salary loan requirements
Get a Salary Loan
Human wants cannot be satisfied, and we regularly get stuck up on supplies. It would be a disaster to run out of cash and have an emergency to attend to, but your hands will be tied because of a lack of funds. Almost everyone has a reason to spend money every day, and at times, expenses make people go above their budget. Situations like this are familiar to people, who do not earn huge salaries, but like to engage in impulse buying. Hence, to avoid being stranded before your payday, it would be wise to seek a salary loan Philippines platforms are ready to help with.
A salary loan is a cash sum that an individual receives and is expected to pay back upon receipt of their next incoming salary. Salary loans do not need collateral, and fortunately, Filipinos with credit scores that are not superb can still obtain them. However, if they are not repaid according to the agreed schedule, interests might accumulate, and penalties for lateness might apply. Several financial organizations in the Philippines offer loans for salary to residents in the country.
Unlike a mortgage, which compels the borrower to buy a house or land (which is the stated use for the loan), payday loans give Filipinos leeway to spend the money as they see fit. Furthermore, the repayment method is dissimilar to that of a credit card debt. The payment is taken back in full along with the interest when you collect your next salary. But, in some cases, it is made in installments over a short time. These installments are in fixed amounts because the money comes with simple interest.
Why People Take Salary Loans
Loans of this kind can be used to resolve issues like utility bills, car maintenance, hospital expenses. Sometimes though, you might aim to get a new smart device that you do not want to wait for till your next payday. In a broad sense, a salary loan is a form of personal loan. Granting it, the lender does not need to know what precisely the borrower needs this money for. However, because of the large variety of uses this loan type can be applied to a separate category.
There are pros and cons of obtaining this kind of loan, so applications should not be made out of financial recklessness. However, if there is a genuine need for some quick cash, do not hesitate to fill a salary loan application form from a reputable money lender like Cashcat. But, before making a request, ensure you make a budget and figure out how best to satisfy your monetary needs. This budgeting exercise is to ensure that you do not run out of money and start looking for another platform to borrow funds before paying off your old debt.
Debts are not things to play with, and funds should only be borrowed if you have the discipline to make the repayments. Fortunately, salary loans come with a fixed interest rate, but these rates are higher than those of long-term loans because the money is expected to be paid quickly. Before taking a payback loan, you should know what the different loan terms stand for:
- Term: It is the number of months needed to repay a loan. You, as a borrower, must know the term accompanying the loan for salary before accepting the deal;
- Interest: When providing a salary loan, the lender charges some extra money upon repayment. It is a certain percentage of the amount borrowed. It is the incentive on the lender’s part to give you financial aid;
- Principal: It is the original amount you request for. In other words, it is the sum of money that gets paid to your bank account when your loan request has been approved. Furthermore, it is the base money that your interest will be calculated from. Every financial platform has requirements that need to be met before you can receive funds;
- Unsecured loan: In the Philippines, collaterals are not required to take payday loans, and hence, the loan is unsecured. Simply put, unsecured loans are amounts of money issued to borrowers without collecting rights to their legal assets when they fail to make their payments. However, to obtain this kind of loan, one should have a high credit score, but some platforms lend Filipinos money regardless of their credit rating. On the flip side, secured loans usually take a longer period to pay off. To ensure the risk is worth taking, banks and other financial organizations demand collateral;
- Monthly payment: This is the total cash paid back to the lender each month during the loan term if the salary loan is scheduled for more than a month. It is a portion of the principal and the interest on it.
How to Apply for A Salary Loan in the Philippines?
If you are intent on completing a salary loan online application to get financial aid, the first step is to look at platforms like Cashcat. However, make sure that the platform you work with is registered and has the required license (in other words, it should be legal). The following are the requirements needed to apply for a salary loan online:
- Be a legal resident of the Philippines;
- Have valid documents as proof of your identity that is government issued;
- Have an active bank account in any Filipino bank;
- Be within the ages of 21 and 68;
- Have a certificate of employment and company ID;
- Earn at least 25,000 PHP per month;
- Be able to fill the salary loan form.
Once you verify that you meet all the salary loan requirements during the application, you can visit any lending organization’s platform and request them to help you with a loan. You would have to wait a short while after following the instructions and completing your salary loan application. Usually, funds are made available in the customer bank account in just one business day.
The Borrow Limits for Philippine Salary Loans
Ordinarily, salary loans are not massive because they are expected to be just a fraction of one of your paychecks. Hence, the amount that can be lent varies among individuals and depends on the salary that their company pays to them. And since salary loans are unsecured, they are not expected to be overly huge.
It is worth remembering that no matter how much you gain from your company of employment, you are required to repay your funds in full after you collect your new paycheck. However, it will be wise to limit your loan amount to at half of what you make. Platforms such as Dominion lend Filipinos sums of money that can reach 100,000 PHP, and Cashwagon can guarantee a more modest 20,000 PHP to prospective salary loan applicants. However, different loan organizations have different amounts that people can borrow. Filipinos should check these amounts with various available platforms to determine the option they are more comfortable with. Also, keep the interest rate in mind while using a salary loan calculator to figure out the exact amount to be repaid.
However, it will be in your best interest to opt for offers that have lower interest rates. But if you need a more substantial loan amount, you may need to handle higher rates because the lender takes a higher risk. Some fake platforms try to lure Filipinos with promises of salary loans without interest. These should be avoided at all costs because legit moneylenders demand interest, so it could be another plot to steal your personal information. Contact us at Cashcat for inquiries if you are in the Philippines and if you want to receive a quick salary loan.