Online Loan in the Philippines. How to Make the Right Choice?
Financial stability is something that can allow us and our relatives to live in joy and tranquility. Unfortunately, life is not always perfect. Sometimes temporary financial “problems” force to look for ways to eliminate them. Lending is quite successfully used for this purpose. Its most popular type in the Philippines is considered an online loan.
If you want to quickly take a cash loan on a bank card, then our resource will become a reliable assistant for achieving this goal. We will help you find the best financial institution with the set of desired features of the loan offer, as well as quickly arrange it.
Actions Algorithm to Get an Online Cash Loan in the Philippines
Caris Company will accompany your choice of the best fitted lender. We help your get an online loan in the Philippines safely. We undertake to keep all information received from you in complete confidentiality and not transfer it to third parties.
So, follow the recommendations to make the right choice of the lender when you need a cash loan:
- Use the filter located on the site in order to choose for yourself acceptable credit conditions (amount, maturity, method of receipt, etc.)
- After filtering, look at the list of available lenders, among which choose the one that most accurately reflects your wishes.
- Apply to the institution to quickly get a cash loan in the Philippines by filling out minimal information about yourself.
- Expect to be contacted by the manager of the company.
- After approval of your request, funds will be transferred instantly.
Now, almost everyone can get an online loan on a credit card urgently. We have greatly simplified the requirements system in order to help the borrower in difficult times. We understand that financial difficulties are a temporary phenomenon, therefore we are ready to become a reliable shoulder today for your well-being!
Specific Features of Online Loans in the Philippines
Many people who urgently need a cash loan are interested in what documents are needed for a loan, how quickly application are processed and so on. We must say right away the important rule: the less documents are required while application, the more loyal the lender is. Banks are more demanding, they will ask you for many documents to prove your solvency.
If you turn to the services of lending companies in the Philippines, you won’t worry about the question – what kind of document is needed for credits, the registration procedure will take a minimum time. Those who urgently need an online loan in Manila should understand the advantage of small financial companies over reputable financial institutions:
- you can receive funds in the Philippines online directly to the card. Even large amounts in Php are available;
- the list of documents for a credit is minimal; there are no requirements for a crystal credit history;
- only you decide where to take a cash loan, the choice is gigantic;
- no one forbids applying immediately to several institutions, increasing the chances of a positive solution to the problem.
There is a certain specifics in the financial market of Manila. The status of the capital leaves a certain imprint on this city. It is much easier here to become the owner of solid cash on reasonable terms. This is due to the fact that there are dozens of organizations competing with each other. Therefore, before you take cash loans in Manila in the first companies that come across, take a few minutes of your time to study the catalog pages. Surely, you might find a more favorable, optimal offer for you. By the way, the requirement of a personal visit to the office is not always put forward; all issues can be resolved online.
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Preparing to Getting Online Cash Loan in the Philippines: What You Need to Know About Online Pautang?
Credits occupy a separate place in our life. Since it is not always possible to postpone the required amount, it is very convenient to arrange, for example, a mortgage or car loan. No need to wait a few years – this can be done today. But if such expenses become uncontrolled, financial problems cannot be avoided. Therefore, obtaining a loan is a well-considered, balanced decision.
The specialists of the online loan service Caris Company have provided a number of key points that a potential client of credit organizations should learn before making a decision on online pautang.
To begin with, it’s good to assess the financial situation in the country and the world. After all, our economy does not develop separately, everything is interconnected, so it is important to monitor whether crisis trends are observed in the world. In addition, if the economy grows, it means that in the near future there will be less problems with unemployment, and exchange rates will not change much. Another thing is if difficulties are observed in the economy, the country has a high level of inflation and no one is confident in the financial stability of tomorrow.
You should also analyze how much and for how long you plan to take a cash loan. After all, it is one thing if amount is taken for 3-6 months in a small amount, and completely different if it is a mortgage loan for a period of 10-15 years. Given the possible instability in the country and the risk of losing income, it makes sense to generally postpone this issue until better times.
