What is an emergency loan?
An emergency loan is a kind of loan for situations that you did not expect. Most of the time, an emergency loan is something you require if an accident happens, or if there is a medical need. Sometimes, a fire that burned a family’s house may also qualify as an emergency—they need funds to help them secure a place to live in immediately.
Not all financial institutions offer emergency loans. It is also hard to secure loans for the unemployed with no bank account in the Philippines. Today, we will show you several alternatives—and hopefully, you do not need one in the future. But if an emergency does occur, you can always go back to this website for guidance.
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Emergency loan reasons
There are several reasons why a person or family would need an emergency fast loan in 15 minutes. Below are some of the most common ones.
- Loss of Job – sometimes, companies shut down without even warning their employees. Although some companies give back pay, the employees who lost their jobs will find it hard to find a new place of employment. As their funds get depleted, they would find themselves in a tight financial situation—they still need to pay the bills.
- Medical reasons – cardiac problems, diabetes, pneumonia and other debilitating diseases are enough reasons for a family to avail of an emergency loan. Medical expenses are costly, and it is rare for families to have saved enough money in the bank to pay for these medical costs.
- Accidents – if accidents happen, people need money right away for medical care. In extreme situations where the person passed away, families also need money to pay for the funeral and burial expenses.
- Home Repairs – property damage is not uncommon after a calamity. There has to be a way for people to get an emergency loan to fix their homes.
There are other reasons for emergency loans like unexpected travel, unexpected premature birth, and many more. The important question is: where do you get an emergency loan?
Calculate the amount and term of the loan
Where to Get Emergency Loans in the Philippines?
There are several financial institutions where you can get an emergency loan. However, it does not mean that you will qualify in all of them, so you need to check out several options.
Here are the most common ones:
- Banks – there are thousands of banks in the Philippines. You can visit several and ask if you qualify, or if they offer an emergency loan. If you have a bank account, it is easier to file for an emergency loan, especially if you are a good depositor. In many cases, you can also ask for loans if you are a credit card holder of that bank. Most of the time, the emergency loan will be processed as a personal loan.
- MFIs (Online lending companies) – this is probably the best for quick emergency cash loans for the unemployed in the Philippines. These are online companies. The way it works is that you register for an account online, and then apply for a loan. The company will ask you for some documentation, and you need to scan and submit them digitally. Once you get approved, they will deposit your emergency loan to your bank account. In these companies, you can apply for an online loan using PhilHealth ID and other government IDs.
- Government programs (GSIS, SSS, Pag-IBIG) – there are government institutions that provide emergency loans to the poor, but only for paying members who are registered. These emergency loans come in different forms like calamity loans.
- PawnShops – if you have jewelry, you can get a loan from pawnshops in exchange for your property. These pawn shops are going to charge anywhere between 5% and 10% interest on a monthly basis. Take note that you will never be able to get back your property unless you have paid the principal and the interest in full.
Of course, you can always ask your friends and family for support. They are your immediate source of relief in cases of emergency. If what you have borrowed is not enough, you can choose from the options above to secure an emergency loan.
Advantages of emergency loans in the Philippines
Why do you need to get an emergency loan online, and what are their advantages? Emergency loans are great because you are asking for money that you intend to pay. If you borrow from family and friends, you may find yourself stuck in a debt of gratitude, and this can affect your relationship with people.
Here are some more advantages of emergency loans:
- Fast and secure – financial institutions know that emergency loans need to be processed quickly. Depending on the company, you can get an emergency loan in the Philippines as fast as 24 hours. They are also secure. You can either get a loan deposited into your bank account, or you can be issued a check.
- Available to Filipinos – many financial institutions in the country know the financial plight of the average Filipino. As such, for as long as you can prove your citizenship, you have several options for getting an emergency loan. Many institutions have a loan app using PhilHealth ID, especially so if your reason for emergency is medical in nature.
- Easy payment plans – because of the nature of the loan, financial institutions may give you some leeway as far as payments are concerned. No bank or government institution will ask you to pay the loan in full one-time big-time. Instead, you will pay the loan in amortization for several months.
As you can see, it is better to apply for emergency loans than to do other things, such as selling your properties at a loss. Selling your car or house should be your last resort.
Emergency loans for the unemployed
It is rare for banks to provide an emergency loan for the unemployed. There could be exceptions, such as if you are the spouse of someone who has a job.
If you decline your loan, do not despair. You still have other options. For example, SSS loan. This is different from the GSIS pensioners emergency loan.SSS has what it calls the Unemployment Benefit or Insurance. This option is characterized by fast processing and easy application process. However, it is necessary to have an official status of an unemployed person. You cannot avail it if you were never a paying member.
There are also many credit companies, which mainly work on the Internet. They offer their services to the unemployed, but they may need a co-borrower. In addition, some of them may ask for bail. If you do not find income and do not pay the easy loan for the unemployed in the Philippines, the collateral will become the property of the credit company.
GSIS Emergency Loan
If you are a government employee, you are in good hands. Since you are paying your GSIS contributions, you can depend on the system in a time of emergency. However, this kind of loan is only applicable if there is a calamity.
If you have a GSIS emergency loan inquiry, you are in the right place. Here are some of the important things you need to know about this loan.
Emergency loan GSIS requirement
Here the requirements:
- You must be a government employee of the declared area of calamity. For example, to be able to avail GSIS emergency loan Camarines Sur, that province must be declared to be in a state of calamity. The same thing applies for GSIS emergency loan Cavite and others. The full list of areas can be seen here.
- You must be in active service; you cannot avail of this loan if you are no longer employed by the government.
- You must have no arrears or missing payment in your GSIS contributions.
- You must not have any other existing loans in GSIS.
To be able to apply, they must first fill out the GSIS emergency loan application form and then submit it in their office. You must also provide your GSIS ID. Currently, there is no online loan app that accepts PhilHealth ID for a GSIS loan.
How much is GSIS emergency loan
There is no definite amount as to how much you can get. Each member has a different status, so the amount of loan you can get will vary from the others. There is also no fix GSIS emergency loan processing time. It all depends on the workload of the people in GSIS.
Who can avail GSIS emergency loan?
No matter where you are, you do not have to worry about areas eligible for GSIS emergency loan. Also, for as long as you are a paying GSIS member, you can avail it, provided that your area is affected by a calamity.
How can I apply for GSIS emergency loan 2020?
To apply for an emergency loan, here are the steps:
- Download the application from the GSIS website;
- Fill it out and sign it;
- Photocopy the documents required;
- Go to a GSIS and submit our application form and the documents;
- Wait for further instructions from the GSIS office.
An emergency loan is something that you do not want to apply for. However, life has no guarantees. You may find yourself in a bad spot one day, and you will certainly need an ally for your financial needs. Bookmark this page so you can easily get guidance if an emergency ever arises.
Written by Mikka Montero | Modified date: October 22, 2020