“Pangungutang,” or borrowing money, has been a part of the Filipino culture. Financial emergencies are inevitable; thus, we are always left with one choice: getting a loan. Personal and salary loans are two of the most popular and commonly availed loans. However, many people still get confused about the two. Some even think that they are just the same. To ensure you are being money-smart with your loan application, you must know their differences. Thus, here is a comparison for you.
Defining Salary Loan
If you ask Bangko Sentral ng Pilipinas, they officially define a Salary Loan as an unsecured loan available for consumption. These may include a medical emergency, education, travel, household, and other personal reasons, so they also came up with the official term “Salary-Based General-Purpose Consumption Loans.” With this, Bangko Sentral ng Pilipinas also clearly stated that salary loans are for employed individuals with a regular salary, pension, or other fixed compensation. They must repay their loans through payroll deductions or debit from a deposit account. Credit cards, motorcycles, or vehicle loans do not fall under this type. BSP expressly indicated that these needs are covered in other existing BSP regulations.
Most Filipinos apply for a Salary Loan from their employers or government institutions such as PAG-IBIG and SSS. However, other private lending companies offer salary loans.
You can apply for a low, fixed-rate Salary Loan from Vidalia Lending and get the cash you need. Whether you need it for your medical, laboratory, medicines, or any expense bill, you can visit our website for a quick and easy lending process. You can pay for your expenses in installments and are free to decide how to use your cash.
Defining Personal Loan
Local and international banks, as well as private lending companies, offer this type of loan. A personal loan is often confused with a salary loan because it serves the same purpose. As a borrower, you are the one to decide whatever it is you want to do with your borrowed cash. Thus, where do these two loans differ?
Personal loans are not available to government agencies or your employer. As said before, you can avail a personal loan from the bank or other private financial institutions. Also, if you still have an active salary loan from your employer, you can opt for a personal loan if you can prove that you can handle repaying both loans.
The terms for both loans vary depending on the financial institution where you will apply. Knowing these few differences might help you figure out which loan is better for you and your current financial situation.
Do you need some cash? If you want someone to borrow money from, why not try our fast and easy lending services? Here at Vidalia Lending, you can get your much-needed cash as fast as 2-3 days. Visit our Loan page and choose from our different types of loans. Explore the benefits of our Personal Loan, Salary Loan, Business Loan, and Small Business Loan.
