Digido Philippines - 0% interest rate for the 1st time loan up to PHP 25.000, if borrower pay back in due time. Apply loan online with Digido and solve your urgent financial issue right now. If you need cash loan in a 15 minutes, Digido is the right solution.
CashXpress Philippines (CXPH) - apply loan online and get you money on bank account in 10 - 15 minutes.
Loanonline Philippines doesn´t provide loans. Service only recommends the best options for it to Filipinos.
Finbro Philippines is a reliable micro finance company that can solve urgent financial issues in 15 minutes for people all over the country. Apply for the 1st loan up to PHP 15.000
OLP or Online Loan Pilipinas - apply your online loan 24/7. Your loan can be for any purpose, just read terms before, and, if everything ok, get your money with the help of microloan company.
In the Philippines many people unbanked, but they need sometimes to borrow money for some urgent issues. People seek assistance from friends, family, colleagues, traditional banks, lenders, pawnshops, exploring peer-to-peer lending apps, and engaging in various gig opportunities. So, let´s review the traditional and alternative borrowing methods are comprehensively covered below.
Table of Contents
Why People Borrow Money
There are many reasons why people need additional money, for example:
| Emergency Expenses | it is all about any unexpected events and person has no many on hand. Here Lenders with quick online loans or credit cards could solve all issues: family support, housing needs, medical expenses or some special occasions, etc. |
| Education | students loans are enough popular, and Bukas.ph, suppose is one of the best option for it in the Philippines; |
| SME | business loans for inventory, equipment or some operational costs, one also take place among Filipinos; |
| Debt consolidation | borrowers want consolidate all loans and debts in one place and make lower interest rates; |
| Remittances | people borrow money to support other people; |
| Natural disasters | people may borrow money to recover from the financial impact of natural disasters that are common in the Philippines. |
| Consumer goods | loans are frequently used to finance the purchase of consumer goods such as appliances, furniture, vehicles or something else, allowing Filipinos to pay in installments. |
Understanding Utang in Filipino Culture
Filipinos have embraced the concept of “utang,” translating as debt. Borrowing money is a normal practice in the Philippines, whether seeking help from family, borrowing from colleagues or friends. Utang instills a positive mindset by helping to recognize that at some point everyone may need financial assistance. It is a kind of cultural norm that applies to ordinary Filipinos as well as to large companies that use loans to expand their business.
There are various types of borrowing in the Philippines. You can either apply for a loan from a bank or go to a landlord. You can also borrow money from a pawnshop or through a P2P platform. Different products allow you to meet different financial needs, but you need to be careful with loans, check not only the terms, but also the companies that provide these loans, because not all loan companies are reliable.
Traditional Ways For Borrowing Money
If we consider the types of borrowing in the Philippines, traditional lending options are the most common. These include banks and small credit companies that specialize in serving people with low incomes or poor credit histories. It is very important to apply for a loan from a company with an excellent reputation, these should be licensed partners to avoid additional troubles.
Government-Backed Lending Options in the Philippines
In the Philippines, three key governmental lending entities play a crucial role, offering support through various insurance and coverage programs. They offer options for borrowing, both online and offline.
- GSIS (Government Service Insurance System): GSIS caters to the social security needs of government workers, offering mainly regular and conso-loans for debt refinancing. It has favorable conditions but exclusively serves only its members.
- Pag-IBIG (Home Development Mutual Fund): focused on employed Filipino citizens, Pag-IBIG offers saving programs and multi-purpose loans based on borrowers’ salaries and contributions. Online interactions are facilitated for enhanced convenience.
- SSS (Social Security System): Similar to GSIS, SSS extends social security benefits to Filipino members, including various loans like salary, calamity, housing, personal, corporate, etc. It’s open to all active employees, not limited to government workers, but has to many requirements. Also, the application process could take for several weeks.
Private Banks in the Philippines
Private banks offer a wide range of lending products. Among the large number of banks in the Philippines are the following: BDO, BPI, Citibank, HSBC, Security Bank, RCBC and Maybank. In addition, there are various niche banks, they can be rural, cooperative, universal or savings banks.
When choosing a lender, it is very important to remember that credit checks are the norm, and having a stable job is one of the prerequisites for a loan to be approved. Also, banks often require collateral and can use your movable or immovable property as a kind of guarantee that you will repay the loan on time.
Banks care about their reputation first and foremost, they conduct thorough customer checks, which can often delay the loan application process for up to one week. Of course, the advantage of such a loan, if you have waited and been approved, is the terms: large amounts, low interest rates, additional loyalty programs, in general, maximum benefits.
