There are situations when money is needed urgently. For example, if there is a health issue that has to be solved immediately, otherwise, it becomes life-threatening, one needs money as soon as possible, preferably immediately. Of when one has an issue with business and needs to make a payment immediately, lending companies are the only solution.

Of course, you might argue that there are friends and relatives, there are banks in the very end. However, friends and relatives might not have the needed sum at the moment, and the banks might take so long to approve even the smallest loan that it might be too late until you receive it. Finally, banks have such requirements that even people with a decent income might not be qualified for a loan.

That’s why lending companies of all kinds exist. They give access to money even to those borrowers who would never get it in any other way. If one has a bad credit history and cannot apply for a loan in a bank, if one doesn’t have rich friends or family members, one still can get all the needed financial assistance from a lending company. Yes, the interest rate might be significantly higher than the one applied by a bank, but the loans are almost guaranteed, and no special requirements are needed to get some cash.

Further, we will see what companies offer the most transparent conditions, the best rates, and the easiest application procedures.

What Is a Personal Loan?

A personal loan is a loan for some purposes not connected with business activities, well for personal purposes, the most common of which are:

  • Unexpected expenses, such as a need to replace more expensive domestic items, repairs at home, and similar;
  • Events, such as a wedding, anniversary, and similar;
  • Consolidation of debts, when you discover that it is more convenient and cheaper to get a personal loan to repay some debt with a higher interest rate;
  • Studies expenses, such as payment for your college;
  • Normally, a personal loan is a so-called no collateral loan, or not secured loan. You do not need to risk some part of your property to get such a loan. That’s why, due to the absence of such guarantees, personal loans are more complicated to get.

And a personal loan sum is normally limited. The limits depend on the company, your income level, your credit history and many more factors that might vary greatly.

Where to Get Personal Loan?

If you live in the Philippines, you can apply for a personal loan by a number of companies. We would, however, recommend the most reliable only, those that do not have hidden fees and which policy is clear. In the table below, you can see the main information on the major lending companies in the Philippines and to compare their conditions.

Lending Company Loan Minimum Loan Maximum Interest Rate Loan Duration
Online Loans 2,000 PHP 20,000 PHP 1% daily 7 days – 1 month
Cashwagon 2,000 PHP 7,000 PHP 12% monthly 3 – 6 months
Robocash 1,000 PHP 25,000 PHP 1.3% daily 7 – 21 days
Atome 1,000 PHP 10,000 PHP 0.8% daily 7 days – 3 months

Pros and Cons of Personal Loans

Personal loans provide a great set of advantages that cannot be denied. Of course, their number depends on the person`s reasons, but the main of them are common for all the borrowers:

  • Personal loans are issued almost immediately after the application is submitted and all the relevant documentation is provided. The maximum time needed for loan approval is normally 2-3 days, while the shortest period may be just a couple of hours;
  • There are just a couple of requirements needed to get a personal loan. Usually, they are not comparable to those requested by banks and are very easy to comply with;
  • No property is needed as a guarantee which makes a personal loan accessible even to poorer citizens;
  • The entire application procedure is performed online, which is very convenient and saves a lot of time;
  • No previous credit history with a bank or any other financial institution is important.

All in all, a personal loan is a wonderful opportunity to get out of a complicated situation with a minimum of losses. Moreover, it is a wonderful chance for people with low income to start some business or to be able to pay for studies in order to improve their life in the future. Are there any cons? Yes, there are. First of all, the main drawback is the interest rate. It is much higher than by any bank and can become quite a burden if one doesn’t know how to administer funds. From here, one more drawback comes. If a person is not good in proper funds administering, he/she might end up without money again but with a debt that needs to be repaid. It is a problem, but we would say, this problem is rather of personal character. In general, for people who manage their funds wisely a lending company with their personal loan offers can be a solution.

How Does It Work in Philippines?

If you live in the Philippines, applying for a loan is simple. All you need is to comply with minimum requirements which are definitely fewer and less strict than any requirements of the bank.

You register a personal account on the website of the lending company, select your amount and your deadline and check if the repayment sum is affordable for you. After that, you provide the needed documents, usually an ID, and receive a message with a confirmation or declining of your loan application.

How Much to Borrow?

