What are small online loans?

Do you need to pay an unexpected expense but asking for a bank loan is too much? With small online loans you can get more than enough money for small expenses that you do not know how to pay, and here we tell you how to hire them.

Since there are 30 of small loan offers, at maxbank.com.ph we compare the best on the market so you can find the one that suits you. In this way, you can contract your credit in a single click and obtain financing easily, quickly and without paperwork.

What are small online loans?

Also called online microcredits, small loans are a financial product that seeks to cover the need for small amounts of money to meet unforeseen expenses. In other words, it is an injection of liquidity that helps you get out of trouble without having to go to family and friends.

Unlike bank loans that are usually granted for very high amounts, these loans are granted for low amounts, enough to deal with car or home breakdowns, pay fines, bills and other urgent expenses.

Among its main characteristics we find the following:

• They are granted by lenders through the internet.
• Its amount does not exceed 10 000 pesos.
• They are intended for return in the short term.
• Being small, the loans are granted without paying in advance.
• Because they are low amounts of money, they do not require collateral or guarantor.
• Its approval takes very little time, usually about 15 minutes.
• They usually have higher interest compared to other types of credit.

All these peculiarities, especially the speed and lack of paperwork, have made small loans one of the most requested products, and at maxbank.com.ph we have the best offers you can take.

Amounts, interest and repayment term

As you already know, small loans correspond to low amounts that, in general, do not exceed 10 000 PhP. Each entity establishes the minimum and maximum amount that you can request and you choose how much money you need.

In this way, you can request loans of 1000 pesos or loans of 500 pesos to cover specific expenses, or you can process loans of 1000 pesos instantly if your need for money goes a little further.

But what about interest rates? We have already said that these credits usually have higher interests than other types of credit, with an APR close to 2000%. While it's a bit scary, the reason is none other than its short duration, which makes the annual equivalent rate almost irrelevant.

Usually, the duration of small loans ranges from 30 days to 4 months, depending on the entity and the amount requested. The advantage is that you can choose the term that best suits you according to your solvency capacity, considering that the longer the term, the more interest you will have to pay.

Small loans without interest

In case you are wondering, getting small loans without interest is totally possible, thanks to the offer of financial entities that grant a free first credit. This benefit is only available to new customers who request credit for the first time, who can enjoy a 0% APR on small amounts.

Among the entities that offer this type of financing is Digido, with which you can process advances of up to 10 000 PhP for free and without commissions.

Small loans without payroll or guarantee

Being on a payroll and having a guarantee are two common requirements when you want to request financing from banks, savings banks and other entities.

The advantage of small loans is that, since they are low amounts of money, you save all the paperwork, because they will not ask you to be on a payroll or have a guarantee to make your request. In this way, it does not matter if you are a student, self-employed, pensioner or unemployed, you can contract loans without payroll and without having to guarantee your property as collateral.

Small online loans with bad credit score

Although being part of default files reduces your chances of getting credit, there are lenders who do not consider this as an impediment, granting you mini-credits with bad credit history  to get out of trouble. One of these entities is Moneycat, which approves small loans of up to 10,000 PhP without consulting your financial history.

It should be noted that these advances usually have higher interests than usual, since being in default increases the risk of the request.

Requirements to apply for small and fast loans

Small loans are the easiest type of loan to apply for, as they do not require too many requirements or paperwork. Thus, to request financing, you only need to:

• Be of legal age.
• Resident in Philippines .
• Have a valid sss .
• Be the holder of a bank account in the Philippines.
• Have an email and a mobile phone number.

Additionally, you must take into account that some entities may deny you financing if you have bad credit score. For this reason, we recommend that you consult the requirements with each lender in advance to ensure that you appear as a possible applicant.

How and where to contract small loans online?

If you urgently need to take out a small and fast loan, you can do it through the online finance companies that we recommend in our ranking of offers. The application process is the same in most cases and you only have to follow a few steps:

1. Access the small loan offer that best suits you, by clicking on the “APPLY”.
2. From the entity's website, enter the amount and the return period that best suits you to find out the cost of your credit.
3. Next, complete the application form with your personal and bank details.
4. They will send you a digital contract with the credit conditions, read it well and sign if you agree.
5. If your request is approved, you will receive your money in 15 minutes or in maximum 48 hours.

If you want to find the best loans app in Philipines you may find it on our site maxbank.com.ph.