It’s no secret that in the Philippines, high school is experiencing a shortage of government-funded places. There are many more people who want to get a specialty in higher education. As early as April 17, 2019, CHED began to implement the Universal Access to Quality Higher Education Act in partnership with the Philippines Development Bank. As a result of this partnership, a program has been created through which prospective students can take out an education loan of PHP 60,000. To receive this loan, the student needs to prove the fact of his studies – present a certificate. You need to get this document at your educational institution.
However, this soft loan at 0% (provided that the loan is repaid by the end of the semester) can only be obtained once. And the amount of 60,000 pesos will cover the costs for approximately 1 year. What about paying for the rest of the semesters?
If the student has relatives who are members of the SSS, then they can use the Education Loan (EALP). The credit amount for the diploma course is maximum PHP 20,000 per semester, for the vocational course – maximum PHP 10,000 per semester. This loan is financed by 50% of the SSS and 50% of the National Government. Interest rate 0% (part of NG) and 6% (part of SSS).
If a student has already used the options described above or cannot use them for certain reasons, then money for training will have to be sought in banks or microfinance companies.
Student loan from banks and microfinance companies
In modern realities, many students study in online classes. And this does not reduce the cost of training, and sometimes even increases it if you did not have a laptop, computer and high-speed Internet. In many high schools, despite the pandemic, teaching continues normally. The weakening economy has put many parents in a difficult financial situation.
Banks implement their loan programs at a much higher interest rate than CHED, DBP and SSS. But there are also pluses – fast student loans to philippines citizen banks issue for larger amounts than PHP 60,000. It should be borne in mind that a student loan does not have to be called a Student Loan; both Personal Loans and Consumer loans are suitable for these purposes.
TOP-5 banks issuing Student Loans:
- Maybank – Personal loan up to 3 years, rate 1.3% per month.
- BDO Network bank offers its clients 2 types of loans that can be used to pay for education: Personal loan up to 3 years at a rate of 2.18% per month; Kabayan Secured loan with the same maximum term and rate of 1.42% per month.
- BPI – Personal loan up to 3 years with an interest rate of 2.125% per month.
- Citibank – Personal loan up to 3 years, 2.24% per month.
- RCBC – Personal loan up to 3 years at a rate of 2.3% per month.
Unfortunately, not everyone can get a bank loan because of the high requirements for the borrower. Low salary or lack of constant income over the past 6 months can become insurmountable obstacles for obtaining a bank loan.
In such a situation, students or their relatives should look for a suitable financing option in microfinance institutions. These companies issue fast student loans to philippines citizen even without credit history. These types of loans are often called Cash loans or Online loans – they have shorter terms and higher rates. However, they can be considered as a temporary option, and after the stabilization of the situation with income, refinance it.
The number of Payday lenders or microfinance companies is large. The best solution to get acquainted with all the offers and choose the optimal one is to use the UpFinance service.
What is UpFinance?
UpFinance is a site that provides up-to-date information on all types of loans for free. You can filter offers by company types: banks, Payday lenders, Pawnshops, etc. Or you can select results by type of loan: Auto loan, Chattel Mortgage, Student loan, and so on. The list displays results with the names of companies, by clicking on which you will go to the partner’s page. This page will contain detailed information on loans, credit cards and even savings programs. After comparing and choosing a suitable offer, the user can send an application from the website – upfinance.com to all credit institutions or go to the website of the selected financial institution, all links will be provided.