What is an Appropriate Amount to Loan?

If you’re an entrepreneur looking to expand or start a business, part of a family looking for their first home, or a breadwinner needing a hand, a personal loan can provide a great deal of assistance. . 

Regardless of where you’re at in life, personal loans help you tide over difficult times or give you that extra boost to confidently take on that next step in your financial journey. In comparison to other loans, personal loans usually offer a greater deal of flexibility at lower entry points and so are frequently recommended.

If you’re trying to decide whether or not a personal loan is right for you, the initial step is to determine your financial capability to pay for it. Additional questions you should include, “How much can I afford to loan? Given my financial needs, what is an appropriate amount to loan?” 

Let’s try to answer these questions here. 

First and foremost, assess whether a personal loan is truly necessary. Take into account all your monthly income streams such as your salary, business profits, and other paying projects. 

Next, do the same for your expenses. Make an accurate record of personal expenses like utility bills, groceries, gas or commuting costs, luxury purchases, tuition fees, taxes, ongoing financial obligations, as well as business expenses like rent, employee salaries, permits, inventory, overhead, and others..

Finally, deducting your personal expenses from your total income should allow you to come up with a monthly figure of your true earnings. This figure should give you a good idea of your need for a loan, and if you can afford to pay for it. 

This is a simple yet effective practice that Filipino employees can adopt. Loans are a big commitment and so you must be absolutely sure before taking one on. Also keep in mind life’s unpredictability. Incidents such as sudden sickness, unemployment, family obligations or other unplanned expenses might force you to rework your budget and default on your personal loan payments. This is especially important for the Filipino employee that depends on a monthly salary as their main source of income.

Truly, Filipino employees need to consider several things when making big financial decisions. Fortunately,  Advance is here to help you out.

WHAT IS ADVANCE

Advance is a Philippine company that aims to empower Filipino employees in managing their finances. It helps them maximize and control the potential of their earnings in a timely, affordable, and easy-to-understand manner. 

To date, Advance is the most convenient online loan salary provider in the country. Filipino employees are able to borrow up to 30% of their monthly salary at any time.

If you want to apply for a personal loan or simply receive an advance in your salary, all you need to do is check if your company has partnered with Advance and create your online account. Employees that are eligible for Advance’s services will be issued a credit limit and can start using their services immediately.

If your company has not yet partnered with Advance, you can easily refer them to Advance representatives. Advance will then offer support every step of the way so that your company can be quickly onboarded for you to enjoy their services.

Financial management is part and parcel of life. Thankfully, with Advance, Filipino employees can be certain that they can face any financial challenge that lays ahead.

For more information, visit www.advance.ph. You may send inquiries to partner@advance.ph.