Cash loans offered by banks can be the quick remedy for your financial woes. These loans, such as the HSBC Personal Loan, can be used for different purposes, be it personal ones such as home renovation and car payment or for business purposes.
Personal loans come in two types – secured and unsecured. If you have collateral to put up, you can go for a secured loan, which gives a higher loanable amount. If you don’t have collateral, then just go for the unsecured, which comes with stricter requirements since it doesn’t require you to put up a piece of property.
Before you start planning on spending cash proceeds, you should first establish your eligibility to get approved for these loans. You need the following documentation, which will depend according to the bank you intend to apply to.
Proof of Identification:
Valid government ID’s with a photo and signature
Proof of Income
- Latest BIR Form 2316 or W2 signed by employer’s authorized representative
- Certificate of Employment and Income and last full month’s pay slip
- Latest ITR with BIR stamp
- Latest two years Audited Financial Statements
- SEC Registration or DTI Certificate
- Business Permit or Mayor’s Permit
- Latest six months bank statements
- List of at least 3 suppliers and 3 customers with contact details, and latest GIS (for corporations)
For permanent residents, additional documents may be required. You may have to submit an employment contract, work permits, and resident visa.
If you have the following documents, you can easily apply for a personal loan such as the RCBC Personal Loan. Now you should do your homework and find the best cash loans that have low interests and flexible terms. Here’s how to go about it.
Find the lowest personal rate
Loan rates are revised from time to time, but the lowest add-on rate could go from 13.2% for non-collateral loans. You should look for the effective interest rate, in which you will see the actual cost of borrowing.
Know how much you can borrow
You may have a specific amount in mind but it’s still the bank who will decide how much you can actually borrow. The amount will depend on your income, credit history, and other related documents.
Consider the additional fees
Keep in mind that the bank charges additional fees for giving you money. Most banks charge a fixed processing fee. Additional charges are incurred if you make late payments or make early repayments.
Look out for the advantages
Aside from low interest rates, a flexible payment term is one of the features you should look out for. Such terms allow you to change the terms of your loan, therefore making it easier for you to settle your debt. You should also look out for a revolving credit line, which gives you cash advance in exchange for a commitment fee.
Compare loans from the best banks
Top commercial banks such as HSBC, Citibank, BPI, Metrobank, and RCBC all offer personal loans with competitive rates and terms. A couple of hours online are all you need to find out which of these loans will suit your needs and eligibility.