Are you enrolled in online classes? But what if you do not have the budget to cover the gadgets? No need to worry; it is now possible for students to apply for an installment loan for any gadget. These include phones, laptops, and tablets. As long as they are used for educational purposes, they will be good assistance.
Installments come in various sizes. For example, you can pay for a laptop installment, tablet installment, and similar gadgets in this method. But, how do gadget loans work exactly? Is it like a personal loan? Find out more in this article. Let’s go!
Eligibility Requirements
Parents, guardians, and students of legal age can apply for a gadget loan. One needs to follow the criteria below:
- Parents, Guardians, or Benefactors
○ Citizen of legal age with established repayment capacity
○ Must have a good credit history
○ Co-borrowers shall be required if the principal borrower is more than 60 years old.
○ Must be a permanent resident for at least 2 years - Co-borrower
○ Must not be more than 60 years old
○ Must have a good credit history
○ Must be a permanent resident for at least 2 years - Student
○ Must not be more than 50 years old
○ Holds a certificate of good moral character
○ Non-scholar in a private pre-school, primary or secondary schools
○ Scholar students whose tuition fees are not fully covered by the scholarship
Interested applicants must also prepare additional paperwork. These documents may include your payslip, latest tax return, photocopies of government IDs, etc. When you fill up the form, processing may take at least 5 calendar days.
Loan Terms
The loan terms here usually involve an amount of PHP50,000.00 per borrower. Duration is limited to a short-term period if paid within 1-year as noted in a 360-day promissory note. If you want long-term loans, it has a maximum period of 3-years with a 1-year grace period. All terms have a fixed interest rate of 5% of the entire loan term. Failure to pay may result in a 24% penalty per annum. Penalties can vary depending on your specific circumstances.
Managing Gadget Loans
One advantage of gadget loans is that you will not worry about the budget for the device. However, the actual gadget you are going to buy will vary depending on the availability. So remember: you are getting the budget, not the actual gadget. Another thing to look out for is the loan terms. While some may have their first loan through their gadget loan, managing credit score is another factor.
As with any loan, your payment history will determine how likely you are to get better loans as with any loan. If you do not pay on time, you will be less likely to be approved—budget your money, both within and outside of the loan.
Conclusion
Installments are there to cover your needed finances. The process in gadget loans is the same as with any other loan. Handling such payments will be a test of your financial habits. When you know where your money is, you can enjoy better perks.