5 Questions to Ask When Getting a BDO Loan
BDO Loan Questions Updated on August 2024
BDO Unibank, Inc. is undeniably one of the largest universal banks in the Philippines. If you walk around any city or town in the country, you’ll likely see a BDO branch. They have more branches than any other bank in the Philippines, which makes them easy to find.
BDO offers many services to help people and businesses manage their money. It provides many BDO loan services, such as Leasing and Financing, Private Banking, Rural Banking, Insurance Brokerage, Investment Banking, and Stock Brokerage.
For example, you can open a savings account with them if you need a place to keep your savings. BDO also offers loans if you need money to buy a house, a car, or a business. If you want to invest your money to make it grow, BDO can help with that, too. They even have services that allow people to send money to their families if they work abroad.
As a member of the SM Group, you can find a branch in every SM Supermall. This gives BDO clients the advantage, as it opens on weekends, unlike most banks in the country. However, does it offer the best loans to every Filipino?
Furthermore, they have many ATMs, online banking, and even a mobile app so that you can manage your money from your phone or computer. This is especially helpful for people who can’t always visit a bank in person.
As of today, BDO Unibank boasts of its loan products and services. BDO loans are well-known for their convenience and reliability. Learn more about it through this article.
BDO Personal Loan
Banco De Oro personal loans have flexible loan amounts, which range from P10,000 up to P1,000,000. This is more flexible than other banks offer. You can even top up your existing loan if you meet the bank’s qualifications. On the other hand, BDO loans utilize credit score checking to evaluate their borrowers.
Borrowers must work in the current company for at least a year with a minimum salary of P120,000. The dispersal fee is P1,300 in addition to stamp duty. The BDO bank loan process takes at least a week. If you are borrowing for an immediate need, you may get a BDO online personal loan from a lender with a faster loan process.
BDO Personal Loan Requirements
Bank loan requirements BDO depend on the type of loan you need. You must be at least 21 years old. However, you must be at most 70 years of age upon your loan maturity. In addition, you must be a Filipino citizen. If not, any foreigner residing in the Philippines can apply for a loan in BDO.
Furthermore, the bank loan requires a minimum gross fixed annual income of Php 180,000 for Salaried Employees. Meanwhile, a professional or self-employed person must earn Php 400,000. Nevertheless, your business or employment must operate for at least two (2) years.
Most importantly, you need to provide a residence or office address. Take note that it should be within the area of your chosen BDO branch. Don’t forget to give a contact number. It can be the landline number of your residence, workplace, or personal mobile number. What matters is that BDO personnel can quickly contact you about your BDO loan application.
BDO Personal Loan Calculator
Calculating your loan is not a one-way street. You don’t get BDO cash without knowing how much you must pay off. That’s why it is vital to use the BDO Loan Calculator.
With an online calculator, you can estimate the loanable amount you can repay diligently. However, you must take note that the rate changes without prior notice. In addition, all calculations are only for illustration purposes. It means the exact loan amount still needs final credit approval from BDO.
BDO Housing Loan
A BDO loan for a home comes in various forms. You can choose a BDO home loan based on what you need for your new house. However, note that the loanable amount ranges from P500,000 to 80% of the property’s value.
Home Purchase Loan. This is a BDO loan used to buy a property like a house, lot, townhouse, or condo. If you want to own real estate, this is the BDO home loan you need.
Construction Loan. Another BDO loan that covers construction costs if you’re planning to build a new house. It’s for people who own land and want to build a new home or structure.
Home Equity Loan. The last BDO home loan lets you borrow quick cash, but you use your property as collateral. You can use the funds for home renovation, education, medical expenses, or other personal needs. Preferably, you should utilize the cash loan for house necessities.
These BDO housing loans help you achieve different goals. You can find ways to maximize a BDO home loan, whichever you plan to use for your vacant lot or existing home.
While it only takes five days to get approved if you are in Metro Manila, it will take ten days for those who live in the province. On the other hand, the BDO Home Loan interest rate changes every year.
