What is meant by Emergency loan? Usually this is an urgent credit for treatment, repair of a car or home, a funeral, compensation for damage caused by emergency situations.
A distinctive feature of this loan is the absence of collateral. Firstly, the assessment of the collateral will take some time, and it is not good in the circumstances described above. Secondly, the value of the collateral may not be sufficient for the required amount. Thirdly, a person may not have any collateral, and solvency allows you to take loans.
In other terms of this type of lending - period, interest rates, maximum amount, there may be significant differences depending on the financial institution.
Banks, as a rule, issue loans at 9% - 26% per annum and for up to 3 years. However, not everyone in need of Emergency loans will be able to get a credit because of the high requirements for borrowers. One of the main requirements is documentary proof of income for at least the last 3 months. In the current COVID-19 emergency, this requirement will be an insurmountable obstacle for many.
Banks also check the credit history of all borrowers. If there isn't credit history or it is not perfect, then the chance to take a loan from a bank is practically zero.
Payday Lenders' offers
Microfinance companies have more loyal requirements for borrowers. The main requirement is Filipino citizenship and permanent residence place. Solvency requirements are often limited to utility bills.
Also, microfinance companies more quickly than banks process credit applications and many provide loans online. Thus, you do not have to spend time on a trip to the office. The whole process - filing an application, approving and transferring funds to your account is done remotely, and you can complete it using your mobile phone. The only serious drawback of such Emergency loans is the higher rates compared to banks. They vary widely from 26% to 480% per annum.
To search for all available options, use the Upfinance service, just go to upfinance.com and select the desired loan type in the top menu "Loans".
When searching, one should take into account the fact that banks do not always name this credit an Emergency loan, often they call it Consumer loan or Personal loan. Therefore, when selecting the most advantageous offers, look for loans of the type Personal loan and Consumer loan at the Upfinance website.
Of course, if you have the opportunity to take out a loan secured by a car or house, then the loan terms will be much more profitable. Therefore, to find the optimal solution, look at the options "Chattel Mortgage".Click here for further information