Due to personal loans being unsecured loans, it tags along with it higher interest rate. Therefore, you should consider personal loan provided you are not having a security in the form of an asset against which you would be able to acquire a loan.
You might have a check on the cash flows. As a result, you would be relatively sure that you would be able to pay back the EMIs well within time. Otherwise, you would be entering into a vicious debt trap. In case, there has been an unforeseen emergency and you require funds instantly, the personal loan lenders Philippines could offer you with desired personal loan. The time to process the loan has been relatively much lesser because of minimum documentation. You could select personal loans for meeting your imperative needs that cannot wait. Personal loan should be your last option. Nonetheless, availing it for the satisfaction of your leisure requirements could prove costly.
What to known before choosing personal loan
Calculating the offer of cheapest loan
These loans have been known to come with relatively higher rate of interest that would range from approximately 14 to 25 percent. You should compare rate of interest along with getting entire picture. You should have comprehensive understanding of the annual rate of interest for every offer. You could calculate the complete repayment that you would be required for shelling out along with all offers prior to selecting the desired loan.
Understanding the processing fee
You would be required to have comprehensive knowledge about the processing fee along with other available fees that would be applied when applying for personal loan.
Check for prepayment penalty
You should inquire upfront whether there has been any penalty for prepayments of your personal loan anytime. Most of the times, loan consumers have been known to repay their existing loans much earlier than they would have planned in order to be relieved of their debt. Therefore, it has been deemed imperative to have knowledge whether your personal loan offer enables you to make part prepayments. In such a scenario, you should know about the time in the loan tenure when you could initiate prepaying along with understanding the cost that you would incur because of such prepayments made in full or part payment.
EMI along with tenure
You would be required to evaluate all available loan offers. However, the foremost condition for selecting the loan offer has been the entire money entailed in the loan. The second factor has been the EMI. The eastwest bank personal loan has been known to offer lower EMI options along with longer tenure.