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5 Steps to Get a Loan in the Philippines Approved in 1 Day

Applying for a loan in the Philippines in 1 Day Updated on December 2023

In any way you put it, rejection hurts, especially when least expecting it. This is particularly true when you search for online lenders and bank loans. Their online platforms often portray the application process as straightforward and hassle-free. The reality, however, is far more complex. You have to consider numerous factors influencing the approval of a loan.

However, the truth is there are a lot of factors that significantly affect your loan approval. Securing a loan is more complex than it may seem. The notable ease of the application process can be misleading. Most decisions for your loan approval or rejection fall into various variables. If you understand these factors, you can get approved for a loan in the Philippines in one day.

If you wish to increase your chances of loan approval, you must consider these five steps for getting a loan in the Philippines. With this information, you can hop off on the loan process with a better understanding of the possible complications involved.

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How to Get a Loan in the Philippines?

Learning the process of loan applications can be both challenging and intimidating. You need to explore the essential considerations to enhance your understanding. Just like any transaction, you must be careful in planning and documentation. Plus, you must be keenly aware of the factors that influence approval. Take note of these steps to approve your loan in the Philippines within a day.

Step 1: Know the specific purpose of getting the right loan

There are hundreds of moneylenders in the Philippines. Each offers various loans that can fit your specific needs. However, each loan type requires a list of eligibility and requirements. You must meet them before applying for and processing your loan. But most importantly, taking time and knowing what you need is essential. This way, you can pick the best loan to help your financial situation.

home loan in the Philippines

Here is the list of typical loans in the Philippines. 

Housing loans 

Housing loans are for Filipinos who want to purchase real estate properties. It can be a lot, a house-and-lot, a condominium, or a townhouse. While paying in cash is the best way to buy a property, we must accept that most Pinoys can’t save enough money to spend in one go. That is why banks and other lending companies have created housing loans. Each of these comes with numerous options at competitive interest rate charges.

If you want to buy a home or use your home as collateral to get cash, this loan is right for you. Also, you can use this loan to get instant cash for home renovation. However, remember that negligence to your dues repayment might lead you to lose your home. 

Auto loan

A car loan is for buying or reimbursing the amount used to buy a brand-new or used vehicle. If you finally decide to buy your car, consider how it will affect your finances. Car shops often ask you to make the required down payment upfront. Your remaining balance will be under your bank’s agreement, as they will help you handle the rest of the fees. 

With this setup, you are using the car as your collateral. That is why you have to also pay for specific fees such as appraisal fees, documentary stamps, and insurance. You have to be a diligent payer, or you will lose your precious car. 

Buying a car in the Philippines is now made affordable by banks. But you just have to be well-equipped with the proper steps. This way, you can avoid overspending.

Personal loan

Personal loans can either be secured or unsecured. Unlike housing and car loans, you must have specific uses for it. But with a personal loan, you can spend it any way you want. It can be for your kid’s tuition fee or your long-awaited grand vacation. 

Moreover, a personal loan comes with various purposes. You can apply for a student loan, debt wedding loan, salary loan, or the mostly-used emergency loan. 

On top of that, licensed moneylenders have various offerings you must consider. You must understand loan terms, competitive interest rates, and different ranges of loanable amounts.

Business loans

Business loans depend on the type and size of your business. These loans primarily support your capital or working capital to expand the operations. 

Most registered lenders offer unsecured business loans, especially if the business is micro. However, banks offer secured business loans. Also, it caters only to SMEs already earning a regular cash inflow for more than a year.

Unsecured vs Secured Loan

On top of the different loans you can apply for, you can decide whether you will get a secured or unsecured loan in the Philippines.

Unsecured loans do not need collateral to be approved. These loans usually have shorter terms but higher interest rates than secured loans. 

You can get an unsecured loan if you do not have any assets or property as a surety. However, you must provide proof of your creditworthiness. 

Secured loans are loans you can only apply for if you have acceptable assets or properties to pledge. 

Often, the loanable amount will be based on the value of the collateral. While you may enjoy lower interest rates, you are putting your properties at risk. These lenders can legally seize your valuables if you fail to repay on time. But then again, it depends on your signed loan contract.

Step 2: Shop around for the best loan in the Philippines

Before you commit to a financial arrangement, it is a must that you know the various choices you have. Don’t be too excited and blinded by the first financial lender you talked to. Take time to shop around for the best loan options available. Take note of these questions that will align seamlessly with your financial needs. 

pawnshop in the philippines

Where to get a loan?

Family and Friends 

Family and friends are often the first choice for most Filipinos. We love to think that we are so closely knitted with our family and friends that we can even go to them during financial dilemmas. However, this is a dangerous move as you add financial relationships to your inter-relationships.

