by Venus Zoleta, on category "Personal Loan"
November 6, 2019
Struggling with getting approved for a personal loan? Wondering why banks always reject your applications? An online loan might just be the solution to meet your urgent financial needs.
Online loans from private lending companies 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.
Is an online loan the right choice? Before you borrow cash online, familiarize yourself with how online loans work and your options in the Philippines.
An online loan is a non-traditional type of loan from a private lender that operates over the internet. It’s becoming popular among borrowers who need quick cash but lack the credentials to qualify for bank loans.
Unlike government offices and banks, most online lenders don’t perform credit checks to determine a borrower’s capacity to repay a loan. Most online lenders require only a valid ID, while some may also ask for proof of income.
The entire loan application process is done online—from filling out an online form on the lender’s website or mobile app to receiving approval. Loan proceeds are released and repayments are made through the online lender’s partner banks and remittance centers.
The specific procedure and requirements, however, may vary from one lender to another.
You may have heard from family and friends about their positive experience with online loans. Or you’ve read news about bad practices of certain online lenders.
Online loans have their pros and cons. It’s important to know them, so you can decide if you should get one.
Online lending companies in the Philippines are regulated by the Securities and Exchange Commission (SEC). Just as there are legitimate online lenders, some companies are illegally operating in the country.
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 (1) that can be obtained either online or in any of its 15 branches and booths in Metro Manila, Cavite, Laguna, and Rizal.
Asteria Lending, Inc. is an SEC-registered lending company based in Makati and established in 2016. It guarantees 24-hour approval on personal loans (2) and cash disbursement within hours of getting approved.
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 (3) 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 (4), salary loans, car loans, and OFW loans.
Registered under the name Green Money Tree Lending Corp., Cashwagon (5) promises fast loan approval through its mobile app and cash disbursement within an hour through the borrower’s bank account
Esquire Financing, Inc. (6) 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 (7) 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 that cater to the needs of OFWs, seafarers, doctors, and entrepreneurs. Loan requirements are minimal, and processing takes only 24 hours.
Read more: 5 Best OFW Loan Options in the Philippines
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 (8) 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 (9) 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. (10) 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) (11) 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.
Robocash Finance Corp. (12) is an SEC-registered company with multiple branches in Metro Manila, Bulacan, Cavite, Laguna, and Rizal. Despite having physical locations, Robocash online loan processing is fully digital and automated through its website.
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 SEC-licensed online lending company, Zenith Capital Credit Group (14) offers quick access to funds through no-collateral personal loans to employees and business loans to SMEs and corporations in the Philippines.
Before you avail of online loans in the Philippines, do your homework first. Verify if the lender has SEC registration. View the list of registered financing companies here (15) and list of registered lending companies here (16). If you can’t find the company on the SEC website, it might be on the list of revoked and suspended companies.
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 here at Moneymax. It also helps to read thoroughly the terms and conditions or the loan agreement, so you know if there are any hidden charges or any crucial information you should know before you apply for an online loan.