We have prepared all personal education loans in the Philippines
Education loan is a loan issued to Philippine people for continuing education. Not every young person has relatives who are ready to provide the financial support. A job can be found after school, but a considerable part of theoretical knowledges is usually lost during this time. Combining work and learning is difficult. Education loan is an opportunity to get the necessary money immediately. This type of a loan can be taken by parents or by university-entering student as well. Without a higher education diploma, you can hardly count on a well-paid job, so such loan is a direct investment in the future.
How to get an education loan in the Philippines
Personal loans for education can be obtained in several ways. Private educational institutions often offer their own programs. These are not scholarships, but the opportunity to pay for education by installments. There is a special HELPS program for students, implemented by the Development Bank of the Philippines (DBP).
If you aren’t able to use one of the options above, you can contact other financial institutions. The difference is that such loans for higher education remain similar to usual targeted loans. In other countries, issuing a loan for education implies preferential terms for the borrower. It’s uncommon in the Philippines.
Currently, the average college tuition cost is 90,000 PHP (Philippine pesos) per year. A prestigious university will cost 2-3 times more expensive. The cost of higher education is constantly growing. If you take a personal loan to pay for the whole period of study, you can save yourself from inflation risks and to even save some money.
Education loan calculator
Requirements for borrowers
The following requirements, specified by us, are given without taking into account the social programs of colleges and DBP. We are talking about getting a loan for education in ordinary banks. To qualify for such loan, you need to be a citizen of the Philippines who has reached the age of 21. When applying to a bank, the following documents may be required:
- a passport copy;
- an employee’s IDs;
- a proof of monthly income;
- extracts from a payroll and a bank account for the last three months;
- a savings book copy, etc.
Personal loans for education can be taken by people who work in the same company for at least a year with a minimum monthly salary of 15 000 PHP. You may need the following documents: a certificate of employment, a payslip, a report on losses and incomes. Self-employed persons have a possibility to take a similar loan as well.
The loan repayment terms depend on the particular institution. A good credit history helps to expand the list of options for education loan obtaining. If there are problems with a credit history, most banks will refuse to issue a loan. It is much easier to get money in lending institutions, but the interest rate will be much higher.
Education for foreigners
Loans for foreign education is a matter for a separate talk. Diplomas of leading local universities are recognized all over the world. This means the possibility of employment in a large international company. In many universities, studies are taught in English. At the same time, the cost of education is lower than in the leading European countries, the USA or Canada. In order to obtain loans for foreign education there are the following requirements:
- permanent residence in the Philippines;
- availability of housing (own house is preferred over rented);
- complete absence of credit debts;
- a document from the school;
- a permanent account in a bank and other solvency confirmations.
When formalizing an application, it is important to make sure that all the necessary documents have been collected. If you are not sure of your competence, it is better to consult a professional who is familiar with the nuances of the procedure.
How to apply for a student loan in the Philippines
It is not very difficult to get a personal loan for education. The question is how beneficial the proposed terms are going to be for a borrower. First of all, we recommend to study public and private programs for students. If these options are not achievable, it is worth applying to the Development Bank of the Philippines.
If the variant with the DBP isn’t achievable as well, you will have to thoroughly study the proposals of other banks and credit organizations. As we have already said, local education loans rarely differ from other personal loans. There is a high probability that you will be able to get a normal consumer loan on more favorable terms. We propose to save time which is spent for offers studying. Credit programs of leading Philippine banks and financial companies are collected in one place. You still have to compare the options, to choose the best one and to fill out the application form. Immediately afterwards, it is redirected to a financial institution for processing.
Example of calculating interest and loan payments
|TERM||10 days||20 days||30 days|
|LOAN AMOUNT||20000 PHP||20000 PHP||20000 PHP|
|INTEREST AMOUNT||2000 PHP||4000 PHP||6000 PHP|
|TOTAL REPAYMENT||22000 PHP||24000 PHP||26000 PHP|
Written by Mikka Montero | Modified date: October 22, 2020