After the covid-19 quarantine lockdown ended, many people in the Philippines were faced with the need to get secured or unsecured loans. As you browse through the offers of lending institutions, you will likely be faced with a choice between secured and unsecured loans. Typically, unsecured loans are available in the amount of 50,000 to 2,000,000 pesos. You will find that unsecured loans have a higher percentage than secured loans.
The presence of collateral – real estate, car, land – gives you the right to obtain a loan at much lower rates than without collateral. However, not everyone can afford a secured loan. The reasons may be different – from the fear of losing the only asset a person lives in, to the common lack of mortgageable assets.
Unsecured personal loans are available for an amount of 50,000 to 2,000,000 and loan terms of one to four years. You find that unsecured loans go at higher rates than secured loans. To check them before applying.
The best unsecured loan offers
First of all, it should be noted that there are many more offers for issuing unsecured loans than for collateralized loans. Typically, this is because only banks and pawn shops offer secured loans. Also unsecured loans are issued by all financial organizations except pawn shops: banks, payday lenders, MFIs, non-profit organizations.
Second, the unsecured loan can be issued within hours, which sometimes plays a decisive role.
So let’s take a look at the best unsecured loan deals:
- Maybank offers personal loans for all purposes at 1.3% per month, with a maximum amount of 1 million pesos and a term of up to 3 years.
- Security Bank grants a loan at 1.89% pm with a maximum loan amount of 2 million pesos and for a period of up to 3 years.
- BDO offers unsecured loans at 2% per month and up to 3 years. The maximum loan amount is calculated based on the borrower’s income.
- BPI – Unsecured loans to borrowers at 2.14% per month and for a loan term of up to 3 years.
- RCBC issues loans for all needs at 2.3% per month up to 3 years.
- PSBank issues unsecured loans at 2.5% per month for up to 3 years.
- P2P platform Blend.ph – unsecured loans with an interest rate of 3.5% pm
From the above proposals, the maximum possible credit term for any unsecured purpose is clearly mapped out – up to 3 years, and interest rates in the range of 1.3% to 3% per month.
Microfinance institutions that provide loans through mobile apps have higher interest rates. This fact may be suitable for some borrowers who do not have permanent income because mobile loans have the most loyal requirements for borrowers.
The UpFinance service is the best assistant to find loans
To quickly find the loan you need, use the UpFinance service. Here you can use the menu to select the type of loan you want and familiarize yourself with all the loan terms. You will also find links to the websites of financial organizations and their contact details.
If you don’t have time to go to bank branches, try the âOnline Loanâ type. In this category there are loan offers, for which you can send a request through the Internet without leaving your home. This type of credit is generally an unsecured loan.