Personal Loans in the Philippines

Do you need personal loans online? With the help of Crezu it is a very easy and comfortable process to get money. With our financial platform, you will find the best available offers – save your time and finances.

Crezu Service is totally free. Just fill the application, answer some basic questions and get the offers that are suitable for you.

 

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1 Cashwagon Loans
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  • Amount Allowed – Php2,000 up to Php20,000
  • Tenure – 30 days
  • Age Requirement – 21-60
  • Interest Rate – Starting at 1.5%
Offer Details:
  • No fee
  • First 30 days without interests
  • Flexible credit
  • Low interest
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Do you Need Personal Loan?

Truth be told, there are times in life when you fall short of funds to fulfill your different desires or goals. This tends to happen a lot to most Filipinos. When this happens, most of them opt for a personal loan which is an unsecured loan that doesn’t require any collateral.

Nonetheless, there is still an option for secured personal loans where the lender puts a lien on your assets in case you default.

Online loan can help consolidate all your expenses without breaking the bank. This type of loan is easy to acquire as it requires less paperwork and can be used for a plethora of requirements.

How to Choose a Personal Loan

If you plan to consider a personal loan, here are some steps you can follow to choose one:

Identify Your Needs

First of all, you need to identify your needs and reasons for taking a credit. Do you need the loan for making a purchase or for debt consolidation? Although personal loans can be used for various purposes, identifying your needs will help you select the best option for you. 

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Pick the Best Term for Your Budget

Once you know what you are putting your money towards, determine for how long you want to repay the loan. Make sure that you sign up for the best term based on your circumstances and what you can afford to pay.

Check Your Credit Score

One of the most important factors when applying for a loan is your credit score. Your credit score is important since it determines whether you qualify for a personal loan and any other financing deals. Borrowers with good credit score get low-interest credit.

The credit scores are as follows:

  • Excellent credit – 750+
  • Good credit – 700-749
  • Fair credit – 650-699
  • Poor credit – 600-649
  • Bad credit – <600

Check Your Debt-to-Income Ratio

The other thing to take into account when applying for a personal loan is your debt-to-income ratio. In essence, your debt-to-income ratio is your total monthly debt payments in relation to your monthly income. The maximum DTI ratio is 36%, anything higher than this can lower your chances of getting a credit.

How Crezu Online Loans Work

The process of getting Crezu online loans is similar to getting any other loans. To get started, you need to provide your personal information like your address, social security, and proof of income through documents like tax returns and bank statements.

Once you have made a formal application, wait for an approval notification. The preapproval process usually takes a short time since the lender will be simply assessing if you are qualified for the loan.

If you are qualified, full approval is given where you will be issued with a contract defining the terms and conditions of the loan. The last process is receiving the funds which will be sent directly to your bank account.

Information on loans by cities 

You can get useful information on loans according to some large cities in Philippines here:

How to Find Trusted Companies

With so many online loan lenders in the market, finding a trusted and reliable company can be daunting. Below are some things to keep in mind to help you find a trusted company.

Research Various Companies Online

Although it is tempting to consider the first lender that comes your way, it pays to do extensive research first. Once you have identified several companies that offer a personal loan in the Philippines, the next thing is to do your homework on each of them before making your decision.

Research about the lenders’ reputation and see if they have any complaints filed against them by past clients. Also, find out what accreditations they have before signing on the dotted line.

Determine a Lender’s Reputation and Transparency

As a borrower, you should do your due diligence to determine the trustworthiness and transparency of the loan provider. Your ideal company should be very open with the terms and conditions of the loan. Stay clear from providers who are hesitant to answer your questions or provide you with relevant information.

Also, a reputable lender will be open to performing credit checks in order to determine your financial history. Consider it a red flag if the company you are considering does not perform credit checks.

Check Trusted Online Reviews

Another way to determine the best company for your personal loan needs is by reading online reviews. A quick Google search should fill you in on the ratings as well as the positive and negative reviews of various companies. There are also other sites like Crezu that do a comparison of different lending options and spell out the benefits and downside of each in a clear way.

Crezu helps you find out as much credible information about the lender as you can in order to prevent being scammed. Since Crezu only works with trusted companies, it can be effective in helping you narrow down your options.

Another reliable site is the Better Business Bureau which allows you to read any complaints that a company may have. Better yet, it helps determine whether the lender you are considering is registered in your area.

Find Out if They Have a Reliable Customer Service

While this factor is often overlooked, it makes all the difference, especially if you are taking a long-term personal loan. If you know that the repayment schedule of your loan may take years, consider a company that has quality customer service. A trusted company prides themselves in having a knowledgeable and friendly team who will ensure that all your needs are met.

