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4 Online Loan Options to Consider for Quick Cash

Lending money is common in the Philippines, especially if you’re in need. This pandemic caused a lot of Filipino families to suffer financially, making ends meet a lot harder. A personal loan may be an option, but it’s not for everyone since loan requirements are hard to comply with. During these trying times, online loans with minimal requirements and fast approval is a lifesaver.

Minutes to Read: 5 minutes

Age Bracket: 21 – 40 years old

Online lenders offer a good amount of loan and term that is helpful to every individual that needs financial help. This is an excellent alternative to the usual loans that we apply for in a bank which allows us to apply quickly and conveniently through our phones with minimal requirements needed and faster approval where you can receive your loan proceeds within 24 hours. But before you consider applying for an online loan, familiarize yourself with the online loan options available in our country.

What is an online loan?

According to the February 2021 Foundation for Media Alternatives report, almost 80% of Filipinos cannot apply for bank loans for numerous reasons. This is why the country’s popularity of online lending companies has become the primary alternative. Additionally, based on the research issued by the Singapore-Based Fintech Group UnaFinancial, the salary loan market in the country has increased by 9.2% from January 2020 to June 2021, which shows that Filipinos have relied on loans whenever there are urgent expenses. This means that the market for lenders is big since lendees have depended on loans to finance their emergency funds.

Online loans are a non-traditional type of loan offered by private lenders. Unline bank loans that require you to go through intimidating interviews and submit numerous requirements; online loans only need you to apply through their website or application and don’t require you a lot of documentary requirements. All of the loan application processes are done online. From the online loan application to receiving your loan proceeds. Online loan approval is usually as fast as 24 hours, and loan proceeds can also be released after approval. Loan proceeds can be claimed through various online payment facilities. This convenience makes it more suitable for emergencies.

Your loan proceeds can be used for any purpose that you want. May it be for medical expenses, house and car repairs, or tuition and other school expenses. If you’re eyeing a gadget or appliance for your home, you can buy it using your loan proceeds. Or if your salary didn’t reach the end of the month, use it to purchase your essentials and necessities. The choice is yours.

If you’re in doubt, only borrow from online lenders registered with the Securities and Exchange Commission (SEC), which allows them to comply with the Corporation Code, Lending Company Regulation Act, and other laws that require them to comply regarding lending companies. Make sure to borrow from Legally Registered Online Lending Companies to avoid harassment, unfair debt collection, violating your data and private information, and cyber liber.

What are the requirements to apply?

Even if online lenders are not that strict in lending money, you still must comply with the required documents you submit when applying. But the good thing is, they don’t need much, and it’s easy to provide. Requirements vary from lender to lender but here are the most common documents you must submit when applying for an online loan.

Prepare at least two (2) Government-issued Valid IDs with your photo and signature.
Proof of Billing
Proof of Income
- If Employed
  1. Certificate of Employment (COE) or Company ID
  2. Original Payslip, Certificate of Compensation, or Income Tax Return (ITR)
- If Self-Employed
  1. DTI / SEC Certificate
  2. BIR Certificate of Registration

Advantages of Online Loan

Applying for an online loan for the first time makes you think twice if you should. But understanding its advantages and disadvantages allows you to decide better if you should, especially if you need that quick cash. Knowing if it will help you once you apply for one, or will it drawback and cause you more headache once you have your proceeds. Read more to learn more.

As you read this article, I’m sure you’ve figured out the advantages of applying for an online loan since they are pretty obvious. But if you still haven’t figured it out yet, here are the advantages of an Online Loan.

1. A Bank Account is not required.

Whenever you apply for a loan from a bank, they usually need you to have a bank account with them so they can disperse your loan proceeds directly to your account. But online loans save you from this hassle since they do not require you to have a bank account. Once your application is approved, your loan proceeds will be dispersed to your chosen partner’s remittance center. But if you have a bank account, that’s fine as well. You can choose your bank account as an option to claim your loan proceeds.

2. Online Application Available 24/7

If you need urgent cash or don’t have time to spare in the morning, online loan application allows you to apply any time of the day, whenever you need it. Just visit their website or download their application, then you can fill up their online loan application form straight away. This availability to apply is suitable for those in dire need of quick cash and those who don’t have time to visit the bank to work on their application.

3. Convenient Loan Application Process

No need to wear your shoes and pack your bag to visit the bank. All you need is internet access and your mobile phone or laptop to start your loan application process. Regarding the requirements you must submit, you just need to take a photo of your documents (must be clear) and upload it on their application form when needed. After submitting your loan application, you can just sit back at home and wait for further instructions, if there are any. Some lenders will call you at your provided phone number to ask for few information and verify your loan application; no need to visit any branch for your interview. This convenience is beneficial, especially now during the pandemic.

