The high demand for loans contributes to the development of this industry and the emergence of a large number of organizations and institutions that provide such services. Today, almost every resident of the Philippines can take a loan for any needs. The most popular are microfinance organizations (lending companies and private lenders) that put forward simplified requirements for the procedure for obtaining and receiving loans.
What is a Microloan or Cash Loan?
Microloans mean a short-term loan for a small amount of money that anyone can apply for. For example, a potential borrower needs a small amount of money to paycheck. There is no opportunity to contact relatives or friends. Thanks to the private lenders, the client receives loans without refusal with crediting funds to a bank card, and within a certain period returns the amount with interest for use. The interest rate is accrued daily, and the smaller the loan amount and the period of use of funds, the less overpayment will be.
Some borrowers prefer to contact the bank for a loan. It should be borne in mind that the requirements put forward by the bank are much different. Also, the mechanism and duration of the application procedure itself and the receipt of money is fundamentally different in time and volume. Applying for a loan does not guarantee a positive result, as many factors and circumstances are taken into account. What do organizations pay attention to when deciding on a loan or credit:
- The age of the borrower. As a rule, the chances of getting a positive answer are greater for those who are between 21 and 55 years old. However, there are other age frames 18 – 75 years.
- Solvency of the borrower. The place of work and the average salary, marital status and the presence of children, loans in other banks and organizations, are taken into account.
- The purpose of the loan and the amount that the client wants to receive, as well as the term of microcredit.
Mostly, this applies to banking institutions, and verification of information for accuracy may delay getting the money for several days or even weeks. Microfinance organizations are able to avoid these lengthy procedures and guarantee an urgent loan to the card without refusal.
The Main Differences of the Loan Without Abandoning
Microfinance organizations operate according to another simplified scheme, which is an undoubted advantage for potential borrowers. Anyone can apply for a loan without refusal.
So, what distinguishes a loan without abandoning the usual?
- The speed of registration. This criterion is of great importance when you need an urgent microloan without failures. The time for consideration of the application and issuance of funds in different organizations can vary from 2 minutes to 15 minutes. Compared with the bank, where the decision can be taken up to 1 week, this period is very convenient.
- After crediting funds to a bank card when registering a microloan, the client will be able to use the money instantly; activation or unlocking is not needed.
- Availability. No matter what kind of credit history the client has, how many active loans are in other banks, he will be able to take a microloan without refusal.
- You do not need to confirm your solvency with certificates of employment and income. Given that the amount of microloans is relatively small, private lenders prefer to do without these bureaucratic procedures.
- Remote registration of the loan. The application is submitted online, and in order to receive funds, it is enough to have only a bank card, where the loan amount is credited.