Getting A Personal Loan For Financial Emergencies – Things To Know!

Want to finance your next vacation? Need to buy a new appliance for your home? Dealing with too many credit card bills? Well, a personal loan might do the trick. Also known to many as salary loans, personal loans are great for handling short financial crunches. You can these loans for almost any purpose, as long as you have a stable job and fulfill all the requirements as stated by the lender. Let’s talk about these loans in detail.

The basics

Personal loans can be secured or unsecured. Secured loans have a lower interest rate, simply because there is an asset that serves as the collateral. In case the borrower is incapable of paying the money on time, the lender will use the asset to get the loan amount. Unsecured loans, on the other hand, are more common and have a higher interest rate. Most salary loans are given for a period not extending over 36 months, although in some cases, the lender might increase the term up to 60 months. Please note that longer term also means higher interest rate.

The requirements

If you are applying for personal loan Philippines, you will need to have a stable income and job. These requirements can vary from country to country, but in general, the applicant must be a resident of the country and should have all the required documents, including proof of income, address and a valid working postpaid number.

What to check?

First things first, you need to check the interest rate on the loan. Keep in mind that a flat processing fee is also applicable for the application, which must be paid along with the relevant stamp duty. Besides these costs, you have to consider the late payment fee, as well. With personal loans, you need to be extra cautious, because late payments can impact the credit score, and the fee can be quite high, as much as 10%. You also need to consider the repayment terms and conditions. Some lenders allow the applicant to repay the loan ahead of the tenure, as long as the full amount along with the interest is paid as per terms and conditions.

If you don’t have a credit card, you can still apply for Citibank personal loan, although people with cards will get quick approval. It will take around 10 days to get the money in your account, subject to terms stated by the lender.