When the daily expenses, school payables and emergency situations join forces, we can just imagine the wallet or bank account crying ouch! (If it could only speak, of course.)
In times of need like this, taking a loan might just come to the rescue! By definition, a loan is borrowed money that the person borrowing promises to pay in the future. Since nothing’s free anymore #realtalk, a loan comes with interest rate and other terms that need to be paid back.
Whether you are planning to get a loan for a house renovation, your child’s tuition fee, or that much-awaited family vacation (enjoy!!), and have no idea where to begin, read through these five easy steps to help you get started:
1. Research your options.
Treat the Internet as your best friend, at least for your loan research. Since different needs call for different loans, you need to read a lot to gain a lot of insight on the best deals for your situation. Search for the different types of loans. Locate the nearest loan providers in your area. Dig into the nitty-gritty details of the entire loan process (read: take note of interest rates!!). When you are well-informed, there’s less room for confusion and more room for the benefits!
2. Check your eligibility.
Financial institutions like banks and credit unions usually set certain requirements before you can avail a loan. Think of it as their assurance that you can pay back the money you loan. While it’s a concrete answer to their ~trust issues~ (which are valid since this is money we’re talking about), it’s also your gauge if you can really afford to get a loan or it’s something you should think twice about.
Here are some eligibility guidelines for a loan application:
- Age requirement (must be at least 21 years old, but not more than 60 years old upon loan maturity)
- Filipino citizenship
- Minimum net monthly income
3. Prepare your requirements.
Speaking of eligibility requirements, say hello to paperwork you need to prepare! Like with any application, there are documents you have to submit that will provide them the necessary information to process your application. Remember that these documents are really, really important since it can decide your loan’s approval or denial, so preparing and submitting them completely and on time are crucial!
Here are some common requirements for a loan application:
- Bank statement
- Duly accomplished application form
- Identification cards and other documents (eg. birth certificate)
- Proof of income
- Proof of residence
- Standing Instruction (SI) request/ Electronic Clearing Service (ESC) form
4. Apply for your loan.
When you’re done with your research, found yourself eligible for your chosen loan, and prepared the necessary requirements, you’re ready to apply for a loan! A good starting point would be applying to loan providers nearest you such as your local bank or a credit union in the neighborhood. With the rise of technology, you’re pretty much free to take a call or apply online! If applying in person’s more your style, you can do that too.
Aaah, the waiting game! No matter how urgent your need is, you have to sit back and relax while the loan providers verify your information and process your application. Wait and answer calls from the bank or the credit investigator. When you apply for a loan, be extra mindful of possible calls at home or in the office all throughout the day! After all, you don’t want to be rejected just for a missed call, don’t you?
Considering the unending expenses from day to day (#mayforever), there’s hardly ever enough money to go around. Getting a loan is one of the many ways you can juggle your finances while you find ways to get through another payday. Just remember that getting one is a big responsibility so paying off a loan is a promise you ought to keep.