“Pangungutang” or borrowing money has been a part of the Filipino culture. Well, financial emergencies are inevitable and thus, we are always left with one choice, getting a loan. Two of the most popular and commonly availed loans are personal and salary loans. However, many people still get confused about the two. Some even think that they are just the same. Well, to make sure that you are being money smart with your loan application it is only a must that you really know their differences. Thus, here is a comparison for you.
Defining Salary Loan
If you will ask Bangko Sentral ng Pilipinas, they officially defined Salary Loan as an unsecured loan available for any consumption purposes. These may include a medical emergency, education, travel, household, and other personal reasons, which is why they also come 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 individuals who are employed, with a regular salary, pension or any other fixed compensation. They are expected to repay their loans through payroll deductions or debit from a deposit account. Take note that credit cards, motorcycles or vehicle loans do not fall under this type of loan, BSP specifically indicated that these needs are covered in other existing BSP regulations.
Most Filipinos apply for Salary Loan to their employers or from government institutions such as PAG-IBIG and SSS. However, there are also other private lending companies that offer salary loans.
Apply for a low, fixed-rate Salary Loan from Vidalia Lending and get the cash that you need. Whether you need it for your medical, laboratory, medicines or even any type of expense bill, you can definitely visit our website for a quick and easy lending process. You can pay for your expenses in installments and you are very free to decide on how you will 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 they are serving the same purpose. As a borrower, you are the one to decide whatever it is you wanted to do with your borrowed cash. Thus, where do these two loans really differ?
Well, personal loans are not available to government agencies or to your employer. As said before, you can avail a personal loan from the bank or other private financial institutions. Also, if ever that you still have an active salary loan from your employer, you can still opt for a personal loan, as long as you can prove that you can handle repaying both loans.
The terms for both loans vary on the financial institution where you will apply for the loan. Knowing these few differences might at least help you figure out which loan is really better for you and your current financial situation.
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