Looking for an online lender to obtain a personal loan can be overwhelming, especially with the vast number of options available today. With so many lenders, it’s vital to research and find the right one that meets your needs and offers you the best deal.
When searching for an online lender, consider several factors before deciding. Some lenders may have higher interest rates, while others offer more flexible repayment terms. You must understand the terms and conditions of the loan before applying.
In this blog, we’ll share tips on how to choose a lender for your personal loan needs. From checking the lender’s reputation and reviews to comparing the interest rates and fees, we’ll cover everything you need to know to make an informed decision.
How to Find the Best Online Lender: 8 Things to Look At
Your lender can influence your financial goals. A good one can help you invest in your future, while a bad counterpart can take you several steps back from where you want to be. Here are some factors you should consider when finding the best online lender.
1. Fees
Aside from interest, you’ll likely pay for other fees included in your loan. These may include processing, disbursement, and notarial fees, as well as documentary stamp taxes. Some lenders may also apply charges for late payments, returned checks, and loan amendments.
Before getting a loan, read the fine print in your contract for hidden charges.
2. Interest rates
You may think it’s better to get an online lender that offers the lowest interest rate in the market. Don’t let that perception get the better of you. Some low-interest-rate loans may make you pay more than you should since you may end up with unfavorable loan terms.
Remember that interest rates largely depend on financial credentials, such as your credit score, loan amount, and repayment term. Opting for the shortest repayment term and having a good or excellent credit score will usually result in obtaining the most favorable interest rate.
In the Philippines, the Bangko Sentral ng Pilipinas (BSP) fixed the maximum nominal interest rate for loans at 6% per month and the effective interest rate (EIR) at 15% per month.
3. Loan terms
Before applying for a loan, consider your desired loan amount, interest rate, and loan period. Next, look for lenders that offer flexible repayment options and customizable loan terms that align with your financial needs.
Remember that shorter loan terms can result in lower interest payments and faster repayment periods, while longer times can lead to lower monthly payments but higher overall interest costs. Additionally, some lenders may have minimum or maximum loan terms, so verify your options before committing to a loan.
4. Loan amount
Your desired loan amount will dictate the loan type and possible lender you can approach. It will also impact your interest rate, loan term, and repayment options.
Lenders in the Philippines typically have a loanable amount range of P5,000 to P5 million, but this may vary. For instance, other lenders may have a lower maximum. Determine what amount range best suits your needs and consider it when looking for a lender.
5. Reviews
Check negative and positive reviews on social media like Facebook and Reddit to gauge your prospective lender better before getting a loan. You can also ask for recommendations from friends, family, or financial advisors who may be familiar with your prospective lenders. They can give you valuable feedback on your situation.
6. Reputation
Apart from looking through customer reviews and ratings, you can search for the lender’s name on search engines and check for any news articles or legal disputes involving the lender.
You should also verify the lender’s license to operate with relevant authorities. To be sure, visit the Securities and Exchange Commission’s (SEC) website for registered lending and financing companies.
7. Other services
Aside from personal loans, some online lenders may have other offerings, such as auto, mortgage, and collateral loans. They may also offer special perks to give clients a more convenient loaning experience.
Check their website or inquire from prospective lenders about these benefits to maximize their offerings. Since these perks can change periodically, it’s best to ask before, during, and even after your loan term.
8. Customer service
A responsive and helpful online lender can ensure you receive timely and accurate information regarding your loans and can address your issues or questions quickly. Good customer service can also help establish trust between you and your lender, which is particularly important when dealing with financial transactions online.
Meet Your Financial Goals With the Right Online Lender
Finding the best online lender can be challenging. However, you can make it a straightforward process if you research and carefully consider the factors above. Once you find a lender with the loan amount and terms that suit your needs, you can achieve your financial goals in no time.
Skip the guesswork and put Asialink Finance Corporation in your roster. We have been offering flexible online loans with low interest since 1997, a testament to our legitimacy and commitment to helping Filipinos improve their quality of life. Avail of an online loan with Asialink today!
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