What is an Emergency Loan?
An emergency loan is a type of loan that you can borrow to cover unexpected expenses. You can use this loan to pay for emergencies like urgent house repairs, medical bills, car repairs, or funeral costs. It is also very useful when natural disasters strike like a flood, fire, or earthquake. In the Philippines, most emergency loans are from government agencies, private lenders, and employers in the form of a salary advance.
Emergency Cash Loan in the Philippines
Private Lenders provide emergency loans that have the simplest application process and have the fastest approval. Nowadays, it can be applied online which will then be approved within 5 to 10 minutes. What some private lender offers is also ideal for unemployed Filipinos who need immediate cash that only requires 1 valid ID.
Here is the list of private lenders that offer emergency cash loans in the Philippines:
Digido
In as fast as 5 minutes, borrowers will be able to get the approval of their online loan application which is ideal when dealing with emergencies.
Loan Features
Loan Amount: Php1,000 to Php25,000
Interest rate: 11.9% per month
Loan Term: 3 to 6 months
Kviku
Kviku is also an online bank with 100% automated operations. During emergencies, borrowers will be able to complete the application process at any time and from anywhere in the Philippines just as long as they have a smartphone or computer and an internet connection.
Loan Features
Loan Amount: Php500 to Php25,000
Interest rate: 0.16% per day
Loan Term: 2 months to 6 months
When it comes to emergencies due to calamities, Filipinos will be able to apply for calamity loans through the government agencies such as the Social Security System (SSS), Government Service Insurance System (GSIS), and the Home Development Mutual Fund (HDMF) or Pag-IBIG Fund.
Pag-IBIG Fund
Active members of Pag-IBIG will be able to have immediate emergency cash loan access for borrowers who are residing in calamity-stricken areas declared by the President or Sangguniang Bayan (SB).
Loan Features
Loan Amount: up to 80% of their total Pag-IBIG Regular Savings
Interest rate: 5.95% per annum
Loan Term: up to 24 months
Requirements for Emergency Loan
Basic requirements when applying for an emergency loan include the following:
- Government IDs (e.g. Postal ID, Voters ID, Passport, PRC ID, etc.)
- Copy of proof of billing, such as electric and water bill
- Copy of proof of income, such as payslip, Certificate of Employment and Compensation, or bank statements
- Copy of contributions if seeking an emergency loan through a government agency, such as SSS, Pag-IBIG, and GSIS
Conclusion
Emergencies can happen at any time and on any day. While it is highly recommended for people to have their emergency funds set aside, not everybody is financially capable of putting extra money towards it. In the absence of an emergency fund, Filipinos will be able to have access to other emergency cash loans provided by private lenders, banks, and government agencies. However, one must understand that even when the need is immediate, the credibility
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