Unsecured Loans: Everything You Need to Understand to Boost Your Credit

Are you considering taking out a loan? It’s probably that you have already heard more about the differences between secured and unsecured loans. For people with bad credit who don’t own a car or a home, there aren’t many options. Secured loans provide lower interest rates as you borrow against some kind of secured collateral. Thus, they are preferable in terms of monthly payments as well as other obligations. Meanwhile, for those with poor credit, the only alternative is a personal loan in the Philippines with no collateral.

In this guide, allow us to inform you about unsecured loans in the Philippines, their benefits, and where you can get it.

Unsecured Loans: Everything You Need to Understand to Boost Your Credit

Benefits of Unsecured Loans

That’s the type of loans where you do not need to put up any of your assets to guarantee repayment of the loan. This loan might seem perfect, as it’s considered less risky. Here are some benefits:

  •         Quick Completion

No title or any other collateral is needed to assess with unsecured loans. That means that the processing of the loan is faster than the issuance of secured loans. In some cases, money can be received on the same day after approval.

  •         No-Risk

An unsecured loan is an ideal answer for people who have a home but don’t want to risk it. It does not pose a risk to it or to their other assets. If the loan repayment is delayed, the bank will not be able to claim their real estate.

  •         Available to both homeowner and tenant

The major benefit of unsecured loans is that they make it feasible for anyone to borrow money. This is true whether you are a homeowner or a tenant. You can borrow money without putting up any collateral.

PERSONAL AND BUSINESS LOANS IN METRO MANILA
EasyCash

EasyCash

PERSONAL AND BUSINESS LOANS IN METRO MANILA

interest rate
for per day
PHP 5000 - 10000
from 30 to 60 days
(4,1/5) 181 voice
APPLY TO BORROW MONEY ONLINE IN PHILIPPINES AND GET A FAST ONLINE LOAN IN 15 MINUTES!
Monily

Monily

APPLY TO BORROW MONEY ONLINE IN PHILIPPINES AND GET A FAST ONLINE LOAN IN 15 MINUTES!

interest rate
for 1% per day
PHP 2000 - 20000
from 65 to 90 days
(5/5) 498 voice
Receiving money in any way 24/7!
Robocash

Robocash PH

Receiving money in any way 24/7!

interest rate
for 2,18 % per day
PHP 1000 - 25000
from 7 to 30 days
(4.98/5) 1342 voice
Guarantee of a loan on a card!
Cashwagon

Cashwagon

Guarantee of a loan on a card!

interest rate
for 2% per day
PHP 2000 - 20000
from 10 to 30 days
(4.11/5) 398 voice
The most convenient loan!
Cash Mart

Cash Mart

The most convenient loan!

interest rate
for 0,8% - 3,5% per day
PHP 5000 - 30000
from 7 to 30 days
(4.33/5) 489 voice

Where Is It Better to Take Unsecured Loans

The majority of personal loan Philippines no collateral are very simple to arrange. Financial institutions provide different types of loans, but in this section we will present you unsecured personal loans accessible from financial institutions and banks all throughout the country.

          Robocash

Transparent, simple, and fast, Robocash issues a loan for a period of up to thirty days and loan amount approximately ₱25,000 after the payment of a previous debt. The loan can vary between ₱1,000 up to ₱25,000. Still, it will depend upon the monthly gross income of the borrower.

Borrowers must be 22 to 60 years old to qualify for a personal loan. They must submit their ID, a phone number, and a personal bank account. The entire process can be done online. 

          Tala

Tala is an online lending provider, allowing the borrower to apply for a loan through a mobile App. Borrowers can get approved from as low as ₱1,000 to as much as ₱10,000. Not to mention that borrowers do not need to have a minimum monthly income or credit card to qualify for a loan. They have an interest rate of 15 to 15.7%. The approval duration is within the day, and the maximum loan tenure is one month. Tala’s age requirement must be 18 to 65 years old

          Pondopeso

Pondopeso is another fintech platform that offers financial mobility for people in the Philippines. The services they offer are Unsecured Loans: Everything You Need to Understand to Boost Your Creditbased on mobile internet technology. Borrowers can get a minimum amount of ₱5,000 to a maximum amount of ₱40,000. The terms can vary between 14 and 21.

Borrowers don’t need to visit their office to get a loan. The assessment of the client is performed automatically online. In fact, it only takes five minutes to apply. Their loan term is not less than 91 days, and the annual interest rate is 10.5%. 

          BDO

BDO’s offers various no collateral loans for its borrowers. Their Personal Loan offers low-interest rates, flexible loan amount, and a loan term of 6 to 36 months. Borrowers can get as small as ₱10,000 or to a maximum amount of ₱1 million.

The BDO Kabayan Personal Loan Secured is ideal for the OFWs with a fixed income. The loan is accessible for terms between 6 to 36 months, and borrowers can receive up to ₱500,000.

          Security Bank

The Person Loan from Security Bank is ideal for those individuals who currently have a ₱30,000 income bracket. Security Bank provides a higher loan processing charge to their borrowers. The good thing is that they have lower interest rates. The minimum loan amount is ₱30,000, while the maximum amount is ₱2 million. The payment terms are up to 36 months, and the approval time is five banking terms.

