Do you need additional funds for a major purchase? A personal loan is a convenient and affordable alternative financial tool to make it happen.
In this article, we’ll discuss what a personal loan is, how it works, and practical tips on how to manage a personal loan.
A personal loan is a type of installment loan received in lump-sum amount, without need for collateral or security, and repaid with fixed interest rates. Its payment terms can range between 1 to 3 years.
The maximum loanable amount with Metrobank can be up to 2 million pesos, depending on the approval of your application.
A personal loan can be used for different purposes, such as paying for home renovations, medical bills, weddings, business expansions, or debt consolidation.
All things considered, a personal loan can work to your advantage, but it is important to know how to manage a personal loan and other debts before applying for one.
Most of the loan types we know are reserved for specific uses. A home loan can be used to buy a house, while a car loan can be used to upgrade or buy your first vehicle. Thus, they offer higher loanable amounts. You also need collateral to avail of these two loans.
For personal loans, they are often used to help fund a large ticket-transaction, like home renovation/improvements, tuition fees, weddings, consolidating payables, and to finance unexpected expenses or medical emergencies. Metrobank Personal Loans offer a minimum amount of PHP 20,000 and can go up to PHP 2,000,000, and it does not require a collateral.
Since a personal loan does not warrant a collateral, the risk that the lender incurs is then covered by the offered interest rates. To get approved, your credit score and debt-to-income ratio will come into play, as these are some of the factors that banks refer to when deciding on your loan application.
Getting a personal loan offers plenty of benefits for your finances:
Overall, when a personal loan is managed correctly, it can help you improve your overall finances.
Personal loans could have a positive impact on one’s finances if managed properly. So, here are tips on how to manage a personal loan:
A personal loan could open possibilities for you to improve your quality of life or help you achieve your goals. If you’re sure about your purpose and capability to handle the repayment, don’t hesitate to apply for a Metrobank Personal Loan in the Philippines.
Contact us and apply now.