things to look out for on your next personal loan

Things to Look Out for on Your Next Personal Loan

Last week, the Bangko Sentral ng Pilipinas (BSP) warned the public against fraudsters that provide loan documents, deposit certificates, and other commercial papers to individuals, corporations or institutions.

According to BSP’s statement, “Scammers claim that such documents will facilitate transactions in favor of the recipients, in exchange for confidential personal or corporate information, and subject to fees or charges.”

It was also revealed that the central bank “only deals with authorized or accredited counterparties, mostly BSP-supervised institutions, duly-recognized partners and appropriately-contracted suppliers or service providers.”

While fraud is still rampant in the country, there are ways to protect yourself from becoming a victim of this modus operandi. Look out for these things especially when you’re applying for a personal loan:

The lender’s website is secure

A secure website has a padlock symbol while its web address begins with “https.” These symbols tell you that the website is secure, but there are times when you might get a warning from your browser that the particular site you’re visiting has an expired certificate or that it is being redirected to a different website.

The legitimacy of the lender

Thanks to Google, you can easily check if the lender is legitimate or not. You can find pieces of information about a certain lender within seconds, so it’s best to do your research before making any decision. See if the lender’s business phone number really works and if its business address actually exists. You can also try Googling if the lender you’re eyeing has been reported for scams or other fraudulent activities in the past.

The details being asked by the lender

Never give out your personal details via email or type them into a website that isn’t secure. Keep an eye on links (phishing attacks!) that redirect you to another website where you’re being asked about your email address, social security number, bank account and credit card details. Anyway, you can apply for a personal loan even without a bank account or a credit card. 

The interest rate being offered by the lender

The interest rate for a personal loan varies per lender. Banks and financial institutions usually have an add-on interest rate of 1.39% to 1.55% per month. Aside from interest rates, banks charge a one-time processing fee upon application. These fees range from ₱1,200 to ₱2,000 or 1% of the total amount you borrowed, whichever is higher. In addition, you will be asked to pay for documentary stamp tax which is typically ₱1 for every ₱200, if the loan is above ₱250,000.

Getting a personal loan requires you to do your homework. Good thing there’s GoBear to help you compare personal loans before you apply. There’s the online loan calculator tool to compare personal loan fees, requirements, and interest rates all in one glance. 

What are you waiting for? Head over to today!