What Features Should You Compare To Find an Unsecured Personal Loan?

Finding the ideal unsecured loans for you does not need to be stressful. On the contrary, it opens up a lot of opportunities for every Filipino citizen. Here are some features you must consider:

  •         Charges and Fees

Make sure you check the fees and charges first before applying. Assess the effective interest charge so you can know the overall price of the loan, including the charges. Be sure to check that your income can cover this loan.

  •         Interest Rate

Ensure you understand if the interest rate is variable or fixed. The final payments depend on it. Also ask the bank employee for the total amount you will have to pay.

  •         Maximum or Minimum Loan Amounts

Every lender will set a minimum amount you can borrow. Typically, they differ between 30,000 pesos and 100,000 pesos. Always remember to check the amount you require.

  •         Added Features

You will find some features that might be useful when you apply for unsecured loans. This might include, among others, discounts on other products provided by the lender, a redraw facility to access repayments, and online account management.  Find out more on the website of the company you have chosen.

PERSONAL AND BUSINESS LOANS IN METRO MANILA
EasyCash

EasyCash

PERSONAL AND BUSINESS LOANS IN METRO MANILA

interest rate
for per day
PHP 5000 - 10000
from 30 to 60 days
(4,1/5) 181 voice
APPLY TO BORROW MONEY ONLINE IN PHILIPPINES AND GET A FAST ONLINE LOAN IN 15 MINUTES!
Monily

Monily

APPLY TO BORROW MONEY ONLINE IN PHILIPPINES AND GET A FAST ONLINE LOAN IN 15 MINUTES!

interest rate
for 1% per day
PHP 2000 - 20000
from 65 to 90 days
(5/5) 498 voice
Receiving money in any way 24/7!
Robocash

Robocash PH

Receiving money in any way 24/7!

interest rate
for 2,18 % per day
PHP 1000 - 25000
from 7 to 30 days
(4.98/5) 1342 voice
Guarantee of a loan on a card!
Cashwagon

Cashwagon

Guarantee of a loan on a card!

interest rate
for 2% per day
PHP 2000 - 20000
from 10 to 30 days
(4.11/5) 398 voice
The most convenient loan!
Cash Mart

Cash Mart

The most convenient loan!

interest rate
for 0,8% - 3,5% per day
PHP 5000 - 30000
from 7 to 30 days
(4.33/5) 489 voice

What Are the Downsides of Cash Loan Philippines No Collateral?

Below are some of the drawbacks of unsecured loans:

  • Lack of Flexibility

You agree to pay it back in installments over a given time. You can’t adjust to a lower payment. If you have problems with payment, contact the bank, you may be offered options to resolve the situation.

  • Limited Loan Amounts

Unsecured loans are given in small numbers. If you want more, you’ll have to take out a secured loan. You have to possess something valuable in the property to do that.

  • High-Interest Rates

Borrowers with bad credit will experience high-interest rates on an unsecured bad credit loan. To prevent this from happening, it is necessary to repay the debts within the term specified in the contract.

Bank Requirements to the Borrower

Unsecured loans are issued through the streamlined procedure. Requirements will be less stringent if you’re an account holder. Your bank account should determine a good financial track record and have at least sustained a healthy bank balance.

For the non-account holders, the borrower should open a checking account that will be utilized as a payment method for the loan.

For employed applicants, they are as follows:

  1. A filled-out loan application;
  2. A couple of photos along with an international passport;
  3. An identity document – passport, driver’s license, voter ID, PAN card (any identity proof);
  4. A proof of residence – utilities bill, passport, etc.;
  5. Salary for the last 3 or 6 months.Unsecured Loans: Everything You Need to Understand to Boost Your Credit

And for individual entrepreneurs the requirements are:

  1. A legal address certificate;
  2. Checking of a processing fee;
  3. A filled-out application;
  4. A couple of photos with an international passport;
  5. An identity document;
  6. A proof of residence – utilities bill;
  7. Salary for the last 3 or 6 months.

In addition, the customer must be of legal age and have a permanent place of work for at least 2 years. A good credit history and an open individual deposit account will are advantages during the loan formalization.

How to Make Unsecured Loan Approve

You don’t need to pledge anything as a collateral. As an alternative, the lender will assess the loan application based on your capability to repay. The bank may ask for your salary to make sure you can repay the debt.

Conclusion

Applying for unsecured loans in the Philippines might fit your existing needs. Just don’t forget to do your research to make sure it’s within your financial ability. Always pick one that is suitable for your status quo and one that will not give financial dilemmas in the end. It is important for everyone to repay their debts on time to maintain their good financial reputation.

How to repay loans

Unsecured Loans: Everything You Need to Understand to Boost Your CreditThe repayment of borrowed funds causes a lot of questions among people. How to return money in time in order to avoid fines? How to make fixed monthly payments?

Payment through the cashier was the most common option. However, Internet banking is now in demand, as well as an automatic system for writing off debts through an account opened in a bank institution. You can also make payments through mobile applications that most Filipino financial companies have already developed for the convenience of their customers.

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