money Financial Planning

[kuworuru]

Sa mga taga bank or marunong about interests rates

 

Okay ba tong inooffer sa akin na loan Ng BPI ?

 

Kung 1 million loan ko . I'll be paying a total of

1,352,808 for three years . Bale kumita sila Ng 352k

 

Okay ba ?

 

Hi Martin,

 

Regarding kung "okay" ba, that really depends on your definition of "okay." looking at the offer, that's 11.8% Annualized. 352k over 3 years.

 

You mentioned na pang-negosyo, so for me, it's just a matter of whether or not your business can generate a higher return.

 

Just to share with you, when I was younger, i availed of one of the personal loans similar to that kasi wala pa akong businesses noon/no credit lines, through citibank. ginamit ko rin pang negosyo. during that time, they offered it to me at around 0.8% which was roughly 10% p.a. That helped kickstart my business. One year lang yung term nung sa akin, pina shorten ko para di masyado masakit.

 

That being said, ingat lang rin in availing that. I would advise to check competing offers with other banks. Also if well established ka naman, talk to your bank. Mas okay yung mga business loans, it's just that banks typically require mga FS ng business mo for 2 to 3 years of operations.

 

If you are just starting out in building your business, not bad yung rates, but could be better. may nagtanong dito sa MTC regarding acceptable returns, and for me, it's usually 12% sa standard investments, and much more than that for businesses that i have operational control over. Kung 11.8% sa bank, that 0.2% for me, I wouldnt do it. but then, I'm greedy so take it with a grain of salt.

 

Regarding your other question re: collateral, walang collateral when I availed it before. I think it's entirely based on your credit history with the bank.

[MartinDomingo]

Hi Martin,

 

Regarding kung "okay" ba, that really depends on your definition of "okay." looking at the offer, that's 11.8% Annualized. 352k over 3 years.

 

You mentioned na pang-negosyo, so for me, it's just a matter of whether or not your business can generate a higher return.

 

Just to share with you, when I was younger, i availed of one of the personal loans similar to that kasi wala pa akong businesses noon/no credit lines, through citibank. ginamit ko rin pang negosyo. during that time, they offered it to me at around 0.8% which was roughly 10% p.a. That helped kickstart my business. One year lang yung term nung sa akin, pina shorten ko para di masyado masakit.

 

That being said, ingat lang rin in availing that. I would advise to check competing offers with other banks. Also if well established ka naman, talk to your bank. Mas okay yung mga business loans, it's just that banks typically require mga FS ng business mo for 2 to 3 years of operations.

 

If you are just starting out in building your business, not bad yung rates, but could be better. may nagtanong dito sa MTC regarding acceptable returns, and for me, it's usually 12% sa standard investments, and much more than that for businesses that i have operational control over. Kung 11.8% sa bank, that 0.2% for me, I wouldnt do it. but then, I'm greedy so take it with a grain of salt.

 

Regarding your other question re: collateral, walang collateral when I availed it before. I think it's entirely based on your credit history with the bank.

 

Thanks sir for your answer.

The mere fact na tinetext ka Ng BPI na may promo silang rate for you .like sa photo na pinost ko .means a I'm a good client right? Or else they would just give me the regular rate

 

Also last question sir

When you made a personal loan . Saan nila linalagay Yung funds? Sa savings account mo ?

Or are you required to open a checking sccount

Kasi naka lagay sa requirements .meron dapat

 

BPI DEPOSIT ACCOUNT...is that different from savings account?

 

Tanga Kasi ako regarding that

 

Thanks sa makakasagot

Also .when you said Pina shortened mo .binabaan ba nila rate mo ?

[kuworuru]

happy to help!

 

The mere fact na tinetext ka Ng BPI na may promo silang rate for you .like sa photo na pinost ko .means a I'm a good client right? Or else they would just give me the regular rate

 

- himayin ko lang ito.

 

re: good client, i think so, because for an average person, i think a 1M credit line is good, and banks aren't usually inclined to offer that high of a limit. not sure about your specifics, like how old you are, how long you've been with BPI, your income levels, so i'm just assuming that your income is above ave.

 

re: regular rate, i think this is more or less in the ballpark of a regular rate. may halong marketing ito, na limited time, preferential rates, etc. If it's attractive for you, then go for it. I would still suggest looking at other offers though.

 

When you made a personal loan . Saan nila linalagay Yung funds? Sa savings account mo ?

