Loans are money borrowed from banks, financial institutions or individuals. Normally, people use loan to have an enough money to purchase a particular thing or investment.
For example, many people nowadays apply for a housing loan to purchase their own home instead of renting a house. Of course, there are some advantages and disadvantages of applying for a loan or getting debt.
A loan is composed of the principal money you borrowed plus the loan interest it will incur for a certain period. In general, the longer the period of loan, the higher the interest rate will be. Some loans have fixed interest rate, some have variable or changing rate depending on the prevailing rate of the market.
Tips on Bank Loan Application
What are the things you need to consider before applying a bank loan? Many people sometimes may not be aware of the factors that determines the proper way to apply for a bank account.
In this regard, I have published a post that tackles and discuss some tips on how to apply for a bank loan. You can see the post here to give you more information and better understanding how a bank loan works.
Background of BDO Loans
BDO is one of the leading major commercial banks the Philippines. It has numerous branches all over the country and provides a vast selections of banking amenities and services for its clients including bank loans, mortgages, credit cards, investment products, retail banking, and a lot more.
There are different kinds of BDO loans you can apply: home loan, auto loan and personal loan. Every loan has its own requirements and application method you should go through to begin processing of your loan.
Kinds of BDO Loans
Before applying for a loan, you should study how much interest you will pay for the whole period of your loan. Make sure you understand the terms and conditions of the loan agreement.
Depending on your current needs, you can apply a particular BDO loan of your choice. Like I said before, BDO loan can be a personal loan, auto loan or home loan.
1. BDO Personal Loan
Do you have an emergency need for money for personal use? Perhaps, you want to buy that gadget you’ve been wanting for a long time but you don’t have the enough money to buy.
A loan that can be used to make home renovations or upgrades; payment for tuition fee in school; purchasing appliances, furniture or electronic gadgets; money for vacation and travel and other personal purposes.
It has flexible loan amounts and you can pay your loan from 6 and up to 36 months. You can loan a minimum of P10,000 and a maximum of P500,000. Application can be done at any BDO branches all over the country.
2. BDO Auto Loan
Most people don’t have that big amount of money when buying a car unless you’re really a rich guy. However, most people cannot right away the full payment for a brand new car.
In most cases, many people resort to applying for a car or auto loan in major banks in the Philippines. Recently, it is not that hard to get a loan from bank because almost all banks are offering this kind of service. Thus, there are many competitions that can be good for the customers.
If you are planning to buy your dream car or you want a newer vehicle for your business but you don’t have enough money, you may consider to apply for a BDO Auto loan at any BDO branch near your place.
You can pay your loan up to maximum of 6 years with very flexible terms and easy application process. It is applicable for brand new or second-hand vehicles.
3. BDO Home Loan
Building or constructing your own home costs a large amount of money. For example, the average a 2-floor house could range from 3 to 5 million pesos in a typical subdivision. The price is total for house and lot. Of course, there are exceptions for this but my point is you need a big amount to construct your own house from scratch.
Some people cannot save money so fast that they can construct their home right away. Hence, most people look for ways on how to get a loan so that they can earlier build their home.
Other people might apply for a home loan at Pag-IBIG while some people might get a loan from banks. In comparison, bank loan has a higher interest rate than Pag-IBIG.
Owning your own home is the dream of many people. Today, there are also many families renting their house because they cannot afford to buy or build a new one.
BDO can help you buy your dream house through its home loan. You can choose how many years you can complete the payment with fixed rates for each term.
To Wrap Up
Before you apply for any BDO loans, make sure you have the capability to pay the monthly payment. Study and research which interest rate and term best suited for your long-term financial condition. Since loan is a long-term debt, make it a point to increase your income or lessen your expenses so that you will not be short or default in paying your loan.