SETTING your financial goals will help you improve your life and prepare for your future. Having a decent home, car, money and business can be personal goals that can be achieved with the help of financial institutions.
Financial goals can be short, medium, and long term, meaning managing your money for savings, investments, or expenses. The pandemic has taught us the importance of having emergency funds in cases such as job loss or hospitalization. When people are caught unprepared for such incidents, they tend to borrow money from relatives and friends.
Banks and financial institutions offer various loan products. Once you’ve decided on a loan amount, be sure to manage your money and pay on time to avoid a higher interest rate. Check their requirements and the loan details. You can also search for loans that can be applied for online.
Maintaining a good credit rating is a plus. You need to study and compare the products of different institutions as well as the interest rates in the market. Calculate the cost and make an assessment. Choose the right loan amount and assess your solvency and never fall for gimmicks. Always think about the cost of interest, the amount of principal borrowed, the interest rate and the term.
Banks provide a cash advance, which is a short-term personal installment loan with a fixed interest rate and a fixed term of 12 to 60 months. The money can be received in one lump sum and then repaid with regular payments.
A personal loan is an unsecured loan based on your employment history, ability to repay, income level, occupation, and credit history. Known as a consumer loan, it can be used to meet immediate needs.
At the height of the lockdown, some companies were shutting down and others had laid off their employees. Banks helped small and medium-sized enterprises (SMEs) by providing business loans or SME loans. The loan-to-value limits are significantly higher for a business loan than for a personal loan.
Some bank customers have not been able to pay their mortgages due to the pandemic. A home loan is a secured loan taken out to buy a home and used as collateral. Home loans offer high-quality financing with interest rates that depend on the number of years of payment. Having a decent home is the dream of every Filipino family.
Applying for car loans was simplified even before the pandemic. Banks offered flexible payments for auto loans, which were taken up by many foreign Filipinos and young professionals. Auto loans are secured loans where the vehicle itself serves as collateral. The average interest rate for auto loans in the Philippines ranges from 6.56 percent to 31.76 percent.
The Covid-19 pandemic has cleared the streets as people were not allowed to go out. You have considered having your own car in times of need, especially when you need to rush to the hospital.
To be eligible for a car loan, you must be 21 years of age and no older than 65 when the car loan matures. The minimum monthly salary or household income is P30,000 to P50,000 and you must have been employed or engaged in profitable business for two years.
Which is a new car or a used car?
Bank Philippine Islands (BPI) said a new or used car has its pros and cons. “It’s worth thinking about because it’s a decision that will affect your finances for years to come.”
“What you choose really depends on your budget. But BPI Family Auto Loan’s flexible financing packages are making it ever more affordable and easy to own,” BPI said.
BPI’s pre-processing requirements checklist includes a duly completed application form, two valid ID cards, and income documents such as ITR).
BDO car loan offers financing for a brand new or used car for personal or business use. Customers can take advantage of the competitive pricing and receive credit approval within 24 hours. BDO said the car loan calculator allows customers to calculate a loan package that suits their budget.
“To make monthly payments more manageable, choose a loan term that works best for you. For a lower monthly amortization, you can choose to maximize the loan term,” BDO said.
According to Metrobank, getting a new car can be a seamless journey when you have the right partner. Metrobank offers personalized services that fit your goals, preferences and budget.
“Owning the car of your dreams should be easy when you can extend your loan term up to five years. We offer interest rates that are among the most competitive in the market,” it said.
Paying off a car loan can be a medium-term goal, and paying off all debt is the best financial goal.