Any person may have an uncomfortable situation – the salary is still far away, and you urgently need money. If money is needed suddenly and urgently, in order not to ask for a loan from relatives or friends, lending comes to the rescue. Thanks to the introduction of digital technologies, you can get the amount on the card both online and offline in less than an hour. Various lending institutions offer favorable and transparent conditions for payday loans with fast approval.
Terms of salary loans
Payday peso loans in the Philippines are provided by banks, microfinance companies, credit cooperatives or professional societies. Loan conditions vary and sometimes very significantly differ. Carefully analyze them to decide which organization to get a loan that meets your needs on the most favorable terms.
Online loan from microfinance companies
The main advantage of such loans is the fast process of applying for a loan anywhere 24/7. The application procedure is simple, does not require a large number of documents and does not take much time. You need to carefully read the terms of the loan, provide the necessary information and consent to the processing of your personal data. It usually takes about 10 minutes to complete the application.
The next equally important advantage is the quick approval of the application. The document verification process is fully automated and takes from 10 minutes to half an hour. In rare cases, when there is not enough data or the provided ID is not in the credit bureau and verification of documents by the company manager is required, the document verification process can take 1 day. Usually the applicant receives approval within 10 – 20 minutes.
Fast cash withdrawal. The microfinance company credits funds to the applicant’s bank account immediately after a positive decision is made after checking the documents. Rarely withdrawal of funds to the card occurs within 1 day.
There is no need for co-borrowers and collateral. An online loan does not require a guarantor and there is no need to mortgage a house or car.
Lending through a cooperative or professional associations
This type of loan is available only to members of the cooperative, so if you are not a member, then you will not be able to borrow urgently from the cooperative. The advantage of such loans is a more favorable interest rate compared to online MFI loans. Interest rate usually varies in the amount of 1% – 2% per month.
The next advantage of cooperative loans is the ease of application. Since you must already have been a member of the cooperative for at least 3 months at the time of applying for a loan, then all your personal data is already in the cooperative, so only your application is required to apply for a loan.
Lending through agencies or professional societies such as OWWA, AFPSLAI, PSSLAI is essentially similar to borrowing through credit unions. Borrower as well is a member of professional societies.
For example, an overseas Filipino worker can take an OFW loan from OWWA under the OFW-EDLP program. PSSLAI members can take out Emergency loans and Salary loans for unexpected expenses. AFPSLAI members can take an Emergency Loan for up to 5 years.
Salary loan in banks
Banks also offer flexible payday loans. The applicant can choose the most suitable loan. The most popular banks issuing this type of loan are:
1. Security Bank Corporate Salary Loan
2. BPI Salary Loan
3. Maybank Salary Loan
4. Landbank Electronic Salary Loan
5. Citibank Salary Loan
Banks offer favorable conditions for payday loans in the Philippines. The interest rate is on average slightly higher than that of credit cooperatives, but significantly lower than that of MFIs. Banks also offer different methods of repayment: at a bank branch, e-banking, transfer from a card account to a credit account in a bank.
Of the minuses of a bank loan before payday is the need to provide more documents than in credit cooperatives and MFIs, a longer period for considering an application. In addition, banks impose more stringent requirements on borrowers:
- be a citizen of the Philippines
- be at least 21 years of age;
- provide an identity document with a photo;
- have a permanent job and provide proof of income.
Fintech companies working under an agreement with employers
It is worth mentioning payday loans in fintech companies that have an agreement with your employer. In this case, you do not need to collect a package of documents, and the process of applying for a loan will take literally 2 minutes.
For example, a payday loan in Advance. Advance is a fintech company that partners with about 200 companies. Advance provides financial services for employees of accredited businesses. Through these partnerships, Advance issues short-term wage advances with minimal interest.
Postscript
Financial discipline and clear planning help to accumulate funds for emergencies. Don’t apply for a loan every time you don’t have enough money. Look for ways to get by without a loan. Only if you have exhausted all options and need money, a payday loan may be the best alternative to consider.
Make sure that you understand all the terms of the loan and that you know how much you will pay back. If you are unsure if this loan is right for you, then look for other alternatives.
You can get a personal loan. These loans have a longer loan term and are similar to a payroll loan. You can try crowdfunding, P2P and other options especially if you need money to cover unexpected business expenses.
Finally, you may want to consider withdrawing cash from your credit card. For any type of lending, follow the basic rule so as not to fall into a debt hole – pay your loan payments on time!
Author Maria Torres from Upfinance.
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