Seven Myths about Personal Cash Loans in the Philippines

1.  MYTH: The interest rates charged for a personal cash loan are too high and inflated.
     FACT: The interest rates are reasonable and at a minimum. They are computed fairly for the customer's ease and capacity. The main aim of providing the loan is to help curb financial worries; thus, unreasonable rates will only defeat its purpose.

2.  MYTH: The application process for a cash loan is tedious and lengthy.
      FACT: The process becomes too long only when the documents presented are lacking or do not provide sufficient evidence of the applicant's capacity to pay. The need to do a background check or a house visit will then be performed for verification and additional proof of identity. This is just to erase whatever doubts the documents have created.

3. MYTH: All loans need a collateral for easy approval.
     FACT: A collateral is not the only basis for a loan to be approved. A loan application may still be disapproved for some valid reasons. Moreover, some personal loans do not even need a collateral as submission of certain documents will suffice. Furthermore, loans that are Fifty Thousand Pesos and below are considered non-collateralized. Most often than not, personal loans are collateral free.

4. MYTH: Only currently employed individuals can apply for a personal cash loan.
     FACT: An individual in employment or not, can apply for a personal loan provided that he has proven his capacity to pay. People who run a small business or work on a part-time basis can still apply as they are income earners in their own right. Therefore, anyone who is employed or not but shows to have a steady income is qualified for a Personal Cash Loan.

5. MYTH: There are hidden fees charged on top of the computed interest rate.
     FACT: A legitimate loan company will always lay out all the fees and charges that come with the loan. As a matter of fact, all transactions related to the cash loan are written in black and white to avoid discrepancy, confusion and future complaints. Also, terms of payments are fixed upon release of the loan; thus, interest rates and charges are also set and settled until the total amount is repaid.

6. MYTH: A personal cash loan should be paid within six to twelve months.
     FACT: The payment scheme for a cash loan is made easy for the borrower to afford. Some loans can even be repaid in 12, 24 and even up to 36 monthly installments. Again, this is all about giving priority to the borrower's needs.

7. MYTH: People with bad credit card standing will never be granted a cash loan.
    FACT: Credit history is not the only basis for an approved personal loan. While it is true that it is essential in the application process, it is also not the main factor why a personal cash loan is being granted. There are still a number of other factors that can determine whether the loan should be approved or not.

*Photo Credit: Simon Cunningham (Creative Commons)

About the Author:
Kath Martinez, understands the intrinsic attributes of making excellent content that suits the needs of every business especially when it comes online financing. She can conceptualize and implement marketing plans, explores profitable B2B opportunities and then absorb Loan Solutions PH services.