 

- I had it transferred to my checking account. pero i'm pretty sure they gave me options, just can't remember the other options. parang OTC yata sa citibank, not sure.

 

BPI DEPOSIT ACCOUNT...is that different from savings account?

 

- i think that's the same thing. if you had to open a checking account, i think oks lang yun, kasi downside lang naman is the maintaining balance, and if okay naman kayo ng bank, i don't think that'll be an issue. Also checks are useful, imo.

 

Also .when you said Pina shortened mo .binabaan ba nila rate mo ?

 

- higher short term, pero long term it was lower. magulo ba? iirc, 0.79% if i do 36 months, then when i requested to do 12 lang, 0.8% na yata. For me kasi, i was confident that i'll be able to pay it back within a year, so I saw no need to give them extra money. Over time, that's 2 years worth of interest payments. I think it makes better sense rin for banks to raise interest rates for shortened terms, so they can still make money. in your case, if you shorten it, assuming the same rates, that's just 12%, instead of the 36%, pero higher monthly amortizations. similar sa real estate/auto.

[MartinDomingo]

Very thankful sa detailed explanation mo sir😊

Hopefully maging okay

 

My last question for now is

 

Will they require you to open a checking account when you loan money ? Or pwede na sa savings account ilagay Yung pera.? Kasi I know they will deduct it automatically right for the payment .

Paano pala Yung bayaran. Automatic debit Lang right ?

[MRROUGHSEX]

 

 

"P.S. I am setting aside more funds to buy shares from companies in my port that are in the red. That's my way of upping my cost average and minimizing my paper losses."

 

 

Awesome strategy neville!

Edited July 13, 2019 by MRROUGHSEX

[MRROUGHSEX]

Happy times in investing right now.

[MRROUGHSEX]

 

Hi Martin,

 

Regarding kung "okay" ba, that really depends on your definition of "okay." looking at the offer, that's 11.8% Annualized. 352k over 3 years.

 

You mentioned na pang-negosyo, so for me, it's just a matter of whether or not your business can generate a higher return.

 

Just to share with you, when I was younger, i availed of one of the personal loans similar to that kasi wala pa akong businesses noon/no credit lines, through citibank. ginamit ko rin pang negosyo. during that time, they offered it to me at around 0.8% which was roughly 10% p.a. That helped kickstart my business. One year lang yung term nung sa akin, pina shorten ko para di masyado masakit.

 

That being said, ingat lang rin in availing that. I would advise to check competing offers with other banks. Also if well established ka naman, talk to your bank. Mas okay yung mga business loans, it's just that banks typically require mga FS ng business mo for 2 to 3 years of operations.

 

If you are just starting out in building your business, not bad yung rates, but could be better. may nagtanong dito sa MTC regarding acceptable returns, and for me, it's usually 12% sa standard investments, and much more than that for businesses that i have operational control over. Kung 11.8% sa bank, that 0.2% for me, I wouldnt do it. but then, I'm greedy so take it with a grain of salt.

 

Regarding your other question re: collateral, walang collateral when I availed it before. I think it's entirely based on your credit history with the bank.

These are all good inputs. I agree with what you said.

 

Just additional comments: How I match my loan Interest rates with duration of payment: Less than 4%, I extend payment to 30 years max; 4% to less than 8%; I extend payment to 15 years max; 8% or up, I limit payment to 7.5 years.

 

Also you mentioned 12% return which is a great return. Based on experience, companies average a return of 11% so anything higher than 11% is good. The higher the better!

[brazzerboy]

Mga paps, has anyone tried yung mga ino-offer na investments ng BPI? One of their tellers told me about that when I paid my premium for Sunlife.

[MartinDomingo]

happy to help!

 

The mere fact na tinetext ka Ng BPI na may promo silang rate for you .like sa photo na pinost ko .means a I'm a good client right? Or else they would just give me the regular rate

 

- himayin ko lang ito.

 

re: good client, i think so, because for an average person, i think a 1M credit line is good, and banks aren't usually inclined to offer that high of a limit. not sure about your specifics, like how old you are, how long you've been with BPI, your income levels, so i'm just assuming that your income is above ave.

 

re: regular rate, i think this is more or less in the ballpark of a regular rate. may halong marketing ito, na limited time, preferential rates, etc. If it's attractive for you, then go for it. I would still suggest looking at other offers though.

