List of 6 Types of Loans in the Philippine & the Purposes of Each
TYPES OF LOANS – Here is a list of the six(6) kinds of loans in the Philippines and the purposes that each of them serves.
Undeniably, one of the things that we can turn to during emergency situations are the loans. We can apply for them so we can have the money to fund for medical bills, electricity bills, tuition fees, etc.
Usually, when it comes to emergency situations, the people would apply for a personal loan or a salary loan. It is the most flexible type of loan that we can apply for.
Meanwhile, aside from the personal loan and the purpose of applying for emergency situations, there are other types of loans which also serve certain purposes.
Based on an article on Moneymax, here is a list of the six(6) types of loans that are common in the Philippines and the purposes they serve:
1. Personal Loan
This loan serves a wide range of purposes. You can use it to pay for hospital bills, school tuition fees, dream travel, etc. Based on the article, it is usually paid through a fixed term from 12 to 48 months.
2. Debt Consolidation Loan
This loan can be applied for by individuals who have a lot of credit and wanted to pay for them in a single account. It will consolidate all your debt under a loan that has better offers.
3. Home Loan
This is one of the types of loans that have specific purposes. You can apply for it for the purpose of house construction, purchase of house, house and lot, townhouse, or condominium units, or house renovation.
4. Auto Loan
Another type of loan with specific purposes is the Auto Loan. It is used for the purchase of a brand new or a second-hand vehicle for those who wanted to obtain their own car but have no money to pay it in full.
5. Business Loan
Based on the article, this loan is applied for the purpose of expanding one’s business or getting fund to increase the capital. It is best for those who wanted to make their business grow.
6. Educational Loans
This type of loan serves the purpose of paying the fees in school. This is beneficial for those who wanted to take a high-paying course but have no money to finance themselves fully.
Are you planning to apply for any of these types of loans? You may consider reading the article below first.
READ: BANK LOAN – List of Advantages & Disadvantages of Having Bank Loans