(Updated February 5, 2021)
Nagpapautang na no collateral? Posible yan!
Most Filipinos experience immediate cash needs more than once in their lives, but not all have the assets to put up as collateral. Good thing there are now quick cash loan options that let you borrow cash without collateral. Here are some facts you must know when getting a non-collateral loan for your emergencies, travels, school fees, or even celebrations.
Cash Loan in Philippines with No Collateral
No collateral loans, also known as unsecured loans, have a shorter process than collateral loans. This is because there is no property or asset to be evaluated and appraised. The required documents are reduced, and the evaluation becomes more dependent on your creditworthiness.
There was an undeniable notion that cash loans in the Philippines with no collateral have high-interest rates. The truth is, as the lending industry grows, loan interest rates have become more competitive. The interest rates on no collateral loans depend largely on loan terms or how long you want to settle the loan. The shorter the loan term, the lower the interest rates you will get. In fact, interest rates can be as low as 0.8%.
As for the loan amount, you can borrow from P5,000 up to P50,000. Furthermore, the registered lenders even offer online process and disburse the funds directly to the borrowers’ bank account.
There is no need to personally go to the lender’s office to process your loan.
Where to Get No Collateral Loans in Philippines
SEC Registered Lenders
SEC (Securities and Exchange Commission) Registered Lenders offer multi-purpose personal loans without collateral. These personal loans can save you from financial stress even before your next payday. This is because the process can take a day. The approval for this type of non-collateral loan is not strictly based on your credit history. Lenders consider your job stability, regular income source, and other factors.
Traditional banks also offer personal loans; however, you will be required to have a bank account with them. Aside from that, they strictly check your credit history. If you have no credit history and not banking with them, you are most likely to be declined.
No Collateral Loans No Credit Check in Philippines
Most of us prefer loans that can be approved without any credit check. A credit check can be done in a couple of ways. Some lenders send their Credit Investigators to the borrower’s home to conduct interviews. Bank check the borrower’s credit history acquired from the credit bureau. Online lenders call the borrowers to interview them.
Among these, Filipinos are most wary of their credit history. Credit history is your loan records from your previous registered lenders and banks. From this, banks and lenders will evaluate your credit score. Of course, banks are risk-averse, and it will be impossible for you to get approved if you have a zero to low credit score.
Fortunately, registered lenders also consider other financial factors. While a good credit score is an advantage, they also look at your stable income source, information consistency, or how long you have been living in your current residency.
RELATED: Are There Fast Approval Online Loans With No Credit Check?
No Collateral Loans Process
While collateral is not necessary, you must expect to submit the basic requirements.
- Valid government-issued ID issued such as Driver’s License, TIN ID, UMID, NBI Clearance, or Passport
- The latest proof of income such as payslip, Certificate of Employment, Income Tax Return, proof of remittance, or bank statements
- Proof of billing such as Meralco, Maynilad, credit card bills, cable, or broadband
Traditionally, you have to visit a lender’s office and fill up their loan application form. You will also be asked to submit your documents and wait a few days for them to evaluate your paperwork. Some lenders will even conduct a field visit to verify your information. If you are approved, you have to go to their office to pick up your cheque.
As for online lending companies in the Philippines, you have to go to their website and sign up. Then upload clear photos of your documents. Then wait for a call, email, or SMS to confirm your loan submission. Within the day, they will give you a call or send you an email about your loan application’s final status. Your funds will be sent to your bank account if you are approved.
There is no need to visit their office. You have saved your time and money for transportation.
How to Get Approved for No Collateral Loans
Good Credit Report
While this is not the only factor, the lenders use to evaluate a borrower’s creditworthiness, having a positive credit score is a plus when applying for a loan. This means that you handled your previous loans diligently. However, do not fret if you have a low credit score.
While banks do not lend to those with low to zero credit scores, the registered lenders use other factors to evaluate your application. Once you got approved, make sure to pay on time to build up your credit history.
Stable Source of Income
Obviously, registered lenders, banks, and all legal financing institutions would want an assurance that you have the ability to pay your no-collateral loan. Registered lenders in the Philippines give loans to employed, self-employed, freelancers, and those receiving remittances from seafarers and OFW.
The no collateral loan approval is not based on the amount of income you have. It is the stability of income that they consider. If you are a lender, you will give a loan to a person who you know has the ability to settle it. Only loan sharks approve loans without a care if you can pay or not because they will siphon every cent you have.
Whether it be a bank or a registered lender, each financing agency requires a list of documents that you have to submit. Since the loan has no collateral, registered lenders only have documents to validate your information. This paperwork usually includes your government ID, company ID, proof of income, and billing proof.
In fact, it is actually fishy if the lender does not require these basic documents. This means that they don’t care if you are creditworthy. They want to bury you in debt so they can have the right to drain your finances.
Accomplished Application Form
An incomplete application form can put your loan application on hold. Remember that these loans do not require any collateral. This is why verifying your basic data is more important. If you leave out some information, they will not verify if you are honest with them. Remember that loans largely depend on trust too. Would you loan to someone you don’t trust? Surely, not.
Besides, if you take a long time to comply with the requirement, the registered lender might decline your application to give way to other applications.
RELATED: How to Have 100% Sure Approval For Cash Loans In Philippines
Nagpapautang ng No Collateral
Legal non-collateral loans are finally within reach of Filipinos. There are no collateral loans that you can avail of online without leaving your home or disrupting your hectic schedule. You can use the loan for your various cash needs. Just make sure that you are getting a loan only from an SEC-registered lender to avoid loan sharks.
Need an online non-collateral loan today? Get it today from Cash Mart – the best online lender in the Philippines!