Online loans in the Philippines
Many people have already forgotten about the endless queues in the stuffy banking offices – оnline lending became commonplace. Many companies issue easy loan online without collateral, guarantors and the collection of numerous documents. It isn’t necessary to wait a long time for the application to be approved, the whole procedure for issuing funds takes about an hour.
Know what type of loan you need?
There are two main categories online loans same day:
- secured loans;
- unsecured loans.
The first of them – debt obligations, which must be secured by collateral. They are used most often for small businesses, home purchases or as personal online lending.
Unsecured online lending – debt obligations that do not require collateral. This type of borrowing is a small amount, it is issued quickly, but at a higher interest rate.
- Personal lending: may be secured or unsecured. It is taken for any needs.
- Payday Loans – fast money with high interest rates. It is necessary to take them in extreme cases.
- Salary Loans Online – good option if you have regular income.
- Student Loans are taken to pay for education with deferred interest or payment after completion of study.
- Car Title Loans – loan is issued depending on the value of the car.
- Car Loans – car loans for car purchase.
- Peer to peer Loans – a new type of loan issuance that helps get rid of debt with the help of the community of creditors.
- Home Equity Loans – borrowing from the capital of your own home.
Before receiving money, carefully read the contract, which must be signed. Specify the interest rate, the possibility of early repayment and penalties for late payments. On our site you can choose companies with flexible and favorable terms.
Most Popular Filipino Companies
Types of Personal Loans in the Philippines
Often it’s necessary to take a personal loan without collateral. In case of the absence of real estate and a car, this type of financing carries risks for bankers. There are such loans in the Philippines:
- Fixed term lending. Many financial institutions require that debt be extinguished every month within a year, a year and a half, two or three years. If you choose a shorter period, you will have to pay the highest balance, but the interest will be lower than with a larger lending period.
- With a fixed amount. You can take from 10 000 Php to 1 million Php, if you receive the approval of the application. The real amount depends on the income and the state of the credit history. If they are alright, then the lender will approve the largest possible loan.
- With a fixed interest rate. With a few exceptions, personal loans have fixed interest rates that do not change throughout the lending period.
Personal loans in the Philippines are also divided by purpose of their use and collateral requirements from the customer. Citizens of the country use them for the following reasons:
- payment of existing debt;
- repair and reconstruction of the house;
- for vacation and travel;
- for tuition fees;
- to buy electronics;
- on the development and opening of business;
- payment for medical care;
- to buy a car;
- for a wedding celebration.
Secured and Unsecured Loans
In the Philippines, there are secured and unsecured loans. For the first you need to provide a collateral to secure the debt (property, transport, deposit account in the bank). If repayment is not possible, the collateral is charged to pay the debt. Such lending is beneficial to financial institutions, so they issue large sums at small interest under collateral.
Unsecured loans are obtained without collateral, so you can borrow money online instantly. Depending on the company, you can borrow from 10 000 to 1 million Php. The repayment terms also vary from a week to a year. When drawing up an unsecured loan, proof of creditworthiness is required. To do this, collect information from the tax inspectorate and from work, payment receipts. Fast loan approval online this way is guaranteed.
Build a good credit rating
A good credit rating should be formed as early as possible. To do this, you must timely repay debts. If you have any problems, you should try to negotiate a deferment with the bank employees.
You shouldn’t take a lot of loans. If you lose your source of income, you risk being on the list of fraudulent non-payers. In building a good credit history you need to be consistent, following the rules for many years.
What is Credit Report?
A credit report is a detailed breakdown of an individual’s credit history prepared by a credit bureau. This organization collects financial information about individuals and creates special reports based on the information received. Lenders use these documents along with other criteria to determine the solvency of borrowers and lend them money.
The credit report contains the following sections:
- borrower ID;
- credit history;
- court decisions, bankruptcies, tax violations.
The organization collects this information from public sources and from partners. Such information is beneficial both to TransUnion and banks. When you request a loan, they review this data.
Can you still borrow with bad credit history?
If you have a bad credit history, then you can not count on fast loan approval online in the bank. However, there are companies that deal with the issuance of money and with a spoiled credit rating. Before submitting an application, including an emergency loan online, you need to familiarize yourself with all the offers. Many organizations lend money online even with a spoiled history.
To receive money it is necessary to meet certain requirements:
- have a source of steady income;
- be an adult citizen between the ages of 18 and 60;
- have a bank account;
- own a valid mobile phone number.
To submit an application for loans online you will need ID and documents, confirming your income. Screenshots from a bank account or a card statement are suitable for this purpose. To receive loans online without bank account a collateral is required.
Choose the right Lender
If you have short-term money needs, it is recommended to take micro-loans.
To select the right source for online lending, you need to use the Internet. On our aggregator site, we compare the banks and financial institutions of the Philippines. You can choose favorable rates and flexible debt repayment options.
Borrow for the right reasons
There are several ways to lend money online. If you need to apply urgently, use these tips to help you quickly pass the check and fast loan approval online:
First you need to prepare the documents. ID and documents, proving your income are usually required. You can find out in advance the requirements of the organization and thoroughly prepare for them.
If you have a bad credit history, choose companies that do not attach importance to rating.
Make out the documents correctly. Check for errors and inaccuracies. Provide only real and accurate information. Lenders can easily check everything with their own sources. If incorrect information is found, they will refuse you.
You should avoid several applications for online lending. There is a misconception that the chances of getting cash are increasing with many applications. In fact, lenders may think that you are in great need of money and you will take it in different places and disappear without paying. Therefore, contact a trusted institution, where they issue microloans without refusal.
When to take Business & Personal Loans
Business online lending is intended solely for the purpose of financing business activities. It is aimed at developing and opening a business. Since the amount of such loans is much higher personal, so they are more risky for banks. Applications for their receipt include a lot of documents, by which evaluate:
- personal credit rating of a business owner;
- credit history of the company;
- time period in business;
- cash flows;
- annual income.
Since lenders have tough requirements, it may be difficult for businesses, especially new ones, to provide online lending. Often it requires assets. Such loans need to be taken by businessmen standing firmly on their feet.
Business online lending is issued to enterprises to finance their activities. Financial companies issue personal loans to individuals. It is much easier to get them than a business online loan; they have lower interest rates. Novice entrepreneurs can take personal loans with more attractive conditions for small business development.