Which types of online loans the Philippines qualify for?
The financial market incorporates two main types of online loans Ph:
The first type requires assigning collateral to secure the borrowing. It may be any kind of property or a vehicle. Thus, you assure the lender that you will either repay a loan or lose your belongings.
Unsecured loans don’t require identifying collateral. Although it implies more straightforward terms, you will need to pay higher interest rates.
Unsecured Personal Loan
Sometimes the client needs to borrow money without identifying collateral. It is rather risky for a lender to give large amounts of money since the applicant doesn’t give guarantees for repayment. This is the main reason why unsecured online loan Pilipinas has so high interest rates. Unsecured borrowing may have the following conditions:
- Borrowing with the fixed term. It is possible to borrow money for a fixed term from 1 month to 5 years. You will need to make repayments every month on a specific date. The shorter period you choose, the lower the interest rate you will need to cover.
- Fixed amount of money. Quick unsecured loans are diverse in financing. You can qualify for different amounts, from PHP 1000 to PHP 1000000. To find out which sum you can get, you will need to approach a lender and provide your income statement and credit history. If you have a favorable financial situation, the lender will offer the largest possible amount of money to borrow.
- Fixed interest rate. Once you sign up for a contract, make sure your interest rate is fixed and won’t change during the period of repayment.
Secured Personal Loan
Secured cash loan Philippines has lower interest rates, but you should also be familiar with its pitfalls. Once you assign collateral and fail with repayments, the financial institution will take your property for violation of the contract terms. This type of lending is advantageous for credit companies, so they borrow large amounts of money for low-interest rates. A secured borrowing can provide the additional funds to pay for medical bills, consolidate debt or finance a major business. The lenders offer repayment options of up to 30 years at competitive interest rates. With a secured online cash loan, it is possible to purchase property, travel abroad, or fulfill your long-term plans.
The secured lending usually has fixed interest rates, flexible payment options, and extended terms. It is possible to choose the most suitable repayment plan to pay off funds without a delay. The majority of lending companies offer online banking options. It is very convenient since you can track loan statements, check your balance, and make payments.
Business Personal Loans
Many clients qualify for cash loans in an hour in the Philippines for business needs. These are usually large sums of money of about PHP 10000 – PHP 100000. The company gives money only for business needs and sets relatively moderate interest rates. Business loans usually require collateral. If the borrower defaults, the financial institution can collect the collateral. The application for borrowing for business purposes differs from the traditional one. It requires providing a large number of official papers. Each applicant should provide such documents:
- Personal credit rating. Personal credit is not necessarily a good indication of whether the client will cover the borrowing to the fullest. However, if the brand has not yet formed a credit rating, the financial institution will only have this info to rely on.
- Credit history of the company. The lender will probably want to know about all the transactions and credits the company has provided. If your company has enough credit scores, most likely, you will get your application approved.
- Annual income. It is an important factor for a lender to understand whether your company has enough revenue to cover the debt.
- Profitability. This is the most essential goal of all business ventures. If your company has high profitability, getting needed funds will be a breeze.
Quick Guide to All Online Loan Types
Those who need quick cash with easy application approval can make the most out of such options:
- Personal lending allows you to borrow money from a financial institution for any needs. The interest rates may differ depending on the amount of money you take.
- Payday online loan. This is the most popular option among those who need to get small amounts of money easily and fast. They don’t require any credit checks and have high-interest rates. It is necessary to repay the borrowing and the interest rate within 30 days.
- A salary loan is suitable for those who have a stable income. With moderate interest rates, you can get a loan equal to 80% of your salary.
- A student loan is an ideal option to pay for education. The interest rates are average, and it is possible to repay the borrowing after the study is completed.
- Car cash loan is suitable for those who have emergency expenses and can assign a vehicle as collateral. The amount of borrowing depends on the car value.
- A car loan is a dedicated borrowing for those who need to purchase a car. It has moderate interest rates and is given for long periods.
- Peer-to-peer lending is a new financial system. It implies borrowing money from individuals or businesses. If you serve as a lender, you will get interested and you receive your money back when the borrowing is fully covered.
- A home equity loan is borrowing secured by another mortgage, allowing proprietors to qualify for a large amount of money against their equity in the home.
