Filipino people used to borrow money for emergencies, especially if they needed it urgently. So emergency loans and personal loans are some of the options in the Philippines when it comes to borrowing money.
Here are the popular lending systems that Filipino people can go to if they need urgent cash, but of course it is a must to understand the advantages and disadvantages before choosing the kind of loan.
Borrow Money For Emergencies via these Agencies:
Government Agency Emergency Loan
They are the government agencies that assist Filipino survivors of natural disasters using emergency loans and calamity loans.
If a natural disaster happens and you live in a place that was under a state of calamity you will be able to apply for an emergency loan from one of those government offices. In addition, you must be an active member for you to qualify for the loan and compared to private lenders these government offices offer longer payment terms and lower interest rates.
Private Lenders Emergency Loan Online
This type of loan has the fastest approval and fund release. In fact, you can get your loan approved as fast as 5 to 10 minutes. This is the reason why emergency loans attract unemployed persons and those with low incomes. Online lenders only need valid IDs and don’t usually ask for as many income documents as banks do.
Employers Emergency Loan
Some companies offer an employee benefits package that can be availed by their employees anytime they experience an emergency or calamity. This type of loan is cheaper compared to other lenders since the repayments will be deducted from the employee’s paycheck and this type of loan does not do not charge
Personal Type Loan
This type of loan requires much time to check a borrower’s ability to pay for the loan. This can not be the best option if you need money as soon as possible. However, this type of loan is safer and affordable since it offers low-interest rates and provides more time for repayment
Payday Type Loan
This type of loan offers a higher loan amount compared to other lenders. It is also stricter when it comes to the application but they require fewer income documents. This type of loan is quite similar to emergency loans from private lenders as they provide quick access to cash online
This type of loan does not require any collateral to get cash as soon as possible and it can be paid off daily. However, this type of loan system charges a higher interest rate of 20% compared to others
This type of loan needs collateral such as jewelry or gadgets before getting money. This is a popular way to get quick cash and they charge interest rates for as low as 1% over a one-month term. However, you might not be able to get back your item if you fail to pay the amount that you borrowed
Borrowing Money (Relatives, Family or Friends)
This is a very convenient way to get money as soon as you need it. Just a phone call or text messages from your relatives, family, and friends. No documents needed, no collateral to give, no interest to pay. Just be sure to pay back what you owe because if not you might lose their trust and the chance to borrow from them again.
If you need money quickly for an emergency you may consider trying this type of loan but make sure to choose wisely and be responsible enough to pay for your debt.