Every lender would also opt for a loan with a low interest rate. In fact, it is the top consideration for the majority of Filipinos when choosing a loan. There are many types of loans, depending on your business goals and vision. But if you’re considering funding a small business, a personal loan with low interest would be your best option.
Before we get started, let’s first understand the two types of interest offered by lenders
- Monthly add-on interest rate – This is the fixed interest added per month to the principal amount.
- Annual contractual interest rate – This is used to determine the total amount of interest the lender has to pay based on a 360-day period and divided monthly.
Many financial institutions that offer loans with a low interest rate are government agencies and banks. Here we list some of the top personal loan options with low interest rates that you can consider.
1. SSS Salary Loan
SSS Salary Loan is often the top choice of employees for short-term loans because it’s convenient and has low interest rates. You can coordinate with your company’s HR to file for a salary loan.
Interest terms:
- Interest rate of 10% per annum based on diminishing principal balance payable over a period of 24 months
- Any excess in the amortization payment shall be applied to the outstanding principal balance.
- A 1% per month penalty will be added for overdue payment
2. HSBC Personal Loan
Applying for an HSBC Personal Loan is also convenient as you can process them through phone by calling ita hotline (02) 8858-0000 or visit any branch.
Interest terms:
- Monthly add-on interest rate at 0.65%
Effective interest rate of 14.29% good for 24 months - Choose to pay your loan in terms of 6, 12, 18, 24 or 36 months
- Penalty of 36% per annum on overdue payment
3. CIMB Bank Personal Loan
CIMB has made applying for a loan easy and convenient with its all-digital personal loan application. Among the eligibility requirements is to have a minimum gross monthly income of P15,000.
Interest terms:
- Monthly add-on interest rate of 1.12% to 1.95%
- Annual contractual rate of 24%, 30%, or 36%
- Penalty of 5% of the unpaid installment due or ₱300, whichever is higher for overdue payments
4. BPI Personal Loan
BPI offers a personal loan amount from P20,000 to P2 million. To apply, you don’t need a collateral or guarantor. For principal credit cardholders, no need to submit income documents.
Interest terms:
- Monthly add-on interest rate of 1.2%
Annual contractual rate of 25.60% - Flexible terms of 12, 18, 24, 30 or 36 monthly installments
There are many other options you can look into. There are also business loans for your bigger funding needs. Take the time to research which loan best suits your business goals.
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