Wednesday, January 25, 2012

Are You Ready For A Loan?

Over the past years, I have seen a number of friends, relatives and colleagues who had gone into acquiring loans. Some of them used up the loans for constructing a house, purchasing a lot or putting up a small business. It is a well accepted fact that financing these projects involves a big amount of money and more often, if you are just an ordinary worker or employee, chances are you will be struggling to start with one. This is where SBA loans come to the rescue.

In the Philippines, a number of prestigious banks are engaged in providing loans to private individuals who are on a look out for an additional funds for their projects. Some offer an attractive payment scheme which proved to be affordable for most ordinary workers. They also have the small business loans for overseas workers who are aspiring to start a business of their own. In the United States, there is this SBA or Small Business Administration loans which does not actually provide direct loans but rather provides guarantees to loans that were normally availed through their partner lending institutions.

Whatever type of loan you wanted to apply, it is very important to gauge yourselves first if you are already ready to apply for a loan. There are some important questions that need to be answered first before we finally make that final decision. There are some basic guidelines to follow so we could prepare and gauge ourselves to go further into that important decision of acquiring a loan.

First, we must take into consideration our financial standing. Where do we actually stand now? Are we struggling with our monthly budget? Do we have a little extra funds after deducting our monthly expenses? How many percentage of our monthly income goes to savings?

Second, do we still have any accounts payable? Well, I guess this is a very important question. It wouldn't be a wise move to go for another debt when you are not still done with your current one.

Third, Do we have extra income derived from other sources other than our fixed monthly salary? For me, this is an important consideration. You never know until when your current job will last. It is important that if worse comes to worse, you still have other sources of income that may somehow finance the monthly payments for the loan. 

Fourth, How is our credit standing? Do we have previous loans that were left unsettled? Most banks perform credit investigation and more often, the approval of your loans will be based from your credit history. Of course, lending institutions wanted to know if you are a responsible payer.

Fifth, Do we have a collateral to cover for the loan? I think most banks are requiring this since they wanted to be assured that they can get their money back just in case you failed to fulfill your obligations.

These are just some of the points that have to be taken into consideration before we jump into that final decision of whether we wanted to apply for a loan. Securing a loan to cover for your immediate needs and personal plans are the best options available at the moment but it is very vital that we ought to have a deeper understanding of the consequences and risks that go with securing a loan. If after a careful evaluation of our personal finances and we think that we are ready, then that's the right time that we make our final plans and go for that personal goal that we wanted to achieve.


9 comments:

Aileen said...

Great pointers Krizza. One should really do a lot of thinking before making loans. As they say, it's easy to borrow but consider how you will be paying it later on and most importantly, if you do have the capacity to pay.

krizza said...

Thank you Aileen! You're absolutely right. Getting a loan is easy but we have to take the responsibility that comes with it seriously or else, we will end not getting our objective. :)
Thanks for the substantial input.

ICAH BANJARMASIN said...

Thanks my friend I like U article.

Umihoney said...

Great article. Thanks for sharing Krizza.

Rovie said...

Sobrang helpful ang mga tips na binigay mo sis... It was really worth sharing and of course worth taking into consideration din...

Walang katapusang moolah naman ang nandito... Hehe

Lainy said...

Bonggang tips eto Krizz. Thanks for the share. Pasensya at ngayon lang nakadalaw uli. I never thought makakabalik ako ng di oras. Salamat sa mga comments sa blogs ko while I was away.

Hugs!

Krizza said...

@ ICAH, thanks dear! :)


@ Umihoney, thanks UMI! :)


@ Rovie, Thanks Rovie. OO nga eh, mukang pana panahon eh. Hehehe. :)

krizza said...

@ Lainy, Thank u at nadalaw ka muli sa bahay ko Lainy! I appreciate it! Hugz!

Indra antara said...

indeed a very useful information

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