by Venus Zoleta, on category "Personal Loan"
April 19, 2018
Salary loans with their quick application, approval, and cash disbursement—can help cash-strapped Filipinos meet their urgent financial needs. More so when it’s Petsa de Peligro and there’s an emergency, like sudden hospitalization in the family or overdue bills.
Also called payday loans or quick cash loans, these loans from online cash lenders in the Philippines are easier and faster to get than personal loans from banks. Simply apply and submit a few requirements online, and receive the money within 24 hours.
Unlike pawnshop loans that require collateral such as jewelry and gadgets, salary loans don’t ask for any collateral. Rather, they require only proof of income or billing.
However, instant loans in the Philippines have higher interest rates (from 3% to 20% or even higher), lower loanable amounts (from PHP 1,000 to PHP 50,000), and shorter repayment terms (maximum of 30 days) than personal loans and pawn loans.
Many private lenders like Robocash and Tala offer salary loans in the Philippines. Be warned, though: some lenders charge extremely high interest rates of over 60%, making you pay almost double your loan amount.
To help you avoid loan sharks or predatory lenders, we’ve filtered the choices down to three of the best instant loans in the Philippines. These short-term loans have reasonable interest rates, fast approval and funding times, and positive customer feedback. They come from legitimate financial companies that are licensed by the Securities and Exchange Commission (SEC).
|Best Instant Loans Comparison||Cash Mart Salary Loan||Loan Ranger Cash Loan||Tala Loan|
|Loan amount||PHP 5,000 – PHP 50,000||PHP 3,000 – PHP 10,000||
|Interest rate||0.8% – 22.4%||3.25% – 19.5%||
||5 – 30 days||
|Approval time||Within 24 hours||One banking day||Less than 5 minutes|
|Funding time||Within 24 hours after approval||Instant funding upon approval or up to one banking day (depending on the chosen bank)||Within one business day|
Cash Mart Philippines is owned by a leading Singaporean online lending company that has been providing quick cash loan services for almost 50 years. It’s SEC-registered with an office in Taguig City. The lender offers quick loan processing, approval, and disbursement of all its loan products, including the Cash Mart Salary Loan.
Filipinos who meet the following qualifications can apply for a salary loan with Cash Mart:
Loanranger.ph, owned by SEC-licensed First Digital Finance Corporation, claims to be the first lender to provide salary loans in the Philippines.
The lender has mixed customer reviews: many customers are happy with its easy and hassle-free online loan application process, fast cash disbursement, and convenient repayment channels. But they noted that Loan Ranger took more than 24 hours to approve loans (though succeeding loan approvals are faster) and could offer more options for repayment channels.
Tala is a California-based mobile tech company that provides financial access to “underserved people” worldwide. One of Forbes’ top 50 fintech companies, Tala currently operates in four developing countries, namely the Philippines, Kenya, Mexico, and Tanzania. Tala offers instant loans in the Philippines via a mobile app for loan application, status tracking, and customer support.
Filipinos with an Android smartphone and a Facebook account can apply for instant loans from Tala Philippines.
Getting salary loan should be the last resort—not the first option—when borrowing money in the Philippines. Never abuse them, too. Or else, you’ll stress yourself even more with your loan repayments.
Before you decide to apply for a quick cash loan, make sure you do it for the right reason and you’ve explored all other options. These quick cash loans are good only during an emergency or any unforeseen event when you’ve exhausted all means to find enough money. If you use them for your daily living expenses, you’ll just bury yourself in debt while paying very high interests.
Need money to buy a car, have your dream wedding or vacation, or start a business? Salary loans, with their extremely high interest rates and short loan terms, are the worst option. Instead, save money by getting a personal loan with a low interest rate (ranging from 1.20% to 1.94%) from a reputable bank. Compare personal loans in the Philippines here.
Salary loans are convenient, accessible, and useful when you’re in dire need of money. When getting one is your only option, make sure to compare different cash loans, check the fine print, use an online loan calculator, and pick the instant loan with the lowest interest rate for your chosen loan term.