Loans are there for your financial needs. At first glance, they give you cash to spend on needed expenses. When applying for a loan, most of the time you might have gotten the cash. But, you have to read closely what they offer. While they have an existing name for being a great service provider, they may not tell the full story.

On this page, there are 5 things you need to consider before you apply for a loan. Some of these might sound trivial, but they can save your moneyโ€™s worth. Money cannot buy you happiness, it is how you handle them. Letโ€™s get right into it!

Check their Loan Terms

Loan terms are the period when the borrower should pay back the loan. A number of loan services can go as short as 8 weeks to as long as 6 months. If you are applying for a personal loan or a salary loan, the terms can go longer when stated on their plan. There are times when borrowers cannot apply for a loan due to the length of the repayment period.

Once they give you the specific time, do not take it for granted. If you are able to pay it beyond the terms it can be difficult to apply for another loan.

Loan within your means

The cheapest amount that you can borrow is as low as PHP500.00. The highest amount that one can borrow may range from PHP20,000.00 to PHP25,000.00. Anything higher will result to applying for a higher loan with a cost of bigger repayments.

This is why you must have a good credit score before you can apply for a loan. Having a bad credit score will lower your chances of getting a loan. Other factors that can affect your borrowed cash are your current financial situation or lifestyle. The company wonโ€™t stop until you give them what they are looking for.

Calculate the Interest Rates

This part varies depending on the service you will apply for. Even if you applied for a reasonable amount with a good loan term, the interest rate can fluctuate. Whenever possible, read and research various loan services and the rates they give.

Inquire more about their services

There is no harm in asking more questions. While they have all the information available, there might be some hidden steps that are done when a transaction is made. If no questions cannot be entertained, this can be a sign that the loan service may not be legitimate. You can look at websites like to know their offerings.

Gather information

Information is key. When the loaning service is missing vital information, you should look for different services. This can be a reason why some borrowers may not be able to agree with their terms with how ambiguous their wordings are. One bad situation is when the borrower gets the cash but the lenders demand higher amounts which are not initially stated.


In short, you need to do your research when applying for a loan. Applying for one without any second thought can affect your income. These are the kinds of services that do the job. It is not meant to be a source of income but rather a temporary emergency fund. When paid right, that is when you know that you can manage your money.

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