Online loans in the Philippines have gained popularity as a convenient and hassle-free way to access fast cash. These loans can be applied for directly online, eliminating the need to visit a lender’s physical office. The entire application process, from communication to fund transfer, is conducted online. While online loans offer quick approval and minimal documentary requirements, it’s important to ensure the legitimacy of the lenders and understand the loan terms and conditions.
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Loan type
Short termFor a period of
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5 minutesFirst loan free
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Short termFor a period of
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25000 ₱Approval in
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Loan type
Short termFor a period of
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no1. Legitimacy of Online Loans
Online loans provided by legitimate financing and lending companies in the Philippines must be registered under the Department of Trade and Industry (DTI) and the Securities and Exchange Commission (SEC). Legitimate lenders have physical offices within the country, making them easily traceable in case of any issues or concerns.
2. Ensuring Legitimacy of Online Cash Loan Lenders
To ensure you are dealing with a legitimate online cash loan lender, it’s important to provide supporting documents such as proof of identification, address, and income. Legitimate lenders will not ask for any upfront fees. If you are unsure about online loans, you can always opt for conventional personal loans from banks for peace of mind.
3. Instant Personal Loan Approval
Most online personal loans offer quick approval, ranging from same-day approval to 24 business hours. Incomplete documents are the primary cause of delays in loan approval. To expedite the approval process, it’s recommended to gather all the necessary documents before submitting your application.
4. Online Loans vs. Personal Loans
Online loans fall under the umbrella of personal loans but are specifically processed online, from application to repayment. Personal loans, on the other hand, encompass a broader category of loans that can be used at the borrower’s discretion.
5. Fast Money Borrowing Options
Online loan providers typically offer same-day or 24-hour approval. Some of the online loan providers known for their quick approval are:
- Digido Loan
- Finbro PH
- Vamo Loan
- Tala Philippines
- Asteria Personal Loan
6. Loan Amounts from Online Lenders
Initial loans from online lenders usually start at ₱7,000. However, as you consistently repay your loans on time, your borrowing limit can increase over time.
7. Applying for a Loan Online
Yes, you can apply for a loan online through various online loan providers in the Philippines. The process is typically paperless and hassle-free. You need to visit the lender’s website, fill in the required information, upload the necessary documents, and wait for confirmation within a few hours to a day.
8. Eligibility for Online Loans
Online cash loan lenders have less strict eligibility criteria compared to traditional banks. Basic eligibility requirements include:
- Residing in the Philippines
- Minimum one-year residence at the same address
- Employed, self-employed, or professional
- Minimum employment tenure of one year in the same company
- Minimum net monthly income as low as ₱6,000, or even none
- Possession of a bank account and email address
9. Applying for an Online Loan
Applying for an online loan is a simple and fast process. The steps may vary depending on the loan provider:
- Click on the “Apply” button next to the desired loan product from the provided list.
- Fill out the application form.
- Upon successful submission, you will receive an automated email with application details or be redirected to the lender’s application page.
- Upload the required documents.
- Expect a call from the lender within 24 hours (1 working day) for further processing.
- Once approved, the funds will be disbursed within 24 business hours up to 5 business days, depending on the lender.
10. General Documentary Requirements
Typical documentary requirements include:
- 3 months’ payslips (for employed) or bank statements (for self-employed)
- Certificate of employment (for employed) or income tax return (ITR) (for self-employed)
- 2 valid IDs
- Utility bill as proof of address
- Bank account under the borrower’s name
11. Credit History for Online Loan Application
While having a good credit history can expedite the loan application process and increase your chances of approval, some online loans with lower amounts provide an opportunity to build credit history with them.
12. Application and Approval Process Duration
Online loans can process applications within a few hours to a day, making them faster than regular personal loans.
13. Checking Application Status
Online loan providers have their own websites or apps where borrowers can create accounts. You can log in to your account to check the status of your application.
14. Disbursement of Approved Loans
Once approved, online loans are typically disbursed to your bank account or GCash within 24 hours.
15. No Collateral or Credit Card Needed
Most online cash loans do not require collateral or a credit card for application.
16. Loan Terms Offered by Online Cash Loan Lenders
Online cash loans are typically short-term loans with tenures of up to 12 months. The application turnaround time is usually shorter, ranging from 1 to 3 business days, provided all requirements are fulfilled.
- Loan Term: 3, 6, 12 months
- Turnaround Time: 1-5 business days
- Interest Rates: 0.8% – 3% per day
17. Interest Rates for Online Loans
Online loans generally impose higher interest rates compared to regular personal loans from banks or established financing companies. The interest rates can be as high as 10% or more per month.
18. Fees and Penalties for Online Loans
Online loans may charge processing fees, which vary based on the loan amount. Late fees are also common for overdue payments.
19. Choosing the Best Online Loan
The best online loan depends on your specific needs and eligibility. Different types of online cash loans cater to various individuals, such as OFWs, entrepreneurs, and salaried employees. Consider reviewing the list of top online loans in the Philippines to determine the most suitable option.
20. Recommended Online Loans
Based on different circumstances, here are recommended online loans to consider:
- Quick Approval with Less Documents: Cashwagon Cash Loan, Tala Philippines
- Low Salary Requirement: Tala Philippines, Cashwagon Cash Loan
- Bigger Loan Amount: Global Dominion Salary Loan
- Longer Payment Term: RFC Personal Loan, Global Dominion Salary Loan
21. Best Online Loan App in the Philippines
Several online cash loan providers offer mobile apps for convenient loan application. Some recommended loan apps are:
- Tala Philippines Mobile App
- Cashwagon Cash Loan Mobile App
- Atome Credit Cash Loan
22. Payment Options for Online Loans
Online loans provide various convenient payment channels, including bank transfer, remittance centers (M Lhuillier, Cebuana Lhuillier), payment centers, and 7-11 (via DragonPay).
23. Early Settlement for Online Loans
Early settlements are allowed, but the interest rates agreed upon at the time of loan acquisition will remain the same.
24. Loan Renewal Process for Online Loans
Renewal processes are typically easier and faster if you have consistently paid and completed your previous loans. Some lenders may request updated proof of income, while others may require you to sign a few documents.
25. Reapplying After Loan Rejection
If your loan application is rejected, you can reapply after 6 months.
26. Using an Online Loan Calculator
Enter the desired loan amount and preferred payment term into an online loan calculator. The calculator will display loan packages available in the market that match your inputs. It will sort the loan packages based on the lowest interest rate and provide a computation of the monthly repayment. You can click on the “Apply” button next to each loan provider to proceed with the application.
27. Defaulting on Your Loan
When borrowers default on their payments, most online cash loan companies employ collection agencies to handle the defaulted payments. Defaulting on a payment will negatively affect your credit history with the lender. While the Philippines lacks a centralized system for tracking credit records, lending companies may have access to credit records tracked by private financial entities such as banks. Defaulting on a loan may impact your chances of obtaining future loans from other providers, and creditors may take legal action to collect unpaid debts, although jail time is uncommon in such cases.