The Philippines economic potential was discovered for the modern world relatively recently. Having come to the fore, the country demonstrated a high level of economic development and welfare of citizens. It belongs to the group of countries of South-East Asia called “Asian Tigers” of the second wave. Although the Philippines began modernizing the national economy later than other countries, the average wage in the country is $500. This is quite enough to provide essential needs, but online loans are relevant for performing large purchases among the residents of this country.
Advantages of online loans
The accessibility of bank and online lending breeds a certain competition between these dimensions. Long-term loans can help when one wants to buy a house, but when daily requirements need to be met instant online loans are received right on your bankcard.
The high demand of online loans is due to several factors:
- Working with different population categories
Funds from microfinance organizations are available to most Filipinos, moreover companies do not refuse working with unreliable borrowers and those whose loan applications were rejected by banks.
- Simplicity of registration
Formalizing a loan online is easier than doing so via a bank. The borrower is given more time to study the conditions. There is no need to visit a branch or office to receive the money, since it is transferred directly to a bankcard or a bank account.
- The loan amount
Any Filipino who used the company services can apply for a loan in the amount of 83,000 pesos, which is almost equal to 1,500 American dollars. The average amount of a short-term loan is $ 200.
- Minimum requirements
One only needs a passport to apply for a loan. Documents confirming salary and the level of wealth are not requiered. The percentage of loans being repaid is extremely high – 97%. It explains why it is necessary to provide a minimum amount of documents.
- Availability at any time
Microfinance organizations work 24/7. They quickly review applications submitted at any time of the day, and make a decision regarding a loan in 15 minutes.
Where is it better to apply for an online loan?
Pautang online: one can apply for a loan online. The funds are provided by the creditor or the bank without a personal meeting with the borrower.
The number of those who want to apply for a consumer loan is constantly increasing. This service is in demand mostly in Manila, San Fernando, Cebu, Iloilo. One of the most advantageous microfinance organizations are working according to the American model. Their defining feature is putting forward a minimum amount of requirements to the borrower and introducing loyalty programs. Only minimum set of information is needed for fund transfer: personal data and information about the salary.
Cashwagon is an international company offering online loans. Their main activity is the provision of loans without collateral. The money is given to citizens of the country between the ages of 20 and 60.
In order to receive funds, you must fill out an application form on the website. The application processing takes 30 minutes, after which the notification of the decision is sent to the borrower’s number, and the money is transferred to the bank account within 24 hours.
HOME CREDIT: PAUTANG ONLINE PHILIPPINES
The company launched its’ work in the Philippine financial market since 2013. It is a subsidiary of Home Credit Group, which operates in more than 11 countries. To apply for a loan, one needs two identifying documents.
The main requirements are:
- Age limit from 18 to 68 years.
- Workplace availability
For entrepreneurs and self-employed persons an income source certificate is required.
PAUTANG ONLINE PHILIPPINES: ÆON CREDIT SERVICE
The company quickly provides online loans starting from 2013. Its main activity direction is the provision of funds for the purchase of goods without a credit card. Philippine subsidiary of the company is ÆON Financial Service Co., Ltd.
In order to apply for a loan, you need to select the goods you like in the partner store and fill in a loan application having prepared two documents that prove your identity and income information in advance. Repayment is made monthly according to the amounts specified in the contract.
PAUTANG ONLINE PHILIPPINES: CASH CREDIT
That financial and technological company operates in Bulgaria, South Africa and the Philippines. Its predominant activity direction is cooperation with various data providers, but it also engages in microcredits.
A person can borrow up to 10,000 pesos for up to 4 months. In order to receive funds, you need to fill in an application at the representative office or on the partners’ website and wait for its approval.
Online loans: requirements
All procedures from filing in an application to making a decision are made online so there is no need for a personal meeting between the borrower and creditor representatives. This guarantees wide accessibility of the service and a high level of convenience for customers.
Each company forms interest rates by itself; however, their range is insignificant. The loan term is also determined in a special order and generally does not exceed 30 days.
To apply for a loan, the borrower must:
- Be of legal age.
- Have the citizenship of the country.
- Bank card.
- Source of income (having a stable job place for at least 3 months)
If one wants to register an organization, two identifying documents are requested. These include: a passport, a driving license, employment proof, utility bills, SSS, PRC, bank statements and other documents.
After one fills an online application in, the loan gets quickly approved within 15 minutes and the funds are transferred to the borrower’s bank card. No additional actions are needed.
What needs to be done to have one’s online loan approved?
Employees of the company should not request the data about:
- Family situation.
- Wage level.
However, in order to increase the chance of loan approval, a person can provide such data. One can also provide information about the sources of income or guarantors in a special notice box, which will increase the chance of application approval.
Online loan is an affordable alternative to traditional loans for Filipinos, that’s why analysts say that this segment of the financial market will grow.