As the loan industry continues to grow and competition becomes even tougher, there’s a growing number of private financial institutions or lending companies that are coming up with offers for faster processing and easier approval. After all, these are the top two factors that will provide them an edge over others, aside from interest rates. […]read more >>
What Can I Use my Personal Loan for?
It can be quite common for many Filipinos to avail of a personal loan for a wide variety of purposes. If you’ve also been contemplating on applying for a personal loan, perhaps you’re wondering if you are free to use the money for anything you want or if there will be an investigation on how you spend the loan amount provided.
Generally, you can use the money for whatever purpose suits you. But just to give you a better idea about the common uses, take a good look at them below and see if one of these sounds like something you’re interested in or in need of at the moment.
School Tuition Fee
It’s almost that time of the year when you need to pay for your children’s school tuition fees. This can definitely take a toll on your wallet if you haven’t got sufficient finances and most especially if you have three or more kids to support.
Since school often begins in June, parents are likely to apply for personal loans during the summer break or even as early as February or March.
Thinking of having that roof finally patched up? Or perhaps you’ve always wanted to have your kitchen remodeled, especially now that some relatives from abroad might be coming home soon. Filipinos value their homes very much and this is probably why repairs and replacements for the house tend to be a top reason for availing of a personal loan.
Purchase of Vehicle
These days, many people believe that owning a car is no longer a luxury but more of a necessity. Despite the traffic, it is still more convenient to travel in a car especially if your work entails you to talk to different people and go from one place to another. And in the midst of the country’s tropical weather, moving around in your own vehicle is essential to stay cool during the hot days and to keep protected during the rainy days. You can also haul along many items, maintain a good appearance, save time, and avoid air pollution when you’ve got a car.
There are some individuals who have already saved up a huge amount of money and would just like to add to this through a personal loan instead of an auto loan so they can pay in cash or make a big down payment. Whether you’re buying a new car or a second-hand vehicle, a personal loan will be of great help.
You’ll be surprised how even poor families are able to celebrate special occasions like weddings, baptism, and graduation. Because they often cannot be approved for personal loans from banks and financial institutions, they just borrow from neighbors and relatives.
Indeed no matter if you’re poor or not, an employee or not, you’re likely to also be eager to celebrate special occasions in your life. Many avail of personal loans for wedding celebrations, first birthday parties, and more.
New Gadget or Equipment
Need a washing machine for your apartment? Want to upgrade your laptop so you can work faster? Whatever new piece of equipment or furniture you would like to have or if you’re keen on getting a new gadget, you can apply for a personal loan too.
Some people choose to get a personal loan instead of a business loan because it is much easier and doesn’t require as many documents. Besides, if you get a bigger amount and you plan to put up only a small business, you might have some extra to use for other purposes.
With a business loan, you need to use the loan amount purely for your business. More often than not, an existing business will be investigated too in terms of credit history and background.
Holiday or Vacation
It’s often important to take a break from your daily routine and the rigors of your work life. Hence, Filipinos love to flock to the beautiful Philippine beaches during summertime and to travel as well with their families during the Christmas season. If you don’t have enough money saved up for your planned vacation, you can most definitely get a personal loan for this purpose.