If you fail to pay as promised, your relative or friend’s face will always remind you of your unpaid loans. Reunions and special gatherings will be less fun to attend. Or worse, you will be the joke of the town. Indeed, borrowing money from them is not worth risking. 


Pawnshops are also one of the go-to places for Filipinos when they need financial assistance. Unfortunately, this option is only for those with acceptable, valuable items. Examples are your precious jewelry, gold, gadgets, and signature bags or watches. 

In addition, pawnshops do not accept payments in installments. You have to pay at one time, plus the interest rate. You must settle your loan to retain your collateral. Sadly, you have to bid goodbye to your beloved valuable. 


Banks are known to many as stringent lenders. They require a long list of requirements and take a long time to process the loan. Instead of getting your quick cash immediately, sometimes they take more than a week. 

Also, you must go to their physical office to proceed and finalize the process. Since banks are only open on weekdays, you must take work leave, which would be deducted from your next paycheck. 

Most importantly, Filipinos think that banks only offer loans to well-off people. If you belong to the regular citizens, you will have second thoughts. 

Informal Lenders 

Informal lenders are also one of Filipino’s top choices. They quickly approve loans but charge high interest rates. 

Informal money lenders are not registered, and their interaction with clients is not regulated. It means they do not abide by the strict government regulation. Examples are the infamous “5-6.” They typically collect your repayment on a daily or weekly basis. 

The trouble with informal lending companies is that you must settle the loan to avoid being charged way more than you can quickly pay. If you are not careful, you might fall into the hands of loan sharks who will do anything, even resort to severe threats, just to collect their money.

Registered Online Lenders 

Registered moneylenders are regulated by the Securities and Exchange Commission (SEC). These lenders abide by the rules and regulations whenever you get a loan in the Philippines. 

In addition, the loan process with legit lending companies takes at least a day. Also, they do not require clients to visit their office at the beginning of your loan application. You can just apply online and upload your documents. But you must wait for their verification to see if your application has been pushed through. 

Most importantly, legitimate money lending facilities allow clients to use an online loan calculator. This way, you can make well-informed decisions before signing up with them.

Which have the best rates, loan terms, and quality of service?

When considering where to get a loan in the Philippines, decide whether to settle with the one you come across. You have to take time and compare the interest rates that the loan terms can influence. 

Longer loan terms may be charged with lower interest rates. However, the total repayment amount is more than the amortization offered for shorter terms. With the accumulated interest over time, you will see that you pay more than you should have. 

Also, take the time to read the reviews. Previous clients with excellent or worse experience leave feedback on the lender’s website. With these details in mind, you know how the lender interacts with the borrower. Plus, you can better filter your options. 

Are you eligible?

Money lenders usually have a list of eligibility requirements. Although most advertise that they accommodate anybody, not all can apply for a loan. 

Moneylenders discretely create lists of qualifications to be met by prospective clients. You save time and effort if you meet the eligibility requirements before applying for a loan. But if you are going in for luck, be ready to be a victim of trial and error.

Step 3: Know your strengths and weaknesses as a borrower

As you continue your journey to getting a loan in the Philippines, you must have self-awareness. Your financial attributes as a borrower are vital factors. Money lenders assess the borrower’s creditworthiness. Since lending is risky, you must gain their trust to get your loan approved.

credit score in the Philippines


Credit history

Credit history is a comprehensive record of an individual’s borrowing and repayment activities. Your financial profile reflects how you responsibly manage your credit obligations. A credit history typically includes information such as the types of credit accounts held, outstanding balances, payment history, and any derogatory remarks—late payments or defaults.

Let’s say you had a bank loan but could not settle it on time. Though you were able to pay the loan, you were still late. Credit Information Corporation (CIC) will record this in your credit history. CIC is a government-owned credit information collector and disseminator.

Your loans from registered lenders and banks will be recorded for you and your future lenders’ reference. If you have a positive credit report, you will have a higher chance of loan approval. However, you might have difficulty getting a loan approved with a negative credit report

Check your documents

If you have shortlisted possible lenders you want to apply to, it is time to check out the required documents. Check if you can provide the complete requirements and if they are accurate. Also, double-check your name’s spelling, date of birth, and other vital information. 

Money lenders are very particular with the consistencies of data. Any discrepancy may cause them to decline your application. Make sure that your documents are clear and readable. Most importantly, ensure that your paperwork is legit. 

Regular income

When applying for a loan in the Philippines, verifying a stable and regular income is fundamental to the approval process. You must provide your recent payslips to prove your consistent earnings for employed individuals. It means you can have sufficient funds to repay your loan. 

You may submit your bank statements to prove your reliable income stream if you are self-employed. It offers insights into your financial transactions and attests to your ability to generate consistent revenue.

If you are getting cash in other ways, do not hesitate to call the lender and ask if you still qualify for a loan. If you initiate a conversation, you can clarify your eligibility criteria. Also, you can elaborate on your potential adaptation of assessment methods. 

