Loans in the Philippines

Personal loans in the Philippines are very popular, cause a lot of people need short-term money asap. Of cause, many can use bank services and get money from one, but there are more of one Filipinos who can’t do it cause of bad credit score or other reasons.

A lot of Filipinos are still unbanked and don’t have any bank account. Near 2 from 10 in families save money in banks. People are interested in bank loans, but one has very strict requirements which intimate customers. Especially, when Filipinos want to take some small amount of money. This is the main reason why many people practice other finance services: cash lenders or individual lenders (called “loan sharks”). The last one is very risky option.

Borrowers in the Philippines should know, that they can apply legal loan online without using banks or “loan sharks” services.

Loans in the Philippines

Of cause, loans from family are the best option to borrow money and no documents needed, but relatives often forget to repay the money and this influence on the relationships very much in a negative way. Also, there is one more good option to get a loan – from community cooperatives. For example, in villages, there are cooperatives which provide small loans for people on different needs. The 3d option is using the services of online lending companies.

TOP – 5 Lending Services in the Philippines

1. Cashwagon
2. Robocash
3. Online Loans Pilipinas
4. Atome
5. MoneyCat Philippines

Quick loans are for asap situations: you need to give money back or buy something important. You can divide personal loans in the Philippines on secure (require collateral) and unsecured (without collateral).

How everything works

To take a quick loan in the Philippines you need to enter into an agreement with the loan originator/lender. For this you need to choose loan service, amount and period of the loan, read all terms, in the order, you understand all rules and, if everything ok, agree = promise to repay money according to the exact terms in the contract. If the borrower will do it in time, he/she will pay only the commission for the days loan was used. If the borrower will not do it in time, the lender can add fine and increase commission, so in total borrower:

• will need to pay much more money
• credit score will be spoiled

Here we talk more about unsecured loans, where interest rate dependi on the service can be 0,01% – 3,00% per day depending on the service.

Of cause, better use bank personal loans, but not all can do it, so then you need understand all responsibility of taking such unsecured loans!

To repay money people usually use their credit cards, cause it faster and easier or borrower can do it with the bank service.

How much can you borrow

Reply to this question you need to understand how much you need? For what goals he/she wants to take the money? How much can you repay and in what period? Where borrower will take money when a deadline to repay will come? Does the borrower have other options to get money, what will be the best one?

For example, for the instant cash loans in the Philippines Cashwagon service offers the best options: up to PHP 20,000 for the period 180 days! 1st loan is only for PHP 7,000 but interest rate is 0,01% per day!

Should You Get a Personal Loan

There are a lot of different types of loans, but personal loans cover your asap needs. It can have low and high-interest rates and manly don’t require any collateral, but it doesn’t mean you should apply for the loan, you need to know when it is normal and when is not:

Don’t forget to:

• Check if your credit score is good
• Compare the terms of all lenders

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