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 is a Personal Loan?
A “Personal Loan” is usually the name used by most people to describe borrowing money.
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 to understand in nature.
The borrower agrees with the lender to money, and pay it back with interest added on top at a later date.
The lender could be a big name Bank and institution like BDO or BPI, or a smaller licensed lending company. Generally, a personal loan is a direct loan standard loan no matter who providers it to the client.
Just for example: If the client borrows Php20,000 from the bank, they will agree to make payments to the bank every month that will equal more than the original Php20,000.
(this is of course “interest” and is how the lending companies make their money).
The client who borrows Php20,000 may agree to a 6 month repayment plan. And they will make deposits of Php4,333.33 to the bank on the same day every month.
Over 6 months, this calculates to Php26,000 in total repayments. Therefore, the bank takes back Php26,000 for lending Php20,000.
A Personal Loan in the traditional sense, is different from other loan types. When persona loans are given out to clients, the lender does not claim their salary from their employer.
Nor does the lender hold electronic goods, cars or other goods as “collateral”. Because this would be a “collateral loan” which is usually different from a Personal Loan.
If you are looking for a Personal Loan like the agreement I have described, you can apply here on this website and we will match you for free, with a Bank or a licensed lender in the Philippines who will review your application and offer you a loan.
Just click the APPLY button on this page, and complete your details.
Please note: the repayment amounts mentioned in this article are for example only. Your loan amounts and repayment amounts may be more or less than the example provided.
You will be able to review the loan offer and decide if you wish to accept it or reject it.