BDO Loan Requirements for Home
Banco De Oro borrowers interested in a Home Loan must be at least 21 years old but at most 70 when the loan ends. Your family’s total monthly income should be at least P50,000 or the same amount in another currency. You must have a steady income, whether from a job or a business.
If you work in the Philippines, you should have been with your current employer for at least two years. If you run your own business, it should have been profitable for at least the last two years. But if you work abroad, you must have been employed for two to three years. However, if you’re not in the Philippines when applying, you must assign someone as your Loan Administrator to manage things for you.
BDO Car Loan
The Auto Loan offers financing for your vehicle from P100,000 up to 70% or 80% of the Vehicle Purchase or Appraised Price. You can purchase a brand-new unit or a used car with this. In addition, BDO will help you with your LTO registration through its “All in Financing Offer.”
On the other hand, the minimum monthly salary for buying a brand new car is P50,000. Additionally, you must have been employed in your current company for the past two years. If you are self-employed, you must prove that you have been profitable for the previous two years. If you think you can’t meet these requirements, you must look for another car loan product.
BDO Loan Requirements for Car
You must gather some essential documents when applying for an auto BDO loan.
First, you must fill out the application form completely. You’ll also need to provide a photocopy of a valid ID, like a driver’s license, passport, TIN ID, SSS ID, or GSIS eCard. The details on the ID should match what you put on the application. You’ll need an Alien Certificate of Registration and a Work Permit if you’re a foreigner.
Next, you’ll need documents to prove your income. If you’re employed in the Philippines, you can provide your latest Income Tax Return, BIR Form 2316, latest payslip, or a Certificate of Employment with your salary details. Foreigners will also need to include their current employment contract.
If you’re self-employed, you should submit audited financial statements for the last two years and your latest ITR. You’ll also need bank statements, a copy of your passbook showing transactions over the previous three months, and a Certificate of Business Registration.
For those working abroad, you can provide proof of remittance for the last three months, your latest crew contract if you’re sea-based, a Consularized Certificate of Employment with Income (COEI), or your latest three months’ payslips. These documents show that you have a stable income, which is essential for securing the loan.
BDO Business Loan
BDO offers two types of SME loans depending on the purpose of your borrowing. Will you need capital to keep up with the business or to purchase a property for expansion? BDO is also one of the banks that offers flexible repayments. If you can’t afford the amortization, you can just pay the minimum amount required.
However, if you only want a micro-business, then you will have to get a loan from another lender. The minimum loanable amount for SME loan owners is P1,000,000. The process takes a week or two. You will also need collateral.
BDO Business Loan Requirements
Bank loan requirements BDO depends on your chosen type of Loan. The primary required BDO SME loan documents are a valid ID, Marriage Contract, and duly accomplished application form. Also, your business must be profitable for the last two consecutive years. Plus, it has a minimum annual gross sales of P1,000,000.
In addition, you must be at least 21 years old but at most 70 by the time the loan term ends. Your business must also be within the serviceable area of BDO.
In addition to the basic business loan requirements, you need to provide Audited Financial Statements, the Latest General Information Sheet, a Certificate of Registration from the SEC, and Bank Statements for the last six months. You must also present a list of top customers and suppliers, including their contact information. Company profiles and collateral documents are also a must.
BDO Credit Cards
Before applying for a credit card, it is better to know which one best suits your needs and not just your wants. BDO has three types of credit cards: Basic, Premium, and Elite. Each card offers various loan services and promos. However, it pays to read the terms and conditions carefully. Another thing to note is the BDO loan interest rate charged on the credit cards.
In addition, BDO credit cards have a Cash Advance feature. This means that you can withdraw cash by using your BDO credit card. This instant cash advance loan has a steep interest rate, which is charged daily until you have settled the full amount and the corresponding fees. However, you need to be vigilant with the BDO cash loan promo. A BDO credit card cash loan might come in handy in an emergency, but wrong financial decisions can lead to spiraling debts.
