Metrobank Advises on Key Considerations Before Loan Acquisition
In view of the possibility of a delay in the central bank's rate hikes, Metrobank advises customers on borrowing money. The halt may reduce the cost of borrowing, affecting credit card bills, new loans, and mortgages. However, before jumping into a loan, Metrobank recommends that customers examine the following:
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| Metrobank Advises on Key Considerations Before Loan Acquisition |
- Examine your financial condition: Before applying for a loan, you should examine your existing financial situation. Consider your current bills, emergency fund, and whether you could use savings or extra income to make a significant buy.
- Clarify the purpose of your loan: Loans should improve the quality of your life or provide economic value. The advantages of learning new skills or purchasing a condo should be obvious. Banks will assess your application and establish the interest rate based on the purpose of your loan.
- Check your repayment capacity: Ensure your income meets your loan installments. Consider your valuables as collateral, then review your monthly budget to see if you can afford a loan.
The Debt Burden Ratio (DBR) is a fundamental instrument used by lending institutions, such as banks, to estimate your ability to repay your debt. It is the proportion of your monthly revenue to your required loan payments. A greater DBR could lead to a reduced loan amount or even loan denial.
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Personal financial gurus recommend that your total monthly loan payments fall between 30% and 35% of your monthly income. This allows for necessary expenses as well as potential savings or investments.
Metrobank offers a low-interest rate of 9.11% p.a. for a 5-year period on a one-month advance payment schedule, with bank costs waived up to PHP 50,000. Customers will also be pre-qualified for a Metrobank Toyota Mastercard, which comes with various incentives.
Metrobank also offers a low-interest rate of 6.50% p.a. fixed for one year on house loans, plus up to PHP 50,000 in waived fees. Customers will also be eligible for a Metrobank Credit Card, which will provide them with incentives and discounts on their new house.
Please visit Metrobank's website or contact their customer support for additional information.