5 Easy Online Loans for MSME Business Owners in the Philippines

5 Easy Online Loans for MSME Business Owners in the Philippines

Who doesn’t want things to be simple, quick, and hassle-free, especially when it comes to managing finances? 

Unfortunately, unexpected expenses are a common part of business, and you might need help trying to fill gaps in your budget from time to time. 

This is where online loans come in handy. 

If you’re looking for online loans in the Philippines with minimal requirements and fast approval, you’re on the right page.

Advantages of Online Loans

Before letting you in on the best loans apps, take a look at its advantages below.

Convenience and accessibility

Wherever you are, as long as you have an internet connection, you can easily apply for an online loan. 

You don’t have to line up in banks or lending institutions and wait for hours to submit your application.

Almost everything in your loan application process can be done online, which means you can easily apply for one while in the comfort of your own home.

Faster approval times

Expect faster approval times for online loans compared to traditional bank loans because the entire process is streamlined. 

This means that you can get the funds you need in a relatively short amount of time. This perk is especially useful for emergency situations.

Minimal documentation requirements

Unlike traditional bank loans which require several documents such as income tax returns, bank statements, and proof of employment, online loans typically only require a few basic documents such as valid ID. 

This makes the application process much quicker since you don’t have to spend time gathering all the necessary paperwork.

Flexible repayment options

Many online loan providers offer flexible repayment options. This is a huge advantage for borrowers since they can choose a payment term that works best for them and their financial situation.

Online loan providers also offer convenient payment channels such as online banking, mobile apps, and payment centers. This makes it hassle-free to pay back your loan.

Top Online Loan Platforms in the Philippines

Here are some of the best choices for online loans.

Tonik Quick Loan

Interest rate: 1.7% – 4.26% per month

Loan amount: P50,000 – P250,000

This online loan is the perfect choice for individuals who want to prioritize ease of application. With this loan, expect approval in just one day.

The interest can be as low as 1.7% per month so this loan is very affordable compared to other options on the market. The Tonik Quick Loan also offers up to 12 months’ loan tenure so it’s a big plus for those who need a longer repayment term for their loan.

GLoan

Interest rate: 1.59% to 6.57% per month

Loan amount: up to P125,000 

If you’re already a GCash user, you can get access to up to P125,000 without the hassle of submitting paperwork and waiting around for approval. 

GLoan offers one of the lowest interest rates around, starting at only 1.59% per month. What’s more is that you can enjoy a longer loan term of up to 24 months, giving you more room to manage your finances.

Home Credit

Interest rate: Starts at 1.83%

Loan amount: P3,000 to P150,000

With its fast approval and seamless digital application, Home Credit Loan can be your go-to loan solution. Around 90% of loans are completed digitally, ensuring a smooth borrowing journey.

Home Credit Cash Loan stands out by offering loan tenures ranging from a manageable 6 months to an impressive 60 months – the longest on this list.

Finally, this loan provider gives you the power to choose how you receive your cash. For instance, you can credit it to your bank account for convenience. 

Alternatively, you can opt to claim your loan at any of Home Credit’s partner stores for free.

Finbro

Interest: 2.5% to 6% per month (0% for your first loan)

Loan amount: P1,000 to P50,000

When you apply for a loan at FinBro, you won’t be bogged down by a mountain of paperwork. All it takes to get started is one valid ID and a simple selfie, and you’re all set.

This loan provider allows you to apply for a loan 24/7 so you can access money whenever you need it. With a loan amount of up to P50,000, you can cover a wide range of expenses such as home repairs, medical bills, and even vacation funds.

While the interest rate is a bit higher compared to other options on this list, the 0% interest on your first loan makes up for it. 

Additionally, this loan provider offers up to 12 months of loan tenure so you can choose a payment plan that suits your financial situation.

PesoLoan

Interest rate: 20% (fixed interest for all loans)

Loan amount: up to P50,000

PesoLoan’s mission is clear – to ensure that loans are within reach for every Filipino. Regardless of your credit history, you can apply for a loan here and choose between 91 days to 120 days for your loan term.

Keep in mind that there is a minimum 10% and maximum 20% one-time sign fee and service fee per transaction, and the P50,000 loan limit is only available for borrowers who have a good credit history with PesoLoan. 

Criteria for Evaluating Online Loans in the Philippines

Before you dive into applying for online loans, evaluate your choices based on these criteria.

Interest rates

It’s a no brainer that the loan interest rate should be your first consideration when choosing between online loan providers. 

Ultimately, this will determine the amount you have to repay on top of the principal amount. 

Look for an online loan platform that offers a reasonable interest rate that is within your financial capabilities.

Loan amounts and terms

You need to make sure that the loan amount you’re applying for is enough to cover your expenses, but at the same time, you need to be able to pay it back within the given loan term. 

The biggest mistake you can make is to borrow more than what you need. This may drown you in a vicious debt cycle.   

Application process and approval time

The application process for online loans should be simple. 

Look for loan providers that offer a fully digital application process so you don’t have to waste time and effort submitting physical documents. 

Additionally, the approval time should be quick, ideally within 24 hours.

Customer reviews and feedback

Do not rush into applying for an online loan without doing your research first. 

Look for reviews and feedback from other customers who have used the platform before to give you a good idea of how reliable the platform is. 

If you find a lot of negative reviews, it’s probably best to look elsewhere.

Security and data privacy

When it comes to online loans, security and data privacy are of utmost importance. 

The loan provider you choose must have strong security measures in place to protect your personal information. This includes using encryption technology and secure servers. 

Additionally, make sure that the loan provider is compliant with data privacy laws to ensure that your information is not shared with third parties without your consent.

Tips for Successful Online Loan Applications

Here are some tips to help you have a successful online loan application.

Ensuring eligibility criteria are met

Do not apply for an online loan unless you meet all the eligibility criteria set by the loan provider. 

This can include age, employment status, and credit history. If you don’t meet the criteria, your application will likely be rejected, so save yourself time and effort by checking beforehand.

Providing accurate and complete documentation

Double-check all the information you provide and make sure that all the necessary documents are attached before submitting your application. 

This will help avoid delays or loan rejection due to incomplete or incorrect information.

Checking credit history and improving credit scores

If you have a poor credit score, work on improving it first before applying for an online loan. 

A good credit score not only increases your chances of loan approval, but can also help you secure lower interest rates.

You can improve your credit score by paying bills on time, clearing outstanding debts, and avoiding taking on too much debt at once.

Comparing different loan offers for the best deal

Shopping around for the best online loan offer will help you find the best deal that matches your financial needs and budget. 

Compare and weigh the pros and cons of each loan offer before making a final decision.

For example, one provider may offer a low interest rate but a shorter loan term, while another provider may have a higher interest rate but offer a longer loan tenure. Consider your situation and assess which one is best for you.


About the Author:

MJ de Castro is the lead personal finance columnist at Grit PH. MJ started her career as a writer for her local government’s City Information Office. Later on, she became a news anchor on PTV Davao del Norte. Now, she juggles writing professionally, her business centering on women’s menstrual health, and surfing.

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