BDO Credit Card Requirements
When applying for BDO credit cards, you must meet specific requirements. As the principal cardholder, you should be between 21 and 60. You must be a Filipino citizen or a foreigner residing in the Philippines. Your minimum gross monthly income will depend on the type of credit card you want.
For basic cards like Bench, ShopMore, or Standard Mastercard, you must earn at least P15,000 per month. The requirement for a Gold Mastercard or Visa Gold goes up to P33,000. If you’re aiming for a higher-end card like the American Express Explorer Credit Card, you need a monthly income of at least P66,000. However, for the most exclusive cards like the Diamond UnionPay or American Express® Platinum Credit Card, you’ll need to earn P93,000 monthly.
In addition to income, you need to have a stable job or run a business operating for at least two years. In addition, you must provide at least one landline or mobile number for your residence or workplace. Finally, you need to live or work in an area with a BDO branch nearby. These conditions ensure that you have the financial stability and accessibility required to manage a credit card responsibly.
BDO OFW Loan
BDO OFW Loan allows overseas workers to take an online BDO bank loan and use it for different purposes. Even though you are not physically present in the Philippines, BDO grants approval depending on the borrower’s financial capacity. In addition, you get to enjoy easy payment terms without compromising the low loan interest rate. Plus, you can use the borrowed money for home renovation, education, vacation, medical emergencies, and more.
The BDO loan for OFWs, the BDO Kabayan Program, offers two types of personal loans. The first option is the BDO Kabayan Personal Loan Unsecured. This is a multi-purpose loan that doesn’t require any collateral. You can use this loan for various needs without worrying about putting up assets as security. The second option is the BDO Kabayan Personal Loan Secured, which has a more strict BDO loan process.
This BDO loan can help OFWs meet their financial needs, whether they prefer a no-collateral option or are willing to secure the loan with their savings.
OFW Loan Requirements in BDO
Loans for OFWs can be unsecured and secured. Each asks for requirements you must comply with. You must have a fixed income if you opt for an Unsecured BDO Kabayan Personal Loan.
On the other hand, a Secured BDO Kabayan Personal Loan requires a deposit account as collateral. You’ll need a Peso/Dollar Savings Account or Peso/Dollar Time Deposit. Also, there needs to be a minimum deposit requirement of Php 15,000. Even though a dollar deposit secures the BDO loan, the loan amount will be given to you in Pesos. Moreover, the time deposit must be as long as the loan term. However, only the OFW can apply for this BDO loan.
In addition, the applicant must be the OFW. But what if the deposit collateral is a joint account? If the deposit used as collateral is in a joint account, the beneficiary (the other person named on the account) can apply as the principal borrower. Some accounts, like “In Trust For” (ITF) accounts or those with existing hold-out arrangements, cannot be used as collateral for this loan.
With these various loans offered by BDO, it’s no surprise that many seek its financial assistance. However, don’t dive into the BDO loan application without equipping yourself with adequate information.
8 Questions to ask when applying for a BDO Loan
Don’t get too excited about your BDO online loan application. If you have doubts or queries, give yourself some time to get the answers you need.
1. Do I have a good credit history?
Having a good credit history is vital to get a loan from BDO. This means you should have been a good payer on your previous loans and credit card bills. Lending is built chiefly on trust. The bank wants to know if you can be trusted to pay on time to lessen the risk of default. By understanding your credit history, BDO can learn what kind of borrower you are.
2. Do I have enough salary to be eligible?
BDO also requires a minimum income for each borrower, depending on the loan you are applying for. This ensures you have enough funds to pay off the BDO bank loan you are applying for.
Aside from the required minimum salary amount, you also have to take note that there are other eligibility requirements. Take the time to know if you are eligible for the particular BDO online loan you are applying for.
3. Can I provide additional assets?
You need to provide a collateral. Banks are risk averse. They prefer clients with collateral to ensure they can still get the money they lend. You will not be approved for secured loans if you think you cannot meet the no collateral loan BDO.
4. Can I handle the amortization?
It is best to consider your current and future finances. Can you handle another financial responsibility with ease? Use a loan calculator to know if you can meet the repayment terms with the interest charge. You will be charged additional penalties if you fail to meet a repayment due date.
5. Do I have enough savings to pay off other fees besides the interest rate?
Most people do not consider the fees other than the BDO personal loan interest rate. Yes, you must pay charges, such as the processing fees and the tax duty stamps. These vary depending on the type of loan you are applying for.
6. Which BDO Loan is the best for me?
Choosing the best BDO loan depends on your current needs and financial situation. If you have expenses related to your house, a BDO Home Loan is the best option. It helps you purchase a house, lot, or condo and build a house.
If you’re an OFW and want a BDO loan for personal needs, consider the BDO Kabayan Personal Loan. If you don’t have collateral, go for the Unsecured Loan. But if you have savings or a time deposit with BDO, the Secured Loan might be better, as it often offers better terms.
For those looking to use the value of their home to fund other expenses like renovations, education, or medical bills, the Home Equity Loan allows you to borrow against your property. However, a BDO Personal Loan can be your best choice if you don’t have a property to back up a BDO loan.
Finally, a BDO credit card might be a better option if you need quick access to cash for minor or short-term needs. It’s handy for everyday expenses and gives you flexibility in how and when you pay.
Evaluate yourself first. Consider what you need the quick cash for, how much you can afford to borrow, and how you plan to repay it. The right BDO loan for you is the one that best fits your goals and financial situation.
7. What are the charges for BDO Loans?
When you apply for a BDO loan, there’s a one-time processing fee of P1,300. This amount is automatically deducted from your instant cash loan, so you’ll receive slightly less than the total loan amount.
You’ll have to pay a late repayment fee if you miss a payment. This fee is 5% of the amount you owe or P300, whichever is higher. If you set up an Auto-Debit Arrangement (ADA) to make your payments automatically from your bank account but fail on the due date, you’ll be charged a return fee of P1,250.
Finally, if you want to change your installment plan or something similar, there’s an installment processing fee. This fee is 5% of your remaining loan balance or P300, whichever is higher.
Remembering these fees to avoid extra charges and ensure your BDO loan’s manageability is vital.
8. Can I re-avail for a BDO loan?
Yes, you can apply for another BDO loan, but only if you’ve already paid off at least six months of your current Personal Loan and have handled it well. This means you must have made your repayments on time and kept your account in good standing. You can re-avail and get a new BDO loan if you meet these conditions.
How To Borrow Money From BDO?
With the current state of the globe, BDO finds ways to cater to Filipino financial needs. Now, you can begin applying for a BDO Personal Loan online.
For BDO Account Holder Customers
Here are the steps to apply for a loan in BDO.
Step 1. Log in to your existing BDO Online Banking account.
Step 2. Click “Enrollment” from the left menu bar. Then, choose “Own Account” and “Enroll.”
Step 3. Complete all the vital details for your loan account. Afterward, click “Submit.”
Step 4. Review your enrolled account under “My Account Details.”
For Non-BDO Account Holder Customers
Here are the steps to get a loan in BDO even if you don’t own an account.
Step 1. Visit the official BDO website.
Step 2. Click “Loans” from the left menu bar. Then, choose “Quick Inquiry.”
Step 3. Complete the essential information needed for your loan account. Some personal details will be required for identity verification.
Step 4. Your registered mobile number will receive a One-Time Password (OTP).
Step 5. View your loan details after you enter the OTP. For BDO Account Holder Customers
It is best to read and research before applying for a loan, especially during emergencies. Do not just consider what the bank has to offer. You should also consider whether you can handle getting a loan and paying it off every month.
If you need a short-term loan for a micro-business, then it is better to get a personal loan. However, processing BDO loans and other bank loans takes time. But if you apply for an online loan from the best online lender – Cash Mart, the loan procedure feels like a breeze. You can claim your disbursed cash without delay.
