Unpaid Online Loan Philippines

0% interest rate

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.

4.5 / 5
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up to 5,0

CashXpress Philippines (CXPH) - apply loan online and get you money on bank account in 10 - 15 minutes.

4.7 / 5
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depends the loan service you choose

Loanonline Philippines doesn´t provide loans. Service only recommends the best options for it to Filipinos.

4.1 / 5
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0% for the 1st loan

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

4.6 / 5
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from 0,01% per day

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.

4.8 / 5
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0,01% - 11,9% per month

Moneycat Philippines is the online lender which provides fast salary loans for Filipinos. First loan with the 0,01% interest rate. For repeated loan is up to 11,90% per month. You can apply a loan online where never you are.

4.3 / 5
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0,16% per day

Kviku is the international lender that support online loans in the Philippines. The number of service customers constantly growing. Kviku provides installment loans for Filipinos. Want to know mode details? Follow the AdvanceLoans.ph article and find out more about this finance service: how to register, what are the terms, reviews, requirements, etc.

4 / 5
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Online loans in the Philippines have become a popular option for Filipinos who need quick access to cash. However, failing to repay an online loan can have serious consequences. In this article, we will discuss the possible consequences of unpaid online loans in the Philippines and offer solutions to avoid these consequences.

Unpaid online loan Philippines – relationships with microcredit companies often turn into financial problems for the borrower. Moreover, the working conditions of most lenders provide significant penalties for any delays. Therefore, the question of a private person, how to find out which microloans I owe, is quite logical and not surprising. Getting a correct and timely answer to it often allows you to avoid severe additional costs on the part of the client of the microcredit company. In addition, it is possible to identify unpaid online loans issued by fraudsters quickly.

Unpaid Online Loan Philippines
Unpaid Online Loan Philippines

Non-payment of Online Debts

Investopedia defines credit default as the failure to make payments on any loan or collateral. It involves not just the principal of the loan but also the incapacity to pay interest rates. Any borrower can default on a debt by missing payments, continuing to make late payments, or completely stopping repayments.

  • Lenders are required to notify the borrower of delays. But even if a bank or microfinance organization is silent, one should not hope that they will forget or forgive the debt;
  • It is possible that an SMS message about a missed payment or an email message did not reach you due to a technical failure. But the bank or lender will undoubtedly transfer information about the delay to the credit bureaus — and the borrower’s credit rating will be damaged;
  • It will be difficult for him to borrow money on acceptable terms in the future. And even if a person is not yet thinking about new loans, it is not in his interest to play for time. Penalties and fines will be charged for the delay — the debt will grow. People wonder if can you go to jail for not paying an online loan in the Philippines — this is hardly the case, but it is essential not to bring the matter to a lawsuit;
  • If you want to figure out what happens if the online loan is not paid in the Philippines, keep in mind that if during the last six months, the borrower is overdue in total by more than 60 days, the creditor will have the right to demand the entire amount of the debt with interest, even if the contract has not yet expired. And for quick loans (less than two months), a person may be required to return all the money as soon as he delays payment for ten days. In addition, when the debtor stops paying, the creditor has the right to sue him. And the longer the delay, the more significant the amount will have to be returned.

What is the Responsibility for Non-Payment of the Loan?

Credit institutions punish their clients for non-compliance with the loan repayment schedule. Debtors are subject to penalties and interest.

What Banks Do If User Don´t Repay Money

If the borrower refuses to repay the unpaid online loan Philippines, the financial institution charges penalties and fines. Some terms of the contract provide for the application of both punishments simultaneously. The penalty is calculated daily. At the same time, its size cannot exceed the national bank discount rate ratio to the amount of debt.

If the borrower decides not to pay the unpaid online loan the Philippines at all and no warnings and fines help to recover the amount of the debt, the bank goes to court. The lender has three years to bring the troubled borrower to justice by law. If the court satisfies the claim of the financial institution, the debt can be recovered by confiscation of property in an executive order.

How Do Lenders Deal with Debtors?

A loan at a lending company is a simple loan issued without an income certificate within 15 minutes. A fixed percentage is charged on the loan amount every day. Before contacting a microfinance organization, it is essential to calculate everything in advance. If you are not sure that you can repay the unpaid online loan Philippines 2023 on time, it is better to borrow money from friends or relatives. So what happens if you don’t pay online loans in the Philippines?

digido unpaid online loan

A person can await such things:

  • SMS reminders. The phone number used to register with the lender will receive an SMS with reminders to repay the loan 2 to 3 days before the contract’s expiration. If the borrower fails to pay, the messages will come frequently;
  • Calls to relatives. If the loan debtor refuses to pay, representatives of the lenders will try to influence him through public opinion. Relatives, work colleagues, and neighbors of the borrower will begin to receive calls with a request to convince him to return the money;
  • Suppose the client does not return the money on time. In that case, the credit company will send an official letter to the address indicated in the questionnaire, demanding to repay the debt and pay a fine for violation of the contract terms;
  • Contacting collectors. The increase in loan debt and the lack of response from the debtor to numerous warnings are forcing lending companies to seek help from collection companies specializing in working with problem borrowers;
  • You will pay fees and interest that will accumulate on your loan. Contrary to what one might think, the loan doesn’t go away when you fail to repay a loan. In fact, without paying once, you are simply adding to the amount you owe. And the longer you don’t pay, the higher those fees. You receive late payments, penalties, interest, and other types of payments.

