Lending Institutions for Personal Loans

Functions of a Lending Institution

Every Lending Institution has the right to enter into an agreement with another party called the debtor(borrower) and grant such an amount with a corresponding reasonable additional interest rate, payment terms, and other applicable charges that are in compliance with the provisions of R.A. No. 3765 (Truth in Lending Act) and R.A. No. 7394 (Consumer Act of the Philippines). 

Here in the Philippines, there are over 500 Lending Companies registered with the Securities and Exchange Commission (SEC) and 124 Lending Companies that facilitate online lending transactions. 

R.A No. 3765 Truth in Lending Act

Signing an agreement with lending companies may not always be favorable to the borrower. It was for this reason that the Truth in Lending Act was created to protect the borrowers from unfair lending practices and to educate the public of the true cost of each and every credit transaction that every lending company facilitates.

How to Know if a Lending Company is Legitimate?

The Securities and Exchange Commission is the regulatory body that mandates and ensures the legitimacy of the existence and business practice of a lending company. Relevant details of a lending company can be viewed on the official website of the SEC, together with their Registration No. and  Certificate No. to give the public proper awareness of such industry.

Lending Companies that offer Personal loans

Lending Companies offer various loan products such as Business Loans, Personal Loans, Auto Loans, Home Loans, and many others. One of the popular loan products is the Personal Loan which every qualified employed or self-employed individual may apply for. Here are some lending companies and their loan features. 

Right Choice Finance Corp.

It was established on June 10, 2016, and they mainly operate in areas of Metro Manila, North Luzon, South Luzon, and Cebu Province. Its main office in Manila is located in Makati City. RCFC offers Business Loan, Personal Loan, Car Loan and Home Loan. Their SEC Registration No. is CS201612058.

Personal Loan Features:

Loan Amount: Php20,000 to Php5,000,000

Interest rate: 1.5% to 5% with rebate of up to 1.5% (subject to terms & conditions)

Eligibility

• Filipino Citizen
• 20-60 years old
• Salaried or employed for at least 1 year.

Asteria Lending  Inc.

Asteria Lending Inc. is an online lending company doing business under the name and style of CashBazaar. Established on February 23, 2016, Asteria Lending Inc. was primarily created to provide personal loans and salary loans to the public. Its SEC Registration No. is CS201603853.

Personal Loan Features:

Loan Amount: Php2,000 to Php20,000

Loan Term: Maximum repayment terms 91 days

Interest rate: 0.9% per day

Eligibility

• Must be a Filipino citizen
• Age: 21-60
• Min. salary requirement: 10,000 pesos gross per month
• Own a personal bank account

Conclusion

Before entering into a lending agreement, every individual must educate themselves as to what implications it might bring to them aside from having the benefit of acquiring additional funds. One should be keen on researching relevant details that will provide them the best option of which agreement they should enter into. Sure there are a lot of lending companies that offer personal loan products, but not all of them will be the best solution for each person’s financial needs.