How to Get a Loan without Collateral in the Philippines

Loan without Collateral in the Philippines

Instant financial help is required by most Filipinos at least once in their lifetime. Be it required to pay the educational expenses or to fulfill your obligations of the utility bills to even planning a family trip; you can get a loan in the Philippines.

What makes it even easier is that now you can get a loan without collateral. This means that the loans are provided without requiring you to submit collateral. Financial issues can be faced by anyone, and there is a situation when one doesn’t have anything to give as collateral. In such a condition non-collateral loans are there to save your day.

These loans have comparatively higher rates of interest which depends mostly on the lender’s terms and conditions, loan amount and the period for a loan. The rates typically range from 1% to 5% but can be as low as 0.8% in some cases. The interest rate on loans provided for shorter periods of time is lower than the ones provided for longer eras.

The non-collateral loans are usually provided for shorter time periods, and the loan amount can range from 5,000 to 50,000 depending on the capability of the applicant to pay back.

Types of Non-Collateral Loan:

If you want to get a non-collateral loan, there are certain types which you can consider to apply. The types are as follows:

  1. Educational Loan: It is also called “Student Loan” and is provided to the students who seek financial assistance for their education. This loan can be obtained for tuitions, books or other projects.
  2. Cash Loan: This type of loan is provided to meet several other requirements such as paying utility bills, family vacations or unexpected purchases.
  3. Emergency Loan: Emergency loan can be obtained in emergency situations. Tough times are faced, and one often seeks help in such situations, emergency loans are provided in such scenarios. This is also a multipurpose loan which can be obtained to pay the bills or to meet other financial needs.
  4. Calamity Loan: it is the type of loan provided in disaster situations. It mainly focuses on the people directly affected by the mishap.
  5. Maternity Loan: It is the special type of loan which is provided to pregnant women to meet the needs. It is often equal to the basic monthly salary of the woman into the days she’ll absent at work.

Where should you get a loan without collateral in the Philippines?

In the Philippines, you can obtain a loan without collateral by two kinds of lenders being SEC registered lenders and Traditional Banks.

  • Security and Exchange Commission (SEC) Registered Lenders: SEC Registered lenders offer noncollateral loans which make the process of obtaining loans a lot easier. This can save you from financial stress as the process of obtaining a loan is a lot quicker and easier.
  • Traditional Banks: Noncollateral loan can also be obtained from traditional banks, but these require you to have a bank account with them and often check your credit history strictly and hence people often find it difficult to get their application for loan approved.

The Documents required:

To get a loan you are required to submit many documents but while getting a loan without collateral you even if not required to submit as many documents, should still expect to be asked for the following documents:

  • Valid government issued ID issued such as Driver’s License, UMID, TIN ID, Passport or NBI Clearance
  • The latest proof of income such as pay-slip, proof of remittance, Income Tax Return, Certificate of Employment or bank statements.
  • Proof of billing such as Meralco, cable, credit card bills, broadband or Maynilad

You won’t have to wait for long to get a loan as the collateral documents are not required to get verified and hence saves time, but these loans are provided after the satisfaction of your secure source of income and information consistency.

Process for obtaining a loan without collateral:

Traditionally, you are required to visit the office, fill up the application form and then submit it along with the required documents. The lender will take some days to verify your documents, and then if the application is approved, you will get the loan.

In the Philippines you can also get a loan online. It saves you from all the traveling and you can apply for the loan without disturbing your schedule. You have to sign up at the loan lender’s website and submit the application form online along with the clear images of the documents required. It will take a day to a few days depending on the lender and after the status if your application gets approved the funds will be transferred to your account.

Tips for getting approved for a non-collateral loan:

Good Credit History: Good credit history is always a plus sign for getting your loan application approved. This means that you have a history of repaying your loan amount diligently. Although banks avoid lending loans to those who have zero or negative credit report, registered lenders consider other things like secure means of income rather than just credit history.

Stable Source of Income: It is the assurance that every lender would require. The lender needs to be sure that you have a secure means of income and can repay on time. Only then they can lend you the loan.

Complete Documents: Complete documents are also a necessity. Make sure that your documents are valid and complete. This will help you in getting your application approved.