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Reasons to get a Personal Loan in the Philippines

Have you been debating if you should take out a personal loan or not? Then this article is for you. Here, we’ll discuss the many different reasons why you should get a Personal Loan in the Philippines and how borrowing has been made so much easier and more accessible.

What is a Personal Loan?

A Personal loan, like any other loan, is borrowing money from financial institutions who expect to be paid back with interest. Unlike mortgage loans where the house is the collateral, or auto loans where the car can be repossessed upon payment failure, personal loans don’t have that kind of hassle. Since no collateral is needed in applying for this loan, your eligibility will be based on your income, ability to make timely repayments, and your creditworthiness.

How can a Personal Loan help you in the Philippines?

In the Philippines, personal loans can be a viable way to get some extra money when you need it. One example is when an emergency arises and you might not have any funds available to meet your needs. Another example is if you’re planning a once-in-a-lifetime event like a wedding or your child’s 1st birthday, you may want a little extra cash to finance it.

Actually, the money received from personal loans can be used for almost anything legal. It can range from simply buying that newest iPhone, to financing a start-up business, or even covering the funeral costs of a loved one. In cases similar to these, personal loans can come to the rescue.

Now if you’re wondering how a personal loan can be of help in your life, we’ve listed several benefits of applying for a personal loan in the Philippines.

Also read: Are you looking for funds to purchase equipment for your business?

Situations in which a Personal Loan can be Helpful

 

a.) They help you pay for emergency expenses without draining your savings

You never know when an emergency will happen. Exorbitant medical bills, car repairs, or buying a new appliance may totally deplete your savings. What happens if your savings is not enough? This can leave you in financial distress and vulnerable to additional, unexpected future costs.

Thankfully, a personal loan can help you cover the costs you need while giving you a financial cushion for your savings.

b.) Personal loans are flexible in their uses

One of the most beneficial aspects of a personal loan is its flexibility. Mortgages are for homes, car loans are for cars, but personal loans can generally be spent on anything you’d like! The absence of restriction gives you the freedom to use the money for whatever reasons you want – whether it be a startup business, paying tuition fees, or consolidating debt.

c.) You can use them to finance your wedding or dream vacation

Life’s biggest events can only happen once but sometimes, you may not always have available funds to afford exactly what you have dreamed of. Whether it’s your silver anniversary, honeymoon, wedding, or a dream vacation to Europe, personal loans in the Philippines can help you pay for it.

d.) Predictable payment schedules

When you take out a personal loan, the terms and interest rates are already fixed. Knowing how much to pay gives you the ease of planning your finances. Compared to credit cards that have a revolving monthly payment depending on how much you spend, payments for personal loans are much more predictable.

Also read: 6 things you need to deal with when you fail to pay your loans

Are you eligible for a Personal Loan?

Now that you understand the numerous benefits of using Personal Loans in the Philippines, you can begin today by applying for an RFC Personal Loan.

RFC is the leading financing firm in the Philippines where you can get cash loans to pay for your immediate financing needs. But before you begin the personal loan application process, you need to know whether you’re eligible for a loan in the first place. Here are the requirements:

      Must be a Filipino citizen above 21 years of age

      Residency of at least two (2) years, except if you are a new homeowner

      Years of Business must be one (1) year and above

      Good character and reputation

      If employed, you should be presently connected with an employer for at least 1 year with a minimum basic salary of P18,000 per month

      If a professional, you should have an updated PRC license and preferably practicing your profession for at least 1 year

      If a business owner, must be operating for at least 1 year with profitable operations

RFC accepts personal loans for various purposes such as emergency funds, home improvements, educational purposes, and the like.

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