 

When you made a personal loan . Saan nila linalagay Yung funds? Sa savings account mo ?

 

- I had it transferred to my checking account. pero i'm pretty sure they gave me options, just can't remember the other options. parang OTC yata sa citibank, not sure.

 

BPI DEPOSIT ACCOUNT...is that different from savings account?

 

- i think that's the same thing. if you had to open a checking account, i think oks lang yun, kasi downside lang naman is the maintaining balance, and if okay naman kayo ng bank, i don't think that'll be an issue. Also checks are useful, imo.

 

Also .when you said Pina shortened mo .binabaan ba nila rate mo ?

 

- higher short term, pero long term it was lower. magulo ba? iirc, 0.79% if i do 36 months, then when i requested to do 12 lang, 0.8% na yata. For me kasi, i was confident that i'll be able to pay it back within a year, so I saw no need to give them extra money. Over time, that's 2 years worth of interest payments. I think it makes better sense rin for banks to raise interest rates for shortened terms, so they can still make money. in your case, if you shorten it, assuming the same rates, that's just 12%, instead of the 36%, pero higher monthly amortizations. similar sa real estate/auto.

 

Very thankful sa detailed explanation mo sir

Hopefully maging okay

 

My last question for now is

 

Will they require you to open a checking account when you loan money ? Or pwede na sa savings account ilagay Yung pera.? Kasi I know they will deduct it automatically right for the payment .

Paano pala Yung bayaran. Automatic debit Lang right ?

[neville]

Mga paps, has anyone tried yung mga ino-offer na investments ng BPI? One of their tellers told me about that when I paid my premium for Sunlife.

What kind of investment?

 

What have you invested in? I generally have a distrust of products that are heavily offered because it may mean that they are not really as good as advertised to be.

 

Furthermore, I just distrust BPI as a bank. It's susceptible to fraud.

 

If you want to try the stock market, I suggest buying mutual funds or stocks via an online trading platform.

[MartinDomingo]

What kind of investment?

What have you invested in? I generally have a distrust of products that are heavily offered because it may mean that they are not really as good as advertised to be.

Furthermore, I just distrust BPI as a bank. It's susceptible to fraud.

If you want to try the stock market, I suggest buying mutual funds or stocks via an online trading platform.

Why do you distrust bpi

[kuworuru]

Hi Neville! natabunan, di ko nakita haha:

Sakit ko kasi ang sobrang haba ng forethought ko sa ibang plano ko. Sa maniwala ka o hindi, gusto kong bahay ay tipong bahay na bato...para kahit 3 o 4 generations down the line, magagamit pa rin nila yung bahay. Ancestral house to the fore.

Pero single with no kids ako. LOL.

- I think it's a good thing that you have the foresight to look after future generations good luck with this! mga tipong bahay ba sa batanes ito? haha! medyo similar tayo in this way, sa akin naman, ang iniisip ko ipamana ay businesses para may auto cash cow na kagad yung kung sino man ang magmamana. ang main reason ko for this is also to teach them responsibility and konting business savvy. may fear ako though na gagayahin ako ng mga anak ko and hindi rin kukuha ng "mana." well kung ganun, oks lang rin naman.

I stand corrected, hindi pala four companies...seven stocks pala, except for DMCI, COSCO, at MPI, green lahat sila. September 2018 lang ako nagsimula kaya wala pa akong annual return.

- dito, i would say a "set and forget" strategy would be effective. tapos bi-annual or quarterly reconfig nalang. for me, mas okay talaga mag-spend ng brainpower sa business dahil mas okay ang returns. plus mas risky so kailangan talaga ng utak. mahirap i-auto pilot haha!

Ohmygulay...spreadsheets...titirik utak ko. haha. I will let my financial advisor check the numbers for me. Pero sa huling check nila (dalawa sila), they both gave me the thumbs up.

- haha! kahit hindi naman yung complex models. kahit tipong plugin lang ng monthly tapos annual para lang may outlook ng magkano ang kinikita roughly per annum. sa thumbs up nila, binigyan mo naman sila ng parang annual outlook mo no? very visual kasi ako so when i started my 2nd and 3rd businesses, may ginawa akong simple sheet that tracks a rough monthly income tracker for each of the businesses. para sa akin, nakakagana kasi to see how much it's making. parang constant reminder lang na wag magpanic and may pumapasok naman na cash/receivables (huhu)

Ate and I have to study the translation industry. Alam kong magsalin, pero di namin alam kung paano at magkano maningil sa kliyente. I plan to focus on the "creative" side. My sister is more than capable of handling operations. She has that spine of steel to make people believe that she walks the talk.

