Friday, June 14, 2019

Taking the Right Steps in Applying for Self Employed Loans




Several years ago I attended a symposium about how to financially handle loans. They covered mostly the general aspect of acquiring loan; from company loans to housing loan. There they discussed the pros and cons of taking a loan while you are employed and also tackling self-employed loans. I must admit when I was new in the company I was working, my co-workers then where convincing other co-employees to file monetary loan from our social security provider, since I am new I didn't have the knowledge of the how's and what's of it, even they introduced it to me. My only knowledge about it is the possible high-interest a certain loan an incur. Years passed by the same topic about personal monetary loan has discussed, and I gave in, I was able to file a one-month salary loan under our social security provider, through our company's loan program. 

Honestly, the hesitations at first did set-in, that was literally the first loan I made since I started working. You may ask what made me do it? I need extra money for my parent's house. They needed extra funds for painting and some fixtures and that's where my loan sets-in, it did serve the purpose.

In the loan contract, I signed in with, a computed amount for payment will be deducted every payroll, the 15th and the 30th of the month, for two years. A percentage was computed for the interest and was added to the primary loan amount. Deductions were made in the payroll by my employee for the whole two years (24months). And after two years, I was able to finish the contract loan. Although, hesitations and some worries when applying for personal loans your overall finances should always be put into consideration. 

Loan programs vary from company's loan program scheme, you need to be equipped with the knowledge on what to apply and the need for this specific aid be used. In the scenario of a person borrowing money to friends and family is the customary way, whether this money will be used for emergency or personal use or sometimes for business use. Sometimes, due to the close relationship between the borrower and the lender verbal agreement suffice in such, but in a legal and more formal way, a written agreement is suggestive. This is to prevent future disagreement between family and friends which can and the possibility of this can happen. One good example is if the borrower couldn't make the promise of returning back the borrowed money on the promised date. You wouldn't want your name to be listed with bad credit

Credit score will determine how are you-you borrow money from an institution, this will define your debt standing, interest rating, and whether you will be eligible in the next time you apply for a loan.

Overall, when asking to borrow money make sure your capabilities to pay the amount. Do not put yourself in the debt and see to it that the money you are asking will be put in good use. 





2 comments:

  1. Indeed loans are helpful in having cash, especially during emergencies. Lets just be careful though, which type of loans we are comfortable with, considering interest rates and repayment scheme.

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    1. I totally agree, in the recent news there are a lot of loan companies online that offer quick application but those are tricky. I wouldn't suggest availing such quick loans, there are trusted loan companies.

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