5 Questions to Ask Yourself Before Applying for a Loan
Do you have big plans but don’t know where to begin? Maybe it starts with acquiring a loan. Answer these questions and see if you're loan-ready!
1. Am I eligible to apply for a loan?
While we wish the process of applying for a loan could be as easy as withdrawing or depositing money, banks first screen their applicants to see if they meet certain qualifications. Most lending institutions check the applicant's age and citizenship, among other things, as they might only grant loans to Filipino citizens of a certain age. Typically, qualified applicants would be employees with stable incomes or those with stable businesses. Additionally, they could also look at your gross monthly income to ensure you have the means to pay back.
2. Can I provide the requirements being asked?
Besides the qualifications that an applicant needs to meet to be eligible for a loan, there are additional requirements that will be asked. These may include, but are not limited to, valid government IDs, documents from your employer, and other income verification documents. In certain cases, banks may require collateral. For an easier application process, don’t forget to have all these requirements ready with you when you apply.
3. How much do I need?
Filipinos commonly use personal loans to start a business, pursue higher education, and fund home improvements. When you decide what your loan is for, you will also be able to figure out how much you would need. Lending institutions vary in the range of loan amounts and interest they offer. Microlenders tend to offer lower loan amounts with higher interest rates compared to banks. It’s important to find the loan that fits your needs best.
4. What fees am I willing to pay?
Loans come with different fees. On top of the amount you will be borrowing, you will also need to pay the monthly add-on interest, which differs per bank and depends on the amount borrowed, annual interest, and loan tenure. Additionally, some lending institutions could charge transaction, disbursement, service, and late payment fees. Sometimes, even settling your fees early incurs additional charges.
5. Can I manage payments responsibly?
This is one of the most important questions you need to ask yourself. Acquiring a loan is a big responsibility to take on as you are expected to be able to consistently pay your monthly installments on time. You may consider enrolling in automatic payments to ensure you don’t miss a due date. Remember, your payment habits also affect your credit score, which would allow you to acquire more credit in the future.
Now that you’ve answered these questions, are you ready to take the next step towards achieving your life’s goals?
Funding your needs to achieve your life goals with CIMB Bank is easy! With just a few taps on your phone, you can apply for a Personal Loan on the CIMB Bank PH App and seize life’s goals! You can loan as much as PHP 1 million when you apply with only one ID and one payslip. Enjoy ZERO disbursement fees when you opt to disburse your loan to your CIMB Bank account. Absolutely no early settlement fees. Experience a fast and seamless all-digital application.
Learn how you can apply for a Personal Loan using the CIMB Bank PH App: