Fees And Interest Rates You Need To Know Before Applying For Online Loans

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When it comes to online loans, fees and interest rates are important factors to consider. While some fees may be avoidable, others are mandatory, and understanding them can help you make informed decisions and find the right lending platform that suits your financial needs. It also helps you avoid getting charged unnecessarily expensive fees that can lead to debt over time. If you’re looking for an online loan platform that openly and transparently publishes fees and interest rates, the Crezu PH app is worth checking out.

One of the fees you need to be familiar with is the “effective interest rate” (EIR). EIR measures the actual cost of borrowing and includes costs such as monthly maintenance fees, application fees, personal loan processing service fees, among others. In the Philippines, most personal online loans have EIRs ranging from 10% to 30%. Knowing the costs and details of personal online loans can help you estimate the loan accurately.

Lending platforms often charge a service fee for loan application processing, which includes processing costs for personal loan applications, credit check costs, and other administrative costs. Personal loan processing fees are usually deducted from the loan amount, so it’s important to take this fee into account when calculating the amount to borrow. While most platforms in the Philippines charge a loan processing fee of PHP 1,500 to PHP 3,000, Crezu PH doesn’t deduct any processing fees, and the amount approved to customers is the same they disburse.

Disbursement fees aren’t as common as other personal loan fees, but they should still be taken into consideration. Depending on the unit, when applying for online loans in the Philippines, you may have to pay a fee ranging from PHP 10 to PHP 300.

Late payment penalty fees are important to keep in mind because if you miss your payment due date, online loan platforms will often ask you to pay a late payment penalty fee. This fee ranges from 3% to 8% of the overdue amount or PHP 500 per month. To avoid this fee, make sure you always pay your monthly amortization by the due date.

Early payment penalty fees, also known as early payment fees, early termination fees, prepayment fees, accelerated installment fees, or processing fees, are charged by several online lenders in the Philippines if you pay off your loan before the due date. If you think you can pay off your personal loan earlier than the due date, it’s best to choose online loans with no early payment fees. There are many loan companies and applications in the Philippines that do not charge early payment penalties to their customers.

Interest rates are another important factor to consider when applying for online loans. In the Philippines, personal online lending platforms charge interest on the loan amount to be paid monthly. This interest rate is usually lower than credit cards, making online loans an effective financial solution for those who need quick cash in emergencies. Crezu PH is transparent and clear about online loan interest rates applicable to customers. For first-time borrowers, the loan interest rate is 0% and there is no processing fee. For customers who borrow many times, the interest rate depends on the approved amount and term. However, if you have a good credit score, you will get a better interest rate at Crezu PH.

In summary, understanding the fees and interest rates associated with online loans is crucial to make informed decisions and avoid high interest rates. Crezu PH is a transparent and clear online lending platform that may suit your needs, especially if you’re looking for a platform with no processing fees for first-time borrowers and competitive interest rates for customers with good credit scores.

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CashLoanPH Changed status to publish 04/04/2023