Reasons teachers refrain from different loan offers


Teachers who are recently connected in public schools are more prone to avail more loans because of their increasing finances. The fact that they will receive their salary once every month every 22nd is already a dragging struggle for them to keep on. This is also one of the reasons why they resort to avail of the different loans offered by different agencies both in the public and private institutions. 


Though there are teachers who are very willing to avail those loan offers, there are also those who refrain from availing it because of these reasons:

1. Loan agencies especially those in the private institutions have super high-interest rates.
Banks and other private lending institutions have high-interest rates but since teachers have no choice, they dive into the risk. 

2. Private loan agencies have longer payment years.
Banks usually offer three (3) years for a loan of a higher amount no more or less but in the case of those small lending institutions, they offer five (5) or ten (10) years which leads teachers to be enticed by the big offer without thinking the consequences that may happen ahead.

3. There is no dividend in private institutions.
Public cooperative for teachers and other public lending institutions will give dividends to the members annually which are the opposite with the private  This is a privilege that goes with being a member and having a loan. The member-borrowers are given chances to enjoy their dividends.

4. There are no freebies and give-away in the private loaning agencies.
While the cooperative for teachers and other public lending institutions will enjoy freebies, groceries, and give-away, it is also the opposite of the private lending institutions. 


5. Difficulty in availing of a re-loan after how many months.
It is very difficult to avail of a re-loan in the private loaning institution because they have the standard number of months needed in order to avail it. Usually, it takes six (6) months before you can apply for a re-loan.

6. In the case of those who sell their ATM’s, it is very difficult to claim your bonuses and other incentives.
This is the most difficult of all. There are many teachers who risk everything even their ATM and selling them in the hands of the different loan sharks. At first, after receiving the sum of money, the teachers will then be happy since it can solve their problem but in the long run, it will turn as difficult as ever because it will be very impossible to get back your ATM if you wish to. It takes five (5) to ten (10) years to claim back your ATM card. 

These reasons will somehow struck a truth to your minds but this is reality. If you are a teacher reading this, it will be a realization on your part to take or not to risk anything just to get a loan. Remember, it is still YOU who can manage your finances well. It means that you need to be wiser in deciding where to go for a loan that is more advantageous on your part. - Clea | Helpline PH

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