Published: July 22, 2021 | Updated: August 4, 2021 | Posted by: Venus Zoleta | Personal Loan
In these trying times, the need to borrow money is understandable, especially if your finances have been badly affected by the pandemic. A lot of Filipinos may have applied for personal loans but just can’t meet the loan requirements. Because of this, they explore legit online loan apps in the Philippines to fund their urgent cash needs.
Legit online lenders offer borrowers a good alternative to traditional loans from banks. They fill in the gaps in terms of convenience, application requirements, and ease of approval. Most legit online lenders even release the loan proceeds within 24 hours.
But are online loans the right choice? Before you borrow money online, familiarize yourself with how these loans work and what your options are for legit online loan apps in the Philippines.
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An online loan is a non-traditional type of loan from a private lender that operates over the internet. Online lenders cannot operate without a physical office address, but they generally process applications through their app or website.
Almost 80% or 52 million of adult Filipinos are unable to apply for bank loans, according to a February 2021 report by Foundation for Media Alternatives. This can be a reason Southeast Asia is currently seeing a fast-paced growth in the financial technology industry, which includes online lending companies.
Banks and financial institutions conduct credit checks to evaluate a borrower’s capacity to pay. Online lenders, on the other hand, usually don’t and just require a valid ID or proof of income.
From filling out an online loan application form to getting approved, legit online loan apps in the Philippines are a more convenient form of borrowing. Loan proceeds are often released within 24 hours, and repayments can be made through the online lender’s partner banks and remittance centers.
The loan application procedure and requirements, however, may vary from one lender to another.
Are legit online loan apps in the Philippines a good option for those experiencing financial emergencies or are they more of a drawback? Keep reading to better understand the pros and cons of online loans.
Online loans allow you to apply for a loan at any time of the day. Just download the app or visit the website and start the loan application process. This availability of financial help makes online loans a good choice for those who really need money for an emergency.
Anyone who has a valid government-issued ID can borrow from online loan apps. Just scan or take a photo of your ID. You may also need to take a selfie while holding your ID. Some lenders may need your certificate of employment if you’re borrowing a huge amount.
With just your smartphone or computer, you can start the loan application process. That means no need to travel and visit a branch. This convenience is highly important in this pandemic when people are advised to stay at home and practice social distancing.
Are you unemployed with bad or no credit history? Online lenders usually don’t ask for a lot of loan application documents, so it’s easier to be approved for this type of loan.
A deposit account with a bank is generally not a requirement for online loans in the Philippines. Some online lenders may ask for your nominated bank account, though. But more often than not, loan proceeds are disbursed through partner remittance centers.
The fast and convenient approval makes online loans more expensive compared to traditional personal loans. Remember, online loans are unsecured loans that don’t require collateral or guarantors. They are backed only by your creditworthiness. The high interest rates plus finance charges can take a toll on your finances if you fail to pay on time.
Most short-term online loans are payable in 30 days. You may opt for a longer loan term, but expect it to come with higher finance charges and interest rates.
Since online loans are processed without face-to-face interactions, there’s a possibility that you’re dealing with a scammer instead of a lender’s authorized representative. Scammers can steal your identity through the information you provide during loan application.
Online lenders conducting unfair debt collection practices, like debt-shaming, may be punished under the current law. These lenders resort to such tactics if you fail to pay on time. Which means there’s a huge chance your personal details will be posted online.
Legitimate lending companies in the Philippines are registered with the Securities and Exchange Commission (SEC). Upon registration, the lender is expected to be compliant with Corporation Code, the Lending Company Regulation Act, and any other laws regulating lending companies.
In case of non-compliance to lending regulations, violations of the Data Privacy Law, harassment, cyber liber, or other forms of unfair debt collection, legit online lenders will answer to the SEC and other relevant government agencies. This may lead to the revocation of their license plus penalties.
Minimize the risks associated with online loans by making sure you deal only with an online lender that’s duly licensed by the SEC.
We’ve compiled a list of top online loans that are legit, meaning their providers are registered with the SEC either as financing companies or lending companies.
ACOM Consumer Finance Corporation is a leading personal loan provider in Japan and was founded in the Philippines in 2017. It offers no-collateral term loans and revolving loans that can be obtained either online or in any of its branches and booths in Metro Manila and nearby provinces.
