Type of Loans/Fundings in the Philippines
By: Aladin R. Intoy Jr.
You might be a student who wishes to go to college but lacks financial resources. You might be a company employee who wants a new house but your salary is not enough. You might be a business owner who wants to expand but is tight with capital. You might be an individual who needs money to use for an unprecedented emergency.

No matter what reasons you may have, there will be a time in our lives when we will need extra money, and seeking cash fundings is one of the options. Hence, listed below are some of the loan types available in the Philippines which might suit your need:

Personal Loan
This is the type of loan for individuals who wish to borrow money for various purposes-- home improvement, payment for bills, payment for debts, and more. More so, it is an unsecured loan that does not require collateral when applying.

Salary Loan
From the name itself, this type of loan generally relates to the borrower’s salary. The loanable amount is based on the compensation the loaner gets from his job. Hence, the loan will also be repaid according to when his next paycheck will be given.

Home Loan
This type of loan is helpful for people who want to buy a house, condominium, or alike but is lacking in cash. Financial institutions support them based on the percentage their companies can offer. In other words, they usually offer cash fundings up to more or less 80% of the property’s value.

Car Loan
This loan supports borrowers who want to buy a car. The financing company lends money to the borrower to purchase the unit he wants or the company itself will buy it for the loaner. This is a secured loan where the car being bought will also serve as collateral, unless the loaner can provide a different one to be used as security.

One great example of this is Kaimo, a product of the Kayamo Aro Holdings Corporation for individuals who wish to purchase their dream car. Kaimo also enables auto dealers to have access to fundings to expand their businesses. You may visit www.kaimo.ph to know more.

Business Loan
This type of loan dwells on borrowing money for business purposes--expansion, buying of stocks or equipment, and others. One great example of this is what Kayamo offers to online sellers, especially for small businesses who do not have access to financial opportunities from banks and similar companies. Kayamo provides cash fundings through the “Kayamo Wow Loan” and “Kayamo Negosyo Loan”. To know more, you may visit www.kayamo.ph.

Indeed, there are several types of loans available in the Philippines, where you can choose what best fits your need. There are also several financing institutions that offer all, most, or some of these types. The only thing is that we must seek funding if we need to and in accordance with our capability to repay. Because it may be very easy to get cash funding in the country, but borrowing money also entails great responsibility.