Despite the deplorable state of the economy and the lack of stability in the country, financial institutions in the Philippines continue to amaze with new lending programs. Sometimes to understand and choose the appropriate option is not so easy.
Which loan is still better?
There are several especially sought-after options that should be considered when a question arises – which loan is the most profitable? Each differs by different interest rates and terms, has a separate set of documentation and special conditions. That is why the benefit of the credit program can be determined only by the borrower, relying on their needs and opportunities.
- Turning to the banks will get a favorable loan in terms of interest rates. The institution will certainly require proof of solvency and all the necessary list of documents, giving the opportunity to take a fairly large amount for a decent period (from 6 months and up). This option is suitable for those who are not constrained in time and have the availability of documents and impeccable credit history.
- Turning to microfinance organizations (MFIs), it will turn out to take the most profitable loan in terms of the speed of processing and the provided papers. Online services do not require a certificate of income and superfluous information, except for a passport and identification code. It also does not need the involvement of guarantors and calls to the employer.
Online services make a decision as soon as possible, a maximum of 15 minutes, and transfer funds to any bank card within an hour. Funds can be taken without leaving home for up to a month. There is the possibility of extending the loan an unlimited number of times. Profitable cash loan is not cheap, but indispensable in difficult situations.
This option is suitable for those who do not have the time and necessary documents. Also, the MFI is famous for its loyal attitude to a bad credit history, and in many cases it issues a profitable loan, focusing only on the data filled in the online application. Read more about credit score https://www.equifax.com/personal/education/credit/score/how-is-credit-score-calculated/
What should the borrower know about loans?
It is worth remembering, the more information is provided to the organization about the borrower, when obtaining permission for a favorable cash loan in the Philippines, the lower the interest rate on the loan and vice versa.
In order to get a large loan, you will have to make a pledge, in the form of property or real estate. When choosing an institution, follow a few helpful tips:
- Choose an interest rate calculated on a monthly basis, often by institutions offering an annual rate;
- Favorable credit conditions imply a reduction in interest on the balance of the debt;
- Pay attention to the availability of down payment and refund dates;
- Consider the amount of fines in case of delayed payments;
- Before entering into a transaction, ask about the availability of additional conditions, such as usage fees and insurance in case of a dollar increase.