Loans 101

2018-05-10 15:01:32.0

“A loan is an amount of money that is borrowed, often from a bank, and has to be paid back, usually together with an extra amount of money that you have to pay as a charge for borrowing.” -Cambridge English Dictionary

In getting a loan, make sure to shop for the best rates among all the financial institutions and find the best lender to fit your needs, read the fine print and last but not the least DON’T TAKE MORE THAN YOU CAN AFFORD.

Types of Loans

1) Secured loan – Mortgage loan is a common type, either the title of the house or the car may be used as security until the mortgage is paid in full. > House and Auto Loans.

2) Unsecured loan – monetary loans that are not secured against the borrower’s assets > Credit Card, Personal Loans, Business Loans. 

Loan Requirements

1) Must be 21 years old at the time of application but not more than 70y/o.

2) Must be a Filipino Citizen or a foreigner who is a permanent resident of the Philippines for 2 years

3) Must be employed or self-employed with business operating for at least 2 years

4) Documents needed: Duly accomplished Application Form, 2 valid Identification Cards, Certificate of Employment (COE) indicating salary, position and length of service, Latest Income Tax Return (ITR), for self-employed: Articles of Incorporation and By-Laws with SEC Registration Certificate, G.I.S. (General Information Sheet), Audited Financial Statements for the last 2 years, DTI Registration, Income Tax Return w/ audited financial statements for the last 2 yrs, Bank Statements for the past 6 months

5) Minimum Gross Income requirement: Employed Php 120,000, Self-employed Php 400,000

6) Residence or office address and landline plus mobile phone

 

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