You see countless ads on Facebook and Instagram with taglines, “Get your cash in 24 hours” or “No documents required” among others. It’s no wonder that many people are clicking through to find out how they can borrow money and get it quick – as promised.
This is called online cash loan and slowly becoming popular in the Philippine setting. Before you give in, here’s what you need to know and frequently asked questions about online cash loan:
- What is an online cash loan?
Online cash loan is a type of facility that allows you to borrow money online. This makes application easier and more convenient since you don’t have to leave the comfort of your home.
- What do I have to submit when applying?
The requirements of online cash lenders vary, but these are the basic documents you need to submit to process your loan application:
- Government-issued ID
- Billing statement
- Proof of income (pay slip, bank transfer, remittance, etc)
- Completed online loan application
Some lenders require more documents, so make sure to check their requirements for faster processing of application.
- How much and how long can I borrow?
This also depends on the lender. Generally, you can borrow from P1, 000 to P50, 000. Some lenders also impose a limit on first-time borrowers and will only allow higher amount on succeeding applications. Take note also that lenders are more lenient on repeat borrowers, which means you can borrow higher amount.
As to loan term, you can set it for as little as 10 days to maximum of 30 days. There are lenders who allow more than 30 days, so make sure to navigate the online calculator to give you an idea how much you should pay.
- How much is the interest rate?
This varies. They don’t have a specific rate, but rest assured that online cash lenders follow the prescribed rate set by the Bangko Sentral ng Pilipinas.
- How many times do I have to pay?
That depends on the loan term you set. Generally, you can choose “30 days” loan term and pay it on the 30th day. There are lenders who allow up to 30 days, but give you a payment schedule to guide you when payment must be made.
- Where can I get the money I borrowed?
This will depend on the cash-out option you set. Bank transfer, credit to Coins.ph, or remittance centers are the common ways used to get the money.
- It’s been more than 24 hours. Does this mean my loan application is rejected?
Not necessarily. Online cash lenders promised 24 hours, but with tons of applications submitted, they may need additional time to evaluate your loan application.
- How will I pay for the loan?
Lenders have their preferred payment methods. You can pay thru bank deposit, Coins.ph account, 7/11, SM payment centers, or remit your payment in remittance centers like Cebuana and Palawan Express. Take note that lenders assign a specific reference number to make it easier for them to track your loan. Take note of that by listing it down so you won’t have any problem come due date.
- I am a freelancer / housewife. Can I apply for an online cash loan?
Definitely! In fact, Loan Ranger welcomes you to apply. Check out the posts on how freelancers and housewives apply for a loan.
- My loan application got rejected. What went wrong?
There are several factors. It could be incomplete information that will verify your identity as a borrower, insufficient documents, or you don’t have enough proof to show your capacity to pay. Credit history plays an important role as well, so make sure you pay existing loans and bills.
- Can I apply again even if I was rejected?
Of course. Don’t let rejection stop you from applying. Capacity to pay by presenting a stable source of income is a must, so make sure you can show that.
- I got approved and paid already for the loan. Can I re-apply?
Definitely. In fact, lenders love it when their borrowers are coming back. There is a higher chance of approval and you could be qualified for a higher amount.
- I missed the due date. What will I do?
Pay the loan as soon as you can. This time, you might be charged with penalty fees and additional interest. It is imperative that you pay your loan no matter what happens since non-payment will have a negative effect on your credit history. Plus, a collection case could be filed against you – and you don’t want that to happen.