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Online Cash Loans in the Philippines

Online Cash Loans in the … image

The article is dedicated to particular issues — how online loans work in the Philippines and how to get them. We will cover all frequent questions related to the nature of lending, the application process, types of loans, the most popular local lenders, and so on. Don’t forget that each loan is a relatively risky venture that requires proper planning. Don’t borrow if you aren’t sure that you can return the money.

Without further ado, let’s begin with the basic info about online loans in the Philippines.

Table of Contents: Online Loans in the Philippines

 

How Do Filipino Online Loans Work in General?

Put simply, an online loan is similar to traditional lending products. The only major difference is that these offers are processed/delivered on the web. You don’t have to deal with clerks, or wait in long lines to submit documents — every single process goes through websites and mobile apps.

In the Philippines, web companies offer pretty easy online loans. Lenders here focus on unbanked customers who are unable to get traditional financial support from large firms. Thus, requirements and applications are smooth and convenient. However, sums and tenures are often smaller than the ones offered by state-owned entities.

Is It Possible to Ask for a Fast Loan?

Almost all online lenders offer near-instant approval and disbursement. If you need urgent online loans, same day loans, look for small and medium enterprises with favorable requirements. Online processing allows you to speed up all stages of verification so you can get the money in 1-2 days. But always check each loan processing period:

Application approval usually takes from 10 minutes to 48 hours.
Funds delivery may take up to 7 working days in addition to approval time.
Find the company that provides the shortest periods in both cases and you will get a loan really quickly. Also, it’s possible to request an online loan with fast approval if you are lucky enough to collect all the required documents with extra stuff: payslips, bills, etc. Thus, the chosen venue will be able to accept your request without extra checks.

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Which Lenders Deliver Instant Offers?

Only a few companies offer online lending products. We will check out their particular products in the last section with the key features revealed. Here, you can take a brief look at the names:

  • Asteria;
  • Atome;
  • FundKo;
  • Global Dominion;
  • Cashcat;
  • Cashmart;
  • Cashwagon;
  • Online Loan Pilipinas;
  • RFC;
  • Robocash;
  • South Asialink;
  • Tala.

Note that more traditional lenders like banks or government-owned firms also have online services. Still, they may require that you personally submit an application or withdraw funds on-site. The most innovative banks allow using their accounts to get money online. But the aforementioned lenders support full-cycle online processing without limitations so you can use any bank account with them.

Is It Possible to Find Fast Online Loans?

Definitely. Today, modern FinTech startups grow quickly. They offer a near-instant delivery of services and more convenient online interfaces. It means that any borrower can find the most suitable online lender, sign up, and have the necessary sum transferred in a few days or even hours. Dozens of officially registered firms deliver quick loans online. To find them, you can refer to Google search or various loan aggregators with feature comparisons.

Getting a Loan Online in 2020: Any hassle?

Actually, it’s quite a simple task. If you are looking to apply through any official resource (the lender’s site or application), follow these steps:

  1. Log in or sign up to create your personal profile.
  2. Choose the desired offer if there are several options.
  3. Fill out the required form: be precise and honest.
  4. Add the documents like ID or contracts.
  5. Receive the approval with email/phone notifications.
  6. Add extra documents if required.
  7. Receive the money via the chosen method (bank, kiosk, etc.).

Alternatively, if you apply from an aggregator, there will be one more initial step — click the brand link and move to the official site. Remember that the best answer to “How to apply for an online loan?” is “Safely”. Always double-check sites, certificates, and licenses.

Sometimes, online aggregators support the option of direct loan application without switching to the lender’s site. Again, be cautious. Although this approach comes with one more intermediary, it can be pretty convenient. You want to work with legit partners only.

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Who Are Eligible to Apply?

As a rule, all local lenders list similar eligibility criteria. Usually, they are less strict than those listed by state-owned bodies. Here’s what will allow you to obtain loan money online:

  • Citizenship or current residency in the country;
  • Valid age;
  • Certain regular sources of income like salary, freelance earnings, etc.;

At least one working phone number and/or email address.
Some lenders also set the minimum level of earnings per month, e.g. P5,000 or more. Others often ask for a valid personal account to which lenders can send funds. Still, it’s possible to find the venues that deliver online loans without bank accounts and income proofs.

