Many of us were already hoping for better financial relief after being affected by this pandemic. You can count on a personal loan as a quick solution to solve your financial problems. However, there are certain steps and requirements you need to follow before you can get your loan application approved by banks and other lending institutions.
You can take time and effort to easily get your loan approved. In this article, we will share with you some recommended tips on how you can increase your chances of being approved for your personal loan application.
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Know your debt to income ratio
This is the first thing you need to know before you start applying for a loan. You need to be realistic about the total amount you can borrow. You can use the debt to income ratio to find the right loan amount for your financing. The total monthly debt payment should be around 30-35% of your total monthly income.
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Know the different types of loans available on the market
There are several types of loans that you can take out on the market today. A secured loan is one of the most popular personal loans on the market today. This loan requires you to submit an asset as collateral, for example, a property or a vehicle. Another type of loan is the unsecured loan: digido.ph/articles/cash-loan-no-collateral You don’t have to put up your asset as collateral when you want to get this loan. The amount you can borrow with the unsecured loan will be less than the secured loan.
Sean Martin D. Plantado, customer service manager at Digido.ph, notes that many borrowers are indifferent to online loan processing, believing that if the organization is not a bank, there is no need to repay. . It’s not true! A borrower who does not repay will be fined. If the fine is not paid, the debtor will be summoned to court. But it’s also good for the customer because the law also protects him.
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Check all personal loan details
Different banks and lenders may have different details and terms for their customers. It is recommended that you do your research before taking out any of your favorite loans. You can consider some important factors, such as loan amount, interest rate, ease of application, repayment period, reputation of the lender, etc. You need to make sure that all of these factors suit your financial situation.
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Compare a few available lenders
You should know that you can find many types of banks and lenders available in the Philippines. You can contact some of these lenders by calling their customer service or by email. You can find out about their personal loan application procedures, additional fees, conditions, deadlines, repayment plans, etc. All of these procedures can take a long time, but they can help you find the right personal loan for your needs.
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Prepare all required documents
Before starting the personal loan application, you should prepare all the documentation you need. Different institutions may have different requirements. Therefore, you can contact them to get the checklist of items you are going to submit. In general, you may need to submit the personal loan application form, proof of income, photocopy of your legal ID, etc.
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Improve your credit report
Most financial institutions will review your credit history before deciding whether or not to approve your loan application. If you consistently pay your credit card or other loan balances on time each month, this will show that you can make timely payments on your loan as well. This will show that you have the discipline to repay all of your loans. This will increase your chances of getting your loan approved.
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Send your proof of income
If you want to increase your chances of getting your loan application approved, you must submit proof of income. As an employer, you will have a better chance of getting your loan application approved compared to freelancers. If you are self-employed, you can also submit additional documents, such as copy of tax return or ITR, audited financial statements, necessary licenses, DTI business license, registration with the SEC, etc.
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Find a willing co-borrower or guarantor
This is another strategy you can use, especially if you want to increase your chances of getting your loan application approved. A guarantor must voluntarily sign the loan application with you. This person must also prepare the same documents required by the lenders. The guarantor must also have a good credit history.
