Payday loans in the Philippines

A Complete Guide for Getting Payday Loans in the Philippines

Have you ever been in an emergency that requires finance, and one of the only options left is requesting a loan? The need may vary, and payday is quite far away. Well, payday loans got you absolutely covered.

A payday loan is usually taken for a short duration of time on the basis that the borrower clears off the debt from the incoming paycheck. With the world growing into a digitalized system, we understand that cash lending processes have also evolved past unending bank queues and collateral offers.

This article will show you what payday loans are, how to get them, the requirements, and where you can easily access them online. Here’s a complete guide to getting your payday loans in the Philippines. Let’s dive in!

What is a Payday Loan?

Whether you refer to them as cash advance, short-term loans, low balance, or high interest loans, payday loans are unprotected offers with a small-time repayment plan.

Typically, it is advised that a borrower should repay the entire amount on the following payday. Most of the time, payday lenders first verify if the borrower has a job before approving a loan.

Pros and Cons of Using Payday Loans

When considering taking out a payday loan, it's crucial to weigh the pros and cons. On the plus side, payday loans can be beneficial if you need cash quickly, and they are also relatively easy to qualify for, even if you have bad credit.

On the downside, however, payday loans can be costly. If you're not careful, you could pay hundreds or even thousands of pesos in interest and fees. Additionally, payday loans are typically only for small amounts of money, so they may not be ideal if you need a large sum of cash.

Are Payday Loans Legit?

Yes, payday loans are real, but it is most advisable to do your research before going for them. In cases of online loans where you can find 15minute payday loans direct lenders, 30-day payday loans, or 24hours, you should be sure to confirm if they are guaranteed.

Scammers are everywhere, and most often, they take advantage of people’s desperations and conditions to rip them of other benefits. They can go as far as to set up a fake payday loan organization and give loans in return for very high-interest rates.

It is simple to verify a lender’s validity. Just make sure they’re SEC-registered and have a Certificate of Authority allowing them to function as a loan firm in the Philippines.

There are two ways to collect or verify this information. You can either contact the Securities and Exchange Commission, the government department overseeing the country’s corporate sector or look up the lender’s name on their list of recognized enterprises, which is available on their website.

Where is it Better to Take a Payday Loan?

It might be difficult to obtain an online payday loan, especially if you have a poor credit score; nevertheless, several online options provide you with payday loans. When asking for a loan, the most common concern for newcomers is being taken advantage of by unscrupulous lenders.

If you’re unfamiliar with the process of applying for an online loan, it may appear difficult and convoluted, but if you make smart and informed decisions, you might end up with a terrific loan.

We’ve put up a list of some of the finest payday loan platforms that offer fast money transfers, cheap interest rates, and great terms and conditions for Filipinos.

• MoneyCat

MoneyCat is a revolutionary microfinance organization that offers all its financial services through a mobile app. Every Filipino with a smartphone can apply for a payday loan through their app.

The downside here is that the maximum loan amount may not be enough for persons with serious financial difficulties.

• Digido

This is a well-known internet loan platform that debuted in February of 2017. The peer-to-peer platform invests in consumer loans at a reduced 12-percentage-point interest rate. The fact that this company specializes in microloans sets it apart from the competition. Payday loans, secured loans, and installment loans are all examples of this. 

Exceptional loan terms are available to all visitors and residents of the capital. Numerous consumers have stated that Digido consistently delivers on its promises. The firm is said to be doing everything it can to provide its consumers with quick loans in times of need.

• Kviku

Cashwagon is a well-known provider of financial services in the Philippines. They offer online consumer finance to people of different ages and income ranges. Filipinos can access loan online payday without collateral at this loan company.

Payday Loan Requirements

Payday loans are available at many financial institutions; however, requirements range from one lender to another. Some lenders want a bank statement, while others demand previous paychecks.

In extreme cases, some lenders don’t require any proof, which definitely raises your interest rate. You’ll also need a postdated check for the full loan amount plus the agreed-upon interest.

When payday arrives, you must return the money to the creditor. If you don’t, the lender is authorized to cash the cheque to recover their funds. Of course, you should double-check that your check is valid; otherwise, the lender will continue to press you.

Certain websites allow you to apply for payday loans online. The only difference is how the money is transferred and how the application is completed. Instead of receiving the money in cash, you can get the money via direct deposit.

You can find a comprehensive list of requirements here:

• Eligibility: You must be between 18 and 70, live in the Philippines, and have a steady income.

• Valid Identification: The required documents are a passport, driver’s license, or any other government-issued identification (SSS, GSIS, BIR, or PRC, among others).

• Proof of Income: Pay stubs, Certificates of Employment (COE), bank statements/certificates, ITR, or income tax returns are acceptable as proof of income.

• Proof of Residency: Utility bills for the current and prior month bearing the borrower’s name and address are acceptable proof of residency.

• Mobile Phone Details: Many online loan providers require a working cellphone as part of the loan agreement between the lender and the borrower.

How to Apply for Payday Loans Online in the Philippines

Most loan organizations now have an internet presence, which is a big plus for customers because it provides more convenience and accessibility. As a result, obtaining a payday loan is quick and simple, with only a few processes involved. The processes involved include:

1. Go to the website of your preferred lender and create an account.
2. Complete the application form and attach any necessary documentation. Here you will be prompted to specify the amount and terms of your selected loan. If you’re unsure, utilize a loan calculator to figure out how much you can borrow based on your requirements and financial capabilities.
   
3. Wait for confirmation. A loan officer may call you to ask questions or obtain further information about your application.
   
4. Get your money using your preferred manner.
   
5. Keep track of your due date and make timely payments to avoid penalties.
   

Conclusion

Payday loans are not free - in fact, they come with high interest rates. However, they are easy to get, and with a great repayment system in place, you will be able to pay them back without much fuss.

While they come with their risks, when managed correctly using the procedures outlined above, you can utilize them to handle emergencies however they arise.

FAQs

1. What is the easiest payday loan to get online?

There are a lot of real companies that offer easy loans everyday online with a guide on how to borrow money until payday. You can choose the best option that suits your financial needs at a particular time after reading reviews.

2. Do payday loans hit your credit score?

No. Because payday loans are usually not directed to major national credit filing agencies, they are unlikely to impact your credit ratings. However, there are certain exceptions; if a company views payday loans in the wrong light, having one on your credit history could affect you.

3. How can I borrow cash instantly?

You can either borrow from an online lender, loan apps, a cash advance from your credit card or sort yourself out among family and friends.

4. What is the easiest app to get a cash loan?

If you live in the Philippines, consider the following options; DiGiDo, MoneyCat, Online Loans Pilipinas, Kviku, UnaCash.