The minimum and the maximum sum to borrow depends on many factors, including the following:

  • The policy of the company. Different companies have different limitations;
  • Your credit history with the company. Returning borrowers usually can get a much higher loan than new borrowers. As well, reliable clients are eligible for repeated loans with higher limits rather than those clients who have had issues with repaying loans previously;
  • Here, you can compare the minimum and the maximum limits available for a personal loan in the best lending companies in the Philippines.
Company Minimum sum Maximum sum for new clients Maximum sum for returning clients
Online Loans 2,000 PHP 7,000 PHP 20,000 PHP
Cashwagon 2,000 PHP 7,000 PHP 7,000 PHP
Atome 1,000 PHP 10,000 PHP Is decided individually
Robocash 1,000 PHP 10,000 PHP 25,000 PHP

Now, you can select a company that offers the sum needed by you. After having compared interest rates and other conditions, you will be able to make an informed decision about whether to take a personal loan and what lending company to prefer.

Best Personal Loan Service

If you ask what company we would recommend, for now, we would definitely mention Cashwagon. Of course, all depends on the loan sum. But if a personal loan for an emergency situation does not have to be too big, Cashwagon offers amazing conditions for your first loan up to 7,000 PHP:

  • No service or processing fee;
  • No interests;
  • An opportunity to prolongate the repayment.

Personal Loan Terms

Any company would recommend repaying your loan as soon as you can do it. Usually, there is a minimum and a maximum period for loan repayment. It is absolutely not recommended to delay any repayments but on the contrary, to pay some time in advance to avoid unpleasant situations.

There are no fees for early repayment, but there are fees and fines for late payments, so, it is inconvenient to delay repayments from the financial point of view, as well. Considering that the companies are flexible with repayment term, each borrower should evaluate his/her opportunities objectively and select a period within which he/she can for sure pay the borrowed money back.

Personal Loan Requirements

To apply for a personal loan with one of the mentioned lending companies, one should comply with the following requirements:

  • Be a citizen of the Philippines and hold an ID issued by the government of the country;
  • Be of the age within the age limitations provided by the financing side;
  • Be officially employed or have a proven source of income;
  • Be able to receive funds in one of the ways indicated by the company.

And that’s it. Some companies request to have a phone with a valid number because all the application procedure is performed online. For others, this requirement is not mandatory.

Banks vs. Personal Lenders

What option should you select when deciding between a personal lender or a bank?

Both options have their pros and cons, and only you decide which one is the most appropriate for you at a particular moment.

Banks, advantages:

  • Lower interest rates;
  • A loan can be taken for a long period, up to several years or even decades.

Banks, disadvantages:

  • The loan application procedure is time-consuming and connected with many formalities;
  • Usually, some guarantee is needed, like valuable property;
  • Loans are declined frequently;
  • Good credit history is required.

A lending company, advantages:

  • Loans are approved fast;
  • Minimum requirements are needed;
  • No guarantees are required;
  • In the majority of cases loans are approved;
  • All the procedures are performed online;
  • No credit history is checked.

A lending company, disadvantages:

  • Loans are issued for a shorter period than by a bank;
  • Interest rate is usually much higher than by a bank.

Loan Tips

If you want to find the best deal, there are some details to pay attention to. Follow our tips, and the best loans conditions are guaranteed.

Tip 1 – select the best loan for your purposes. If it is for debt consolidation, make sure the terms are proper. If you are planning to make some repair and are applying for a loan for this purpose, make sure the loan is really justified.

Tip 2 – select the best lender for your particular case. Compare all the offers and select the one that is profitable and transparent. And remember: profitable conditions for one person might be not the best option for you.

Tip 3 – do not borrow more than you can repay, because it can lead to a worse situation than the one in which you are now.

Tip 4 – do not allow automatic withdrawals. It is better if you control your repayments and make them when it is convenient for you.

All in all, you should take all the reasonable measures to make the entire procedure of the application and repayment maximally convenient for you and the interest rate is not going to cause more problems.

Disclaimers

Please note that by providing this information we do not provide any guarantees that your loan will be approved. Neither we take any responsibility, implicit or explicit one, for any damages caused to you by taking the loan and any consequence occurred from this. Note please that this information is provided for reference only for a financial award from the mentioned companies. The application of the mentioned information is the responsibility of the borrower only.

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