What is a Cash Loan?
A cash loan is a short-term loan that people can use to pay urgent and unforeseen expenses or make other necessary purchases. Cash loans typically feature a fixed interest rate and a predetermined period, ranging from a few days to a few years. The borrower receives the loan proceeds all at once and then repays it with monthly scheduled installments.
Filipinos can get cash loans from various online lenders and pawnshops. Most of them have a simple application process and may provide anywhere from a few hundred to several thousand, depending on the borrower’s employment status and credit history.
Types of Cash Loans in Cebu City
Cebuanos in need of immediate cash to cover a regular bill or unexpected expenses should consider financial products such as cash loans, which in definition, are loans that can be received in cash. They are typically taken with short repayment plans and no collateral, resulting in some of the highest interest rates available. Cash loans can also be used for any purpose – perfect for addressing any financial needs that Cebuanos may have.
However, the term “cash loan” falls under different types of loans. While all of these loans deliver a financial solution, there are some distinctions to be made in order to obtain the best loan for the situation.
Personal loans are usually unsecured loans that Cebuanos can get from banks or from lenders that use Internet-based applications. This type of loan offers a simplified application that allows the borrower to receive the borrowed funds in just one to a few business days. The amount to be borrowed ranges from a few hundred to several thousand pesos, depending on the lender. Since personal loans require no collateral, most lenders conduct an extensive credit check and require minimal documents.
Personal loans can be an excellent option for Cebuanos who wish to borrow bigger amounts with a flexible payment schedule.
Payday loans are short-term credit, which means the repayment period is usually less than a year. It was called a payday loan because it was scheduled to mature in a month or at the time when the borrower received his/her next paycheck.
Payday loans rarely conduct a credit check, and similar to personal loans, do not require collateral. In addition, they are typically approved on the same day of application, making them ideal for employed Cebuanos who require funds in advance but have exhausted all other options. Payday loans, on the other hand, may have lower loanable amounts and higher interest rates.
Where to Get Cash Loans in Cebu City
Fortunately, many financial institutions have occupied the area of Cebu City ready to provide Cebuanos with cash loans. There are also online lenders available to Cebuanos should they prefer a more convenient application process. Here are some of the providers of cash loans in Cebu City:
Home Credit Cash Loans
Aside from the non-cash loans that Home Credit typically provides, there are also cash loans available, but only to customers who have established good credit history with Home Credit.
If their application is approved, qualified existing HC customers may receive a minimum of Php 10,000 payable over 18 to 36 months. The interest rate will depend on the credit evaluation and shall be communicated to the borrower upon verification.
If the borrower is late in making payments, the following charges shall apply:
- Collection Charge: ₱200
- Past Due 30 days: ₱400
- Past Due 60 days: ₱600
- Past Due 90 days: ₱800
Cash Mart offers reliable, convenient, and simplified online applications of fast cash loans for Filipinos with urgent financial needs provided that all borrower requirements and conditions are met. The loanable amount ranges from Php 5,000 to Php 30,000.
Other fees and charges include the following:
APR: 20.8415% to 292%
Processing Fee: 10% of the Principal Loan
Cebuana Lhuillier Pawnshop
Due to its accessibility and presence nationwide with over 2,500 branches, Cebuana Lhuillier is one of the easiest financial institutions to apply for a cash loan from. Borrowers only need a valid government-issued ID and the pawned item (gold, platinum, diamond jewelry and watches, laptops and computers, or cellphones).
The item’s appraisal value will be the loaned amount and can expect the following fees and charges:
- Advance Interest: ₱4 for every ₱100 loan amount
- Service Charge: 1% of the principal loan amount, not to exceed ₱5
- Interest Rate in Renewed Pawns: starts at 4%
- Liquidated Damages: 2%
- Service Charge: ₱5
The higher the cost of living, the greater the need for financial products such as cash loans. For Cebuanos, they should, at the very least, establish a good credit standing or prove their financial credibility, as it will have a significant impact on the loan offer. It would be preferable for Cebuanos to have their affairs in order before attempting a way to get on top of their finances.
At the end of the day, having affordable and accessible financial services and products in a progressive city serves as a window of opportunity for residents who are not financially capable to keep up with the economic changes.