Apps have truly transcended being simply a tool for entertainment or communication. Nowadays, they have become a necessity for our daily lives, especially when it comes to financial transactions.
If you find yourself needing additional funds urgently, there are several online loan platforms and apps that could help you.
While it’s still generally cheaper to get a loan from a bank, the ultra-fast approvals and minimal requirements of these apps make them a practical and attractive option for many Filipinos.
Advantages of Online Loans
We’ve rounded up the top benefits of online loans below.
1. Convenience and ease of application
Waiting in long lines and filling up stacks of paperwork just to apply for a loan is now a thing of the past.
Online loans offer convenience and ease of application, allowing you to apply for a loan anytime and anywhere using just your smartphone.
2. Fast processing and approval times
Unlike traditional bank loans, online loans have faster processing and approval times.
Once your loan is approved, the funds can be disbursed to your account as quickly as the same day or the next business day.
3. Transparency in terms and conditions
Online platforms give you a clear understanding of the amount you’re borrowing, the interest rates, and the fees and charges associated with the loan.
This ensures that you’re fully aware of your financial obligations. This also means that here will be no surprises down the road.
4. Customized loan options based on personal needs
Whether it’s loan amounts, repayment terms, and interest rates, online loans offer a variety of loan options that can be easily tailored to your personal needs.
With careful consideration, you can choose a loan that fits your budget and financial situation so you can have the funds to cover unexpected expenses or major purchases.
Criteria for Evaluating Online Loan Platforms
Take a look at these criteria to evaluate online loan platforms before choosing the one that suits you best.
1. Approval time
As mentioned earlier, one of the biggest advantages of online loans is the speed at which they can be processed and approved.
Therefore, it’s important to choose a platform that has a fast and efficient approval process. Look for platforms that offer instant approval or have a turnaround time of 24 hours or less.
2. Interest rates
Interest rates can vary greatly between online loan platforms so compare rates and find the most competitive option. Be wary of platforms that charge high interest rates or have hidden fees.
3. Repayment terms
Most online loan platforms offer flexible repayment options such as longer repayment terms or the ability to make early payments without penalties.
Additionally, make sure to understand the consequences of late or missed payments, and choose a platform that has reasonable policies for these situations.
4. Customer reviews and ratings
Customer reviews and ratings will give you an idea of the platform’s reliability and customer service, among many others.
Look for platforms with positive reviews and high ratings, and avoid those with multiple complaints and negative feedback since this can be a red flag for potential issues in the future.
5. Security and data protection measures
When it comes to online transactions, security and data protection should always be a top priority.
Online loan platforms must have advanced security measures such as encryption to protect your personal and financial information from hackers and cybercriminals.
Before applying for any loan, verify that the platform is licensed and regulated by the appropriate government agencies (SEC and/or BSP) to ensure that they follow the necessary protocols and standards.
Top Online Loan Platforms in the Philippines with Fast Approval
Here are the top online loan platforms in the Philippines with fast approval.
Tonik Quick Loan
Typical approval time: 30 minutes
Interest rate: 4.26% per month
For loans up to P250,000, the Tonik Quick Loan is an incredible option. This loan offers fast approval and real-time disbursement to your Tonik account so it’s convenient for borrowers who need funds quickly.
The interest rate is reasonable and competitive, and the payment terms are flexible as well. In fact, it’s one of the few online loans which offer up to one year repayment period.
Features:
- P5,000 to P250,000 loan amount
- No credit history and collateral required
- Only 1 valid ID needed
- 100% digital application
- Flexible payment date
- No pre-termination or early payment fees
- 6, 9, 12, or 18 months installment
FinBro
Typical approval time: 10 minutes to 1 working day
Interest rate: Roughly 6% per month
This online lending platform can help you cover unexpected expenses quickly. FinBro ensures a simple, fast, and convenient loan application process which is perfect for Filipinos who are in urgent need of cash.
Its low minimum amount also ensures that you don’t overextend yourself.
Features:
- P1,000 to P50,000 loan amount
- Easy application
- Only 1 valid ID and selfie required
- Get your application reviews in minutes
- Processing fee up to P4,410 depending on loan amount
- 30 days to 12 months loan term
Cashspace
Typical approval time: 15 minutes
Interest rate: Varies depending on the lender
With over 312,000 satisfied clients, Cashspace is now becoming a trusted name in the local online lending space. This app offers fast approvals and flexible repayment terms to its borrowers.
The best part? This platform approves 97% of its loan applications so you have a high chance of getting the funds you need. Unfortunately, its loan tenure options are very limited.
Cashspace’s lending partners include FinBro, Online Loans Pilipinas, Digido, and MoneyCat.
Features:
- No service fee
- Connects you to trusted lending institutions
- No credit history required
- P1,000 to P25,000 loan amount
- 60 to 90 days loan term
PesoLoan
Typical approval time: 24 hours
Interest rate: 20% (fixed interest for all loans)
The goal of PesoLoan is to make loans accessible for all Filipinos, regardless of their credit history. With a quick and easy application process, borrowers can get approved within minutes and receive their funds on the same day.