A proactive approach ensures transparency between the borrower and the lender. It helps you facilitate a better understanding of your unique financial circumstances.

Use a loan calculator.

Knowledge is power. To make a sound decision, you need to be well-informed. The best way to know how much you can borrow and how much you have to pay at your chosen term is through an online loan calculator

Many borrowers focus on how much they want to borrow. But they need to check if they can handle the repayment that will come later.

The loan calculator is a valuable tool when applying for a loan in the Philippines. It provides a comprehensive overview of the financial plan. It reveals the amount that can be borrowed and, more importantly, sheds light on the possible repayment consequences at the chosen term.

Once you input your specific loan details—such as amount and term, into the calculator, you gain insights into the practical implications of your financial commitments. It includes a breakdown of each repayment installment. It gives you a clear understanding of the financial obligations that will arise. The proactive approach ensures borrowers can comfortably manage repayments without compromising their essential needs.

Available assets

Most lenders prefer clients who have tangible assets. It assures lenders regarding the borrower’s ability to secure funds in the event of a disruption in regular cash inflow.

While unsecured loans do not require collateral, the presence of assets serves as a safety net for both parties involved. Lenders see assets as a form of financial security. It offers a source of repayment if the borrower encounters difficulties meeting their obligations. Whether you have unforeseen circumstances such as job loss or other financial challenges, lenders have leverage on you.

Without collateral, the lender relies on the borrower’s financial stability and creditworthiness. However, having assets adds a layer of security, instilling confidence in the lender. It shows that you possess resources that can be liquidated to settle outstanding debts without a regular income.

Meanwhile, borrowers understand that this preference emphasizes the importance of a comprehensive financial picture when seeking unsecured loans. While not all lenders may insist on collateral, having assets can enhance your creditworthiness. Therefore, it increases the likelihood of your loan approval.

Step 4: Submit and complete the application form.

In any financial transaction, you must initiate the process by submitting and completing the application form. A well-executed online loan form ensures seamless progress towards your loan approval within one day. So follow these tips below. 

requirements for a loan in the Philippines

Disclose all information

No matter the reason, it is best to include all the requested information. Lenders only process loans if the borrower has complete data. If you are trying to hide a piece of crucial information, the lender will not approve your loan. They can see right through you without you even noticing it. So, it is best to be truthful right from the start.

Let’s say you do not want to tell when you just started your employment last month. Money lenders are particular about your job history. If you are a regular employee and worked for years, you have a better chance of your loan getting approved. But if you are contractual or worked less than six months, you might decline, especially if you hide the truth.

Enclosed complete the required documents.

As a borrower, submitting the complete documents is a critical step in your loan process in the Philippines. Your requirements serve as a foundation for the lender’s evaluation. It enables them to assess your creditworthiness. Plus, it determines whether granting you the requested loan is feasible.

 Take time to check all required paperwork. It ensures you a thorough and accurate examination of your qualifications. Also, it enhances your diligence and increases the chances of a favorable loan outcome. 

Know if there are fees to pay during your loan process.

Transparency is vital when processing your loan application. Established lenders understand that fees associated with loan processing are to be settled post-approval. If there is any deviation from this norm, it should raise caution.

Securing a loan in the Philippines, particularly in the case of secured loans, often involves various fees that borrowers should be aware of. Banks commonly require an appraisal fee when applying for a housing or used car loan. This fee is crucial for assessing the property’s or vehicle’s value, providing a basis for determining the loan amount.

It is essential to note that reputable banks and registered lenders adhere to ethical practices. Apart from the appraisal fee, there should be no other upfront charges during the application phase. Legitimate financial institutions do not request advance processing fees. Any claim that approval depends on payment of an administration fee before the loan approval must be skeptical.

Always exercise due diligence and be cautious of upfront fees. It is crucial to safeguard your finances against potential scams or unscrupulous practices. Remember, a reputable lender will prioritize transparency over anything else. 

Step 5: Expect a thorough verification

The money lending industry comes with a meticulous verification process. Money lenders conduct a thorough financial examination whenever you apply for a salary loan. Trusted lenders commit to ensuring responsible lending practices. It involves the assessment of your eligibility and creditworthiness. This way, you can foster transparency and integrity throughout the lending process.

phone calls


Answer the phone call or give a callback time.

Since lenders need to know if you are creditworthy, they are most likely to give you a call. If the calls coincide with your working hours, it is perfectly acceptable. But you have to prefer a more convenient time to engage in a discussion.

Being proactive ensures that you can provide the necessary information without interruption but also reflects your commitment to a thorough and thoughtful interaction. Effective communication with lenders establishes a good relationship during the loan assessment process.

