A “Personal Loan” is usually the name used by most people to describe borrowing money. Expenses and Fees to Pay? Get an Instant Quick Loan However, getting a “personal loan” from a lender is different from getting a “cash loan”, or a “salary loan” and even a “collateral loan”. Personal Loans are usually more simple […]
What Can I Buy With My Personal Loan?
There are different loan types available, as we covered in this article.
When you take out a Housing Loan, you can only use that money to buy a house. If you accept a “buy now, pay later” deal from SM Appliances or Abensons, you must purchase a gadget or other item from their shop.
There are different loans, for different purposes.
So, when you apply for and get approved for a Personal Loan, what can you spend your personal loan money on?
We will dive into that now in this article.
Different lenders will have slightly different rules, so be sure to double check the guidelines about what you can and can’t spend your money on, BEFORE signing for the loan.
However, generally speaking these are types of things you can buy using your personal loan:
- Home Renovations , repair and upgrades.
- Education expenses
- New TVs, Clothes Washing Machines and other gadgets/electronics.
- Your dream holiday.
- Special Events like Weddings, Birthdays, etc.
- Health and Wellness
- Medical Emergencies
- Some banks will allow Debt Consolidation
As you can see, the use of a personal loan is varied.
There are usually less restrictions placed on a Personal Loan over a Salary Loan for example. Your “instant pera” can be used for most things you’d want to buy or invest on.
Now you know what you can buy, the next common question we get from people just like you is:
How Much Can I Borrow?
Here are a few examples:
- BDO Personal Loan: From Php10,000 up to Php1,000,000
- BPI Personal Loan: From Php20,000 up to Php1,000,000
- CITIBANK Personal Loan: From Php20,000 up to Php2,000,000
Before you start seeing ($) ($) in your eyes, always remember that any licensed and reputable lending company will only lend you a maximum amount that you will be able to repay.
The amount you can borrow will be determined by your salary. If your monthly salary is Php21,000, a bank will not lend you so much that your monthly repayment will be Php15,000 for example. As this will put too much stress on your finances quickly or soon enough.