No Collateral Personal Loans Philippines

Advantages of Unsecured Personal Loans

Less Risky

The fact that there are no assets to lose is the most significant benefit of unsecured personal loans. There is no need to be concerned about losing property or investment should borrowers fail to repay their monthly amortization due to financial issues. 

Simple Requirements

Unsecured personal loans do not undergo a property appraisal which means less paperwork. Lenders only need a minimal set of documents to support the borrower’s identity and ability to repay the loan.

Fast Disbursement of Cash

Unsecured personal loan providers, particularly those who use online lending platforms, can approve and release the funds for as fast as 24 hours, depending on the completeness of the provided documents. 

Disadvantages of Unsecured Personal Loans

Steep Interest Rates 

Because lenders are not permitted to seize or foreclose on the borrower’s assets, they offer these loans at high-interest rates to mitigate the risks.

Harder To Qualify For

Although unsecured personal loans have fewer requirements, lenders often have high standards when it comes to the borrower’s financial status. They conduct a thorough examination of the borrower’s income, credit history, and outstanding debts before considering the application.

Criteria for Non-collateral Personal Loans in the Philippines

Institutions that provide unsecured personal loans in the country have varying qualifications and requirements. The following are the basic criteria for applying to a non-collateral personal loan in the Philippines: 

• You must be a Filipino national
• You must be at least 18 years old to apply
• Must have a steady source of income
• A government-issued photo ID

No Collateral Personal Loans in the Philippines

Many unsecured personal loan providers can be found all over the country. There are banks, private lending companies, multi-purpose cooperatives, and online lending companies – each provides varying interest rates and payment terms. Among them are indicated below:

Conclusion

Although applying for unsecured personal loans may sound beneficial for Filipinos in need of immediate cash without putting their assets at risk, borrowing the necessary amount that conforms to their financial means should always be kept in mind. After all, the goal of getting a loan is to lessen financial difficulties and not the other way around.