Borrowing power means the amount of money that you can loan from banks in the Philippines. It includes the maximum and minimum amount that banks are willing to lend you based on your eligibility. Most personal loans are unsecured credit, which means that you do not need to present a collateral to apply, but you do have to meet certain bank requirements, and your borrowing power for personal loan largely depends on this.
Your borrowing power for personal loan depends on many factors: employment status, monthly income, loan tenure, and the loan amount limit settings of banks.
The first things that banks look for when it comes to determining how much you can borrow for personal loan are your employment status and monthly income. You must be gainfully or currently employed and have a steady income to be qualified for a loan. Freelancers and self-employed professionals also need to present a proof of income, like BIR papers, when applying for a loan.
The loan tenure also affects your borrowing power for personal loan. A loan tenure is the length of the term of the loan. Some banks offer a loan tenure of 3 months, while some can offer a longer tenure of up to 5 years. The loan tenure also affects the interest rate.
All banks have a loan amount limit setting that determines how much is your maximum borrowing power for your personal loan, depending on your monthly income. You can use the table below to compare how much you can borrow for your personal loan. You can also use GoBear to compare loans side-by-side so you can make the best choice.
There are too many options for loans, and more often, there is too little information about the loans that banks offer. With GoBear, you can now compare details of every bank in the Philippines, including those of EastWest, BDO, BPI, Security Bank, Equicom, Bank of Commerce, Bank of Makati, Metrobank, PNB, PSBank, Citibank, and more!
When it comes to personal loans, GoBear lets you see an actual breakdown of the costs of applying for a loan. In percentage form, you will discover how much of the total cost goes to fees, how much goes to interest rates and how much of the money actually reaches your hands. You might also discover that Bank A may have the lowest interest rates, but in the end, it only shifted the difference in its “other fees” segment.
See a side-by-side comparison of fees, interest rates, and requirements if you compare before you commit. The website is free and easy to use, created to help Filipinos make smarter financial decisions. Learn more about GoBear through the FAQ page.
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