Contrary to popular belief, getting a loan can help leverage your finances. It opens up new possibilities like setting up businesses, funding investments, or even realizing one’s goals. However, getting a loan comes with a big responsibility. That’s why you must be careful when choosing where to borrow funds. Here are five things you need to check before getting a Personal Loan.
1. Credibility of the lender
The first thing you need to check when borrowing money is the credibility of the institution that’s lending you funds. Yes, it’s not only you who has to meet the minimum requirements, lenders also have to comply with the laws and regulations. Make sure that you are dealing with an institution that’s regulated by the Bangko Sentral ng Pilipinas. This way, you’ll know that you’re transacting with a legitimate bank and that you will be protected by the law.
2. Interest rate
Like other services, getting a loan comes with a price. Banks charge you interest on top of the amount you borrow to make up for costs and risks they face when lending you money. Interest rates vary from bank to bank, so it’s best to check first which ones can offer a lower rate on your personal loan.
3. Required documents
Submitting documents has got to be the most crucial part of applying for a loan because that is how the bank tries to get to know who they’re lending money to. That’s why it’s important to consider which documents you need to submit in order to apply. At a minimum, banks usually ask for a proof of identification such as valid IDs and a proof of income such as your payslips or Income Tax Return form. Other banks ask for more requirements like bank account statements, company IDs, etc. It’s better to find a bank that requires you to submit documents that are easily available to you for an easier application process and also to reduce wait time.
Apart from interest, banks also charge fees in order process your loan. Some banks charge borrowers with processing fees and disbursement fees. On top that, banks will also charge a minimum fee for the Documentary Stamp Tax (DST) that’s dependent on the amount of your loan. Other fees include late payment fees, which will be charged to borrowers if they miss their due dates. Some banks also charge an Early Settlement Fee when you settle your entire balance earlier than the agreed period.
Getting a loan can help give you leverage especially during an emergency. That’s why it’s important to consider the accessibility of the bank you’re borrowing money from. Ask yourself these questions: How easy is it to apply for their loan? How easy is it for my loan to be credited to me? If these two factors would require bending over backwards just to get them, then you might consider a different bank.
With CIMB Bank’s Personal Loan, you are sure that you’re working with the Most Awarded All-Digital Bank in the Philippines that’s regulated by the BSP. Apply straight from your mobile phone using only 1 ID and 1 payslip to borrow as high as PHP 1 Million. You can enjoy ZERO disbursement fees when you opt to have your loan deposited to your CIMB Bank account for an easy and hassle-free disbursement.
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 December 31, 2021 to become eligible. Make a move towards your financial goals!
Learn how you can apply for a Personal Loan using the CIMB Bank PH App: