FINAGURU - Loan up to 20000 ₱ - Review

FinaGuru is a microfinance institution (MFI) operating in the Philippines, offering a convenient alternative to traditional bank lending. Here is a detailed description of the company and the conditions for obtaining a loan.

Description of FinaGuru

Focus on Microcredit: FinaGuru specializes in providing short-term microcredits to individuals, particularly catering to those who may find it challenging to secure loans from banks due to stringent documentation and employment requirements.

Online Application: The process of applying for a loan is entirely online, allowing customers to apply for credit at any time of the day without visiting a physical office.

Loan Conditions

Loan Amounts: FinaGuru offers loans ranging from 500 PHP to 20,000 PHP.

Loan Duration: The loans can be taken for periods ranging from 1 day to 90 days.

Eligibility: To be eligible for a loan, individuals must be at least eighteen years old, possess a valid passport, have a bank card, and a mobile phone.

Application Process: The application involves a simple registration on the FinaGuru website, filling out a questionnaire and an application indicating the loan amount and term.

Approval Time: Loan applications are processed automatically, with decisions typically made within 15-20 minutes. If approved, the credit is transferred to the customer’s card within 1 hour or sooner.

Interest Rates and Repayment

Interest Rate: The lending rate is notably low at only 0.01% per day.

Repayment: Borrowers are expected to repay the loan on time. Failure to do so results in penalties, with fines potentially reaching up to half the amount of the loan.

Additional Considerations

High Approval Rate: Approximately 90% of applications submitted to MFIs like FinaGuru are approved.

High-Risk Insurance: Due to the high risk associated with microloans, MFIs charge high-interest rates as a form of insurance against defaults.

Alternatives for Longer Periods: For those needing money over a longer period, traditional bank lending might be considered, although banks have a higher rate of loan application refusals.

Conclusion

FinaGuru provides a vital service in the Philippines, especially for socially disadvantaged individuals who might not have access to traditional banking services. The MFI offers a quick and convenient way to obtain small microcredits with minimal documentation, albeit at higher interest rates compared to conventional bank loans.