Loans 101: Borrow with Confidence

You’re working from home with a laptop that’s starting to crack. You’ve managed to pay the down payment for your teens’ school fees, but you’re not sure how to fill out the rest. Your small business is on the rise, but you know it can thrive even more if only you had the funds to grow.

Whether you’re a young go-getter or supporting a family, you’ve probably thought about taking out a loan to increase your financial needs. However, you want some words in the small print to be explained in more detail.

Say no more, because here is an overview of common loan terminologies that will help you make a more informed decision about borrowing money.

This is the amount of money you borrow. The principal decreases as you pay off your loan. Make sure you only borrow what you can afford.

Interest rate
The interest rate on your loan is the amount the lender charges you for the money you borrow. It is expressed as a percentage and is usually calculated on a monthly or annual (per year) basis.

The term or duration of your loan is the length of time you will repay your loan. This can take between months or years depending on the amount you are borrowing and your agreement with the lender.

An amortization plan is the calculated payment schedule designed to pay off your loan (principal plus interest rate) within a specified time frame.

Grace period
When the lender grants the borrower a period during which the payment of amortizations can be suspended, a grace period is granted.

Loan agreement
It is a contract between the lender and the borrower containing all the conditions of a loan. This is usually a written form containing the above terminologies.

Failure to make loan repayments on the schedule specified in your loan agreement means you are in default. This can have a negative impact on the possibility of being able to take out another loan in the future.

Whether it’s simple electronics, education funds, or home improvement projects, there’s a financing option available to you. Nowadays, taking out a loan is much easier and can even be done via a smartphone! Make your first borrowing experience fast and hassle-free with Tala, a FinTech company trusted by over 6 million users worldwide. Since 2017, Tala has enabled more than 1.6 million Filipinos to access fast, easy and secure loans.

With the Tala the application, there is no need to waste precious time on tedious paperwork or visits to a bank. Tala allows anyone with an Android smartphone to apply for a loan – just answer a few questions, upload a valid ID, submit a selfie and receive a decision in minutes, regardless of financial history . Applicants will also appreciate Talaflexible loan sizes, minimum one-time fees, and a wide range of withdrawal and repayment options.

Tala is keen to provide Filipinos with the means to improve their financial literacy. In addition to offering an accessible and secure option to borrow money, Tala Also has an arsenal of useful content for those who wish to advance their financial independence through knowledge.

To know more about Tala and start your journey, visit and download the app from the Google Playstore.


Tala is operated by Tala Financing Philippines Inc., a licensed finance company with SEC Registration # CS201710582 and Certificate of Authority # 1132. Always study the terms and conditions and the disclosure statement before proceeding.

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