The COVID-19 pandemic has done a lot of harm to the Philippines’ economic and social health. However, there is always a silver lining even in the darkest storm. As the country is slowly recovering from the crisis, there have been a lot of changes towards lending and borrowing, especially thanks to the inevitable digital transformation of the financial sector.
Thanks to lenders’ increased willingness to extend credit, now, it has never been easier and more affordable for Filipinos to apply for online loans, even loans that do not require collaterals. At the moment, any student, parent, or regular worker will have better access to emergency credits that can help them take care of daily costs.
Where do I take out a loan in the Philippines?
No matter how much cash you can save up, sometimes you just need more than what you currently have. Most of the time, loans are issued by banks, and we understand that borrowing money from a bank is the last thing you have on your mind. Nobody likes to be indebted, because that means you have to juggle with repayments on time and take responsibility for yourself and/or your business. However, thanks to the lending environment that the Philippines has nowadays, obtaining a bank loan in the Philippines is no longer a long and arduous process that can take days or even weeks. Banks in the Philippines often provide two types of loans: consumer loans and commercial loans, depending on what job you have and what purpose you plan to put your borrowed money into.
Furthermore, if you are still wary of dealing with banks, there is the choice of private lenders that you can consider. These are loan companies in the Philippines that offer alternative ways of obtaining quick cash for your needs, including cooperatives, pawnshops, microfinance, etc.
- The most common type of private lenders is a cooperative. These are non-profit organizations that are established to support their members. Cooperatives provide loans just like banks, but they offer more reasonable rates for members. These companies are owned and controlled by the people who use their services, and thus you can cast votes to influence how they are managed and developed.app
- Pawnshops are also common around the Philippines. They offer collateral loans, meaning the amount of cash you can get is based on the item that you use to apply for the loan. If you need money quickly and don’t have enough credit to secure a good personal loan, pawnshops are great solutions for you. Once you make your repayments in time, you will receive your item back. As long as you have valuable items to pawn off, there are no qualification requirements that you must meet to take out pawnshop loans.
- Another way that you can apply for loans is through a microfinance company (also known as a microcredit company). They are also a type of banking service who provide loans mostly for unemployed or low-income groups. These individuals normally do not have access to bank loans. Therefore, microfinance is their saving grace. Their goal is to give poor people a chance to become self-sufficient.
As you can see, there is no shortage of ways that can help you find the money you need when life throws a wrench at your plans. In the following section, we will find out about what you need to obtain these loans.
What are the requirements to loan money in the Philippines?
Applying for a loan in the Philippines easier and less stressful than ever. It will only take you a few steps, depending on the type of loans you are looking for. You won’t be required to present any collateral and guaranteed approval with the current online loan processes. The best part is that you can get all of this done through an app without having to leave the comfort of your living room.
The required documents when you are applying for loan in the Philippines include:
- 2 valid IDs to prove that you are a Filipino citizen;
- A bank account, registered under the borrower’s name;
- Utility bill for evidence of address;
- Employment document or ITR for self-employed; and
- A 3-month pay slipfrom your place of employment, or bank statements if you are self-employed.
Ultimately, you will get instant approval of your application (which means your application will be reviewed and approved in a matter of hours) through an easy and hassle-free process.
However, with all these easy and convenient loan services available everywhere, how do you find one that are reliable while offering good rates that suit your needs?
Fast search for loans in the Philippines with UpFinance
There is an all-in-one website that was founded by a small team of Filipino finance experts and enthusiasts with a simple goal: to help Filipinos find the most suitable loans for their needs effortlessly and educate them on the importance of making the right decisions for their financial situations. This website is UpFinance, a convenient and quick method to find a suitable loan in the Philippines.
Thanks to a large collection of offers from their partners who are financial institutions from all across the nation, UpFinance can get you to the most perfect loan offers that meet the amount you want to borrow and the loan term you find acceptable. UpFinance works with banks, co-ops, insurance companies, pawnshops, and more to ensure that you can find what you need without the need for collateral. Most importantly, all of UpFinance’s partners work in the legal field, offering legitimate loans in the Philippines.
Through UpFinance and their partners, you can get your application processed within the day, with a typical loan period from 12 to 36 months and some of the best interest rate in the financial market. It is truly a one-stop solution to get you to all financial institutions in the country. All you need to do is filling a short form, for free! Last but not least, all offers on the site is constantly updated and there is a 24/7 support team to ensure that you can make the most informed decisions for your money.
Author Jonny Corfild from Upfinance