The Complete Guide to Bank Loan 2017

WHAT IS A LOAN?

A loan is basically a financial arrangement in which a borrower receives money from a lender. The borrower agrees to repay the principal (the amount borrowed) usually along with interest (add-on rate) within a specific period of time. Of course, bank loan interest rates vary significantly based on the lender, type of loan, loan repayment terms, and the borrower’s background.

Loans are without a doubt tremendously beneficial. Knowing when to apply for one and how to maximize it is one of the keys to financial success. If you are in need of a bank loan apply with Loansolutions now and discover the Philippines’ top lenders and their best offers. We will guide you through the different bank loan types as well as all bank loan requirements so you can make informed decisions every step of the way. Our services are 100% free of charge.

Whether you need a bank loan for car work , a medical emergency, school fees, a special occasion, or a major purchase, we will connect you with our partner banks and lending institutions. We strive to give our clients access to nothing but the best options in the market. If you’re 100% qualified, you can be sure about getting an approved bank loan.

Don’t hesitate to get in touch now or use our bank loan calculator to get a glimpse of your loan solutions.

What is a bank loan lesson quiz?
What is a loan definition types advantages disadvantages?

Where do you get a loan?

Loansolutions is partnered with the country’s most renowned banks and private lending institutions that give borrowers access to the best loan options in the market. Once you fill up a one-time bank loan application, you can depend on us to guide you through all the bank loan policies. We are always ready to do most of the legwork throughout the bank loan process. Each institution we’re partnered is known for its reasonable loan processing fee, and our services are 100% free.

In some cases, such as when you’re looking to get a bank loan under 18 or you’ve been blacklisted by a certain bank due to existing debt, we will help you find an alternative. For all loan-related concerns, we are always prepared to help you determine the best course of action. Ultimately, if you’re qualified, we will ensure your loan application’s approval.

How do you compute for monthly repayments?

Knowing how to calculate loan repayments will help you plan out a budget and stay on top of your financial obligations. The easiest way to do this is by using our bank loan calculator , which provides an indicative quote based on varying bank loan interest rates, your unique circumstances, and the amount you would like to borrow.

It’s also important to understand how to calculate bank loan interest. Of course, how interest is charged depends on the lender and the type of loan. Knowing whether interest is charged daily, monthly, or annually will tell you which numbers to use on your calculations. Keep in mind that interest rates are quoted as annual percentage rates (APR). So if you’re paying interest monthly, you need to divide the rate by 12 to determine just how much you’re being charged every month. Also, if you’re applying for a bank loan in the Philippines with collateral, you can be sure about getting better rates.

You can also compute for the amortization rates. While these will always depend on the lender’s interest rates, you can also determine the monthly amortization by applying this formula . Use a spreadsheet to build an amortization table that shows your payments, principal and interest amounts, and the remaining balance.

If you’re looking to compare bank loans, get a loan without a bank account, or find the lowest bank loan interest rates available in the Philippine marketplace, you know you can count on us. Loansolutions is partnered with lenders that offer standard rates between 1% to 5% interest per month.

Calculate Loan Interest
Calculate Loan Payments
Personal Loan Calculator

Is it possible for your loan application to get rejected?

The odds of this happening may be low, but it is possible. After filling up the form, getting connected with a lender, and submitting all the bank loan requirements, your bank loan application may not be approved right away—for the following three reasons:

You already have too much debt.

Lenders look at your debt-to-income ratio and determine how much of your total earnings goes to debt repayments. In fact, while it is not entirely impossible to get a bank loan with bad credit, your application will most likely be rejected if you are also knee-deep in debt. If you’re already using over 40% or 50% of your income on repayments, you may be considered a high-risk borrower and your application may not be approved. So before acquiring a new loan, it’s a good idea to go over all your loan balances and, if necessary, minimize them. Focus on paying off existing loans before applying for a new one.

Your credit history is thin.

You can apply for a bank loan without a checking account or when you’re already 18. But if you also don’t have a thick credit file, you can’t expect to get access to a lot of loan offers. And alas, building a good credit history can be tricky. You see, you need a good score to get your loan application approved, but at the same time, repaying existing debt is the only way to improve your score. So you might find yourself in a crux if you have zero experience with using credit and you’re having trouble applying for a loan. How do you overcome this catch-22 and begin building good credit?

The solution is simple, really. Instead of applying for a loan, look for the best starter credit card first. Use that to build credit and increase your chances of getting approved when you finally apply for a loan.

Your credit report has an error.

Having trouble getting a bank loan because you’re blacklisted? Do you know for a fact that there’s been some kind of mistake? Go ahead and correct it. Credit report errors are actually more common than most people think. Errors like incorrect payment reports and closed accounts reported as active can damage your credit score. If your loan application gets denied even though you’re sure you’re qualified, keep an eye out for errors on your credit report. If you see something amiss, report it to the concerned company or the credit bureau.

