There are many reasons why people get personal loans but these can usually be divided into two major categories: expense or investment. According to Robert Kiyosaki, bestselling author of the Rich Dad, Poor Dad business books series, the best loan is the investment kind because that’s what will make you wealthy (or at least get your money working for you). However, as parents, some big expenses just can’t be helped like those involved in giving birth or building a home.
Regardless of what you need it for, there are three major institutions from which you could take out a loan: government agencies, your employer, or commercial banks.
Government Agencies The more popular government agencies that provide loans are the SSS (Social Security Service) and PAG-IBIG Fund (or the Philippines’ Home Development Mutual Fund). The government mandates employers to deduct contributions from their employees’ salary to serve their needs in the future. If you are employed, you are entitled to this benefit and you will usually be able to get a fair loan amount from these agencies (around P24,000 or depending on your contribution).
The interest rates for these loans are steady and fixed. If you are interested in getting a loan from either SSS or Pag-Ibig, check with your HR department and they can help you facilitate the loan. However, please note that you are dealing directly with these government agencies and your HR personnel can only direct you to them and provide you with information.