Get A No Collateral Personal Loan For Immediate Cash Needs In The Philippines (2019 Update)
The need for finances is a worldwide problem, and this is exactly the same in the Philippines. Many times, the cash which one has at hand is not sufficient to meet all the immediate needs. In view of this, many Filipinos opt to apply for a no collateral personal loan.
A no collateral personal loan is an unsecured type of loan where the borrower does not need to give any asset to act as a security for the loan. To some, it is known as nagpapautang no collateral, cash loans in Philippines that has no requirements.
However, these loans tend to be approved within a very short period, sometimes 24 hours, and therefore they are very convenient. If one is looking for quick cash loans without collateral, there are licensed money lenders in the Philippines that offer these loans.
The following are the documents needed for one to apply for a personal loan in the Philippines:
- Formal identification from the government
- For those employed, identification from the organisation where they are employed
- The pay slip for the most recent month for those employed
- Two utility bills as evidence of the borrower’s address
- For those who are self-employed, the most recent bank statements
- A permit from the mayor for those who are self-employed
There are several reasons why a Filipino will apply for a no collateral personal loan, and these are given below:
1. To act as a cushion up to payday
Many Filipinos struggle to get to the next pay day. This is for various reasons, such as unexpected financial emergencies or even an over expenditure on the budget. Getting unsecured personal loans can help the borrower to settle any sudden additional expenses, bills or even food expenses and he or she will be able to get to payday smoothly. This is especially beneficial for employees who are not able to access a salary advance from their employers. Once the employee receives his or her salary on payday, the loan will be fully repaid.
2. For a wedding
Everyone wants to have their dream wedding. Most weddings in Philippines need substantial amounts of funds, and most Filipinos do not have the full amount of cash needed when they are planning a wedding. Weddings are precious and is a major once in a lifetime event. These no collateral personal loans are a great solution for couples who find themselves in such a situation. Since this type of loan is not restricted, it is ideal for wedding expenses. It provides peace of mind for the couple as they plan their wedding. Banks and lending companies in the Philippines do offer personal loans for such expenses.
3. For medical expenses
In the Philippines, medical costs can be extremely high, and many Filipinos are not able to have comprehensive health coverage. Unfortunately, sickness is usually an emergency, and it needs an urgent availability of cash. Fast cash no collateral personal loans can be a great relief in times of sudden sickness. The borrower is able to get proper treatment for his or her loved one, and the family can focus on the full recovery of the patient rather than issues of money. Health and family are two of the most important things in life.
4. For house renovations
Homeowners may desire to do some upgrading on parts of their home so as to get a good price when they sell it. In Philippines, houses may also need to be repaired often due to wear and tear and to brace different weather conditions. This personal loan will help them to get a quick source of finance for the purpose of doing urgent renovations on the house.
5. To go on holiday
A holiday is a great time of relaxation and bonding for friends and families. However, many Filipinos do not have enough savings put aside for purposes of going on holiday. Therefore, it is a good idea to fund this activity using a no collateral personal loan. This is a great benefit as it enables the family or friends to achieve their desire of going on a restful and exciting holiday together. Interest rates are affordable and the borrower can make a proper budget to repay the loan smoothly.
6. For the purchase of household items
Many times, Filipinos desire to upgrade the electronic items or furniture in their home. This may not be possible from the basic income that they earn because they could be operating on a tight budget. This personal loan will enable the borrower to get the modern furniture and electronics that he or she desires. This is a convenient and quick way of getting one’s home refurbished.
In the Philippines, some examples of banks which offer this type of personal loans are Maybank, Security Bank, HSBC, Citi, and East West. As a borrower approaches the bank to apply for this loan, he or she needs to be aware that his or her credit score will influence the approval of the loan.
A credit score is a rating showing how an individual has serviced his or her debts over time. If one has a bad credit score, it means he or she tends to default in credit payments. On the other hand, a good credit score means that the borrower has been making timely payments on his or her debts.
Having a bad credit score can cause a loan application to be declined by the bank. However, there are ways to improve the situation.
What can individuals do to increase the chances of their loan being approved? Some of these are given below:
Collect All Necessary Documents
The borrower should ensure that all the documents needed by the bank are in order and available. Many times, borrowers do not submit all the documents required for the loan application, and this can cause it to be declined. The applicant should ensure that he or she has all the relevant documents ready for submission beforehand. This will increase the chances of the loan being approved.
Build Credit History
The borrower should try and build up a good credit history. He or she can do this by paying off all existing debt in a timely manner. If the applicant has a bad credit score, he or she should reach an agreement with the existing creditors on a system of servicing the current credit. As the applicant begins to pay the current debt, his or her credit score will begin to improve. This will eventually increase the chances of the personal loan being approved.
Amount To Be Borrowed
The applicant should ensure that he or she applies for an amount where the repayment amounts will be less 40% of his or her income. The bank will be more inclined to approve a loan where the borrower’s income can comfortably cover the loan repayments. Therefore, the borrower should carefully calculate the repayment amounts as related to the amount borrowed, and he or she should choose to borrow an amount that can be repaid smoothly.
Compare Several Options
The applicant should do some research about the different financial institutions that offer no-collateral loans. He or she should compare the different terms and conditions. Some lenders have very flexible terms, and they could have an option of a no-collateral loan that is suitable for the borrower. The applicant should then apply for this loan at the institution where the terms and conditions are agreeable. This will greatly increase the chances of the loan being approved.
In conclusion, a no collateral personal loan is a quick and efficient way of getting finances in Philippines. Getting a personal loan in the Philippines that has no requirements is not difficult and there are many legal lenders who are willing to help. Nonetheless, the applicant should be careful to maintain a good credit score so as to be eligible for several sources of credit. They should also avoid over-borrowing so that they can make comfortable repayments. A good money lender will not let their clients over-borrow and damage their financial health. Apply with Cash Papa for one of the best no collateral personal loans in the Philippines here.