{"id":863,"date":"2017-10-14T21:13:21","date_gmt":"2017-10-14T13:13:21","guid":{"rendered":"https:\/\/www.balikbayad.ph\/blog\/?p=863"},"modified":"2017-10-15T22:09:12","modified_gmt":"2017-10-15T14:09:12","slug":"all-about-utang-where-you-can-borrow-money-in-the-philippines","status":"publish","type":"post","link":"https:\/\/www.balikbayad.ph\/blog\/all-about-utang-where-you-can-borrow-money-in-the-philippines\/","title":{"rendered":"All About Utang: Where You Can Borrow Money in the Philippines"},"content":{"rendered":"

Admit it. At one point in your life, you borrow money from your sister, friend, co-worker, and even submitted a loan application in the bank. Despite the monthly income and savings you have, the money is not enough to finance a particular need. Don’t feel bad because even businessmen and big companies borrow money for additional working capital. In fact,\u00a0utang\u00a0<\/em>has been a part of Filipino culture to help us get through tough financial situations.<\/p>\n

Where can you borrow? Consequently, what are the perks and downside of borrowing from different entities?<\/p>\n

Read on to find out.<\/p>\n

Family or Closest Friends<\/strong><\/p>\n

These are the people you always turn to in times of need, whether it’s financial or otherwise. More than that, they are willing to help you and lend you money – as long as you don’t abuse it.<\/p>\n

The good thing about borrowing from family or any of your closest friends or colleagues at work is that there is no deadline. You can “pay when able” as long as you pay. You don’t have to worry about interest rate since you are only bound to pay the amount you borrowed.<\/p>\n

The downside is that there will always be a risk in your relationship, especially if you can’t pay on time. The next time you are in need, you might have a hard time borrowing from them since you don’t live up to your promise.<\/p>\n

Private Individuals\u00a0<\/strong><\/p>\n

Aside from your friends and family, other private individuals such as independent lenders can lend you money in times of need. Unlike your friend or anyone in the family, these individuals may impose an interest, depending on what you agreed on, which can either be a fixed interest rate or\u00a0 incremental.<\/p>\n

The downside of borrowing from private individuals who are not licensed lenders is the interest rate. Surely, you want to keep the rate as low as possible. On the other hand, the private lender wants a higher rate to earn profit from the transaction.<\/p>\n

Paluwagan System\u00a0<\/strong><\/p>\n

This is common in the workplace. The idea of\u00a0paluwagan\u00a0<\/em>is that a group of people, regardless of how many, will collect a certain amount from each other and will be placed in a common fund. Then, you will decide among yourselves the lineup on who gets the fund first, second, and so forth. Once the collected fund goes to the first in line, new funds will be collected again until everyone gets their share.<\/p>\n

This is good depending on the number of participants, agreed contribution, and willingness to continuously give so that everyone can get their share. Nonetheless, you might have a hard time sustaining the\u00a0paluwagan\u00a0<\/em>system.<\/p>\n

5-6 Lending \/ Loan Sharks<\/strong><\/p>\n

Desperate\u00a0<\/i>times call for desperate measures. This is the reason why despite the skyrocketing interest rate, some people still borrow from loan sharks out of urgent need and necessity.<\/p>\n

You can borrow from loan sharks IF you can pay immediately (which means the next day). Otherwise, stay away from them since you’ll end up swimming in debt.<\/p>\n

Banks\u00a0<\/strong><\/p>\n

If you are looking for safety and legitimacy in the world of borrowing, then banks won’t let you down. Banks can offer various loan products depending on your specific need, which could come with additional benefits.<\/p>\n

Banks mean well. Still, banks want assurance that they will be paid no matter what happens, which is why they ask tons of documents to prove that you are worthy of credit. Loan processing take some time too, usually a week or more. This is not ideal if you are in a hurry and you need money instantly.<\/p>\n

Private Financial Companies<\/strong><\/p>\n

These are companies with assets not as big as banks but are legitimate and recognized by the BSP to function as lenders. Similar to banks, they also offer loan products that cater to a specific need, although it may not be as extensive as what banks can offer.<\/p>\n

The good thing about private financial companies is that the requirements are more flexible. Some companies even have online application facility where borrowers can apply and submit required documents, thereby making borrowing easier and more convenient. Loan processing and cash disbursement are faster too, which usually takes one day to less than a week.<\/p>\n

Balikbayad is among the trusted and legitimate financial companies that can help you address your financial needs. Send your application now and we will get to you as soon as we can.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Admit it. At one point in your life, you borrow money from your sister, friend, co-worker, and even submitted a loan application in the bank. Despite the monthly income and savings you have, the money is not enough to finance a particular need. Don’t feel bad because even businessmen and big companies borrow money for … <\/p>\n

Continue reading “All About Utang: Where You Can Borrow Money in the Philippines”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[7],"tags":[],"_links":{"self":[{"href":"https:\/\/www.balikbayad.ph\/blog\/wp-json\/wp\/v2\/posts\/863"}],"collection":[{"href":"https:\/\/www.balikbayad.ph\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.balikbayad.ph\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.balikbayad.ph\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.balikbayad.ph\/blog\/wp-json\/wp\/v2\/comments?post=863"}],"version-history":[{"count":3,"href":"https:\/\/www.balikbayad.ph\/blog\/wp-json\/wp\/v2\/posts\/863\/revisions"}],"predecessor-version":[{"id":866,"href":"https:\/\/www.balikbayad.ph\/blog\/wp-json\/wp\/v2\/posts\/863\/revisions\/866"}],"wp:attachment":[{"href":"https:\/\/www.balikbayad.ph\/blog\/wp-json\/wp\/v2\/media?parent=863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.balikbayad.ph\/blog\/wp-json\/wp\/v2\/categories?post=863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.balikbayad.ph\/blog\/wp-json\/wp\/v2\/tags?post=863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}