Taking a Loan (Pautang) From Friends or Family
- People who know you, show more trust and willing to help in a difficult situation
- Friends and family members usually lend money without or under low interest
- Close people are ready to lend bigger amounts of money and don’t need guarantees
- Financial situation of most people in the Philippines does not allow lending money due to low income and lack of savings
- Even just asking for money to borrow is uncomfortable for both borrower and lender
- Violation of repayment terms spoils friendly relationships
- Need to explain financial difficulties to close people
Types of Loans in the Philippines Depending on the Purpose
With a targeted loan, the borrower must indicate the specific purpose for which the funds will be used. For the lender, the goal is the main indicator in the process of determining the decision to issue the amount. With a targeted loan, many banks do not give out cash, but transfer funds directly as payment for goods or services. This method of issuance has two advantages at once:
- on the one hand, the borrower is exempted from the need to perform unnecessary actions by making a purchase in cash or by bank transfer, moreover, in the first case, it is also protected from the risks associated with cash transportation,
- and on the other hand, this procedure ensures targeted use loan.
It should be noted that even in the case of handing over funds, credit organizations monitor the borrower’s good faith, checking whether he actually paid for the product or service specified in the contract.
Target loans include:
- Mortgage credit lending
- Car loan
- Education loan
- Vacation loan
- Credit for specific goods through stores
In case of a non-targeted loan, the bank may also require the borrower to indicate the purpose of the loan, however, in this case, no supporting documents will be needed – the bank will not check the use of funds. However, the size of a non-targeted loan is usually not very large, as the bank is not ready to risk funds without a clear understanding of what they will be spent on, which, accordingly, increases the risk that the borrower will not return the money.
- Emergency loan
- Credit cards
Unlike non-targeted loans, targeted loans are secured by a pledge: a car, an apartment, some goods.
Secured and Unsecured Loans in the Philippines
A cash loan is a set of conditions guaranteeing the repayment of the amount of funds consisting of the principal amount of debt and interest on the use of a loan. As a rule, by type of collateral, loans are divided into:
- Secured by a pledge
- Secured by a guarantee
- Without collateral
In the process of obtaining a loan, a special contract is drawn up, under the terms of which the borrower provides the lender with a pledge in the form of any property. The contract reflects such parameters as cost, location, term of transfer of property and more. In this case, the lender has the right to sell the collateral if the online loan was not repaid or was not fully repaid. Moreover, the repayment includes not only the amount of the credit, but also interest on its use, as well as other penalties and commissions, if any were provided for by the agreement.
The most common forms of collateral:
- The property
- Precious metals
Security deposit can be provided in two ways:
- Physically collateral remains with the borrower
- Pledged property is transferred to the lender until the borrower fulfills all loan obligations
How to Deal With Bank Loans in the Philippines?
Since all banks operate on an equal footing, it is not so much the bank that matters as the loan conditions that it offers. And here it is worth being extremely careful. Despite the fact that banks must necessarily include all interest, commissions in the total cost of the amount, some still manage to circumvent this norm.
So, often those who apply for an online loan for the first time are imposed additional services. For example, for issuing a bank card. And only then it turns out that this is a credit card with the most unprofitable credit rate, activating which, it will automatically be charged monthly maintenance fee. Although initially the client turned to the bank for a different purpose.
Therefore, special attention should be paid to proposals that are not directly related to the process of obtaining an online loan, since subsequently you will have to pay a considerable amount of money for this.
Taking a Loan From a Bank
- Availability of cash is guaranteed
- Working under the laws of the Philippines guarantees transparent conditions
- Need of collecting all sorts of documents and certificates to prove your solvency and gain the trust of the bank
- Application process (preparation, personal application, waiting for the decision) takes much time
- Need of personal visits to the bank even in case of online application. After applying online, borrower needs to co e to the office for verification
- High rate of rejections due to various reasons: bad credit history, incomplete list of documents, insufficient income level, etc.
