What is a loan? A loan is when a person borrows money from a company or another person in exchange for the principal amount of money plus interest. It is borrowing money, then repaying that amount at a later date, plus tax. Loans are very natural in the world of finance.
The most common type of loan is a personal loan. It is the most common because you can use a personal loan for a wide variety of reasons. A person can pay their medical bill with that kind of money. Maybe they will pay for their tuition for their school. Or maybe, they have a debt to pay. The conditions are endless. A lot of people apply for a loan.
In 2019, Bangko Sentral ng Pilipinas or BSP did a survey on how many Filipinos have loans. They concluded that 41% of the adult population have applied for a loan. 33% of those have outstanding loans, meaning that these people are legally required to pay that back. In the same study, they saw that 55% of people with outstanding loans use the money for basic needs such as food, water, rent, and utilities.
Personal loans aren’t the only type of loan, however. You can get a loan for your credit card, debit card, student loan, business loan, or even a loan for your car. With UpFinance, we have taken this concept and made it our mission to provide you with the easiest and best way to apply for a loan in the Philippines.
Where to Loan Money in the Philippines
Banks such as BDO and BPI are the most common ways of getting a loan in the Philippines. Obtaining a bank loan has numerous perks and downsides. An advantage is that if you pay your loan in a bank, your credit standing goes up. A good credit standing means you abide by the rules, and companies are willing to trust you more when handing loans out.
A significant disadvantage is that banks tend to have higher interest rates, contrary to cooperatives or pawnshops. Another advantage of using banks is that the process is much easier than a loan from an insurance company. An advantage of getting a loan from a pawn shop or insurance company is the low-interest rates they give. It means you would not be paying as much debt as you would for a bank. A disadvantage is that it is not as reliable since its policies can be vague.
One primary difference between a loan from a bank and a loan from anywhere else is the collateral. Collateral is something that the borrower offers up to the company as a way of making the company more comfortable when giving the money. Collateral can be something like a car or a house. It means that if the borrower does not get to pay the debt in full, the company keeps the collateral until the payment is in full.
Collateral for a bank may be a car or a house, and collateral for an insurance company can be the insurance itself. Sometimes banks even have no collateral if you have a good enough credit rating. With UpFinance, we have provided you with a limitless array of companies to choose from, whether it be banks, cooperatives, pawnshops, microfinance, etc. When applying for a loan on UpFinance, almost no requirements are needed. We also provide no collateral and low-interest rates so you can have the most satisfying experience possible.
Where Can I Loan Money in the Philippines
Different companies require different documents to get a loan. But they all have some similarities. The general rule of thumb is you need a few papers. Firstly, you need to be a Filipino citizen. Secondly, you need two (2) valid IDs (passport, driver’s licence, National ID, etc.), a bank account registered to your name, and a utility bill (Water, electricity, etc.) addressed to you. Lastly, if you are employed by a company, you would need an employment document and a three-month bank statement.
If you are self-employed, however, you need an income tax return and bank statements. This system is what most banks use. For insurance companies such as Sun Life Financial, you need to have an insurance policy to be able to get a loan. To keep track of your loan, you would need a loan calculator. A loan calculator determines your monthly payment, interest rate, number of months, or principal amount. With UpFinance, you can get an instant loan in the Philippines.
Fast Search for Loan in the Philippines
Upfinance is the best way to find an easy loan in the Philippines. We have partnered with over 300 financial institutions across the country to provide the most convenient way to find the most suitable loan for you. These institutions include Banco De Oro (BDO), Rizal Commercial Banking Corporation (RCBC), Bank of the Philippine Islands (BPI), UnionBank, CitiBank, Metrobank, Landbank, Philippine National Bank (PNB), etc. And it does not stop there. Pawn shops and insurance companies such as Cebuana Lhuillier and Sun Life Financial also offer loans.
The benefit of using UpFinance is that we make sure that you are getting the best deal possible. We ensure that the interest rates are as low as possible so that you do not have to worry about paying a significant amount. The process of getting a loan has never been more accessible and effortless. Just enter the amount of money you want to loan, select how many months it would take to pay that amount, put in your information, and that is it. No requirements are needed. After that, it is up to you to choose what organisation you want to loan.
We also provide micro-loans so that you do not have to pay a large sum of cash in the long run. Upfinance also offers a wide range of different loans. Examples are student loans, personal loans, credit/debit card loans, pensioner loans, and many more. Upfinance is a legit place to find a loan since all its partners work in the legal field. We make sure that we abide by the existing laws in this country.
Author Maria Torres from Upfinance.