According to the Bangko Sentral ng Pilipinas (BSP), there has been a significant increase in Filipinos getting a loan from 29% in 2017 to 41% in 2019. This comes to no surprise as more Filipinos begin to understand the value of managing their finances and learn more about the available services that can help leverage them financially like loans.
However, getting a loan comes with responsibilities that you have to commit to in order to maintain a good credit standing. That’s why it’s important to make sure you are using it for the right reasons. We listed down some of the best reasons why Filipinos apply for loans. Here are some of them.
Education is an important part of anyone’s life and it can get very expensive. In fact, enrolling your child to study in some of the top universities in the country may even cost you more than a P100,000 annually. The same goes if you’re serious about improving your skills as certification courses also comes with a big expense.
Rightfully so, education is an excellent investment as it opens up more income opportunities in the future. That’s why getting a loan to fund education may be one of the best financial decisions you can make.
2. Medical Expenses
A personal loan is a great alternative source of funds especially in cases of emergencies. Healthcare and hospitalization may come with a price tag that can eat up into your savings. Getting a personal loan is one of the best ways to get access to funds to help cover the costs of unforeseen medical expenses.
3. Setting up a business or investment
Funding a business venture or investment is the second biggest reason why Filipinos acquire loans. In 2019, BSP reported that 27% of Filipino loan borrowers use the funds they obtain from loans as capital for business.
Securing a personal loan can give you a boost to finally realize your business ideas. It’s an excellent way to get access to resources that will let you establish your business such as tools and equipment, certifications, inventory, etc.
4. Home and auto improvements
Getting a personal loan can also help in making improvements in one’s lifestyle. After all, home renovations and car repairs do not come cheap. A personal loan can also fund much needed house repairs that may arise from natural calamities or costly car restorations.
5. Debt consolidation
Unknown to many, getting a personal loan is a good way to address any outstanding balances you may have from previous debts. Doing so would help you manage your finances by consolidating your credit card balances or other pre-existing loans into one bigger loan. That way, you can refinance old loans and reduce the amount of money you need to pay for interest to make it more affordable.
With CIMB Bank, getting a Personal Loan can be as fast and as easy as a few taps on your phone. Through our all-digital application, you can apply for a loan using only one ID and one pay slip. Borrow up to P1 million with ZERO disbursement fees when you opt to have your loan deposited to your CIMB account. Absolutely no early settlement fees. Experience the benefits of banking with the most awarded digital bank in the country.
PLUS you can get up to 30% interest rebates on your Personal Loan just by paying your dues consistently and on time. Through the Loan Loyalty program, you can enjoy yearly increasing interest rebates starting with 10% for the first year and up to 30% by the fifth year. All you need to do is pay your monthly loan payments completely and on time! If you’re a CIMB deposit account holder, just apply and get approved for a Personal Loan on or before October 31, 2020 to become eligible. Reach your life goals with CIMB!
Click the link below to learn more about our Personal Loan