Applying for Quick Loans in the Philippines: The Full Guide

What are Quick Loans?

Quick loans, also called instant cash loans, easy cash loans, or fast cash loans, are a form of short-term personal credit. They stand out from other loans because they’re quick, convenient, and easy to obtain.

Quick loans in the Philippines also go by different names, such as salary, payday, or personal loans. Just as the name suggests, this the perfect loan for those who need cash fast in the Philippines. The concept is that these loans give you access to money that you urgently need, even before your next payday. 

As such, these loans normally have shorter tenures as well, with the payment period being a month on average—just in time for you to get your next paycheck.

Because quick loans are designed for ease and convenience, they usually disburse a smaller amount of money compared to most loans. In the Philippines, most providers for a quick loan online, for instance, offer only up to Php 20,000 in cash for each application. Some of them may even set a lower maximum loan amount for first-time borrowers.

Another downside to its accessibility is that quick cash loans come at a higher interest rate. These higher interest rates are also usually payable in a shorter period—but, considering the lower loan amount that distinguishes quick loans, the high interest shouldn’t be too much for its payors to handle.

How Fast Do Quick Loans Get Approved?

Quick loans are extremely accessible, with most of them being done online. On average, a quick loan online can get approved after a few hours, and the money will get disbursed within 24 hours from your application period.

Most instant cash loan providers in the Philippines even claim that the loan application process only takes minutes—you can get a fast loan in 15 minutes, or at least expect to receive your online loans the same day! 

This is because fast cash lending doesn’t entail stringent requirements or background checks, unlike other lending institutions like banks. Most of the time, you simply need to submit one valid ID and a payslip, and you’re good to go.

As such, lending companies don’t take long to send the money through cash transfer to any valid bank account or e-payment account (e.g., GCash or PayMaya). As you can see, for those who need cash fast in the Philippines, this is a viable and easy option.

Why Apply for a Quick Loan?

With a low maximum loan amount and high interest fees to cap it off, it might seem counterintuitive to apply for fast loans online. However, these kinds of loans are specifically targeted for emergencies, where there is an urgent need to supply some money but nowhere to get it from.

When your income is budgeted from paycheck to paycheck, it can be tough to have extra money for unexpected occasions. This is where fast cash loans come in. They’re usually used in cases of:

• Sudden hospitalization or medication for oneself or a family member, when the money at hand isn’t enough to pay for all of the expenses
• Sudden problems with appliances, equipment, or facilities at home that require repair or renovation
• Delayed salary or other expected source of income 
• Payment for rent or other bills that exceed budget or cost estimates
• Other emergencies or unexpected situations
  

Although quick cash loans have high-interest rates, they can be paid overtime, which won’t require the lender to shell out too much from their pocket. This is why people turn to them in times of need.  

When not to Take a Fast Loan Online

With the ease and convenience they provide, applying for a fast cash loan can be a very tempting and interesting prospect. However, this is not a decision you can make lightly. After all, just because a quick loan online is available doesn’t mean you’ll have to take one and take advantage of it. Here are some cases when it’s not a good idea to take out a quick cash loan online:

There’s no urgent need

If you don’t have any urgent need for an instant cash loan, don’t apply for it. Although the idea of having a lump sum of money can be appealing, remember that you’ll be spending a lot more by paying the fast cash loan plus interest over the course of a few months.

A fast loan online also requires commitment, which means you have to pay the money monthly. So if you take out a quick loan online and spend the money right away for luxury or entertainment, and later become unable to pay off the loan, you might even find yourself faced with other consequences.

Therefore, if there’s no need to take a loan or there are other options – e.g., borrowing money from friends or relatives – then exhaust those alternatives first.

You’re loaning to pay off other loans

People go bankrupt and riddled with debt when they take out loans to pay for existing loans. For instance, using an easy cash loan to pay off another personal loan is a huge red flag. Likewise, if you took out a home loan, but are also taking out a fast cash loan to pay off your monthly amortization, you’ll find yourself drowning from the sheer interest and extra debt you’ll accumulate. 

Why, you ask? 

All sorts of loans charge interest. So if you applied for a quick cash loan online to acquire money to pay off a loan, you’re at risk of having to pay more and more money due to compounding interest rates. After all, your loans have to be paid monthly—using loaned money to pay off a loan will simply cause you to shell out more money in the long run. Considering that fast cash loans charge rates of more than 10% per month – This will end up putting a bigger hole in your pocket and might cause you to be unable to pay off your initial loan the following month.

You’re loaning to pay for regular bills

Getting a loan to pay your credit card dues is also another common occurrence that will cause you problems in the future. This is also the case for any recurring bill you will be paying off using a loan.

You receive your bills monthly; therefore, you should already know how much money to set aside to fully cover all of your bills and utilities. This is something you carefully plan for, not something you can simply loan money for. Getting quick cash loans online isn’t the answer, since loans will add to your monthly expenses. 

Online Lending vs Traditional Bank Loans

Almost all instant cash loans operate via lending money online, as acquiring a quick loan online has increasingly gained traction in a digitizing Philippines. If you’re not sure if you should get a loan from traditional banks or online lending services, here’s a quick guide to get you started. Let’s weigh the pros and cons for each one.

Where to Get Quick Loans

There are a lot of ways and financing institutions for you to get quick loans from! In fact, some banks offer quick loans too—though they might need a longer approval period, still, compared to other online lending services, and will require you to have an existing account with them. 