Read the Fine Print

Once you have narrowed down your options, ask the providers to furnish you with a document stating the terms of the personal loan Philippines. Read through the fine print and make sure you understand and agree with all the terms indicated.

A legitimate lender will have all the terms and conditions spelled out in a clear and transparent manner. This is imperative because the document is legally binding. If you have any uncertainties, don’t hesitate to contact the loan provider for clarity.

Low-Interest Personal Loans

A low interest personal loan is a loan whose interest rate is lower than 12%. Unlike the average credit, low interest one cost a lot less. In order to qualify for this loan, you need to have a strong financial history and an excellent credit score of 720.

However, if you don’t have a great credit score, you can borrow secured loans that require collateral. Unlike unsecured loans, secured loans have lower risks since the lender has the potential to seize the collateral should you default.

What are the Processes Required to Get Personal Loan?

The process of getting a personal loan isn’t really that hard. In general, it involves the following:

  • Comparing Your Options

First of all, you need to verify what type of loan you are looking for as there are different types of credits. Then compare your options from different lenders by comparing the loan amount, terms and repayment amount.

You should determine the amount of money that you need in order to solve your problems. The amount of loan available to you will depend on various factors such as your monthly income. Other things to take into consideration include the fees, interest rates, loan terms and the repayment amount.

  • Pre-qualification Process

The pre-qualification process involves the verification of certain details in order to see if you are eligible for the loan before applying. Typically, this process requires you to verify your income, employment, residency, and age. It may also involve performing credit checks to review your financial history and see where you stand.

A stronger credit score not only allows you to qualify for a loan, it also gives you a better chance of getting low interest personal loans. If you have a poor credit score, work on improving your score. This may include restraining from applying the loan for at least 6 months.

Other reasons for not pre-qualifying for a loan may include:

  • A low income
  • High debt-to-income ratio
  • No work history
  • Too many credit card applications

If you have any of the following, you might want to reconsider applying for a credit.

  • Shop Around

You also want to make use of the internet to compare the offers and conditions from different lenders so you can find the most suitable choice for you. Keep in mind that many lenders do a lot of advertisements in order to cover up their high interest rates and unreasonable terms. It is a wise idea to opt for loans with fixed rates rather than variable rates that may fluctuate over the life of the loan.

  • Compare the Offers with Other Lending Options

Before you choose from the different personal loan offers, it pays to look at other credit options available. Although credits will give you the cash you need, they may not be a suitable choice for certain situations.

For instance, you can consider a secured loan if you don’t have good credit. While you may need collateral for this, you will have a better chance of getting a low interest rate than when you have an unsecured loan.

Another option is a co-signed loan. This works if the borrower does not qualify for a loan and instead add a co-signer who qualifies. In this case, the loan provider checks the income and credit score of both parties before they approve the loan.

  • Read Any Fine Print

Before applying for personal loan in Philippines, take some time to read the fine print. You should watch out for things like the rates, fees, and terms of the loan. The lender should disclose the total cost of the loan including origination fees in order to avoid APR surprises.

Also, check if the lender requires you to pay a prepayment fee for paying the loan before the tenure ends. Other things to look out for include automatic withdrawals, flexible payment features, and whether or not the lender reports the payments to credit bureaus. If you are uncertain about anything stated in the fine print, be sure to contact the lender for clarifications.

  • Complete the Application

The application process varies from one lender to another. Usually, you will need to submit documents like your social security number, proof of income, and other financial documents to process the personal loan application.

  • Wait for the Loan Approval

In order to formally apply for a personal loan, you will need to provide the relevant documents to the lender of your choice. The lender will do a hard credit check before finally approving your loan. The lender will then provide you with a loan contract that outlines the details of the loan. During this, they will contact you and let you know how much loan amount you have qualified for.

  • Receive Funds

Upon final consent, you will receive the money either through physical check or direct deposit. The lender will send the money according to the terms agreed; the length may vary from one lender to another. With some lenders, you will receive the money typically within the same day of approval while others may take a week.

You should, however, be cautious with lenders who send an amount exceeding what you agreed upon. While this may seem tempting, it will cost you more in the long run in terms of interest and fees.

  • Repayment

You will begin making repayments according to the lender’s terms. For most personal loans, the repayment is usually on a monthly basis. There are also other lenders that give you the option to repay the loan all at once. However, you should ask for clarification on whether there are penalty charges for this.

