Being tight financially is very common to all of us, but don’t you know that it is okay to apply for a bank loan? Just make sure you pass the test by answering these 7 Questions You need to Answer before applying a Bank Loan.
Okay, so you wanted to apply for a Bank Loan. By the way, there are many kinds of loans but that is not our topic for today. Let’s focus on Bank Loans.
The questions are not that hard as you may think but they must be answered and deal with accordingly. Sabi nga eh, nasa huli ang pagsisisi…
Anyway, here we go:
- How much money do you exactly need?
Before going to the bank, I strongly suggest you already know how much money do you exactly need. Because bank loan officers will offer you the maximum amount loan-able based on your basic salary computations. And chances are, the extra money will just go to ‘unplanned shopping’.Therefore, if you can write the amount on a piece of paper the better. And when you talk to the bank loans officer just hand him over the piece of paper and tell him, this is the exact money I wanted to loan.
- Do you know the correct interest of your bank loan?
The most common information everybody ignore or take for granted is the interest rate of your loan. The moment you know you are qualified to apply for a bank loan. Make it a habit to ask for the interest because when your salary is on the same bank you are applying the loan, the interest is lower. Which also means when you are applying a bank loan to another bank, the interest rates are higher. Check out BPI’s Personal Loan details here.So, don’t ignore this important detail. Before signing the loan agreement, be aware of everything especially the interest rates.
- What is the purpose when you have the money already?
Assuming everything went okay from processing till releasing of your loan. The next question you need to answer is What is the purpose of this money? I heard stories of how people ‘misuse’ money from loans by going straight to the mall. Buying stuffs not planned in the beginning because, there is money available in the pocket. Please don’t fall on this kind of mistake my friend.Again, it is very advisable to list down where your money will be spent once you have it in your hands. Of course, you can have a nice lunch with your family as a reward for your efforts.
- Can you afford the monthly payment later on?
Uhm, this is crucial because you need to include the monthly payment in your monthly expenses. Don’t ever think that you will still spend the same amount from your salary before your loan. When the bank loan officer processes your papers, take note of this and write this to remind yourself monthly.Okay? your monthly payment is already a part of your monthly expenses. To help you in your monthly expenses you might want to consider investing in the stock market, read this article.
- How many years you wanted to pay for this bank loan?
Normally, the bank loan officer would compute it for you. But, I want you to personally know how many years you wanted to pay for it. There must be a plan so that you will not be buried ‘literally’ in debt for so many years.Of course, you decide it together as a husband and wife or as partners. After all, you will be both affected by your monthly budget later on.
- What is your plan when you finished paying the bank loan?
Looking forward, when things do as per plan and you are able to fully pay your loan, what is next? I mean, if your financial situation is still the same you will apply for a loan again? Some people don’t even reached the end of the loan and make a ‘top-up’ loan already which I strongly disagree.So, a plan in the beginning and a plan at the end is necessary.
- Are you sure you need to apply for a bank loan?
Haha, finally after a lot of question and answer portion. This is the final question you need to answer… Are you sure you need to apply for a bank loan?Meaning, convince yourself. Talk to yourself and finally after going through all these process. Answer this question and if you really need it, then go for it.
Good luck and I hope you had an idea how it is important to answer these questions before applying for a bank loan.
As always, keep on learning earning soon!