{"id":4556,"date":"2019-01-31T13:05:20","date_gmt":"2019-01-31T13:05:20","guid":{"rendered":"http:\/\/zestmag.com\/online\/?p=4556"},"modified":"2019-01-31T13:05:22","modified_gmt":"2019-01-31T13:05:22","slug":"a-guide-to-borrowing-money-this-year-of-the-pig","status":"publish","type":"post","link":"https:\/\/zestmag.com\/online\/a-guide-to-borrowing-money-this-year-of-the-pig\/","title":{"rendered":"A guide to borrowing money this Year of the Pig"},"content":{"rendered":"\n

For many years, the country has observed Chinese New Year as a manifestation of solidarity between both Chinese-Filipinos and Filipinos in celebrating prosperity and good life.<\/strong><\/p>\n\n\n\n

The Chinese are identified as frugal because they always look at the value of commodity instead of spending impulsively. In Chinese tradition, during the Chinese New Year, children are given red envelopes, or \u201campao,\u201d to teach them on responsible money management at an early age. Chinese people perceived this as a best way for their children to receive a gift that teaches a lesson.<\/p>\n\n\n\n

That the new year is a great time to have a fresh start, meanwhile, is a concept instilled in many Filipinos. We see it as a great time to hope for a better financial stability. However, in a survey question conducted by Statistics Weather Station (SWS), \u201cIs it with hopes or with fears that you enter the coming year?\u201d only 92 percent of Filipinos are hopeful to enter the year 2019, which is a four-point decline from 96% hopefuls last year.<\/p>\n\n\n\n

How can the hope of many Filipinos can be translated to financial success this Year of the Earth Pig?<\/p>\n\n\n\n

There are plenty of ways one can pursue financial success. You can start a small business or invest your money to get favorable returns. If you\u2019re short on cash, you can take out a loan.<\/p>\n\n\n\n

In the Philippines, applying for a loan has a negative notion because it correlates to debt. But consumer loans actually support people to build and establish a credit history that virtually all banking and finance companies are looking for.<\/p>\n\n\n\n

This Chinese New Year is the best time to debunk the notion on applying for a loan. Now is the time to understand that loans are serving a number of purposes.<\/p>\n\n\n\n

Loans come in handy for purchase of big=ticket items, or a means to buy your dream house or car, or simply as a buffer for emergency cash needs. However, applying for a loan for the first time can cause confusion, to say the least, and can come with serious financial consequences.<\/p>\n\n\n\n

To set you off to a good start, here are a few tips for first-time loan applicants that can help you build and establish financial success and stability.<\/p>\n\n\n\n

eComparemo<\/a>.com, the country\u2019s largest online financial supermarket, <\/strong>helps you choose the right loan with this guide.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Types of loans<\/strong><\/p>\n\n\n\n

Personal Loan<\/a><\/strong><\/p>\n\n\n\n

Personal loans are usually unsecured loans, which means it\u2019s based purely on your credit score and does not require any collateral unlike secured loans. The interest rates may range from 1.2% to 8%, depending on the financial institution, and payment terms are typically shorter, from 6 to 60 months.<\/p>\n\n\n\n

Car Loan<\/a><\/strong><\/p>\n\n\n\n

Car loans are for people who don\u2019t have enough cash to shoulder the full purchase of a vehicle. It has flexible payment terms of three to five years. It\u2019s easy to apply for a car loan\u2013just submit valid IDs and proof of income to get pre-approved. It may require you to have the down payment for the car to get approved.<\/p>\n\n\n\n

Home Loan<\/a><\/strong><\/p>\n\n\n\n

Housing loan interest rates are decided between you and the financial institution, with payment terms ranging from 5 to 30 years. The lender maintains property rights as collateral, and an appraisal fee typically applies.<\/p>\n\n\n\n

OFW Loan<\/a><\/strong><\/strong><\/p>\n\n\n\n

OFW loans work similarly as personal loans, but are specifically targeted at overseas Filipino workers (OFWs) with valid contracts. A co-borrower or immediate relative based in the Philippines is required. It usually has flexible payment terms to accommodate the specific needs of OFWs and their families.<\/p>\n\n\n\n

Credit Cards<\/a><\/strong> or Cash Advances<\/strong><\/p>\n\n\n\n

Cash advances are short-term loans with higher interest rates and is typically paid for the following month. Some credit card companies offer longer terms from 3 to 12 months. The amount you can borrow depends on your credit limit.<\/p>\n\n\n\n

Business Loan<\/a><\/strong><\/p>\n\n\n\n

Business loans can be used for a new business or the expansion of an existing one. Examples are line credit, equipment loan, and conventional business loan. Submit your business registration and tax documents to apply. Terms depend on the nature of your business and the agreement between you and your lender.<\/p>\n","protected":false},"excerpt":{"rendered":"

To set you off to a good start, here are a few tips for first-time loan applicants that can help you build and establish financial success and stability.<\/p>\n","protected":false},"author":3,"featured_media":4557,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[2018,2147],"class_list":["post-4556","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinions","tag-banking","tag-savings"],"_links":{"self":[{"href":"https:\/\/zestmag.com\/online\/wp-json\/wp\/v2\/posts\/4556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zestmag.com\/online\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zestmag.com\/online\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zestmag.com\/online\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zestmag.com\/online\/wp-json\/wp\/v2\/comments?post=4556"}],"version-history":[{"count":1,"href":"https:\/\/zestmag.com\/online\/wp-json\/wp\/v2\/posts\/4556\/revisions"}],"predecessor-version":[{"id":4558,"href":"https:\/\/zestmag.com\/online\/wp-json\/wp\/v2\/posts\/4556\/revisions\/4558"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zestmag.com\/online\/wp-json\/wp\/v2\/media\/4557"}],"wp:attachment":[{"href":"https:\/\/zestmag.com\/online\/wp-json\/wp\/v2\/media?parent=4556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zestmag.com\/online\/wp-json\/wp\/v2\/categories?post=4556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zestmag.com\/online\/wp-json\/wp\/v2\/tags?post=4556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}