Aspect to Consider before Completing an Application
Before signing up a contract, carefully learn the terms and conditions of a particular lending company in order not to have problems in the future. Pay attention to the interest rate, annual percentage rate, additional expenses, and terms of repayment. Keep in mind that the financial institution may provide penalties for early and delayed repayments. Approach a company with flexible terms and conditions to make repayment without any hassles.
Advantages of Online Loans Pilipinas
Even though it may seem risky to borrow from a lending institution, online loans Pilipinas have numerous advantages:
- No need to collect a bundle of documents. To apply for a cash advance, you will need a minimum package of documents. Each applicant should provide such papers as an identification document, income statement, proof of Philippines residence.
- Convenient and easy application approval. There is no need to visit a local bank to ask for credit. With online loans with monthly payments in the Philippines, you can get money without leaving your home. Just visit the official site of a lender, complete the form and wait until a manager approves an application. Usually, it takes about half an hour to get the application approved and approximately one business day to receive money in your bank account.
- Flexible terms. There is no need to overpay large amounts for your borrowing. You can choose the option with favorable terms for easy repayment. Just decide on which amount of money you want to get and how much time you need to recover the debt. Each lending company has an online calculator. You can use it to figure out how much you will need to repay.
- High chances of application approval. In the majority of cases, the lending companies approve the applications. Even if you have an active online loan Philippines from another company, you can still apply for another cash advance and get a positive response.
- The majority of lending companies don’t check the previous financial activities. This means that they don’t check your credit history. Thus, even those who have failed some repayments can get their application approved.
Terms and Conditions of Online Loans with Monthly Payments
When you borrow money from a lender, you will automatically agree to make a repayment each month. Usually, you can apply for a loan of PHP 1000 – PHP 50000. The exact sum depends on the type of cash loan online and whether it is secured or unsecured. On average, the interest rate is from 1% to 2,3% per day. Again, everything depends on the lender and the term it provides for recovering. The term of a cash advance may vary from 1 month to years. If you run a legal business, you can expect to borrow money for up to 7 years.
Each applicant should meet the requirements of a lender. The client should have:
- good credit score;
- no active debts;
- regular income;
- valid residence in the Philippines;
- no active loans in the same company.
Once the applicant meets all the terms and conditions of a particular company, receiving a fast cash loan will be a breeze.
Reasons to Take Quick Cash Loan Philippines
Sometimes it happens that you have a dream but can’t fulfill it due to the lack of financial resources. That is where financial institutions come on stage. If you are hesitating whether to get quick cash loan Philippines, read on these reasons to borrow from lending companies.
- House repair works. If you want to modernize your home but don’t have funds to buy new furniture or change wallpapers, feel free to apply to a reputable lender. Carefully count your possible expenses and borrow the exact sum you need.
- Wedding. The luxury wedding is a priority for every bride. If you don’t have enough money for organizing the most important event in your life, you can apply to a lending company and choose the most appropriate terms and conditions for your future family.
- Dental care. Not every piece of insurance covers dental treatment. That is where a quick cash loan online can come in handy. Feel free to borrow as much as you need to cover the medical expenses using reasonable terms.
- Previous debt consolidation. If you have active debts, borrowing money from a lender is also a good idea to consolidate it. However, make sure you can repay this borrowing on time in order not to appear in a debt hole.
- Vacation. If you plan to travel and don’t have enough money to spend time as you have dreamt of, an easy cash loan online will be a real finding. You can relax now and pay later. Just don’t forget about the interest rates.
How to Return Money?
The process of cash advance repayment is a matter of concern for many borrowers. Once you conduct an agreement, a lender will explain to you the ways to return the money. Keep in mind that you will need to pay off the amount of borrowing, the interest rate, and the annual percentage rate. If you violate the conditions of the agreement, you will need to pay penalty fees.
The violation of the conditions of a lending company may be as follows:
- early covering the borrowing;
- delayed repayment;
- wrong amount of repayment.
You can use such methods to repay your borrowing:
- Transfer the funds to the financial company from your bank account. It is possible to use a terminal to deposit an account or apply to the manager of the nearest bank branch.
- ATM transfer. You will need to specify the details of your loan in the ATM department.
- Visit the website of a lending company and replenish their account. Make sure you’ve specified all the necessary data correctly.
If you face tough financial conditions and need money fast, applying for cash loans in an hour in the Philippines will be a wise decision. All you need is to approach a reliable lender and carefully study all terms and conditions of the company. Make timely repayments and enjoy the extra cash in your pocket.