Growing up in a province in the Philippines, I have always thought that getting a cash loan is quite simple – you can easily go to a relative, to a friend, to your friend’s friend, to your relative’s friend (the list goes on…) and you’re good. It’s not much of trouble really. However, when I wonder about how getting a cash loan in Manila (or in any other big cities in the country) works, I always thought of banks, big lending firms, strict private individuals, and tons of requirements. To be honest, just the thought of the tiresome process already makes me feel stressed and it becomes discouraging which is not how it’s supposed to be. That’s why I did my research and created a guide for everyone who is interested in getting a personal loan in Manila, Philippines.

Should I Get a Personal Loan?

If you’re considering about getting a cash loan, it may mean there’s a big chance that you should. Nevertheless, it wouldn’t come to your mind if you can think of any other resolution to your financial needs. Getting a loan may be your last resort and in certain situations, it’s totally understandable. There shouldn’t be a reason to stop you from getting that small help – unless you know you can’t have it paid back.

Are Personal Loans a Bad Idea?

Loans, in any form, are thought of as a “bad” thing. Most people would say “if you can’t afford it, don’t borrow money to get it” – which is true if we’re not talking about education, health, food, emergencies, etc. If a loan can save your family from hunger, your child’s schooling, your job, your loved one’s life – then who would say it’s a bad idea? You be the judge.

Is it Hard to Get a Personal Loan? 

It could be, depending on where you’re planning to get it from. There are different types of cash lending systems in the Philippines and some of these are provided by certain government institutions, banks, and private individuals or firms. Here are a few things to consider if you would like to know how hard or easy getting a personal loan in the country is:

1. Some banks would only allow you to get a loan if you have an existing credit card with them. Other organizations require that your contribution has reached a certain number of months (just like in SSS) before you become qualified. There are also other requisites such as the amount of your monthly/annual salary, how long you have been employed (or how many years your business has been around if you have one), if you already have an existing loan, etc.

2. Documentary requirements. Most of the time, people get intimidated when applying for a loan because too many documents are being requested from them especially by banks. It can be as simple as a photocopy of your valid IDs or as complex as a copy of a new NBI clearance, Certificate of Employment, and many more. That’s only a few reasons why banks are not the first choice when it comes to getting fast cash loans in the Philippines.

3. Loans, in general, can either be secured or not. Secured loans are those that require collateral (and/or co-makers to back you up) though most of the time, personal loans don’t require any.

4. The whole loan process can take up to 7 days, sometimes even longer than that. As of the moment, online lenders claim that applications can get approved in as early as 24 hours after submission. In ACMF’s case (ACMF.com.ph), “loan can be approved within the day at its shortest”.

Where Can I Get a Loan with a Small Interest Rate?

Some banks in the Philippines offer loans for an interest rate that’s as low as 1.2% while some private individuals offer an interest rate of up to 20% per month. Sure, a very low interest rate is pretty ideal, but you do have to keep in mind though that the rate is not the only thing you should consider when signing up for a loan. As mentioned above, there are a lot of pre-requisites before a certain institution approves your cash advance.

What is my Best Option?

Your best option lies in your current situation – if you are currently affiliated with a bank, as a credit card with them, have a couple of valid IDs, and you’re not really in a rush to get that cash advance, then the bank you’re affiliated with might be the best choice for you. On the other hand, if you need the money in a rush, and does not meet the bank’s qualifications, an online cash loan would be your best bet. Online loans are processed easily, do not demand collateral, and the documentary requirements are not impossible to produce either. ACMF.com.ph is highly recommended for its fast loan approval, low-interest rate, and simple pre-requisites.

If you would like to know more about Cash Loans in Manila, Philippines, you can also go through this article: (link to first article)