Personal loans in the Philippines

If you have a short-term need for money, a personal loan in the Philippines could be the ideal solution since there are many lenders that offer financial solutions to consumers.

Without the need for collateral, you can easily apply for a personal loan at any financial or banking institution in the Philippines.

To learn more about the basics of personal loans, we have collected some frequently asked questions that users have asked us at fin panda.

What is a personal loan?

As its name indicates, a personal loan is a loan for any expense that the consumer wants to meet without the need to give explanations. Unlike home loans or motorcycle loans, a personal cash loan can be used for anything you want.

There are two types of loans available in the Philippines: the first one is secured and the other types of loans are unsecured.

The guaranteed personal loan requires a guarantee, this can be a house or a vehicle. In this way, the user will support the loan in case of default.

For unsecured personal loans, no collateral is required. These types of personal loans are much more common in the Philippines, although there is also the possibility of obtaining a secured loan.

How personal loans work in the Philippines?

When obtaining a personal loan in the Philippines, an agreement is made between the financial institution and the borrower. If a guaranteed loan is requested, a guarantee must be presented at the time of signing the credit agreement.

In order to repay the personal loan, you can repay through monthly payments during an established period with the bank or financial institution. Through the monthly payments you will also have to pay the interest generated by the loan.

Rates may vary from one financial institution to another. For this reason, it is best to use a credit comparison site so that you can see all the available offers that suit your personal profile.

What are the different types of personal loans that exist and how much money can you get?

The personal loans that are offered in the Philippines can be used for any purpose. However, some financial or banking entities in the Philippines may offer other types of financial services or products that are not easy to find in traditional financial institutions.

For example, you can get salary loans, online cash loans or payday loans. This type of financial service is easier to request, although the interest rates are higher and the payment term is shorter.

What are the requirements to obtain a personal loan in the Philippines?

One of the basic requirements to be able to access a personal loan in the Philippines is proof of income, which can be verified through a payslip or a bank statement.

The rest of the requirements may vary depending on the credit provider. When you complete the online form it is necessary that you have all the documents to hand since they may require a utility bill to verify your address, a valid identity document or a bank statement.

What are interest rates on personal loans?

Interest rates and the fee paid for borrowing money is a common practice of banks and other financial institutions. Once you want to apply for your personal loan, take into account the monthly interest rate that will be charged when you return the credit.

The interest rate may vary from one financial institution to another. For this reason, we have made an online calculator available in which you can calculate the amount of credit you want to request and the approximate term of repayment of your credit so that you can see the interest rate offered by the different lenders in the Philippines.

How much money can be borrowed?

The amount of money you can request from one financial institution or another will depend on your personal profile. Private lenders, unlike traditional banks, do not usually have a maximum loan amount.

However, many of them will be based on a personalized study of your profile and the income you have in order to offer you the maximum amount of money.

Where is the best place to get a personal loan?

As there are different types of personal loans that cover different financial needs, it is best to make the most of the offers provided by banks and private lending entities. Applying for a specific personal loan that is appropriate for your needs or your profession will offer you greater flexibility in paying back the amount you have borrowed.

How can you get a fast personal loan?

If you want to obtain a quick personal loan, you simply have to follow these two steps:

• First of all, you must calculate the amount of money that you need to borrow. Using our online calculator you will also be able to calculate the estimated term of repayment of the credit.
• Secondly, you only have to complete the online form with your personal data and wait for the financial institution to contact you.

How fast is the online loan approval process?

When the loan provider offers you an immediate personal loan, you should keep in mind that it should be approved within a maximum period of 2 to 24 hours.