PesoLoan also offers flexible payment terms so that borrowers can choose the repayment option that works best for them.
Features:
- Up to P50,000 loan amount
- 3-minute application process
- Various loan payment channels
- Minimum 10% and maximum 20% one-time sign fee and service fee per transaction
- 91 days to 120 days loan term
UnaCash
Typical approval time: 5 minutes to 24 hours
Interest rate: 0% to 16% per month
UnaCash is perfect for borrowers who are looking for a loan to cover any emergency expenses. With its easy and convenient online application process, borrowers can get approved in as fast as 5 minutes to 24 hours. This platform offers flexible payment options of up to 6 months.
Features:
- Up to P50,000 loan amount
- No hidden charges
- Various payment partners
- 2 to 6 months loan term
- No bank or credit card needed
Factors Influencing Fast Approval
If you want to increase your chances of fast approval when applying for a loan through an online platform, there are a few factors to consider:
Clear and accurate documentation
Providing clear and accurate documentation is crucial in ensuring a smooth and fast loan approval process.
Submit all the necessary documents such as valid IDs, proof of income, and bank statements to support your loan application (whatever applies to your lender of choice).
Incomplete or inaccurate documents can cause delays and may even lead to rejection of your application.
Creditworthiness of the borrower
Creditworthiness refers to your ability to pay back the loan based on your credit history, income, and overall financial stability.
Some lenders will check your credit score to evaluate whether or not you are a low-risk borrower.
Loan amount and tenure
Generally, smaller loan amounts have a higher chance of fast approval than larger loan amounts, as they are considered less risky for lenders.
Additionally, shorter repayment terms may also increase the likelihood of fast approval as lenders prefer borrowers who can repay their loans quickly.
The technology and algorithms used by the platform
Online lending platforms with advanced technology and algorithms can quickly evaluate borrower eligibility and assess risks, resulting in faster loan approvals.
These platforms use advanced algorithms to analyze various data points, including credit scores, income information, and employment history to determine the borrower’s creditworthiness and eligibility for the loan.
Furthermore, platforms that offer a fully digital application process, including document submission and e-signature capabilities, can significantly reduce the time it takes for loan approval and funding.
Potential Risks and Considerations
Despite the convenience and accessibility of online lending platforms, there are potential risks and considerations that borrowers should keep in mind before applying for a loan.
The temptation of over-borrowing
With the ease and convenience of applying for loans online, borrowers may be tempted to take out more loans than they can afford to repay.
Keep in mind that borrowing money comes with interest and fees which will add to the total amount that needs to be repaid.
Considering this, only take out a loan that you can comfortably repay without causing financial strain.
Understanding interest rates and hidden charges
Carefully read and understand the interest rates and any hidden charges associated with the loans you are applying for since these can significantly impact the total amount that needs to be repaid.
Watch out for lenders that offer low interest rates but high processing and service fees.
Online security threats and the importance of using trusted platforms
Cyber attacks and online fraud are more common than you think so it’s integral to only use trusted and secure platforms.
Ensure that the lending platform you are using has proper security measures in place, such as encryption and two-factor authentication to protect your personal and financial information.
Borrowers must also be cautious of phishing scams and fake lending websites. These scams often try to lure unsuspecting borrowers into providing personal and financial information, which can be used for fraudulent purposes.
To avoid falling victim to such loan scams, only use reputable and established lending platforms.
Importance of reading and understanding loan terms and conditions
Understanding the interest rates, repayment terms, fees, and any penalties for late payments or early repayments is crucial.
Borrowers must also take note of the consequences of defaulting on the loan and the impact it may have on their credit score.
By carefully reading and understanding the loan terms and conditions, borrowers can make informed decisions and avoid unexpected charges in the future.
Tips for a Successful Online Loan Application
Follow these tips to ensure a successful online loan application.
Ensure all required documents are prepared and accurate
Before submitting your loan application, have all the required documents prepared and make sure that they are accurate. Double-check everything before submitting.
Maintain a good credit history
Some lenders check your credit score to evaluate your creditworthiness before approving your loan.
If you have a poor credit score, consider ways to improve it before applying for a loan.
Research multiple platforms before applying
Don’t settle for the first platform that you come across since this may result in unfavorable loan terms.
Remember that each platform has different loan terms and interest rates, so take your time in researching to find one that is suitable for your financial needs.
Read user reviews and feedback to gauge platform reliability
Look for online reviews from borrowers who have used the platform before and pay attention to their experiences.
If you can, speak to people you trust who have used online lending platforms before to get their recommendations and feedback.
This will help you gauge the reliability and trustworthiness of the platform. Following this step may even give you some pointers on how to successfully navigate the loan application process better.
Author Bio:
MJ de Castro is the lead personal finance columnist at Grit PH. MJ started her career as a writer for her local government’s City Information Office. Later on, she became a news anchor on PTV Davao del Norte. Now, she juggles writing professionally, her business centering on women’s menstrual health, and surfing.
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