Being turned down for a loan can be an unpleasant experience, especially if you’re in need of urgent financial assistance. Fortunately, you can make sure this doesn’t happen to you by taking the right steps to increase your chances of getting approved. Whether you’re planning on applying for a bank loan with a low CIBI score, without a necessary document, or while you’re unemployed, see to it that you’re qualified to begin with. Make it impossible for your application to get rejected by learning about the biggest secret in getting your loan approved by lending institutions.

What is credit investigation and how is it done?

Credit investigation is a crucial step of the bank loan approval process. You can’t get an approved bank loan without going through this important procedure.

Simply put, credit investigation is the process of determining a borrower’s creditworthiness through an extensive inspection of his/her financial standing. Once the basic bank loan requirements have been submitted, the lender will verify the applicant’s personal, employment, business, and bank information. In-depth details such as existing loans, his/her business’s performance in recent months, his/her overall annual income, and court cases involving the borrower, may also be checked to determine his/her character and ability to keep up with the regular repayments.

In some cases, such as when a borrower applies for a bank loan with a low CIBI score, the lender will inspect other aspects of the borrower’s financial standing to come up with a suitable offer. Indeed, the credit investigation process is beneficial for borrower and lender alike.

Credit Investigation

Which banks offer the best loans?

Wondering which financing institutions in the country offer the most outstanding loan options? Loansolutions will connect you with the best ones. If you could use some urgent financial assistance, here’s a quick overview of the personal loans offered by the most renowned banks:

Bank
Interest Rate Per Month
Minimum Income
Amount Loanable
Tenure
BDO Bank Loan
1.25%–1.30%
₱10,000
₱10,000.00–₱3,000,000.00
3 Months–3 Years
Chinabank Loan
1.55%–1.95%
₱30,000
₱20,000.00–₱2,000,000.00
1 Year–4 Years
DBP Bank Loan
N/A
N/A
₱15,000.00–₱500,000.00
N/A
Eastwest Bank Loan
1.49%–1.69%
₱15,000
₱25,000.00–₱2,000,000.00
1 Year–3 Years
Landbank Bank Loan
N/A
N/A
N/A
N/A
Metrobank Bank Loan
N/A
N/A
N/A
N/A
PNB Bank Loan
N/A
N/A
N/A
N/A
RCBC Bank Loan
1.40%
₱20,000
₱50,000.00–₱1,000,000.00
0.5 Years - 3 Years
Security Bank Loan
1.39%–1.69%
₱15,000
₱30,000.00–₱1,000,000.00
1 Year–3 Years
Unionbank Bank Loan
N/A
N/A
N/A
N/A

A personal loan is without a doubt one of the most accessible instruments, giving borrowers the fastest access to funds for all sorts of financial obligations. If a certain bank cannot offer you the personal loan you need, don’t be disheartened because there are many other institutions that would be happy to help. Apply with Loansolutions now by submitting a one-time loan application form, and we’ll match you with lending partners with reasonable rates and the most flexible repayment terms. We will help you explore all options, so you can discover flexible rates and gain access to the best loan offers that truly suit your needs.

Personal Loan

How do you avoid bad credit?

Steering clear of bad credit and maintaining a good score is simply a matter of making smart financial decisions. To keep your credit healthy and your chances of getting approved for a loan high, take the following steps:

Start building your credit history

The absence of a solid credit history is just as detrimental to your financial standing as having bad credit. As such, being proactive when it comes to building your credit history is downright important. You need to have a credit card that increases your spending power and your credit score.

Pay your bills on time

And if possible, in full. This is without a crucial step. Late payments will damage your credit score, so always do your best to stay on top of credit card bills, rent, utilities, and other types of debt repayments.

Use your credit card responsibly

Avoid maxing out your credit card every month. Be sure to spend only what you can pay off in full. Remember, it’s not easy to find a good bank loan with a cancelled credit card.

Don’t apply for too many loans

Before deciding to open new credit lines or take out a loan, make sure you are able to pay off your remaining debt. If you’re struggling to keep up with repayments and never pay the balance in full, applying for more loans might have a negative impact on your credit score.

If you already have bad credit, repair it

Pay off delinquent debts, identify and resolve mistakes on your credit report, and get in touch with a credit expert who can help you figure out a plan.

Of course, it is possible to get a bank loan with bad credit if you work with a trusted adviser who will connect you with an institution that understands your needs. If you apply for a bank loan with a low CIBI score, you can find good options, but a healthy score will give you access to the best ones.

 Avoid Bad Credit

Like all major financial undertakings, taking out a loan comes with its fair share of pros and cons. But as you already know, the former far outweighs the latter. Loansolutions is always ready to be of service, so don’t hesitate to get in touch with us or simply submit a one-time loan application form. You can be sure about getting matched with our lending partners who thrive in a fair and transparent marketplace. Once you connect with them, you’ll have access to nothing but the most reasonable and flexible loan solutions.