A cash loan is one of the fastest ways to get money; however, it comes with certain risks and limitations. First of all, these types of loans are designed as a temporary solution to fix your financial issues. On the other hand, banks employ stricter rules when it comes to loan approval, and that’s the main reason why people choose online lenders.
So, besides banks, you can take a loan using the services of online lenders, or resort to Bumbay, which is a less regulated way of borrowing the money. Now, let’s look at the differences between online lending companies and banks and see what other options you can explore.
Traditional loans vs. online lending platforms
In the last couple of years, Filipinos are willing to try cashless and digital payment methods, as they slowly recognize the benefit of online technologies. For instance, a lot of you have probably tested online e-commerce platform as such Shopee or Lazada, and even they are opening to other methods which involve cashless transactions.
The same rule applies to the lending industry, and the rising popularity of online lenders shows there is a need for this type of service. However, let’s compare banks and online lenders to provide you a broader picture.
|You can borrow large amounts||Stricter approval process|
|They are governed by an independent authority||Requires more paperwork|
|Follows strict regulations||Takes longer for the money to land on your account|
|Even short-term loans for small amounts require excessive paperwork and are hard to get approved|
|Loans are approved fast||Compared to banks, you can borrow less|
|The quick and easy application process||There is no regulatory body which monitors all the activities|
|Doesn’t need a lot of requirements||You are risking you data being hack since everything is done through an online platform|
|Provides short-term loans||High interest rate|
So if you want to avoid using the services of traditional banks, then here are a couple of online lenders you might find interesting.
Loansolutions.PH acts as a middleman between borrowers and banks and other financial institutions. However, don’t work with everyone, but only with their partner banks, which offers you more flexibility. When it comes to interest rate, it depends on a lender you choose, while the maximum loan limit is between P20,000 and P20,000,000.
However, your employment background and monthly income will decide the amount of your loan. To apply, you will have to submit two photos, two valid ID’s, government and employment issued, the latest proof of billing, payslips for the last three months, employment certificate, and bank statement.
MoneyMatch is another online lending platform, but they use peer-to-peer methods to fund their loans. Interest rates start at 12% for the majority of loans they have to offer, while the approval can last up to five business days. The minimum loan amount is Php 25,000. As for paperwork, you will have to submit two valid ID’s, bank statement for the last six months, and employment certificate.