Are you considering an online loan? Follow these 5 steps to make the process smooth and hassle-free.
Step 1: Evaluate your need
Since online loans come with high interest rates, it’s essential to assess if you need the money urgently or not. If you’re borrowing for personal use, make sure you have a repayment plan in place to avoid extra fees and interest charges.
Step 2: Research online lenders
Not all online lending platforms are trustworthy. To avoid being scammed, ensure that the platform is registered with the Securities and Exchange Commission. This registration number can be found on the SEC chart.
Step 3: Check the terms and conditions
Every lender has specific requirements that borrowers must meet before their loans are approved. Be sure to read the terms and conditions to understand the lender’s criteria and avoid any confusion later.
Step 4: Look for hidden fees
Some lenders may charge hidden fees that are not explicitly stated in the terms and conditions. Check for application fees and other charges that might be listed in legal terms that are difficult to understand.
Step 5: What to do if your loan is rejected
If your loan application is rejected, find out why it was rejected and try to address the issue. You could also consider applying for loans from online lenders with a higher approval rate, such as Digido, MoneyCat, CashXpress.., which has a 90% approval rate and is considered the best online lender in the Philippines.
