Quick Emergency Cash Loans Unemployed in the Philippines

Loan Limitations for Unemployed in the Philippines 

There may be microfinance institutions that can help unemployed Filipinos with loan applications but the process is not as easy compared for those who apply for a loan with a source of income. Here are some of the limitations that they will face when they apply for a loan:

Lower Loan Limits

When unemployed, the risk of the loan getting paid back is higher because of the lack of a reliable source of income. To mitigate the risk, the loans approved to unemployed individuals are considerably lower than normal. 

Higher Interest Rate

With the higher risk of default of the loan getting paid back, the interest will be higher to cover for that risk. This is not entirely ideal because someone might have to end up paying back more on the interest rather than the principal amount of the loan. 

With this in mind, borrowers must always exercise caution before agreeing on the loan terms no matter the urgency of the need. 

Need for Collateral

Because loans are typically approved on the basis of the capacity of the borrower to pay, those who are unemployed will not have any means of securing the repayment of the loan and for this reason, collaterals are required. This is to make sure that when borrowers fail to make payments on time, the borrowed amount will be fulfilled by the asset put up by the borrower as a form of security. 

Where to Apply for Quick Emergency Cash Loans for Unemployed in the Philippines

Pawn Shops

Pawn Shops lend money to people based on the valuable items that they pawn or put up as collateral. With Pawn Shops, anyone who has a valid ID and a valuable item to pawn get access to a quick cash loan and they can pay the same within the period before the due date. With Pawn Shops, due dates can be extended which gives anyone just enough time to come up with the money to get their item back. 

Cebuana Lhuillier

With Cebuana Lhuillier, customers who are unemployed but need quick emergency cash loans will be able to get one through pawning of valuable items such as gold, diamond, platinum jewelry and watches, cellphones and laptop computers. 

With an assured higher than most pawn shops appraisal rates, customers will also be able to take advantage of competitive rates – an advance interest amount of Php4 for every Php100 loan amount, a repayment period of 4  months (renewable), and an interest rate of 4% for renewed transactions.  

Online Loans for Allottees

For spouses, parents or children who primarily receive the allotment from their OFW (Overseas Filipino Worker) family members, they will be able to apply for loans. The online lending company that offers this type of loan is Cash Mart. 

Cash Mart offers loans from Php3,000 to Php30,000 and only requires the allottee to at least be 21 years old. The repayment period can be weekly, bi-weekly, or monthly. 

Conclusion

Without access to financial services, those who are unemployed resort to loan sharks to address their need for immediate cash. This can be avoided if people know that there are quick emergency cash loans that unemployed people in the Philippines can apply to.