Lending apps. What you need to know

Borrowing money nowadays has been made easy thanks to these lending applications circulating on the internet particularly on social media.  But before you make a move to sign up, you might want to read some important details about these loan apps. Why are these popular with the average Joe? One thing for sure is because of its fast turnover, from submission, processing and getting the money. It only takes a couple of clicks on your mobile phone and you’re done. Some liked it, others say it’s dubious.

To get a better picture of these lending apps, let’s check the pros and cons of borrowing money using these applications.  

Pros

• Convenience – Everything is done online. You can transact anywhere as long as you have your mobile phone and internet  access.
• 1 valid ID – Just one valid ID and you can start the process. Valid ID's include SSS, UMID, Drivers License and for some they accept Passport.
•  Fast decision– In less than 24 hours after you have submitted your application online, you will be notified by text if approved or not.
• Money transferred to your account – after approval, money is deposited right away to your bank account during banking hours or you can pick it up at any designated partners. An email message will be sent to you regarding loan amount and payment details such as due date and where to pay.
• Repayment – you can pay your loan on its due date at accredited payment centers such as 7-11, Bayad Center, Cebuana or through coins.ph. After payment has been posted, you can have another loan with a higher amount.

Cons

• Privacy access – these loan apps will ask you to allow them to access your contact lists, messages, photos and location. 
• Interest – High interest rates. It starts from 11% to as much as 40% per month. Some loan apps offer a zero interest rate on your first loan for a shorter period. 
• Terms – payment  terms is from 7 days to 30 days only but you can request  for  a 1 month extension by paying the interest for the money you have borrowed.
• Collection – if a borrower fails  to pay the loan on time, some collection agents of these loan apps will randomly call people on your contact lists telling them about your balance which is ridiculous and also a violation of the privacy policy

    Here are some of the loan apps popular on Google Play Store.

    

    Tala Philippines

Tala is the most popular because of its fast approval and low interest rate. It offers an interest of 11% for a loan of 21 days and 15% for 30 days. The initial loan is from Php1000-2000 and will increase gradually up to Php10,000.00 as long as you pay on time. Cash is sent through your bank account with a fee of Php20.00 or at an accredited partner such as Cebuana or Palawan and also with a fee. You can make a payment at 7-11, Cebuana or Palawan Express with corresponding service fee. To know more about this app, you can click the link below. 

    Fast approval and low interest from Tala, download app now.

     Atome

This lending app offers cash loan up to Php5000.00 on your first loan however for a maximum term of only 14 days and interest rate of 25%-28%. After making a payment on your first loan, you can get a higher amount on your next loan up to 30 days. Disbursement of cash will take up to 24 hours.

Cashwagon 

Cashwagon offers zero interest on your first loan  up to 14 days. They offer up to Php 7000.00 on your first loan. Succeeding loan amount will be higher and payment term will be up to 30 days and with interest rate of 40%/month. You can have the option to prolong your loan for another 30 days as long as you pay the interest rate for the money you borrowed and corresponding fees will be applied. Payment can be made through Cliqq kiosks at any 7-11 convenience stores and partner establishments like Cebuana and LBC.

Online loans Pilipinas

Online loans Pilipinas formerly Moola Lending also offer a cash loan of zero interest on your first loan. The amount varies from Php 3000.00 to Php 6000.00 and succeeding loan amount will increase after each payment. The interest rate runs up to 30%/month. Payments can be made through Cliqq kiosks at any 7-11 convenience stores.

Cashalo

This loan app is in partnership with JG Summit Holdings, the company which owns Robinson Land and Cebu Pacific among others. You can avail of their loan facility through their service called Cashaloan and Cashaquick. For Cashaloan, you can avail loan amount from Php 2000 to Php 5000 and for Cashaquick, loan amount is Php 1500.00 payable in 14 days with interest of 10.95%. Cashalo also offers installment plan for Cebu Pacific tickets booked online. Just click the link below for more details.

Download Cashalo App

Borrowing money has since evolve from the tedious task to a fast paced process with these loan apps. Even banks now adapt an online approach when a customer applies for a loan(personal, house, car) or a credit card. However the interest rates of these lending apps are quite high compared to banks. 

These loan apps simplified the whole process. They foresaw a large market via the internet and concluded that it's good for their business. If it's good for business then more money will come pouring in. Since the process became easy, it created a perception that everyone can borrow money as long as you have a valid ID. It changes the state of mind of a person from skepticism to excitement and is very tempting as they fell prey to these loan apps by signing up. 

It is extremely alright to borrow money from these loan apps if there is a need. A borrower must be aware of the prevailing interest rates these lending apps are offering. Remember to "live within your means"  and pay what you owe.