  • Pay Attention to Details

As with any other financing, it is important to read the fine print with utmost care in order to avoid paying more. Some lenders don’t disclose the total cost of personal loan including any original or additional fees.

Usually, the origination fees are between 1 to 6%. Some lenders charge prepayment fees when borrowers pay the whole loan amount before the term of the loan ends. All these charges lead to APR Surprises which may be costly in the long run. Therefore, it pays to do a lot of research and clarify with the lender before you sign on the dotted line.

What Should We Take into Account Before Taking Personal Loan?

A personal is some form of a fast loan that doesn’t necessarily involve a lot of processes just to get the financial assistance you need. However, before you apply for this type of loan, you should first consider the following:

Consider Interest Rates and Other Charges

Interest rates can vary from one lender to another, and they can greatly determine how much you are required to pay over the life of the loan. Also, the interest rate will depend on your credit score and the loan term. For instance, a better credit score will attract a lower interest and a longer loan term will attract higher interest rates.

Before signing up for a personal loan, it is also imperative to use a loan calculator to compute the EMI amount. This will give you an idea of the charges involved in the loan.

This will protect you from lenders who charge low interest rates and charge high monthly fees than other lenders. You might also want to ask your prospective lender if there are any hidden costs.

Check the Repayment Period

This is another thing that you must take into consideration when comparing different loan options. While a loan with a longer repayment period may seem favorable as you will be making smaller monthly payments, it might not be the best option for a personal loan. This is because you will have to pay a higher amount of interest and fees for a long term loan.

Experts recommend choosing a loan with a shorter repayment period. Although you will need to pay more monthly, you will end up saving more in the long run.

Check Repayment Flexibility

Similarly, consider the repayment flexibility of the loan you are planning to take. For example, if you plan to apply for a PNB personal loan with a fixed repayment period, you won’t have the ability to pay the outstanding amount before the term expires. This means that you won’t save as much as you would want to.

Typically, some lenders offer loans have both full and partial pre-payment charges. In this case, you will have to part with a small fee in order to pay back the loan ahead of time.

What are the Advantages of Personal Loan?

If you are in need of some extra funds, taking a personal loan can be a good idea. Credits come with many benefits, especially for borrowers with a good credit score. They’re as follows:

  • It can be used for numerous purposes. Unlike a home or vehicle loan, there are no limitations on the use of a loan. It is the best option if you need funds for any purpose.
  • Since a loan is an unsecured loan, most of them do not require any collateral. Due to this, they are preferred by individuals who don’t have any valuable thing to borrow against.
  • When compared to a credit card loan, the interest rates of personal loans are significantly lower. This is particularly true if the loan amount is high. On the same note, these loans have a fixed interest rate, and you don’t have to worry about rate fluctuations during the loan tenure.
  • It can help refinance any of your existing debts at lower interest rates. It is a wise idea to pay off a high interest loan like credit cards using a credit which has lower rates.
  • The loan allows you to borrow any amount within a short period of time. With this type of loan, you will have high borrowing limits than you would with a credit card. Similarly, you will have the potential to borrow a relatively small amount.
  • When you borrow money, you can repay the debt in monthly installments. Upon approval, you will know how much monthly installments you will need to make throughout the entire loan term. Basically, the minimum monthly payment is subject to your credit utilization.
  • Most loans have a longer repayment term than other loan alternatives like payday loans. Loan providers for these loans offer a repayment term of five years or longer. For payday loans, it’s often weeks or months. They are more manageable to pay since they can be broken to smaller monthly payments.
  • With this credit, you can expect a quick decision regarding your approval than with any other loans. Once you are approved, the money will reflect in your account with a few days or weeks.
  • Additionally, it is easier to manage a single loan that is financed in a lump sum than a multitude of credit cards accounts with varying spending limits. Therefore, instead of applying for multiple credit cards, it would be wise to apply for a single credit.
  • You don’t need to have a good credit score in order to qualify for a personal loan. A borrower with a poor credit score of 600 or lower can qualify for a credit, albeit at a higher interest rate.

The Bottom Line

Since personal loans are, in essence, multi-purpose loans, you have the freedom to use them on a variety of financial needs. In general, Filipinos can take advantage of personal reasons for the following:

  • Home improvement
  • Personal installment
  • Debt consolidation
  • Investment
  • Medical bills
  • Business
  • Auto loans
  • Weddings

Regardless of where you plan to use the loan you received, you have to make sure that you are prepared for the repayment and the interest that comes along with the loan. Also, you want to make sure you can use the loan on its intended purpose.

Additionally, using a personal loan calculator can help you in this matter.

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