In terms of online lending providers, Home Credit certainly is the most famous financing institution for quick loans. Unlike usual online providers which only offer up to Php 20,000, Home Credit offers loans of up to Php 50,000 for cash and product loans; and up to Php 150,000, depending on your reasons for loaning, as well as your income and credit history with them.

Other online lending providers are a great option if you don’t need that much cash—Online Loans Pilipinas, Moneycat, and Robocash are a few examples of online lending providers that offer fast cash loan approval and other services. These financing institutions are readily available online, and some even have a physical presence in other areas.

There are of course other online lending providers that abound in the market—if you’re looking to get quick loans from them, it’s best to ensure that they are registered with the Securities and Exchange Commission (SEC) as proof of their reliability as an institution.

If you’re registered with a bank, it’s also a good idea to check out if they offer quick loans. Banks tend to offer quick loans to loyal customers who have met their prequalification process, so this is an option you can take if you want a completely secure quick loans transaction. 

How to Apply for a Quick Cash Loan in the Philippines

If you’ve fully decided to avail of a quick cash loan, you’re in the right place. We’ll be giving you a general overview of everything you will be needing to proceed with a successful application with your chosen financing institution.

Eligibility & Requirements

Both online lenders and banks alike share primary eligibility criteria for people applying for them. Generally, here’s what they look for in their applicants:

• Must be a Filipino citizen at least 21 years old
• Must currently be residing in the Philippines (there are usually separate loans for OFWs and/or seafarers)
• Must have been residing in their current residence for at least a year 
• Must have a source of income: either currently employed, self-employed, or a professional
• If employed, the applicant must be employed for at least a year already to ensure the stability of the source of income 
• If employed, must have a minimum net monthly income of at least Php 6,000
• Must have a valid email address and a bank account where the money will be deposited to
  

If you meet all of these eligibility criteria, congratulations! You can now proceed to try and apply for a quick loan. However, applying for easy cash loans in the Philippines also merits separate requirements. In general, here are the documents you will need to prepare for application:

• 1 or 2 valid government-issued IDs
• Working email address and contact number
• Company ID and/or payslip
• Proof of billing (for more stringent online lenders)
  

Once you’ve prepared all of the abovementioned requirements, you’ll be able to start your first quick loans application online.

Application Process

So, how exactly does applying for fast cash loans work? Here’s a guide on what to expect, and how to get started:

1. Check out your options
   It’s essential to be discerning regarding the lender you will be choosing. Online lenders differ in many aspects—required documents, eligibility criteria, maximum and minimum loan amount, interest rates, processing time, and payout options.
   1. Make sure to compare your top choices in these criteria and choose which one works for you the best.
   2. If you need the money ASAP, choose a trusted lender with a quick approval time—preferably those that claim to deposit the money within 30 minutes or less. You may expect this to come with higher interest rates, though.
   3. If you have some time before you need the money, you can opt for lenders that do same-day processing and have lower interest rates.
2. Prepare the requirements you need
   Once you’re sure about which lender you’re going with, prepare all of the documents and requirements you will need before filling in your application. This ensures that you are ready to finish the application process seamlessly as possible.
3. Go to the official page or official app of your chosen lender
   Most online lenders typically have an official app for their services, either in Google Play Store or the Apple Store. If you are more comfortable finishing the application using your phone, you can opt for this. If not, you can check their official web page and fill in the application there.
   Remember: Transact only with the official webpage of your chosen lender! Do not try to arrange for your application via Facebook or other channels. This helps secure your application and your personal information.
4. Answer the application form
   Once you’re on the right page, answer their application form as honestly and as comprehensively as possible. Before directing you to the form, some lenders will ask for your loan amount, email address, and contact number. Others will ask for this information in the application form itself.
   1. The critical fields you have to include are: contact information (mobile number and email), government-issued ID, and bank account details.
   2. Most lenders call prequalified applicants after screening their application, so make sure that the contact number you provide is accurate and complete.
   3. Your government ID is also how they will determine the validity of your application, so be careful in filling this out.
   4. The bank account details you enter will also be where they deposit your payment, so triple-check this! Your bank account details must be correct—otherwise, you may not receive your loan!
5. Wait for confirmation
   Once you’re done answering the form, you’re all set! Just submit it and wait for them to contact you. They might call you to clarify some of the information on the form or discuss the loan terms with you. Make sure to check your phone, so you don’t miss their call!

Payment Process

Once your loan is approved, you will also be instructed on how and when to pay for each installment. Don’t miss these dates, as late payment is subject to additional fees! You don’t want to pay more than you have to.

Most online lenders allow loan repayment through various channels. This is also worth checking out since it’s best to apply for a financing institution whose payment methods are accessible to you. 

Repayment channels often include the following:

• GCash and other e-wallet options
• Online Banking (via Dragon Pay)
• ATM Banking
• Over-the-Counter payment
• Payment Centers (for example Cebuana Lhuillier, Western Union, Palawan Pawnshop, Bayad Center, SM Payment Center, etc.)

Final Words

Availing loans isn’t a bad thing, especially when it’s a need! However, remember that the main purpose of quick loans is for use during emergencies, and not for your recreational use alone. As long as you responsibly practice loaning, and you borrow from credible, reliable sources, occasionally availing instant loans shouldn’t be a problem!