- not sure if this would be useful, but back when i started doing consulting, i had a similar problem na hindi ko alam magkano sisingilin ko sa clients dahil feeling ko hindi naman talaga ako nagtratrabaho dahil medyo madali lang for me yung mga projections na ginagawa ko for clients. may nabasa ako na book noon, and i decided to suddenly charge the same as industry rate (I started na parang pinapa-dinner/lunch lang ako ng mga tao hahaha) so I was surprised that there were people who were really willing to pay that amount. Next step ko was to double it, tapos meron pa rin. nung naging mas busy na ako sa ibang negosyo, i charge my standard hourly rate just to make sure that it's worth my time. medyo malayo yung hourly rate na yun sa initial industry rate. true, some clients said that they couldnt afford it, but some stuck to it, and i think that that's a good thing since worthwhile para sa aming lahat. that said, all the best sa business

- I think it's a good thing that you have the foresight to look after future generations good luck with this! mga tipong bahay ba sa batanes ito? haha! medyo similar tayo in this way, sa akin naman, ang iniisip ko ipamana ay businesses para may auto cash cow na kagad yung kung sino man ang magmamana. ang main reason ko for this is also to teach them responsibility and konting business savvy. may fear ako though na gagayahin ako ng mga anak ko and hindi rin kukuha ng "mana." well kung ganun, oks lang rin naman.

[kuworuru]

Very thankful sa detailed explanation mo sir

Hopefully maging okay

 

My last question for now is

 

Will they require you to open a checking account when you loan money ? Or pwede na sa savings account ilagay Yung pera.? Kasi I know they will deduct it automatically right for the payment .

Paano pala Yung bayaran. Automatic debit Lang right ?

 

Again, happy to help! yes, hopefully maging okay. if you don't mind me asking, what type of business are you starting?

 

not sure about the checking accounts because: 1) I availed of the loan from a different bank; 2) I had a checking account so I didn't focus too much on the other options.

 

If i had to guess, feeling ko pwede naman sa savings account ilagay yung pera. I don't see why not. For the payment, personal loan through credit limit ng card ko yung before, so lumabas siya as credit card payments, on top of what i had consumed for a particular cutoff. hindi auto debit. i made payments online na parang card. I think it would be similar lang rin kung BPI. most likely may biller lang sila na ieenroll similar to a cc merchant.

 

tancha ko lang. hindi exactly the same yung situation, but i think similar enough.

[kuworuru]

Mga paps, has anyone tried yung mga ino-offer na investments ng BPI? One of their tellers told me about that when I paid my premium for Sunlife.

 

hello, I had uitfs with BPI before. not sure if this is what your teller was referring to. hindi siya inoffer sa akin during that time, i approached them because i wanted to compare progress of my uitf with another bank. ended up transferring to my old bank because of roughly similar results but lower management fees.

[brazzerboy]

What kind of investment?

 

What have you invested in? I generally have a distrust of products that are heavily offered because it may mean that they are not really as good as advertised to be.

 

Furthermore, I just distrust BPI as a bank. It's susceptible to fraud.

 

If you want to try the stock market, I suggest buying mutual funds or stocks via an online trading platform.

 

The teller didn't specifiy what kind of investment. He just said investments that will yield payouts on a regular basis. Personally I've just completed a 10-year mutual fund with PhilAm Life last year, and I'm on track to complete another P600K mutual fund with Sunlife by next year (I'm planning to shorten a 10-year payment period to 3 years). I'm 33 years old at the moment, and I hope it will yield enough returns to allow me for an early retirement.

 

 

hello, I had uitfs with BPI before. not sure if this is what your teller was referring to. hindi siya inoffer sa akin during that time, i approached them because i wanted to compare progress of my uitf with another bank. ended up transferring to my old bank because of roughly similar results but lower management fees.

 

Parang ganun nga siguro. Iba pa daw siya dun sa partnership nila with Philam Life so I guess he's pertaining to UITFs nga. I'm interested since I really look forward to diversifying my portfolio. I'm churning out savings of roughly 40K-50K per month since the start of this year and I notice na parang nasasayang lang siya pag natutulog sa bank. Can you give a suggestion for more productive investments in a bank?