If you are looking for a way to cater to your necessities such as extra money for emergencies, tuition fees, and other important events in your life, then why not try to look for the perfect loan without any collateral that would help you instantly?

Finding the perfect loan for you is easy. Here are four kinds of non-collateral loans available in the Philippines. Check out their pros and cons so you can have a clearer understanding before deciding on the perfect loan for you.

Personal Loans

The first thing that comes to your mind is to apply for a personal loan. A personal loan has a low-interest rate compared to a credit card, so this is perfect for one-time expenses. Aside from that, if you have a lot of credit card debt, you can convert that debt into a personal loan. This means you will pay less interest around 11% annually for loans instead of 13%-15.4% on credit cards) while building a good credit score — but this only works if you stop using your credit cards or make sure you pay all the expenses you charge to it.

Just make sure that you will be able to keep up with repayments, and be aware of all the fees included. Plus! As a rule, keep your monthly installment under 30% of your monthly income. For more bank personal loans, you may check out this infographic on using personal loans for immediate cash needs by iMoney.ph. 

Financing corporations like Vidalia Lending offer a Personal loan program perfect for your financial needs. Vidalia lets clients borrow up to P100,000 with no hidden fees, no prepayment penalty and payment terms are from 3-12 months. Be able to cover all your expenses with our help, Read more about our services on our website.

Social Lending Programs

Lenddo, the social microfinance site is the one that deals with this type of lending here in the Philippines, only started up here in 2011. Normally, Lenddo uses your social media and your social media contacts to check your creditworthiness, instead of relying on the credit score banks use. You build your score with them by using your trusted contacts, who vouch for your ability to pay back a loan. When everyone in your network pays back their loans on time, you all get good scores; but when one of you fails to pay on time, your whole network’s rating goes down. Moreover, the idea of a close community and reputation is the most essential factor to this lending program.

On the other hand, social lending programs can only make loans for “improving the quality of life” like education and medical emergencies and not for “consumption spending”. They are the unconventional choice, but for those who haven’t had the opportunity to build bank-worthy credit and need money for important matters, this is the best alternative.

Salary Loan

Salary loans are usually offered by banks in cooperation with the companies. If you want a salary loan, you can go to the bank itself or through your HR department, and depending on your standing in the company, you can an approval as soon as 3 days. Aside from that, you can repay this loan via salary deduction over a period that you specify.

However, if your company doesn’t have an arrangement, you may consider applying for your salary loan to a lending company. For example, Vidalia Lending offers great salary loans with low and fixed rates. Plus! It provides a quick online application so you can get the cash you need to pay for planned expenses and immediate needs.

Informal Loans

If you want to have a quick loan process then informal loans are here for you. Informal loans are everywhere, like 5-6 lenders which normally operates in markets and neighborhood, or the ATM collateral loans where lenders keep your payroll ATM and take their payment directly from your paycheck. You can also check for sites like OLX for people who are willing to lend you a cash or ATM collateral loan fast, with very little effort on your part.

But be careful with some informal loans that might be illegal. According to The Lending Company Regulation Act of 2007, lenders not already regulated by law (such as banks, credit unions, and pawnshops) have to be corporations granted authority by the Securities and Exchange Commission.

Above all, whatever type of loan you want to apply for, you still need to pay your loans on time so you will not end up drowning in penalties.

Vidalia Lending has different loan offers perfect for your monetary needs. Loan payments are fixed without any hidden charges. In Vidalia Lending, rates are lower compared to other lending companies, and to top it off, our application process will not take up much of your time. You can visit our website and see which loan offer suits you.

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