Many Filipinos are not so comfortable when discussing personal money matters. Not wanting others to doubt their financial stability, they cannot bring themselves to inquire about loans even when they need one.

A personal loan is a resource which, if used responsibly, can be very helpful in managing finances. In fact, it may be useful during specific situations. Roussel Larger, personal loans product leader from GE Money Bank, says, "Saving money from your monthly income is always a good discipline, and while it is a way to accumulate enough funds to purchase something of high value, it does involve what we call ‘time cost’. Time cost is the possibility of missing out on something like a timely investment or special price offer on a car because you waited till you had enough saved to make a purchase."

Loans also come in handy during emergencies. "You cannot entirely avoid life’s little emergencies where you need extra cash immediately and a loan becomes necessary," added Larger.

Larger suggests that you ask yourself these three simple questions to know if a personal loan is right for you.

How much do I actually need?

Knowing how much you should borrow is dependent entirely on what your need is at the time. Do you need to consolidate your loans or credit card balances? Do you need to finance a home renovation, a family vacation or school finances? Try to estimate how much money is involved. While it may be tempting to borrow a little bit more than you actually need, it is a good practice not to borrow more than what is necessary.

What are the interest rates and re-payment options that are available?

Carefully study and compare the interest rates of the various loan offerings. Interest rates vary according to the length of the repayment period. Make sure you do not compare a fixed rate with floating rates. Don’t forget to check other fees that may be involved in the loan application such as processing fees or the cost of facilitating the screening and evaluation of the loan, as well as late charges imposed when payments are not made on time.

How much can you afford to pay for each month?

Be honest with yourself when assessing how much you can afford to shell out each month for loan payments. You will have to factor in your everyday expenses plus include a buffer for emergencies. Even if your income would allow higher amortizations, make sure the loan amount is small enough so the monthly payments won’t leave you without extra cash by the end of the month. A good rule of thumb is that monthly payments should not exceed 10 percent of your net disposable income.

If you are interested to see if you qualify for a personal loan or want to check out your possible loan options, simply log on to www.gemoneybank.com.ph. By answering a few simple questions, you will learn if you are eligible for a loan. If you qualify, the program will determine the loan packages the bank can extend to you. In a short time, the facility flashes onscreen a loan offer, so you will know the exact loan amount you are qualified to take out. It’s safe, secure, fast and hassle-free.

GE Money Bank’s Internet loan application facility is initially available for personal loans and is available in tenors of 6, 12, 18 24 and 36 months for as low as a 1.39 percent add-on rate per month.