Negosentro | How to get a loan in the Philippines quickly | There are situations when money is needed urgently, i.e. there is no way to wait a few days until the salary or save money for urgent needs. There is a way out of the situation because a number of organizations are ready to issue an urgent loan as soon as possible.
Traditional bank cash loan
Sometimes you do not need to rack your brains over the search for an option for obtaining an urgent loan. It is enough just to study the maximum number of offers of banks. Perhaps there will be an offer where they will be ready to issue a regular consumer loan immediately upon application. Especially high chances if the solvency of the applicant is not in doubt, that is, you need to stock up on income statements and other documents. The problem is that the interest rate is likely to be raised due to a superficial check of the client’s solvency. This is how lenders try to reduce their risks.
Commodity credit
It is this name that has become stronger among consumers. In fact, this is a targeted consumer loan, issued immediately at the point of sale. Let’s say your electric boiler has broken down in your house and you need money to repair it or buy a new boiler. Then you can apply for a consumer loan to buy an electric boiler right in the store. Typically, interest rates on such loans are no higher than traditional cash loans from banks.
The retail outlets have their own credit managers who will transfer the borrowed money to the store’s account as soon as possible. In this case, most often it is enough to present only an ID.
Express loan
Not all banks are ready to issue an ordinary non-purpose loan when applying. If you could not find a bank, then try online loans from microfinance companies. Such a quick cash loan online is called an express loan for the quick processing time of the application. In less than an hour, the applicant will receive cash in hand. Many banks in the country issue express loans, but here the conditions are tougher due to a superficial check of solvency and misuse of the loan.
An express cash loan is a loan that you can apply online directly without visiting the office of a credit institution. Communication and information exchange between the borrower and the lender will be carried out online. The application is submitted without problems in a couple of minutes. Most online loans do not imply security and the application is accompanied by a minimum package of documents. Withdrawals are made directly to your debit card. However, compared to conventional bank loans, the loan amount will not be as large.
Lenders usually do not require proof of income, but credit history is checked. Therefore, if there are current outstanding loans, there may be problems obtaining an express loan. Companies neutralize their risks with a high-interest rate, which is many times higher than the average interest on a conventional consumer loan. There is also a limited loan amount and repayment period.
When the credit history is damaged, then a microloan can help. Here, a large amount to a long term will not be able to get. And the interest rate is huge – up to 1% per day (!). Therefore, the MFI should be contacted as a last resort.
If we are talking about microloans online, then you should be extremely careful here. The offer is tempting because the loan is issued as soon as possible and often at any time of the day. You just need to leave an application on the organization’s website and wait for approval. As a result, the microloan amount will be transferred to the applicant’s bank card. There are many scammers on such sites, therefore, without a thorough reputation check, you should not contact the organization.
Credit card
Here the situation is ambiguous. Undoubtedly, this is the most profitable and easiest option for obtaining an urgent loan. Withdrew money from an ATM – took it from the bank at interest. Or pay directly by card. But this applies to those who already have a card. If there is no credit card, then the question arises of how quickly it can be obtained from the bank. Not every lender is ready to issue a card immediately upon application. Although there are options for issuing an instant credit card. You just need to search.
It is not a fact that an instant card will be beneficial to use. This applies to a high-interest rate, the absence of a grace period, and high commissions when withdrawing money from an ATM.
Pawnshop
This option is suitable for those who need a large amount, have a damaged credit history, and do not have an income certificate. And at the same time, there is no desire to overpay huge interest, as is the case with a microloan and an express loan.
The bottom line is simple: the client pledges a property to the pawnshop and immediately receives a loan at a relatively favorable percentage. There are downsides. Firstly, the pawnshop will not give a loan in full, i.e. not so much as the estimated value of the collateral. Secondly, if you do not pay off the loan, then you can say goodbye to the pawn.
Summary
It can be seen that there are enough options for obtaining a quick loan. In most cases, you will have to prepare for a large overpayment. Especially for those people who have a bad credit history and no income certificate. But in a difficult financial situation, you often do not have to choose.
Author Maria Torres from Upfinance.