The Basic Documents Required

Moving to the exact list of proofs required by lending groups, let’s look at the most popular documents. Again, some companies may require more or less information. As well, be ready to submit additional documents after the initial approval — these extra requirements exist because lenders need some time to check your rating.

Anyway, a traditional online loan application is often accompanied by these docs:

  • At least one valid ID with a photo/signature;
  • Payslips for the last several months as proofs of income;
  • A recent utility bill as a proof of address;
  • Certificates of employment;
  • Info about the borrower’s bank account.

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What Are Other Rare Requirements?

In addition to the mentioned eligibility and a set of documents, lenders may ask for more stuff. There are two categories:

  • Collateral. Certain property or assets that you will hand over to the lender in the case of loan debt. It can be a car, a house, or various luxury goods.
  • Credit. A card or a credit line opened by a local bank. It acts as a bank account but with a potentially higher interest.
    Most likely, you will not have to provide this info if you want to get basic online loans with monthly payments. Nevertheless, for borrowers who need large-sum loans with extended tenure or lower interests, collateral is a popular requirement. Credit lines or cards are asked by bank lenders, usually.

What Are Some Details of an Online Loan PH?

Generally, there are only four major parameters you should remember about this product. So you can easily compare offers using these criteria. Remember that they are often interconnected and may change depending on your credit history:

  1. Amount. May vary (P1,000-P1,000,000) and depends on the loan purpose, term, the borrower’s rating, etc.
  2. Interest. A standard rate is from 0.5% to 2.5% per day. Large lenders that deliver lavish loans set 1%-3% per month.
  3. Term. The smallest teams offer 1-week loans, while basic terms are 1, 3, and 6 months. Larger banks may set periods of 12 months up to several years.
  4. Turnaround. As we’ve mentioned, the combined approval + disbursement time may take up to 9 banking days. Usually, lenders try to process requests faster.

Don’t forget that easy cash loans online include fees. Almost all lenders set processing fees for first-time borrowers, and a lot of them have late payment penalties. There can also be a fee that relates to early payments, for instance.

How to Find a Suitable Online Loan?

First and foremost, you should understand your goals. Why do you need this money? How are you planning to use the funds? Is it possible to find alternative options? Filipino lenders deliver different packages for regular employees, OFWs, entrepreneurs, even students, and unemployed citizens. You can find various conditions for various cases.

Basically, the best online cash loan PH is an offer with a high amount, low interest, and simple requirements. But it’s barely possible to combine all these points. For instance, if you want to get a large sum, be ready for strict requirements. And easy-to-get online loans often come with small amounts and relatively high rates. It’s all about balance.

 

What Is an Online Loan App Philippines?

Since the majority of lenders work with clients online, some of them have also created their native mobile apps for smoother interaction. There are firms that have websites, land-based branches, and apps, as well as firms that deliver loans via applications only. An online loan app is a highly convenient interface. It allows you to register, apply for different options, track progress, switch between withdrawal/delivery methods, repay quickly, and more.

While a lot of businesses have Android and/or iOS apps, only two companies offer mobile-only interaction: Tala and Atome. It means that borrowers can get money using apps of these lenders. They can’t apply through websites or offices. Still, which is the best online loan app? 

Well, there are a few criteria which help to evaluate the lender’s application:

  • Availability. Ideally, an app should have versions for iOS and Android, as well as other popular platforms like Windows.
  • Convenience. Prioritizing UI/UX is required for good apps. Borrowers should be able to find everything they need easily.
  • Functionality. Of course, an app must come with all the required features like application form, repayment, tracking, etc.
  • Price. Almost always lenders offer free apps because they earn thanks to interests. That’s why paid applications aren’t popular.

According to these points, Tala and Atome are among the leaders. It’s obvious because they can invest more in applications and don’t care about sites/offices. This online loans PH FAQ lists several other examples of applications but we think that the best lenders combine different approaches. Thus, multichannel interaction is better than app-only alternatives.

If you need other places where to loan money online, check out apps from Cashwagon and Robocash.

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How to Repay a Loan?