Be honest

Integrity is paramount for getting a loan in the Philippines. Never lie on your application form or fabricate your documents. Lenders have well-trained staff to spot these fabrications. If they discover your dishonesty, the consequences can be severe. Your loan application can be declined. Or worse, your name will be on their red flag list. 

Honesty, transparency, and accuracy are vital pillars of a successful loan application. Providing truthful and complete information is crucial. It allows lenders to assess your financial situation accurately and increases the likelihood of a positive outcome in your loan application. 

Give a heads-up to your character reference.

Some lenders, especially online lenders, will ask you to give a character reference. It is essential to inform your references in advance. Let them know that a representative from the lending company may contact them to verify specific information.

Some lenders may require confirmation of your character and reliability from individuals who can vouch for your credibility. That’s why you must emphasize the significance of their role in the verification process to your reference. Also, imply the potential impact on the loan application if the lender cannot reach them.

Lenders often prioritize thorough due diligence to ensure responsible lending practices. The loan processing may be impeded if a reference cannot be reached. As a result, your lender may need help thoroughly assessing your creditworthiness.

Ask questions too

Throughout the loan application process, it’s customary for lenders to conduct phone interviews. In the case of traditional banks, they invite you to their office for an in-person discussion. The interview phase presents an excellent opportunity for you. As a borrower, you must actively engage and seek clarification on crucial aspects of the loan in the Philippines.

Do not hesitate to ask questions about the interest rate, loan term, repayment methods, and other pertinent details. If you understand the terms and conditions, it reflects your commitment to informed decision-making.

Licensed lenders appreciate clients who show a genuine interest in the intricacies of the financial arrangement. It signifies your willingness to take responsibility for the financial decisions. Clear communication during this phase ensures you fully comprehend the loan terms. But it also builds a transparent and trust-based relationship with the lender.

The interview process is a two-way street. It allows you to gather information and the lender to assess your understanding and commitment. Maximize this opportunity to clarify any uncertainties. From here, you can make well-informed financial decisions that align with your long-term goals.

Quick Tips to Avoid Mistakes When Applying for Loan in the Philippines

Navigating the loan application process requires a strategic and informed approach. It saves you from falling into common pitfalls. Remember that you are getting a loan in the Philippines to overcome your unexpected financial dilemma. So, take note of the tips to enhance your decision-making and minimize errors.

verify money lender credentials

Thoroughly Compare The Loan in the Philippines

Resist the impulse to accept the first loan offer that comes your way. Take the time to compare multiple loan offers diligently. In addition, it is best to consider interest rates, terms, and associated conditions. A comprehensive assessment can lead to a more advantageous financial arrangement.

Regularly Monitor Your Credit Report

Overlooking the examination of your credit report can be a critical lapse. Periodically review your credit report. Check for its accuracy. If you see any discrepancies, promptly address them. A pristine credit history is fundamental in securing favorable loan terms.

Verify Lender Credentials

Exercise being cautious. It ensures that your chosen lender is duly licensed and has a reputable track record. Engaging with established financial institutions provides security. In addition, your money lending company must adhere to regulatory standards. This way, you can enjoy a smooth loan experience.

Scrutinize the Complete Fee Structure

Beyond the interest rates, meticulously examine any supplementary fees associated with the loan in the Philippines. Typically, it encompasses processing fees, late payment charges, or prepayment penalties. It is essential to understand to avoid unforeseen financial burdens.

Make Decisions Objectively, Not Emotionally

Emotional impulses should not rule your financial decisions. Maintain objectivity and rationality throughout the loan decision-making process. It is best to evaluate your financial capacity. Also, be objective when considering the loan terms and conditions. Most importantly, make choices based on clearly understanding your needs and capabilities.

Approaching the loan application process deliberately and cautiously ensures you make well-informed decisions. This way, you can minimize the risk of common mistakes. Thorough research and thoughtful consideration are vital in securing a loan aligned with your financial goals.

Cash Mart: A Reliable Loan in the Philippines

Trust plays a central role when applying for a loan in the Philippines. The verification period is a crucial step in establishing that trust. Banks, with their comprehensive processes, often take five days to more than a week to meticulously review and verify all the information the client provides. This thorough assessment is designed to ensure accuracy, compliance, and, most importantly, to build confidence in your creditworthiness. But you need more time to get the quick cash you need. 

Engaging with registered online lenders comes with a swifter loan process. However, its efficiency comes with a trade-off. Often in the form of a more detailed and rigorous phone interview. Online lenders aim to assess your financial situation and creditworthiness quickly through direct communication. It makes the phone interview a pivotal aspect of the application process.

Ultimately, your loan application will likely be approved if a reputable money lender deems you creditworthy based on the information provided. You can ensure it when you take out a loan from Cash Mart. It is a trusted lender that builds trust in a mutual effort so you can secure a successful financial partnership and goal in life. Check it out today!