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LOAN BASICS: What Type Of Loan Do You Really Need?

Most often than not, customers are not really sure of what loan to avail. The lack of information on this matter can either give you a headache or save you more time and effort during the process.

For first timers, Cash Finder listed down a refresher to inform you on some loan basics.

  • Unsecured Loan

    People usually refer to this as Multi-Purpose Loan or Cash Loan. This is the most common loan nowadays because it’s easier and has faster approval. From the word ‘unsecured’, customers can freely apply online or direct to the financer without offering any collateral. This works for emergency situations, tuition fees, travel, medical assistance for as long as it’s within the paying capacity of the client and doesn’t usually exceed Php50,000. Since Unsecured Loans are very convenient for some, financers usually give high interest rate. The terms were usually shorter compare to other loans.

    Other types of loan under this catergory:

    1. Salary Loan
    2. Medical Assistance Loan
    3. Travel Loan (very few financers accept this type of loan)
    4. Multi-Purpose Loan
    5. Tuition Fee Loan
    6. Home Improvement Loan

    Whenever in need of an extra fund, you can always opt to choose Unsecured Loans.

  • Secured Loan

    Business men seeking for additional working capital usually go for this type of loan. Secured Loans include Professional Loans, Working Capital/Business Loans, SME Loans, Auto Loans, and Housing Loan that needs collateral support. The collateral should cover or at least the total loanable amount or half of the loan value. Prepare the documents like Title and other certification proving you own the property. Kindly note that all collaterals will undergo appraisal and this will be shouldered by the client. Fee for this service is around Php5, 000-Php8, 000. For clients who choose to have their car as collateral, you will be asked to hand your OR/CR to be encumbered by your financer. Some financing institutions will note the car insurance and ask you to avail an extra car insurance to secure and cover the duration of the loan. For appliances and other valuable equipment, you will be asked for receipts, ORs, warranty papers and SWRT. Make sure you have this ready before applying for higher chances of approval.

    Other types of loan under this catergory:

    1. Working Capital/ Business Loan
    2. SME Loan
    3. Housing Loan
    4. Professional Loan
    5. Heavy Equipment Loan
    6. Auto Loan

These are the information that will help you further with your application. After reading, you can assess what to avail and papers to prepare for faster and hassle-free loan application.

Now, you are one-step closer in finding cash with Cash Finder Philippines! Kaming bahala!   

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