Asialink is a financing company established in June 1997. Today, it operates 80 branches nationwide, offering different loan products like collateral loan, online lending and financing, used car loan, auto loan, and truck loan.
Atome is an online lending platform registered with the SEC as NeuronCredit Financing Company, Inc., a Singapore-based fintech firm that established its Philippine operations in late 2018. Its cash loan can be accessed via the Atome app on Android devices.
Cash Mart Philippines is one of the better-known online lenders today, coming from a leading moneylender in Singapore. Its online loan products include personal loans, salary loans, car loans, and OFW loans.
Esquire Financing, Inc. is a financing company that provides no-collateral business loans to small-and-medium enterprises (SMEs) in the Philippines. It allows entrepreneurs to borrow money for increasing their work capital, growing their business, or bridging cash flow gaps.
First Circle is an SEC-registered financing company under the name First Circle Growth Finance Corp. It focuses on providing loans to B2B companies or businesses that serve other businesses or government agencies. Borrowers can receive funds in their accounts within five business days.
An SEC-licensed financing company, Global Dominion Financing, Inc. (GDFI) offers a wide range of online loans. Loan requirements are minimal, and processing takes only 24 hours.
Home Credit is becoming quite popular in the country for its standard non-cash loan that provides in-store financing services on appliance or gadget purchases. The SEC-registered financing company (under the corporate name HC Consumer Finance Philippines, Inc.) also offers a cash loan that’s one of the easiest online loans to get in the Philippines through the My Home Credit app. Borrowers only have to submit two valid IDs via the mobile app.
Loan Ranger is an online lender registered with the SEC as First Digital Finance Corporation that offers quick processing (within one banking day) and disbursement (within minutes). Freelancers and micro and small business owners can avail of Loan Ranger online loans.
Established in 2017, Online Loans Pilipinas Financing, Inc. is an SEC-registered fintech company that specializes in online micro and consumer financing. Loan processing takes one to two days, and loan proceeds can be received within 24 hours in the borrower’s bank account.
Radiowealth Finance Company (RFC) has been authorized by the SEC as a lending company since the 1990s. Now, its major online loans for various types of needs include financing loans, multi-purpose loans, and business loans.
One of the leading online loan providers in the country, Tala Philippines enables Filipinos to borrow money quickly via its mobile app. Borrowers can expect a Tala loan approval in less than 5 minutes and receive funds within 24 hours.
Read more: Tala Loan Guide for First-Time Borrowers
Vidalia Lending Corp. has been providing salary loans, personal loans, and business loans since 2008. It works as a peer-to-peer platform where funds come from investors and not directly from the company itself. Vidalia conducts credit evaluation via a phone call with the borrower and disburses funds within one to five days.
An online lending scam is usually committed by individuals who falsely represent a legit online lender. Scammers usually offer an easy borrowing experience by asking for money first and stealing your personal information.
If you fall victim to any of these companies engaged in illegal online lending, you may file complaint against the erring lender through the SEC.
The SEC accommodates only complaints against lending companies with Certificates of Authority to Operate (CA). If you have a complaint against a company without a CA, you may send an email to the Enforcement and Investor Protection Department at firstname.lastname@example.org.
Some things to remember when filing your complaint with the SEC:
Legit online loan apps in the Philippines can be an easy solution for financial emergencies. They offer an easy application and fast approval process and require fewer documents.
More importantly, online lending apps can be very beneficial to borrowers who understand how they work and are responsible enough to pay their loan on time.
Once you’ve come up with a shortlist of online loans that are legit, compare them to find the lowest rate and most favorable terms. It also helps to read the terms and conditions or the loan agreement thoroughly. This way, you’ll know if there are any hidden charges or crucial information before you apply for an online loan.
No need to look far when you’re searching for online loans. Here at Moneymax, it’s easy to compare loans, find the right product for you, and apply for a loan.
Check out these great options from reputable lenders in the Philippines.
|Personal Loan Provider||Features|
|Citibank Personal Loan|| |
|EasyRFC Multi-Purpose Loan|| |
|SB Finance Personal Loan|| |
|TALA Personal Loan|| |
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Venus is the Head of Content at Moneymax, with 15+ years of experience in digital marketing, corporate communications, PR, and journalism. She invests in stocks, mutual funds, VUL, and Pag-IBIG MP2. Outside of work, she’s crazy about cats and Korean dramas. Follow Venus on LinkedIn.