Small Private Lenders
If you are not able to provide various official documents that banks usually require. If you need funds quickly within one hour, then microcredit companies can help you with this. Of course, they have much lower requirements, but because the risks of non-repayment are higher for companies, they issue smaller amounts and with higher interest rates. Private lenders often serve clients with negative credit histories, with whom banks simply do not work.
These lenders operate offline and online. Online loans are especially popular, as they can be applied for through websites or mobile applications. Some of the most popular companies are: Cashxpress, Digido, Online Loan Pilipinas, Finbro and Tala.
As for interest rates, in a bank, it can be, for example, 3% – 5% per month, and microcredit companies can charge 0.5% – 2.5% per day.
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Nevertheless, it can be a suitable option if you need to borrow money online instantly in the Philippines and you can pay back the funds quickly. Take it responsibly.
Exploring Other Alternative Borrowing Paths
About 30% to 40% of the adult population in the Philippines have bank accounts, while the rest of the people in the country do not have bank accounts.
Traditional lenders often have high requirements, requiring numerous documents such as payslips, various bills, and especially employment records. In addition, the process of approving and disbursing a loan from such companies takes quite a bit of time.
Many people ask, “Where can I borrow money without a job?” Also, not everyone can provide full documentation but needs fast alternative options for obtaining funds. Let’s take a look at a few of them.
Collaborative Savings
Engage in a cooperative savings approach called paluwagan, where individuals come together to form a self-organized collective fund. Each member contributes a set amount, enabling the accumulation of substantial funds. The initial participant, determined through mutual agreement, receives the entire sum, and the cycle repeats.
Loans from employers
Consider employer loans if your company supports such initiatives. Some companies provide regular personal loans, while others include additional funds in comprehensive social programs, allowing you to access the funds you need upfront. There are also lending companies that work only with advertisers and through them offer improved conditions if an employee decides to take out a loan through an employer. Such mechanisms are often convenient, and some of them do not charge any interest. In addition, payments are fast, as they are automatically deducted from the salary.
Friends and family
This is one of the best options. No paperwork, no guarantees, no interest, and no strict deadlines. You simply ask your friends or family for financial help and pay it back as soon as you can or when you agree. There are still risks in this option, and they lie in the fact that you have to fulfill your obligations in time, because if you do not, your relationships with friends or family will deteriorate. “Friendly” debt, although it does not affect your finances as much, creates significant risks for personal relationships.
P2P Companies
Last but certainly not least, there are national or international communities where individuals engage in borrowing and lending money. These P2P companies serve as modern alternatives to the traditional paluwagan method mentioned earlier. Typically accessible online with user-friendly apps for borrowing, these platforms offer opportunities for both investment and borrowing based on individual goals.
Here are some of the most popular P2P platforms in the Philippines:
- FundKo
- MoneyMatch
- Blend
- UpLoan
- BitBond
In addition to Filipino platforms, there are international apps dedicated to peer-to-peer lending. Examples include Funding Circle, Lending Club, KivaUpstart, Peerform, and Prosper.
What Do You Know About Letters of Guarantee
Letters of guarantee offer valuable opportunities for borrowers in the Philippines:
- Improve Personal Loan Approval Chances: If you’re seeking a personal loan, especially if you are currently unemployed, a letter of guarantee from an individual or entity can significantly enhance your chances. This document essentially states that your guarantor will cover the debts associated with the loan or microloan if you are unable to do so yourself. Examples of such letters can provide clarity on the concept.
- Facilitate Installment Plans for Goods/Services: Banks can issue letters of guarantee on behalf of their customers who wish to make purchases, allowing them to pay in installments. In this scenario, your bank acts as a guarantor, ensuring payment for the product or service if you are unable to do so. This functions similarly to an installment plan but is considered more reliable.
Remember, letters of guarantee are effective tools when you have trustworthy partners or maintain a good relationship with banks where you are a loyal client. For instance, consider asking your boss, parents, or affluent friends for a letter of guarantee. To strengthen your standing with banks, build a positive credit history by responsibly using credit cards, opening deposits, and ensuring timely payments.
Conclustion About Borrowing Money In the Philippines
We trust that this reviews has really addressed the primary question: “where can I borrow money online?”.
I have reviewed the main methods of receiving funds in the Philippines that may suit your needs. Of course, you should choose the option that suits you best, but always keep in mind the feasibility of taking out a loan or borrowing money and how you will repay it. This is especially true when you apply to credit companies, which may seem tempting at first glance, but loans, if not repaid on time, can lead to significant financial and other troubles. Therefore, start your journey to obtaining a loan with a thorough research of lenders. Good luck!
