What is a Cash Loan?
A Cash Loan is a type of financing that is a short-term personal installment loan that can be used to pay for unexpected expenses or emergencies. When borrowers apply for a cash loan, the loan proceeds will be received in cash through bank transfer, cheque, or cash pickup.
Cash loans can be applied from online lenders, traditional banks, or credit unions. Borrowers can use the loan proceeds for whatever purpose they need like medical expenses, home renovation, or to settle an existing debt.
Financial Institutions that Offer Cash Loans in the Philippines
There are many financial institutions in the Philippines right now that offer cash loans, from traditional banks to private lenders. Among them are the following:
Home Credit started as a money-lending service in the Philippines and has become a popular payment option for consumer items like home appliances and gadgets. Only existing customers with good credit history with Home Credit are offered a cash loan option and the loan amount and interest rate will depend on the credit evaluation conducted. The maximum term of repayment is up to 36 months.
UnionBank is a multi-awarded bank that provides financial products and services to both consumers and businesses. They offer different types of loan products from auto loans, home loans, quick loans, and business loans. Their quick loans is a fully digital loan program for UnionBank Account holders wherein approved customers will get the loan proceeds in their account within 60 seconds. A pre-evaluation has already been conducted and an invite code is sent to customers.
Loan Amount: Php1,000 to Php1,000,000
Loan Term: 1 to 12months
Security Bank is one of the leading universal banks in the Philippines that provide a wide range of financial products and services. They offer different types of loans such as personal loans, home loans, car loans, employee loans, etc.
Loan Features for Personal Loan
Loan Amount: Php200,000 to Php2,000,000
APR: 39.53% per annum
Loan Term: 12 to 36 months
Do’s and Don’ts on getting a Cash Loan
There are many factors that influence borrowers from getting a cash loan, with some people having more pressing matters to address than others. Before applying for a cash loan, there are a few things that a borrower must do and must try to avoid.
- Evaluate if there is really a need to avail of a cash loan.
- Pay loan amounts on time. A cash loan must be paid within a specified time period, regardless of the circumstances.
- Decide to apply for a loan amount and loan term that one can commit to paying back.
- Carefully read and understand the terms and conditions of the loan agreement before signing.
- Take a loan from unregistered or illegal lenders.
- Ignore your payment due dates.
- Take more loans than you can handle.
- Borrow more than what your income can afford to repay.
- Borrow money unless there is a real need for it.
In any circumstance in life, cash is king – it allows you to comfortably and easily navigate the demands of life. However, there are times when a person still falls short on cash, especially if emergencies arise. Cash loans are meant to help people address their financial needs and use them for many other purposes the borrower sees fit. However, caution must always be exercised before committing to a loan amount and its corresponding repayments.