If you need fast access to money for an urgent situation, you may think of a quick loan that is usually a personal loan, which is accessible from different kinds of sources. On the other hand, while some firms might be reliable and trustworthy, other service providers can be predatory lenders. Therefore, it is vital to know your loan options when you need quick cash.
Why and When Do We Need Quick Loans?
If you are scrambling to cover tuition fee, or apartment rent or keep ahead of your electric and water bills, a personal loan is considered the best solution. However, this kind of loan, which is promoted as a quick money option, could come with a huge percent rate if you don’t pay enough care.
Quick loans can be the best choice that provide you with fast and instant access to finances directly deposited to your account. For those who have a good credit history, there is a chance to find a quick loan that comes with favorable terms. But some loans available charge soaring interest rates as well as high fees.
A quick loan is a loan that can be obtained in a short time. You must be able to look for a quick loan online without too much effort. When looking for a lender online, you may need to keep in mind what they will charge you for an interest rate. The rates will differ in most situations.
There are lots of online lenders available, both online and offline, that might offer you reasonable rates. In many cases, you must be able to apply for the quick loan on the site that you visit about the loan you’re inquiring about.
There are lots of online lenders available you may need to look for the company to ensure that they are legitimate. This can be done by reading reviews or visiting the website. The choice of getting a quick loan offers many benefits.
Types of Fast Available Loans
Being able to access cash quickly is vital for Filipino people and their loved ones. Lives can be turned upside down in an instance in case of unforeseen bills, be it medical bills, a car breakdown, need for money to repair the roof, etc.
Loans can help a lot in covering these expenses. According to the current study, almost 35 percent of Filipinos have taken out a quick loan of some type to cover unwanted expenses. Apart from unwanted costs, they also apply for a loan to have a fund to open a business. Regardless of the types of loans you are looking for and its purpose, we will guide you on the kinds of quick loans available out there.
Here are Various Kinds of Quick Loans to Consider
Car Title Loan
Funding against a car title is regarded as a short term mortgage. Usually, it is taken out for quick cash. In general, it is a small amount of money which can be compensated in just a few days or weeks.
Unlike car title loans, a personal loan doesn’t need any collateral. If you apply for this kind of loan, you agree to repay the amount of money borrowed without dread of something of value getting recaptured. It is a pledge of payment. The money you get from this kind of loan differs from your location. You can apply for $1,000 or more in a loan. Credit score verification is needed during the process.
People who apply for this kind of loan use the money taken out to pay off various types of expenses like medical bills, buy new tools or equipment, car repairs, emergencies as well as holidays with the family. The rates of the loan will depend on the credit record of the borrower; you can look forward to seeing between 10 to 32 percent.
Another popular kind of quick loans is a payday loan. In general, it is used to pay unwanted medical emergency, rent, loan payment or unwanted bills. Applying for this kind of loan is fast and easy. You just need to give the lender with Social Security Number (SSN) or Taxpayer’s Identification Number (TIN), proof of income and bank account information. This loan has a time frame that needs to be met.
If you are planning to buy a new car, then a car loan is the best choice. Car loans can be funded through a lot of organizations like a car dealership, bank, credit union, as well as home equity mortgage. A good credit history can help a borrower acquire a reasonable rate. Auto dealerships provide financing choices in their car, and you may include extra benefits in your purchase once you fund through the car dealership.
This kind of loan is planned to be paid off over time. In general, interest is accrued on the day you officially graduated. However, in some instances lenders offer a grace period. This loan is utilized to pay tuition fees.
Most Popular Filipino Loan Companies
What is ATM Loan?
ATM Loan is one of the best quick loan options today. A lot of people resort to this kind of loan in cases of dire financial conditions. ATM Salary Loan in the Philippines is viewed as a feasible and practical choice for people who don’t want to process requirements, as well as for people with less favorable credit.
How does ATM Loan work?
ATM Loan works effortlessly. The borrower surrenders his or her Automated Teller Machine card utilized by the organization of business he or she is working with for income disbursement. The ATM card together with the Personal Identification Number (PIN) is utilized as collateral to make sure the borrowers pay the borrowed money on a given time frame. This kind of loan is offered by non-bank lenders both formal and informal.
What is the Difference between ATM Lending and Personal Loan?
There is a difference between a personal loan and an ATM salary loan. A personal loan is defined as a multi-purpose mortgage intended for personal use. Workers can obtain this kind of loan as well as self-employed people or anyone that has a steady source of income. The fact that personal loan is multi-purpose, the borrower can tailor this kind of loan to meet a particular need, be it used to pay school fees, home renovation, home appliance, or use for medical bills. Last but not least, this kind of loan can be availed through banks: formal as well as lending companies that are registered by SEC and informal or not registered lending firms that operate illegitimately.
On the other hand, ATM or Automated Teller Machine loan is classified as one type of personal loan wherein the borrower gives in his or her card along with the PIN. ATM Card is used as a guarantee to make sure the borrower pays the money acquired in part or full each payday. This kind of loan or popularly known as Sangla ATM in the Philippines and is offered by individuals or non-bank lenders. There are different opinions about whether or not Sangla ATM cash loan is legal.
The Upsides of ATM Loan
ATM Loan may be utilized for various kinds of purposes. The borrower can use the money borrowed for medical expenses, car repairs, dream vacation as well as consolidate credit card debt – anything you want. ATM Loan is 1 day process, it’s quick and convenient.
The ATM loan rate is favorable as opposed to other types of loans. Research shows that the average interest rate on a 12-month personal loan is 5.15%. In an ATM loan, you don’t need to put up security, unlike home equity or mortgage that is collateralized by a car, house, or even land title. ATM Loan is attractive to those who have nothing of value to make use of as a security.
The Downsides and Legality of ATM Loan
Despite many perks, it also comes with some minor issues. Banko Sentral Ng Pilipinas (BSP) has informed the public against using ATM card as a security for a mortgage. ATM loan can result in a financial issue, which includes the chance for creditors or lenders to withdraw the agreed amount of payment too much.
This can also make you prone to a cycle of mortgages. Like for instance, when the lender withdraws the whole amount of the money, the borrower is required to get another loan to pay his or her living expenses until the next payday.
Why do People Turn to ATM Loans?
There are many good reasons why people opt for ATM loans. One of them is that they are able to get money on time without any requirements. Just surrender the ATM card to the lender along with the PIN, and that’s it. You can now have the money you need to cover your expenses.
How to get ATM Loan on the Philippines?
Non-bank lenders offer ATM Loan; most of the time, it is individuals who offer Sangla ATM. However, there are also private organizations that provide this kind of loan.
Why Would You Rather Choose a Personal Loan?
There is no doubt that the ATM loan offers many benefits, but experts suggest using personal loans, as far as they are provided by various kinds of lenders, like credit unions and traditional banks online. So, it is easy for you to find the reliable one, not like ATM Loan, wherein you are not familiar with the person you are dealing with. Even if it is legal, it has still lots of implications.
Written by Iren from AllTheBestLoans | Modified date: January 29, 2020