A personal loan is money borrowed from an individual or a financial organization. People who apply for loans usually use them to pay for trips abroad, move from one place to another, or apply for a short course.
When you apply for a personal loan, you need to stop thinking that it’s difficult to get one. If you’re still unsure, you can read up on articles on the internet that can guide you throughout the loan acquisition process. Sites like Investopedia, The Balance, and Wall Street Journal can help you at different stages of your financial life. These sites also provide the basics on getting a personal loan, which are general and applicable in any location.
After reading different articles, and you’ve finally decided to get a personal loan, you now have to prepare several forms. Lending organizations need these documents and forms to verify your identity and your financial standing.
Most banks have an age requirement and minimum annual salary. At most, you must be 21 years of age and not older than 65 at the time of enrolling. Your minimum annual basic salary should be PhP180,000, or a basic monthly salary of PhP15,000.
In whatever way you get your loan, you will need the following documents:
• Government-issued photo-bearing ID (Passport, Driver’s License, SSS, PRC, etc.)
• Original pay slip and/or Latest Income Tax Return with BIR or Bank stamp (BIR Form 2316)
If you’re self-employed, you may still get a personal loan. All you have to do is submit 2 government IDs.
Other banks or money-lending institutions will want more documents to verify your identity and your financial stability. These may include:
• Your birth certificate
• Utility bills—phone, water, or electric bills that state your name and address
• Credit card and loan statements from your current loan accounts
You’ll also need to fill up a personal loan application form and submit that along with the rest of your requirements.
These requirements are important for you to get a loan. Collaboration is key. Talk to your HR Department to get your ITR Form and copies of your pay slip.
If you’re self-employed, you can call up BIR and ask for your latest ITR. Acquire the needed IDs and update your personal profile if needed. Talk to the lending organization what other documents you need to submit to further organize all your requirements.
It’s important that you organize your requirements to avoid wasting time and energy to get a personal loan. Create a good relationship with your preferred lending organization so that it could be possible for you to have a faster time in getting your loan.
Make sure you are tenured in your job, or that your self-employment has stable commissions. Finally, whether or not you’re making loans in the future, make several copies of the requirements you’ve collected to ensure you don’t have to go through another process of getting them again.