You’re in need of extra cash and you don’t feel like borrowing from a family or friend, that’s all well and good, in case you already have enough debts to go around with. You find out that you may apply for a loan, thus giving you an opportunity to receive a certain amount, to pay off all of your debts. You tell yourself, “Well, having my loan application may just be as easy as 1-2-3,” not putting into consideration certain important factors that goes along with the process of your application. In such case, you would need to ask a few important questions; just to be sure that you are not biting more than you can chew. Here are just a few of them:
1. What is your purpose for applying for the loan?
Naturally, this would be the very first question that a lender would ask. Every action is motivated by a reason. What is your motivation and goal for applying for a loan? Is it because you want to pay off your debts? Is it because you have something important to avail? Is it because you’d want to take a vacation and is sincerely in need of funds? Whatever your reason may be, be sure to answer honestly.
2. How much would you need?
It would be wise to remember that a loan is basically money borrowed from a lender. This would mean that, in certain cases, you would have to consider the interest rate as well, aside from the exact amount that you are borrowing. Keep this in mind to avoid borrowing more than what you can pay for, with other underlying add-ons as a return.
3. Would it be worth it?
Admit it or not, we tend to be compulsive buyers at times. When faced with a beautifully advertised product, be sure to think twice or thrice, before deciding to make a purchase. Remember, applying for a loan is not an easy task, and you wouldn’t want to waste all your time and energy in achieving a loan for an item you wouldn’t really need.
4. Is this the best loan for me?
There are different types of loans, and you must know them by heart before applying for one. Aside from the fact that you would be oriented with the policies and technicalities, you may also be able to score a discount, especially if you’re going for an emergency loan, which comes with lower rates and more flexible terms than other types (if you happen to live in an area commonly ravaged by storms) because it’s partly subsidized by the government (you may coordinate further on your lender regarding this).
5. Am I okay with the conditions indicated on the fine print?
Be aware of the fine print on the contract. As with all types of deals, ask yourself if you are okay with the conditions. Do not decide things in a rush, just because you would want to receive the loan immediately. Remember, be wise. Look into the methods and monthly deadlines of payment, as well as the loan maturity and delay charges. After this, you may negotiate with the lender and appeal for a few adjustments, if necessary.
6. Am I comfortable with the payment option?
Ask yourself if the payment option is flexible enough for you to be able to pay on time. Remember, there are penalties when it comes to late payments, so it would be better to explore your options. Do your best to negotiate on some terms if needed, be realistic in your approach and coordinate with the lender for a mutual agreement on the terms.
7. Is my current cash flow and income sufficient enough to pay for my loan installments?
Remember what we said about being realistic on your approach? Never borrow more than what you can pay for. Always put your monthly income into consideration, so that you may have a close approximate of the right amount that you’d want to loan for. Go for an amount that you’re sure will be manageable enough to be paid back monthly, with no delays or shortcomings, whatsoever.
So, you’re finally ready to apply for a personal loan, but don’t know where to begin. No worries, we have got you covered. Here at Cebuana Lhuillier, we offer our Happy Loan, a multi-purpose loan amounting to Php 5,000 , Php 10,000 or Php 15,000 offered to any individual who is employed, self-employed, student, or a remittance beneficiary. Our network of more than 2,200 Cebuana Lhuillier branches and online presence give customers unlimited access and utter convenience in applying for a loan. Our five-point application to disbursement process ensures services are delivered on time.