Loans with low interest in the Philippines

Personal Loan With Low-Interest Rate In The Philippines

A recent financial inclusion survey by Bangko Sentral ng Pilipinas (BSP) indicated that close to 37% of the borrowers in the Philippines consider interest rates when borrowing a loan. This may explain why the demand for a loan with low-interest rates has been on the rise. Just as a person buying a car or shoes sees the color before anything else, the first thing a borrower notices when searching for a loan is the interest rate. That does not mean it is the only thing to consider, there are other factors such as collateral requirement, approval speed, and type of documents required among others. The reason why a borrower will pay keen attention to interest rates is due to the fact that it is an important component that determines the monthly amortization and the whole cost of the loan. It means that a cash loan with low-interest rate in the Philippines will reduce the amount of money that you will repay the lender. One may wonder how lenders come up with interest rates. They do not just set it; it is based on a predetermined rate that is pegged on the lending rates.

Lending rate 

The lending rate is normally the interest rate that is charged by banks on the loans that are lent to private entities. It is the cost of the loan. It denotes the amount that an individual will pay on top of the borrowed amount. Interest rates in the Philippines are normally determined by the Monetary Board. This organ of the central bank gets its mandate from the Usury law. Currently, the law stipulates that the lending rate should be 6%. Monetary Board has also capped interest rates on credit cards where they are not supposed to exceed 2 % per month. Loans with low interest are just above the rates capped by the monetary board. Depending on several factors such as credit score, loan amount, or duration, a borrower can negotiate lower interest rates.

Where to find the lowest personal loan interest Philippines

Borrowers are spoilt for a choice when it comes to the best online loan with low interest. Banks and non-bank lending companies are offering borrowers in the Philippines competitive rates with each trying to outdo one another. Although the interest rates on these loans will vary, more so depending on the credit score, the amount advanced and the additional charges that may apply for a loan, banks and online lending companies strive to offer the most competitive packages to their customers. In the table below, you will find some of the banks with the lowest interest rates for personal loans in Philippines. It is important to note that some of the banks with the lowest personal loan interest rates may have additional charges which lead to an increase in the amount to repay. Financial experts observe that personal loan lowest interest rate in the Philippines should not be the only factor to consider when making a decision. A borrower also needs to look at the additional charges that apply to the personal loan. Some lending institutions have come to realize that borrowers pay close attention to low-interest rates loans and forget to look into the whole cost of credit. Some borrowers have found themselves into deep financial problems after taking loans with purported low-interest rates, only to find that additional charges account for a significant portion of the credit.

Lending companies with low interest

Apart from banks, other lenders are offering relatively low-interest rates loans. And the beauty of these lenders is that they do not ask for credit history as well as collateral. Borrowers who have found themselves on the bad credit list are not discriminated against when it comes to online loans with low-interest rates. They can borrow money from online lending companies and some are known to offer the cheapest loan interest rates. As long as a borrower with bad credit meets all the other requirements such as age limit, and has regular income either from business or employment among others, one can qualify for a small loan. The loan amount will increase gradually if the borrower pays on time without any defaults. Another beauty of cash loans with low-interest rates from online lenders is its quick and easy application, approval, and disbursement process. One can apply for the loan and within a few minutes, money has hit their mobile money or bank account. All that a borrower has to do is identify a lender with the best online loan with low interest and meet all the requirements. Some of the online lending companies offering the cheapest loan interest rates include:

• DiGiDo loan is available for a maximum period of 6 months where borrowers are charged an interest rate of 11.9% per month.
• MoneyCat offers its customers financial solutions through advancing an easy and quick processed loan which is available at a low-interest rate
• Online Loans Pilipinas advances its customers' quick cash loans with a limit of between 1,000 and 20,000 PHP at an interest rate of between 12 and 20%.
• Kviku is one of the fast loan low-interest rates online lending companies with an interest rate of between 0.16 per day and a loan limit of 30,000PHP
• UnaCash offers borrowers a loan of up to 50,000 PHP at an interest rate of 13 % per month with a time limit of 2 to 6 months.

Getting a personal loan with the lowest interest rates

If you are looking to get a cash loan with low-interest rate in the Philippines, start by building your credit score and then identify the loans with low-interest rates. As for those who have bad credit, all is not lost as you can still be considered as most of the online lenders are not so stringent on credit history. However, the amount advanced may be smaller compared to those who have a good score. You may not also bargain fair interest rates since you are considered a high-risk borrower. 

What are the requirements for a low-interest loan?

Different lenders will ask for varied requirements for cash loans with low interest. Banks have more requirements including collateral and credit history among others while online loan with lowest interest rate have minimal or no documentation. Other requirements include:

• Attainment of the majority age, that is 18 years
• Be a citizen or resident in the Philippines
• Have an active bank account or a mobile money account
• Have the Philippines’ registered and active mobile phone number
• Prove that you are earning regular income either from employment or business
• Proof of identity and residence where you have to produce ID and a utility bill in some cases.

Getting a loan with a low-interest rate helps a borrower to kill two birds with one stone. First, the cost of the loan will be low and the amount that will have been advanced will be enough to meet the desired needs. To get this benefit, a borrower needs to identify a lender offering loans with low-interest rates. In the Philippines, customers are spoilt for a choice as they are a variety of lenders offering such loans. All that a borrower needs to do is pay on time to build their credit score and qualify for a large amount next time they need financial assistance.

FREQUENTLY ASKED QUESTIONS

1. What is the best way to get a low-interest loan?

To get the cheapest loan interest rates, a borrower should ensure that the credit score is good. With this, you can negotiate for a cheaper rate since you are a low-risk borrower. Also, select lenders offer cheap rates and meet all their requirements for such credit.

2. What is a low-interest rate for a personal loan?

Different lenders will charge different rates, however, a low-interest rate for a personal loan will be a few points above the lending rate. For instance, with the Philippines lending rate now standing at approximately 6% percent, a lender may offer a low-interest rate of 9-10%.

3. Are online loans safe?

With several registered and licensed online lenders in the Philippines, borrowers are assured of their safety. These entities not only safeguard personal privacy but also the borrowers’ cash.