According to a Statista survey, more than half of surveyed households in the Philippines got a loan during the last quarter of 2021. The top reasons they did so were to purchase basic goods, start or expand a business, pay other debts or payments, and finance health-related expenses.
Other than these usual reasons, there are other purposes you can use an online loan in the Philippines. You can take a loan from a bank or a lending company to fund certain milestones such as building a home, buying your first car, or pursuing your dream education.
Before applying for a loan, you should thoroughly research to find the type of loan that suits your financial needs best.
Information about loans can be overwhelming at times. This article will sum up all the frequently asked questions about getting a loan in the Philippines. Here, you can find all your top questions answered and discover the other factors you need to consider when processing loan applications.
FAQs on Getting a Loan in the Philippines
1. What are the different types of loans?
Here are the most common types of loans in the Philippines:
- Calamity loan – This loan is open to people in calamity-prone areas. Government agencies like Pag-IBIG and Social Security System (SSS) typically offer calamity loans.
- Auto loan – This allows you to buy a vehicle without paying the whole amount upfront. Depending on the terms, institutions can offer you three to five years to pay with your car as collateral.
- Housing loan – This lets you purchase a property such as a house and lot, residential condo unit, or land. Until you’ve fully paid your loan, the lending institution can hold your property rights as collateral.
- Personal loan – This loan is a multi-purpose credit in which you can use the money however you choose, whether it’s for traveling or home remodeling.
- Business loan – This loan allows you to expand or start your business. Interest rates and terms depend on the lending company you’re borrowing from.
2. What’s the difference between collateral and non-collateral (secured vs. unsecured) loans?
The main difference is that secured loans require collateral, while unsecured loans don’t. With collateral loans, your borrowed money is protected by a valuable asset. If you bail from paying your loans, the lender will get to keep the collateral. A mortgage and an auto loan are examples of secured loans.
Meanwhile, unsecured loans have higher interest rates because lenders take more risks. Examples of non-collateral loans include credit cards and personal loans.
3. What are the loan requirements?
The requirements will depend on the type of loan you’re applying for, but it usually includes:
- A filled-out application form
- Proof of income
- Proof of Taxpayer Identification Number (TIN)
- Two (2) valid government-issued ID/s
Learn more about Asialink Finance loans and their requirements here.
4. How much is the application fee?
Some lending companies ask for application fees, while others don’t. They sometimes deduct the application fee from the total amount of your approved loan.
Asialink Finance loans require no application fees, as application forms are filled out for free. Additionally, our loan consultants do not charge any fees for their assistance either!
5. How can I be approved for a loan?
Doing your research on how to get a loan is a great first step towards getting approved for one. Next, you need to apply some helpful loan approval tips, such as asking potential lenders questions, knowing your limits, and having realistic expectations. It’s also best to have a good payment/loan history, meaning the financial record states that you pay your bills on time.
Learn the Loan Basics
Whether it’s for personal use or business needs, you may have to apply for a loan at some point in your life. Knowing the basics of getting a loan is necessary when borrowing money smartly and responsibly.
Asialink Finance is one of the leading online financing companies in the Philippines. With our fast and easy financing services, you can access convenient and accessible loans with competitive interest rates. Apply now to get low-interest rates and high-percentage loans.