What should be on your checklist before applying for a loan?

The practice of taking loans to fulfil your desires or requirements has become a necessity today. There are many easy ways in which you can apply for a loan online as well as offline. However, there are a few things that you need to keep in mind before you apply for a loan. Several best licensed money lender in Philippines are available.

The first and foremost thing one should remember before applying for a loan is to ensure that the credit score of your account is high enough. Lenders often look for credit score as the base criteria for deciding whether and how much amount to be lent. Nonetheless, there are different reasons why people want to apply for loans. Note that, there are different categories of loans available in the market, such as – personal loans, marriage loans, funeral loans, study loans etc. Listed below are some points that need to be considered before applying for a loan.

Loan amount

How much do you require and for what reason? Are you financially stable to repay this amount over the duration? These are the main questions that one should ask before applying for a loan. If the amount of the loan is manageable in your budget, then it will be less of a hassle to repay it.

Interest rate

If there’s one characteristic that decides whether to agree to the conditions of the loan, it is the interest rate charged. The rate of interest assessed influences your EMI and thereafter your reimbursement capacity. The more the EMI quantity, the harder it is to repay the same.

Repayment period

Nonetheless, an extended tenure also results in a higher overall interest amount that needs to be repaid. This is why it is recommended to keep the repayment duration as quick as feasible. But it is even more significant to show officially that you are in a situation to pay the EMI payment every month without fail.

Credibility of lender

The main criteria when choosing a lender is to look for a credible and trustworthy lender who can provide you with transparency in the loan procedures. Look for feedback and read the terms and conditions before signing any papers.


There are numerous things that need to be considered before taking a loan. The above listed from the main points which can be considered before choosing the right loan offer. Always look for what is suitable for you according to your financial situation rather than going for something which is popular. Remember, it is you who has to repay the complete amount and the interest amount.