Heard your officemate or a friend about getting a cash loan? Do you also plan to get one? Before doing so, do you know how it works? Do you know the things you should consider before choosing a lender? How to be safe and smart in the process? If your answer to those questions is No, it means you’re not ready to get a loan yet! Here’s what you need to understand first!
First things first, what is a cash loan?
A cash loan is a short-term loan that you usually need to pay within weeks or on the next payday.
Cash loans are usually unsecured and don’t require any collateral at all.
Many Filipinos take cash loan because it’s fast, convenient, and readily available! In whatever unexpected scenario or day in your life, you can immediately apply. May it be for an unexpected bill, emergency medical expense, a tuition fee for your daughter, or an immediate home and car repair!
But do you know how a cash loan works?
But even how simple it works, as a borrower, it’s important to understand how cash loans work. To ensure that you are safe, and you know every little detail, and you won’t regret getting one in the end!
Unlike the traditional lending process, a cash loan process is much faster and easier. You are always eligible to apply for cash loans as long as:
- You’re currently residing in the Philippines and one year living in the same address
- You are employed, self-employed or professional
- You’re at least one year employed in the same company
- You have a minimum of 6,000 pesos while other lenders don’t require it at all!
- You have at least one bank account and an email address.
And here’s the actual process of how you can do it!
- Application process – You don’t need to go to the physical office because cash loans are usually done online. You need to go to their website to create an account or log in. Other lenders also offer mobile applications that you just need to download.
When you log in to your account, you need to follow the instructions simply. Usually, here is the information asked:
- Your name
- Email address
- Mobile Number
- Your credit history
- Do you have any loan within the last 12 months
- Are these fully paid or not?
- Do you have current past-due loans?
- The purpose of your loan. Is it to:
- Pay tuition fee
- Pay bills
- Buy gadget
- To travel
- To pay rent/ any bill
- To cover repair and many more
- Documents. Basic documents your lender may ask are three months payslips or bank statements, valid ID’s, billing statement as proof of address, and bank account under your name.
Once done filling up, a loan summary will reflect on your page: the loan amount, the daily interest, total interest, due date, and penalties. Then, you just need to accept the terms and conditions and voila, you’re done! There’ll be a confirmation once your application is successful.
- Validation -Your lender may call you for some detail validation within 24 hours or less.
- Crediting to your account – You just need to wait for the money released within 24 hours to five business days depending on your lender.
- Payment – It’s just that simple, and then you need to pay whatever loan you get based on the computation. You can usually pay it through:
- Bank transfer
- Remittance Center (Cebuana/ M Lhuillier)
- Payment Center
- 7-11 (Dragonpay)
- The penalties – Beware of penalties! If you miss paying on the deadline, you will be charged on late payment fee!
Before Taking Out Your Loan
Now that you know the hassle-free process, do you think that you’re now ready to get a cash loan? If you say so, then read on and check below details that you need to consider before taking out your loan!
- Why do you need money? Getting a loan might sound easy, but it takes a huge responsibility. So before you click and apply, make sure to ask yourself first on where to use the money. If the reason is not an emergency and you can still wait on the next payday, then do so! Cash loans are Remember that cash loans are intended for emergencies!
- How much do you need and afford to pay? If then, you really need to get a loan, don’t be impulsive! Make sure that the amount you’ll be borrowing compensates the use, your money source, and even the frequency of your payment. Compute and don’t be caught on the idea that you ‘can’ possibly pay it!
- Your credit score and history. If you heard this for the first time, credit score from the name itself is a report knowing whether you have good or bad credit. A high credit score means you’re a good payor while having low means you’re not! According to CIBI, the only Filipino credit bureau, a good credit start from 680.
Anyway, you’ll even know by yourself if you’re a good payor just by asking; Do I pay on time? Do I have any past-due loans or any history?
- Your options. Do your due diligence! Always check options! The first good advertisement you’ve seen doesn’t mean that it’s really good, right? What your eyes see isn’t enough. Research and know all the details. The interest rate, payment method, any charges, and even the penalties!
How Can We Help You?
If you’re still reading until here, and you fully understand what and how a cash loan works, then I guess you’ll be smarter in getting options now! You can also visit our blog section and learn more about:
- The tips on Choosing the Best Online Loan
- Helpful Tips on Managing Your Short Term Loan
- Getting a Loan with Bad Credit?
And if you’re still looking for your lender, we can also help you! Pahiram is a cash loan company with a mission of helping every Filipino on their emergencies. We want to help you that’s why with us, you can get the lowest interest rate within five minutes application only!
Want to know more about us? Just visit the Home link or talk to one of our advisors and understand how it works!