Do Not Look Only at the Interest Rate When Choosing Online Loans in the Philippines
Many borrowers think: “Everything is simple here – the lower the interest rate, the more profitable the loan is for me.” This is partly true. But in addition to the interest rate, there are additional commissions that may be charged in different cases, as well as the so-called floating rates.
Often, floating rates are used in refinancing. And when there is an early repayment of the online loan, the rate is proportionally reduced, thus reducing the cost of the amount for the borrower.
If possible, you should calculate the full cost of the online loan – a bank employee can offer it to you, taking into account the parameters that suit you. If the credit term is less than a year, it will be easier to do than in the case of long-term loans. Since then additional risks may arise which are currently impossible to predict. It is also not known whether the bank will change the existing credit rate in 3-5 years.
Online Cash Loan in the Philippines Without Income Statement – What’s the Catch in Online Pautang?
You should not look for this catch. The income statement is a kind of “portrait” of the financial condition of the client. If he is officially employed, and for quite a long time works in the same company, has a high salary, having made a decision on an online loan, he provides a bank employee a certain document. Such a borrower causes the bank the greatest confidence. The bank understands that the client is financially stable, and therefore they can agree on a large amount at a lower percentage.
When a client who has been working informally for only 2 months applies for a loan, he naturally cannot provide a statement of income. Moreover, if he had never taken money before, he accordingly does not have a credit history. As a result, the lender does not know whether the borrower will repay the debt on time and in full. And such a client can either agree on the minimum amount, and on rather unfavorable conditions, or refuse to receive at all. Over time, if the borrower nevertheless receives a loan and repays it in a timely manner, the bank can offer him a loan as for a regular customer – a larger credit limit on very favorable loyal terms.
Online Loans in the Philippines With and Without Guarantors
If the financial condition of the borrower for some reason does not inspire confidence in the bank, guarantors are required. They guarantee that if the client has financial difficulties and he cannot make the next scheduled payment, guarantors will do it for him. In fact, by issuing an online loan to one client, the bank receives a guarantee of timely payments from three persons.
Today in the Philippines, there is a fairly large selection of companies in which you can get a quick cash loan. It is believed that such credits are designed more for people who are poorly oriented in financial matters, or those who get rejected in the bank.
It is important to understand that quick online loans without a certificate of income and guarantors – have a high interest rate. This is a kind of “payment” for quick service (some online companies are able to issue loans in 5 minutes), lack of documents and online access 24/7. Moreover, at the initial stage, only one of the types of commission can be announced, and all the details become available after the transaction is signed.
If you have decided to apply for an instant loan on the company’s website, you should first find an example agreement on the website, print it out and study it in detail. Moreover, not only the interest rate, date and method of payment, but also the conditions for calculating fines for late repayment.
Car Loan Without Down Payment – is It Possible With Online Loans in the Philippines?
Personal cars today are not a means of luxury. A car is necessary for work and for earning a steady income, traveling at different distances and other purposes. However, far from every buyer has sufficient funds for a lump sum payment of the full cost of the vehicle. What to do? Putting the right amount to save on your favorite car is not practical – prices are constantly rising and it will take a long time to save enough money.
There is a way out of this situation. Today, almost any major car dealership provides the opportunity to buy a car on credit on attractive terms – without a down payment.
On our site, you will find current offers on car loans from various lenders. A convenient filtering system will help you sort all the offers for buying a car by the desired parameters in a matter of seconds. Like any bank loan, this product has its advantages and disadvantages, which may be critical for a particular borrower. Therefore, it is recommended to conduct a comparative analysis of all offers in order to find the best option.
Blacklisted Borrowers and Online Pautang. Can They Get Online Loan in the Philippines?
Not everyone knows that the refusal to return an online loan is not the only reason for getting into the stop list. The same result can be obtained by registering a cash loan for another person, using the credit for other purposes, or disposing of property held in collateral. Other reasons include:
- non-compliance with loan conditions,
- fraudulent actions in relation to the bank,
- unclosed credit transaction.