Late fees for outstanding loans in the Philippines typically range from 200 to 600 pesos per month, or 7 to 10% of the loan amount, whichever is larger. Depending on your credit, you may face repossession or foreclosure.

Borrowers who fail on a car or home loan face having their property and vehicle seized in the worst-case scenario. It will allow lenders to recover the money they have lent you. For instance, if you have an SSS loan, the property will be repossessed after six months of non-payment.

How Not to Run Into Scammers

Online loans are dangerous in cases where the lender turns out to be a scammer. Therefore, it is necessary to be extremely careful when applying to a microfinance organization.

It is better to adhere to the following rules:

  • Carefully check the lender you are going to apply to. Find out if it has a website, an offline branch, and how long the organization has been in existence. Often scammers create websites that entirely copy the services of other famous companies;
  • Please note the application deadlines. Most lending companies issue a loan decision within 10-15 minutes. If you are asked to wait longer, you should be wary;
  • Never pay a fee for reviewing an application. It is one of the types of scams common in the financial services market;
  • Read the terms of the contract carefully. The document must indicate the amount, loan terms, interest rate, possible fines, and penalties.

To avoid worrying that online loans are dangerous, contact trusted microfinance organizations.

Consequences Of Unpaid Loans

In the event of improper performance of obligations under the loan agreement, the borrower must be prepared that the bank will be forced to take actions aimed at returning overdue debts within the framework of the legislation.

What to expect:

  • Calculation of penalties. According to the conditions established by the loan agreement, penalty interest is automatically charged for any delay. And even if you have never violated the terms of the contract before, you will not be able to avoid them if you do not pay. It’s like a snowball: there will be more and more debts than you can pay now, penalties will grow, and such a loan can be repaid until old age;
  • Bad credit history. It will directly affect the assessment of the reliability and solvency of the client by lenders, so if in the future you are going to get a new loan from a bank with average rates, then when deciding on lending, you will be denied;
  • Bank calls and field events. You need to understand that the bank will constantly remind you of non-payment under the contract using calls, SMS notifications, and e-mail newsletters;
  • Early recovery of the entire amount of the debt. If the borrower violates obligations under the agreement, the bank has the right to early collect the granted loans and accrued interest on them, if this is provided for by the contract, and levy execution on the pledged property in the manner established by federal law. Such early recovery of debt does not occur accidentally or secretly. You should receive a notification from the bank that a decision has been made for demanding payment of the entire loan amount at a time.

Difficulties with debt repayment can always be resolved through negotiations with the creditor. If you find the best way how to pay online loan Philippines, you can get out of the debt hole. Explain why you cannot make payments as scheduled and provide proof if possible. In this case, a bank or a credit company will be able to meet you halfway by lowering the interest rate, extending the term of the contract, or writing off part of the debt.

Short Resume About The Consequences of Unpaid Online Loans in the Philippines

  1. Late Fees and Penalty Charges are waiting for those who failed to repay the loan online on time;
  2. Negative Impact on the Credit Score, it negatively influences your future possibilities to get a loan from the banks or other lenders;
  3. Legal Action from lenders also can wait for such borrowers who got in such a situation, cause lenders want to get their money back. These actions can lead as result to additional fees, court appearances, and even garnishment of wages.

What Are The Main Solutions to Unpaid Online Loans in the Philippines

  1. Contact the Lender in time and deal with some personal payment plans in order to avoid problems highlighted higher;
  2. Consider Debt Consolidation – this can be a good solution, so borrowers could manage payments easier. It also could help to reduce the interest rate and save money in the long run;
  3. Find Financial Assistance – not sure it will help, but in some cases can help to create the right plan to solve all your financial issues.

So, in conclusion, unpaid online loans in the Philippines can have really serious consequences. Be proactive and communicate with the lender before the due date, if you see you will not be able to repay your loan in time. try to explain your situation. Be responsible and do your best in order to avoid further financial difficulties.

User Review 4.71 (7 votes)
Linda Carters/ author of the article

Financial Journalist on Advance Loans Philippines with 8 years experience in a Fintech niche.


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