10 Reasons Why Pinoys Get Personal Loans

10 Reasons Used by Pinoys to Get Personal Loans
Not every debt is bad debt. As long as your reason for loan is valid and you got the proceeds properly managed, your debts can actually help form the base of your financial portfolio.
Personal loans, for one, can actually save you from financial burdens provided that you spend the money wisely.

Although banks advertise a wide array of applicable reasons you can get a loan for, you’ll have to look at the good and the bad of your own reasons.

We’ve laid it out for you here. 
The following article is a contribution of GoBear — Asia’s first and unbiased metasearch engine for personal loans, credit cards, travel insurance and car insurance. As a fintech startup, GoBear challenges Filipinos to make smarter and easier comparisons online before application. 
1. Medical bills/expenses 
Your health and wellness is among the most common reasons to get a personal loan. You see, you must never put off a medical procedure just because you don't have enough money to pay for it. You have valid reason for loan, so why not apply for it, and save your life?
Let’s face it, you won’t get a high coverage health insurance because your company is already providing basic coverage for you as part of your benefits package. However, the coverage may not be enough for some important yet costly procedures. Sometimes, medical conditions like dental problems are sometimes not covered by basic health insurance. 
2. Debt consolidation
If you've got loans—especially higher-interest ones—from various banks and lenders, debt consolidation can be your reason for a loan. While some people say that you shouldn't pay a loan with another loan, it makes sense to consolidate and pay them off through a personal loan that you can get at a much lower interest rate than the combined interests of your previous loans. Most often, people get loans to consolidate multiple credit card debt since the interest of your loan will be much lower than the combined interests of your card debt.
3. Business
Business start-up or expansion is a very good reason for loan application. If you have work, starting up a business means creating an additional income stream for yourself. On the other hand, if you are expanding your business or venturing into something big, business loans won't just help increase your profit, but they will also make it possible for you to create jobs for unemployed Filipinos. 
4. Home improvements
Nothing beats the feeling of coming home to a comfortable haven after a day's work. That's what makes home renovation and repair a good reason for a loan. Whichever part of your house you want to remodel, you won’t regret getting a loan for this reason. Home improvement doesn’t only breathe new life into your house, but it also increases the property’s value. But take heed, unless it brings up the value of your house for a resell, you’d rather wait a while and take it from your ipon.
5.  Education
College tuition fees and expenses can really put a huge dent in your wallet. In the Philippines, though, student loans aren’t as common as they are in the U.S., so parents usually resort in personal loans.  The proceeds of the loan can be used not only for tuition but also for dormitory fees, books, and school supplies. Before you head to the bank, check your student affairs office first if they have tuition programs that will allow you to study now, pay later.
6. Auto repair
Auto repair loans can’t be considered bad debts especially if you are using your car as another source of income. Now that Uber and Grab are becoming more and more popular in this country, you can make the most out of your investment by making auto repair your reason for loan, using the proceeds to repair and make your ride street legal, and turning it into an income stream rather than just a usual family or personal vehicle. But first, check if your auto insurance covers the auto repair you need.
7. Laptop or personal computer
Some may see it as a frivolous purchase. But for business owners, stay-at-home parents, and other people who are familiar with what the World Wide Web can offer, a reliable laptop or personal computer is actually a wise investment.
Here in the Philippines, where a huge chunk of population is English and computer literate, this reason for loan merits two thumbs up. You can use your computer to make your business transactions, auditing, accounting, and bookkeeping faster and easier or you can earn money by using it for online jobs.
8. Travel
Some people will cringe at the thought of financing a trip as a reason for loan request.  But if you’ve been working hard all year, isn’t it but right to reward yourself and your family with an awesome vacation or at least a weekend getaway to a place you’ve never been to before? Take it from us though, you’d rather take your travel expenses from a travel budget you’ve been working to save on instead of a loan. Don’t forget to chip in a travel insurance. It costs as low as P190 for domestic trips.
9. Weddings or special occasions
Many Pinoys are fond of making special occasions more memorable and extra special. This is what makes weddings, birthdays, anniversaries, and graduation parties a popular reason for loan. To alleviate your wedding expenses, here’s a nifty thought from now developed Singapore: at the reception, the administrator will ask if you wish to chip in for the cost of the reception instead of giving material gifts.
10. Furniture or appliance
Unlike in the province, in big and populated cities like Manila—where it’s easy for people to change address—it’s now difficult to find a store that will allow you to pay for your purchased appliance on a monthly installment basis unless you have a credit card. With furniture or appliance purchase as your reason for loan, you use your personal loan proceeds to pay for your furniture/appliance in cash and spare yourself from the skyrocketing monthly charges of some stores. We’d recommend this if you’re planning on a business like a restaurant or a shared office space (which has been quite popular in CBDs). But for your home? Maybe take two steps back.
It’s easy to apply for a personal loan in the Philippines, provided that you are 21 years old and above, and a Filipino citizen with stable income and valid proof of identity. Personal loans don’t require collateral and the processing may last up to five banking days.  Just remember to always mind your reasons prior to application. When you’re ready to get a loan, don’t forget to compare details like interest rates and charges like late or early payment fees so you won’t regret later.

Author Bio:

GoBear is a fintech startup built to help Filipinos compare banking and insurance products online for free! After comparing, GoBear links you to their bank and insurance partners so you won’t have to leave home to apply. Wouldn’t it be an easier life if you know every good AND not-so-good stuff about insurance, loans, and credit cards? GoBear originally launched in Singapore, but now have offices in Thailand, the Philippines, Malaysia, Hong Kong, and Vietnam.

How about you? What are your reasons when applying for a loan? Receive cool updates like this when you subscribe to PisoandBeyond!


  1. I prefer not to take loans and try to live according to my salary, nevertheless, thanks for this advice!

  2. If the mind refers to loans you can get a lot of benefits from them and do not waste extra funds.

  3. you’d rather wait a while and take it from your ipon.


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  7. Personal loans can be used to pay for significant home improvements like a nursing dissertation writing service new roof or bathroom remodel.


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