The best online loans in the Philippines feature several ways of repayment. For the sake of convenience, companies list both online and offline options so a borrower can select the most suitable one. Banks and state-owned firms usually accept wire transfers and payments over the counter while web lenders work with a range of affiliate partners. Here are a few examples:

  • Remittance centers such as Cebuana;
  • Other facilities like Bayad Center;
  • Shops like 7-Eleven and others.

Don’t forget that almost always you can pay online using bank transfers. Plan your schedule based on the processing periods of each company. It’s better to send the payment at least one day before the due date.

Overdue Loans: Is It a Problem?

Sometimes, borrowers can’t return the money on time. Surely, this situation will have negative consequences and you will then have limited options on how to file a loan online. Although there isn’t a centralized credit history tracker in the Philippines, lenders have access to the users’ ratings. Thus, overdue loans may result in issues with future application approvals. Serious companies will analyze your history and won’t accept your applications.

Of course, you will have to return the money anyway. Moreover, debt comes with extra fees and increased interest rates, so the longer you fail to pay the more debt you accumulate. An overdue cash loan online in the Philippines can’t lead to imprisonment but creditors may legally block your accounts or get collateral. That’s why we suggest consulting lenders if you have any issues with repayments.

How to Use a Calculator for Loans?

To avoid misconceptions, it’s highly recommended to compute your loans manually in addition to automated calculations on the lender’s side. For this, just use any calculator. Here’s a quick guide on computing amounts/interests:

  1. Find the amount, the term, and the applied interest.
  2. Convert the interest rate into a lump sum.
  3. Add this sum to your initial amount.
  4. Also, add fees and penalties if they are applied.

For instance, if you want to get an online Philippines loan of P10,000 with 1% interest per day for 2 months, find the total interest, firstly. There will be around 62 days so the total percentage will be 62% or P6,200. As a result, you will have to return P16,200 in total or P8,100 per month.

Are Online Loans Legal in the Philippines?

Yes, it’s not prohibited to provide online lending services in the country. Each company must register with the SEC as a lending firm or a financing corp. Thus, licensed lenders receive official registration numbers and always have a real-world address where they can be accessed if any issues arise. If you can’t find the number or address, the firm operates illegally so don’t cooperate with it. Loan sharks often work without an official permit.

How to Find 100% Legit Online Loans?

The most common question is “How to apply for a loan online safely?” It’s not a big deal. Just remember about red flags and always check governmental licenses. For instance, fraudulent lenders may ask for upfront payments (never agree) or require redundant data like a credit card’s PIN or CVV (never provide). Also, they often don’t have real addresses and can’t answer simple questions about terms & conditions.

Instead, legit firms are always registered with the SEC, are ready to answer your questions and can help in the case of debt issues. Reputable companies care about their customers. They understand that loyal clients will come back to get new loans. Once cheated, borrowers can blacklist this lender or even sue them. This means it’s surely possible to find 100% trusted companies based on feedback and reviews.

How to Verify a Loan Online?

Just open the lists we’ve provided above and pick the company. Note that some lenders are registered under other names. For instance, Atome is known as NeuronCredit so you should look for the latter name in the SEC lists. Let’s answer the burning question: “Can I apply for a loan online to keep funds/data safe?” Yes, if you do your homework and work with licensed firms.

Finally, a Selection of Best Online Loans

In conclusion, let’s quickly check out nice offers from companies in the country. We’ve mentioned the names earlier but here are also conditions:

  • Asteria — up to P20,000 for 3 months with 0.8% interest p.d.
  • Atome — up to P12,000 for 3 months with 0.9% interest p.d.
  • Cashcat — up to P100,000 for 2 months with 1.5% interest p.d.
  • Cashwagon — up to P40,000 for 6 months with 0.4% interest p.d.
  • RFC — up to P1,000,000 for 12 months with 0.12% interest p.d.
  • Robocash — up to P25,000 for 6 months with 0.4% interest p.d.
  • Tala — up to P10,000 for 1 months with 0.5% interest p.d.

In a nutshell, Filipino online loans are small, fast, and easy-to-get. They are a viable choice for customers with average or bad credit history who want to receive money quickly.

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