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How To Calculate A Fee For Salary Loans?

Salary loans might come as a great solution when you need some emergency cash. Even though they are quite easy to get, eventually, salary loans can be more expensive than traditional loans.
However, when you compare lenders, it is crucial to understand how fees and interest rate work and what they pay for. Keep in mind that not all lenders charge the same fees; therefore, you should try to calculate fees before you apply for a loan.

We are going to show you the best ways to discover fees related to your loan, and even save some money along the way.

Use online calculators

Online calculators are probably the most popular way to check your loan fees. They are quite easy to use, you just insert loan amount and tenure. However, they aren’t 100% reliable and offer you an approximate estimate.


When using online calculators, don’t go for random tools. You should visit your lender’s online page and use their calculation tool because it will provide you the most accurate estimate. If this tool fails to disclose the interest rate and additional fees, then skip this lender and look for another one.

Visit the lender’s branch

Visiting the lender’s branch might not always be applicable, especially if the lending institution doesn’t have a physical store. Unfortunately, nowadays, a lot of people resort to online lenders, so there isn’t an exact way to thoroughly verify the terms and conditions of the loan unless you submit an application.

However, you can try sending them an email and ask them to provide you information regarding interest rates and additional fees.

On the other hand, government banks and lending institutions have offices that you can visit and get detailed information. But, keep in mind that these types of loans impose stricter regulations, as well as the requirements.

Common fees

In most cases, lenders charge about the Php2,000 processing fee, and this is a common practice for the majority of salary loans. Additionally, you may have to pay documentary stamp tax, which is Php1 for every Php200, but this is only of the loans above Php250,000.

Some people will be submitted to credit life insurance, but not everyone. Based on your application, the bank will determine whether you need credit life insurance or not. Not every lender imposes the same terms and conditions; therefore, make sure to check with them before you actually apply for a loan.

How to apply for a salary loans

As we mentioned before, you can apply for a salary loan using some of the popular online lenders or go to a government institution. In both cases, to be approved, you must be at least 21-year-old, but not older than 65. Complete the application form and provide copies of two valid IDs.

Additionally, submit the lasts payslip and utility billing statement.

It usually takes a couple of hours for your loan to be approved. However, this process might be a bit slower with government banks.