How do Instant Loans Work in the Philippines?

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In the Philippines, the distribution of banks is quite scattered, especially in the non-metro regions. It keeps nearly 70% of the population of the Philippines beyond the ambit of formal banking services.

It creates a double whammy effect. The majority of the non-urban population has to travel to remote cities to get a banking service. The massive influx of customers makes the banks overcrowded, and you have to spend considerable time in the queue to get things done. Along with the tedious documentation process, it makes loans from banks an unhappy endeavor for the majority.

On the other hand, for most of the online loans, what you need is just a valid ID card and income proof. The loan application and approval process are straightforward, and anyone with Internet access can get a loan instantly.

The very first step for an online loan is creating a user account on the portal. A user can apply for a loan from his or her account and upload the necessary documents to prove the creditworthiness. The system will evaluate the application and will give you a decision within a few minutes. Once the loan agreement is approved, you will receive the money in the specified account within a few hours.

For repeat borrowers with no pending loans, the documentation part is often omitted for the second loan. The Internet penetration of the Philippines is high. So when an urgent financial requirement such as a medical emergency or vehicle repairing hits, any Filipino’s first choice would be an online loan rather than a brick-and-mortar bank in a distant location.

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Loans Philippines Asked question November 25, 2022