Blacklist of lenders is a list of users who planned to purchase goods on credit, but failed to make payments. Several delays will not have a strong impact, provided that they are paid on time and subject to fines. Regular violations of the terms of the credit agreement will entail serious consequences.
An open credit transaction is one of the most common reasons why credit is denied and online pautang is not available for a person. The black list of debtors is not available to everyone, but official lenders have access to it. The service is provided for a fee. Another way to find out if a person is on the blacklist of debtors is to apply for a loan.
If You Are Blacklisted and Want to Get Online Loans in the Philippines
If you were able to familiarize yourself with the list of debtors and have found yourself in it, do not despair. There are several solutions to the problem:
- if the reason for the refusal is open transaction, take funds to repay the debt, come to the bank again when the issue with the previous credit is resolved;
- ask for restructuring of the amount, indicate the reason why you can not deposit money in the specified period and wait for an answer.
If these options are not suitable, you can seek help from a company with loyal credit conditions in which the probability of failure is minimal. In many of them, funds are credited within a few minutes after applying. Another advantage of many banking organizations is the ability to receive money online at any time.
Besides, there are pawnshops for such cases, where the lender get a guarantee that you repay the online loan. Otherwise, he gets your property for a reasonable price.
Going to a Pawn Shop
- Quick result. Getting money the same day
- No need to explain the reasons you need money for
- Possibility of losing your collateral due to inability of in time repayment
- Need of personal visits to the pawn shop
- Pawn shops can take bad care of your precious collateral. There is a high possibility of damaging goods
- Evaluation of collateral is usually much lower than the market value
What Happens if You Do Not Repay Online Loan in the Philippines?
A simplified lending system is a progress with a small number of negative aspects, one of which is an increase in the number of unscrupulous borrowers. Many people decide to take a loan online without knowing how they will repay it. In some cases, borrowers cannot pay the lender due to financial difficulties. In this case, people turn to representatives of the lending company with a request to extend the debt repayment period or approve the restructuring. No lender will provide funds free of charge. This must be clearly understood before applying for a loan.
There are many reasons why debt repayment may be difficult. And if you find yourself in a similar situation, look what lawyers advise. Recommendations of specialists to those who can not repay the loan in the Philippines:
- Get help from microfinance companies. Perhaps the lender will offer to restructure the debt or reduce the amount that must be repaid. In the first case, the interest rate will be fixed, and specialists will divide the debt into small parts and increase the term for its payment. This is one solution that the bank offers in the absence of payments for a short period. Thanks to these measures, penalties and litigation can be avoided.
- Refinancing a loan is another popular solution in which the user takes a loan from another organization and repays the previous debt. This service is not supported by all companies.
- Seeking legal assistance. Specialists will quickly come to a general conclusion, but you need to understand that a lot of money will be required to pay for their services.
Consequences of Avoiding Repayment of Online Loan in the Philippines
For non-payment of the online loan, the bank sues the borrower. In this situation, it is better to turn to lawyers, try to appeal the calculation of the fine, and demand it to be recognized illegal. In accordance with the established procedure, the user must pay off the main part of the payment and interest, but fines are a moot point. A credit can only be granted to a person who is aware of the actions and responsibility for them.
If you decide not to pay back a loan, you may face pressure and threats, which violates the norms of the law. If you have evidence, notes of conversations, contact the court.
In general, a financial institution is obliged to inform the borrower how much he must pay and by what date. If the letter is left unattended, the creditor may sue. Bailiffs may be involved to repay the debt, the tasks of which include forcing the debtor to pay the financial company. To achieve this goal, bailiffs can act as follows:
- seize a home or car;
- withhold 20% of monthly earnings;
- to seize accounts.
In particularly difficult situations, with large amounts, lawyers recommend transferring property to other persons. Litigation complicates the life of both the debtor and the institution itself. It is in the interest of both to come to a peace agreement, but still have to pay by court order.