According to the latest statistics of the World Bank, the economic status of the Philippines has a mixed record. On one hand, there has been an overall increase in life expectancy, Gross National Income, per capita income, and IBRD/IDA operations approved over the years. But, there has been a gradual decrease in the overall level of statistical capacity, annual GDP growth, and current account balance. The World Bank also states that the economy of the Philippines is the 39th largest in the world, which is quite an impressive number and in recent years, it has emerged as a market in both the import and export domains.
With a fast-developing market, the cost of living has also increased. Because of this, making loan in the Philippines is very difficult. Whether you are a small business owner or private individual seeking to build a house or buy a car, you will definitely seek major loan at least once in your life. However, applying for a loan isn’t that easy. It takes a lot of comparison, calculation, and pooling up of resources to get it written on paper. It also does not ensure that your loan will be fault free. Therefore, for the benefit of the progressive Filipino, I have listed the top 5 mistakes people made in taking out a loan and some guidelines on how to avoid them.