Table of ContentsWhat Are Your Concerns When Applying For A Housing Loan1. The Monthly Payment2. The Down Payment3. The types of interest rate4. Loan TenureWhat Else to Consider for a Housing Loan Application? What Are Your Concerns When Applying For A Housing Loan If you are ready to purchase a house, let’s see what you need to watch out to apply for a housing loan. 1. The Monthly Payment When applying for a housing loan, you must not only have income but have a sufficient one to get the loan approval. The monthly payment should be at most one-third of your income and anything more than that makes your application process for a housing loan more difficult. Philippine banks generally do not approve loans that result in a monthly amortization of more than 30 percent of your monthly gross income. If you wish to know how much you are going to pay every month, an amortization schedule is recommended to…

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UnionBank Auto Loans

For those who’d like the convenience and comfort of having their own vehicle but have a dilemma in the payment process, the UnionBank Auto Loans can offer a hand. Table of ContentsAttractive Features of the LoansHow Can I Make My Payments?The Interest RatesThe Standard Interest Rate versus OMAThe Basic Requirements Attractive Features of the Loans The UnionBank Auto Loans offer financing for brand-new vehicles as well as used vehicles. The minimum down-payment rates for brand-new vehicles and used vehicles are respectively 20% and 30% of the loan amount. At the same time, the minimum loan amount starts at P200,000 while the maximum loan amount is up to 80% of the selling price of the vehicles. Borrowers can enjoy the flexible loan payment terms of UnionBank Auto Loans. The payment options are 12, 18, 24, 36 and 48 monthly terms if you will buy a used car. Those who plan to buy new cars can also benefit from the payment options, and they are given additional choice of 60 monthly payment terms. How Can I Make My Payments? There are three modes of payments available for the UnionBank Auto Loans borrowers. They can choose to pay their monthly amortization loans over the counter at any UnionBank branches or by issuing post-dated checks to UnionBank. A third option is the Auto Debit Arrangement (ADA) facility, borrowers simply have to nominate their accounts as well as specify the amount and schedule of payments. On a monthly basis, the payments will automatically be deducted from their UnionBank savings or checking accounts. The Interest Rates The…

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