4. Minimal Requirements Needed

Preparing for your loan application requirements may be the most time-consuming part. But with online loans, you’re good to go as long as you have a valid government-issued ID. Some applications require you to take a photo or a selfie while holding your ID for verification. They might also ask for additional requirements, such as a Certificate of Employment (COE) if you’re borrowing a large amount. Their eligibility requirements are not that hard to qualify for as well.

5. Fast Approval

Online loans usually approve loan applications as fast as 24 hours, and this feature is what borrowers generally want and look for whenever the loan is for emergency purposes. Also, lenders do not loom for much on your loan application, even if you got a bad credit history or are unemployed. As long as you submit your application with all the requirements needed, your application will be approved quickly.

Disadvantages of Online Loan

Given all the advantages of online loans, there will also be some fallbacks that come with them. These should be considered before applying since this is a risk to take.

1. Scammer and Harassment

Since the application is entirely made online, you will never have a chance to see if the lender you’re transacting with is legit or a scam. Once dealt with the wrong online loan or with a scammer, they can use the personal information you provided during the application to scam other people using your name. If the online loan you applied for is not legally registered, they may conduct illegal practices such as debt shaming when you fail to pay your payment on time. In a worst-case scenario, they may post your personal information online.

2. High-Interest Rate

Since online loans are convenient and quick, this feature makes them more expensive than other loan options. You may have your cash when you need it, but the amount that you have to pay them back may be difficult since the higher the interest rate that is charged on your loan, the larger the amount of the monthly payment that you have to pay. This may take a toll on your finances and can be out of your budget, which may cause you to fail your payment.

3. Short Loan Terms

With the high-interest rate, having a short loan term makes your monthly payments larger, making it harder for you to afford to pay them on time. Failure to pay your installments monthly may affect your credit score. Note that loans are unsecured loans, and you’re only backed by your credit score. If you prefer longer loan terms, this may also result in a higher interest rate.

Online loan options in the Philippines

1. TALA Philippines

Tala Philippines is the world’s most accessible financial service that offers accessible loans to Filipino consumers believing that every individual deserves to take charge of their financial life. Regardless of your credit history, you can easily get approved with Tala Loans, and your loan process will be disbursed instantly. Anyone who has a mobile phone can apply for a loan by downloading the Tala App and filling up their loan application form through the app.

Loan Features

Loanable Amount: ranges from ₱1,000 up to ₱15,000
Interest Rate: as low as 9%
Loan Term: up to a maximum of 61 days
Approval Time: approval in less than 5 minutes; loan disbursement within 24 hours
Disbursement of Loan Proceeds: Digital Wallet, Money Transfer, or Bank Transfer

2. ACOM Quick Cash Loans

Ranked as one of Japan’s largest and most well-recognized consumer finance, ACOM offers affordable unsecured personal loans to Filipino borrowers to contribute to the country’s economic development and financial business. Not only do they provide an online application process, but you can also opt to visit a booth or branch to apply for their personal loan. They aim to be the number one company in the Philippines in terms of the unsecured personal loan market by forming financing in the country that has never existed.

Loan Features

Loanable Amount: up to ₱500,000
Interest Rate: 315% – 4.563%
Loan Term: 6 to 12 months
Approval Time: within 24 hours (depending on your credit evaluation)
Disburse of Loan Proceeds: LBC Branch, Personal Bank Account, Gcash, or Paymaya

3. RFC Financing Loan

Radiowealth Finance Company, simply called RFC, aims to finance small or medium businesses to optimize their potential and achieve their major growth. Working their way to provide wide financial access to every Filipino, RFC offers a variety of loans depending on what you need. May it be a business loan, personal loan, or a Multi-Purpose loan. Despite your creditworthiness, RFC primarily provides financial services to underserved credit markets. Striving to grow and maximize the services they can offer to every Filipino.

Loan Features

Loanable Amount: ₱10,000 up to ₱150,000
Interest Rate: subject to lender’s approval
Loan Term: 3 to 36 months
Disburse of Loan Proceeds: Cash pickup, Bank Credit, or Mobile Wallet

4. Home Credit Cash Loan

Home Credit aims to make every Filipino dream come true by providing non-cash, no-collateral in-store financing to meet the borrower’s financial needs. They provide a high living standard that promotes financial inclusion and safe lending to customers. Whatever your plans are, but you’re short on cash, home credit can help you to make it possible. Whether you’ll use it as an emergency fund or for investment, apply for their cash loan to finance your short-term needs and long-term plans. However, you have to be an existing Home Credit customer with a good record to be eligible to apply for a cash loan.

Loan Features

Loanable Amount: minimum of ₱10,000. The maximum loan amount depends on the offer given to you.
Interest Rate: 99% per month or 59.88% per year
Loan Term: loan term offers are usually 18,24,30 or 36 months. But it is still subject to the offer given to you.
Approval Time: as fast as one minute
Disburse of Loan Proceeds: bank transfer or cash pickup