Find out how an online loan application works step by step.
Are you looking for fast cash loan solutions in the Philippines? Find out where to loan money and how it works. Whatever you are looking for financial purposes, the technology-based online loan has been easier to make the most practical and best choice money lending. Use the guide below to help you choose the loans which fit your financial needs, lifestyle, and budget and understand how online loan application in the Philippines really works.
Online loan application Philippines: How it works?
Like any other lending companies, online loan offers 100% online transaction and easy customized fast loan approval yet repay with interest and fees.
First, you have to figure out what type of loan you want before applying. Make sure that you are eligible enough to qualify the criteria needed. After these, get all the required documents, set the amount and term you want, and fill in the online loan application.
Your loan application can be processed between 10 minutes and a few hours after submitting the complete requirements. If you are approved, you will receive your funds. “Usually approval rate for online loans are higher than 95%.”
Repayments will start once the amount is given. Your loan is closed after you settle your balance.
The online loan application Philippines process
Figure out the following simple process and learn more about it.
- Comparing online loan
- Online Application
- Receiving loan
- Loan Repayment
- Loan closure
STEP 1: Comparing online loans
Finding the right loan is the first step of the procedure. Choosing what type of loan depends on your financial purpose. Here are some of the main types of loans:
- Conventional Loans
- Conforming Loans
- Non-Conforming Loans
- Secured Loans
- Unsecured Loans
- Open-ended Loans
- Close-ended Loans
Different lenders offer different loans advantages. After you choose the type of loan you want to apply, here are some ways to compare the loan:
- Amount of loan. Try to ask yourself if the amount you apply is enough to what you need.
- Terms of loan. Terms offered depends on the lenders. Usually, online loan offers 30 days term. Check the minimum and maximum loan terms of your chosen lenders.
- Fees. Charges, application fees, or any other form of establishment fees are commonly present in online transaction. Figure out what kind of loan you can benefit more.
- Rate of loan interest. Check if the rate offered was either fixed or variable. Can it compete with other?
- Amount of Repayment. After you fixed your amount and term for your loan, use loan calculator to work out how much you want to lend and see if the repayment is enough on your budget.
- Terms of repayment. Make sure to consider repayment schedule, extra repayment without a fee, and early repayment without penalty.
STEP 2: Qualification
Lenders have the countable set of qualifications criteria for their money lending activity. These include any of the following:
- Age. A borrower is required to be 18 years old or above to apply for an online loan. However, some country requires the borrower to be 19 years old or older.
- Earnings. To be qualified to apply for a loan, you may need to earn a certain income. Try to check the lender’s annual income requirements for more details.
- Employment. Employed individual or working a stable job is one of the standard criteria lenders require. However, any forms of income like retirements or investment may consider.
- Residency. Since it is online loan application in the Philippines, lenders required you to be a Filipino citizen.
Nevertheless, lending money (online) never approved to people who can’t meet the standard credit requirements unless you can prove you can afford the obligations. Lenders adjudge the eligibility by looking at your earnings, your credit, and your employment stability.
STEP 3: Prerequisites
For the list of documents needed you can find it on the lender’s website. Here are commonly required documents for online loan application Philippines.
- Current ID. When applying you need to provide passport, driver’s license, or any of the government valid ID.
- Proof of income. It is suggested to present any proof of income documents: bank account statements, pay stubs, or DTI (if self-employed or with business).
- Other necessary financial documents. You may need to present a statement of accounts for loans or credit cards if you have other debts.
It will take just a few minutes to complete the online loan application if the documents needed are already at your hands.
STEP 4: Online Application
The process for online loan application depends on the lenders. You are given an online option for applying, in branch or over your personal phones. Online loan services usually provide a unique loan calculator. You can choose the loan amount you want and its corresponding loan term. After that, complete the steps of online application through filling in your personal information: first name, middle name, last name, phone number, email, and password. Some other necessary data on the website must be complete including the way you receive the loan fund.
STEP 5: Approval
Lenders give you instant response after they process your documentary requirements to approve. Usually, it takes 15 minutes to 24 hours before they send the loan confirmation through email (either a call or message) or SMS. The respond contains code which you will use to sign the online contract. Furthermore, the copy of the agreement will be sent to you. Online lending companies transfer the amount immediately after signing the contract.
Step 6: Receiving Loan
Your fund can be received in different ways; through the bank card or account, you have registered on online loan application Philippines. After the contract has been signed, the system will immediately transfer the fund to you. The rest depends on the speed reception of your bank.
In some case, lenders offer loans for debt consolidation. The lender can directly pay the amount to your debtors rather than you. For example, the lender may settle the payments for a car loan to car seller directly.
STEP 7: Loan Repayment
Lenders usually set repayment terms monthly. When settling your debts, you have to consider repayment structure such as additional fees and early payments.
- Some lending companies charge fees for additional repayments. Find out if your lender does the same.
- Find out if your lender has restrictions on the amount you can repay per year. However, there are lenders who practice fixed rate loans.
- If you want to settle your entire balance early on time, check for some penalty made. Some sought with discount upon returning loan earlier.
STEP 8: Loan closure
As stated in your loan contract, your loan closed after your repayment settlement. Nevertheless, if you want to pay the entire loan balance earlier than the expected date, you have to confirm it to your lender to get a final payout of your loan. This practice assured you that loan will be closed to obviate from any unexpected interest charge.
Nowadays, people need cash fast and settling with tradition loan is not a good option for emergencies. Therefore, online loans suit well with unforeseeable financial problems. Above are the simple steps that will guide you where to loan money and how. These can help you to deal with loan application easily and only takes less than an hour.
In case if you are ready to search for top loan offers, we would suggest to use Monily online loan search tool and comparison system to find your loan, either it is loan in 1 hour or personal loan for longer term, Monily is here to help you to save time and most important, money.