SETTING your financial goals will help you improve your life and prepare for your future. Having a decent house, car, money and business can be a personal goal that can be achieved with the help of financial institutions.
Financial goals can be short, medium, and long term, which involves managing your money for savings, investing, or spending. The pandemic has taught us the importance of having emergency funds in cases like job loss or hospitalization. When caught off guard for such incidents, people tend to borrow money from relatives and friends.
Banks and financial institutions offer various loan products. Once you’ve decided how much to borrow, be sure to manage your money and pay on time to avoid paying a higher interest rate. Check their requirements and loan details. You can also search for loans that can be applied online.
Maintaining a good credit history is a positive factor. You must study and compare the products of different institutions, as well as the market interest rates. Calculate the cost and make an estimate. Choose the right loan amount and assess your ability to pay and never fall into the trap. Always think about interest cost, amount of principal borrowed, interest rate and term.
Banks offer a cash loan, which is a short-term personal loan with a fixed interest rate and a predetermined term of 12 to 60 months. Money can be received in a lump sum and then repaid with regular installments.
A personal loan is unsecured credit based on your work history, repayment capacity, income level, occupation, and credit history. Known as a consumer loan, it can be used to pay for immediate needs.
At the height of the shutdowns, some businesses closed stores and others laid off employees. Banks have helped small and medium enterprises (SMEs) by providing business loans or SME loans. Loan limits are significantly higher on a business loan compared to a personal loan.
Some bank customers have been unable to pay their mortgages due to the pandemic. A home loan is a secured loan that is obtained to buy a house and use it as collateral. Home loans offer high value financing with interest rates based on the number of years in payment. Having a decent house is the dream of every Filipino family.
Applying for a car loan was simplified even before the pandemic. Banks offered flexible payments for auto loans that many Filipinos and young professionals abroad enjoyed. Auto loans are secured loans, where the vehicle itself is used as collateral. The average interest rate for car loans in the Philippines is 6.56% to 31.76%.
The Covid-19 pandemic cleared the streets, as people weren’t allowed out. You thought about having your own car, in case of need, especially when you have to rush to the hospital.
To qualify for an auto loan, you must be 21 years old and no older than 65 when the auto loan matures. The minimum monthly salary or household income is 30,000 to 50,000 pesos and you must have two years of employment or a profitable business activity.
Which to buy a new car or a used one?
Bank Philippine Islands (BPI) said that 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 the next few years.”
“Whichever you choose will really come down to your budget. But BPI Family Auto Loan’s flexible financing options will always make it more affordable and easier to own,” BPI said.
BPI’s pre-processing requirements checklist includes a completed application form, two valid IDs and income documents such as latest payslips for the last three months, Certificate of Employment (COE) showing salary, position and length of service, and most recent income tax return (ITR).
The BDO car loan makes it possible to finance a new or used car, whether for personal or professional use. Clients can take advantage of its competitive rates and get loan approval within 24 hours. BDO said the auto loan calculator allows customers to calculate a loan package that fits their budget.
“To make monthly payments more manageable, select the loan term that works best for you. For lower monthly amortization, you can choose to maximize the loan term,” BDO said.
Metrobank said buying a new car can be a smooth journey when you have the right partner. Metrobank offers personalized services that match your goals, preferences and budget.
“Owning your dream car should be easy when you can extend your loan term for up to five years. We offer some of the most competitive rates on the market,” he said.
Paying off a car loan can be a medium term goal and paying off all your debts is the best financial goal.