From paying for your first-class plane tickets to upgrading your ten-year-old car, personal loans are a good way to achieve your goals in life. But while you think of the things that you can use personal loans for, you must be responsible enough to meet the payment deadlines.
Regardless of the amount you’re borrowing, a personal loan is a huge responsibility. We at GoBear would like to help you become a responsible borrower, so we’ve come up with a list of the fees and charges you have to watch out for.
This specific fee is a small percentage you pay the bank for the disbursement process. A disbursement fee applies every time cash (or a portion of it) you want to borrow is disbursed or handed to you.
You can ensure a one-time disbursement with your issuing bank to avoid hefty fees when getting your cash loan.
We tell you everything about personal loans in the Philippines
Who doesn’t want to be early when it comes to settling payments? With loans, however, paying in advance can also result in pre-payment penalties. Yes, you’ve read that right! This exists to make up for the “loss” of computer interest.
Sometimes, you even pay more when you make an early payment than when you finish paying off the loan terms you agreed on with the bank.
Late payment fee
If there’s a pre-payment fee, then expect some fines for late payments. Banks and other financial institutions charge a fee for, well, late personal loan payments. It’s best to mark your calendar with the payment deadline, so it’s easier for you to track your payments.
Loan modification fee
There are banks that charge a fee when there’s a need for you to change some details in your loan application. To avoid being charged with this particular charge, always check the information you provide during the application process.
So, why do banks penalize you for these changes? You see, processed personal loans go through a legal process that requires a certain fee, and modifications mean added workload for the banks as they have to ensure that your details are accurate.
Increased interest rates
It’s the bank’s decision to raise your loan interest rates due to certain conditions. Especially if you constantly miss your payment deadlines, your bank has the power to charge you a higher interest rate.
What’s the secret to staying away from this? It’s as simple as paying your monthly dues on time.
People Also Read:
- Get Your Personal Loan Approved with These Tips
- Things to Look Out for on Your Next Personal Loan
- 5 Ways to Meet Your Personal Loan Payments
Compare personal loans with GoBear and see which banks and other financial institutions have the best offers for your needs.
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