Published: July 17, 2017 | Updated: April 7, 2020 | Posted by: Luis Tan | Personal Loan
A personal loan has higher interest rates than secured loans like a home-equity loan, but the advantage of it is you are not required to put up any collateral to ensure repayment. Collateral means something of value, like a home or car that the lender can repossess if you don’t repay the account as agreed. Personal loans are backed only by your promise to repay, and for this reason, they are also known as “signature loans” or “unsecured loans.”
Most of the banks here in the Philippines have a minimum annual salary and age requirement. Your minimum annual basic salary should be slightly higher than the minimum wage amounting to PhP180,000.00 or a basic monthly salary of PhP15,000. You must be 21 years of age and not older than 65 at the time of your application.
The foregoing are the most common requirements for personal loans. Nevertheless, banks and money-lending institutions’ requirements may vary.
If you are not employed and have your own business, you are still eligible to apply for a personal loan. You may contact BIR and ask for your latest ITR. Submit the required IDs. Usually, banks and money-lending institutions require government issued IDs for self-employed applicants.
When you apply for a personal loan, you should not think that it’s hard to apply for it. You will just simply need to prepare various documents. Your credit history will be the solid proof of your repayment behavior and ethics. An outstanding credit history will give you nothing but glory even if you think you are not getting a loan now or you think you would not need it in the future.