Personal Loans in Philippines – FAQ
What is a Personal Loan?
True to its name, a personal loan is a loan for any personal expense. Unlike a housing loan or a car loan, you can use a personal cash loan for anything you want, be it renovation, tuition fees, travel expenses, medical bills, car repair or anything else. Personal loans can be both secured and unsecured loan but in most cases they are unsecured and so the applicants do not have to pledge any collateral security with their loan application.
Can you please list the various types of miscellaneous fees and charges involved in a Personal Loan during the processing stage?
Depending on the bank, local regulations and the loan amount, fees and charges such as processing fee, documentary stamps, and notarial fees are involved. Breakup of other charges will be provided by the bank representative at the time of application.
How Do I Use A Personal Loan Calculator?
All you have to do is to specify the amount and period you want to clear the payment of it in the various available fields. The online calculator will then make it easy for you by providing suitable loan packages that are available on the market, and the monthly amortizations for each one.
This refers to the asset the borrower pledges to a given lender in order to secure a loan and this will be impounded by the lender in case of default in payment of the loan. The case in Malaysia particularly for the islamic personal loans don’t require the need for a collateral.
Early settlement penalties:
The fees that the borrower will have to pay in the event that he/she settle the loan at an earlier date from the one specified on the loan agreement. This is usually estimated as a percentage of the initial loan amount.
This is a person who agrees to be liable for the payment of a loan in the event that the borrower will not be in a position to pay it in time.
Late Payment Charges:
This is the fee which the bank will charge you in the event of you not paying your loan in the agreed time schedule. For example, for BPI personal loans, late payments are charged 5% a month.
This refers to the period for a certain loan. At the end of the loan tenure the borrower is supposed to have cleared the loan taken.
Housing Loans in Philippines – FAQ
What Is A Housing Loan?
To put it simply, a housing loan is a loan used to purchase property. Home loans are also commonly referred to as ‘mortgages’. In the Philippines, home loans are available from banks, developers, or the Home Development Mutual Fund, better known as Pag-IBIG.
How Do I Use A Home Loan Calculator?
Businesstips.ph has created a house loan calculator that makes calculating the monthly repayments and comparing rates across all banks easy for you. To use the mortgage calculator, just scroll up to the top of this page, type in the property price that you would like to borrow, and for how long are you willing to pay for it. It will do all the calculations and will present you with the best amortization and mortgage rates for you.
Housing Loan Terms
The total amount borrowed or owed on any type of loan. Making monthly payments on a basic fixed-rate loan will gradually reduce your principal.
An upfront payment made by the buyer of a house. In the Philippines, 20% is the usual down payment amount for a bank housing loan.
An interest rate is a rate that is charged for the use of money. Interest rates are displayed on an annual basis, known as the annual percentage rate (APR). For example, BPI’s 10-year fixed loan has an 8% APR.
This means the length of time or period in “months” or “number of years” wherein you can repay your housing loan. If a mortgage has a “tenure” of 30 years, it usually means it would take 30 years to fully pay off the loan. The usual term for housing loans in the Philippines is up to 20 years. Generally, the longer your loan term, the higher the interest rates.
Fully or partially paying off your loan before it is due. Some banks will charge a penalty for this, so read the fine print.
Paying off an existing housing loan with a new loan that has lower rates.
When the bank repossesses your property and attempts to sell it in order to settle the outstanding amount on your loan. This usually happens when you consistently fail to pay your loan installments.
Car Loans in Philippines – FAQ
How Does A Car Loan Calculator Work?
Simply key in the information essential to compute for your monthly amortization (monthly payments). Input the car cost, down payment and loan period. Also indicate if it’s a brand new car or second hand. After completing all required details, click calculate and the auto loan comparison table will show the monthly payments, total interest paid over time, and applicable interest rates.