All You Need to Know About Online Loan Apps

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Have you ever encountered an online loan app? If not, are you aware of how it works? Well, if you think of it, it’s an easy way to get approved of a loan. Especially if you’re trying your best to get approved, online loan apps can help you. Currently, these online loan apps can help you meet whatever your financial needs are.

Online Loan Apps in the Philippines
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With a fast turnaround, it can help you decide in terms of other loans you’re waiting on. Online loan apps are considered to be good alternatives to more conventional loans from lending and banks. But how do they really differ?

Don’t worry, we will be discussing everything you need to know about online loan apps. But first, what are these online loans anyway?

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What are online loans?

An online loan, as to how you can see it, is a type of loan that is different from the conventional way of borrowing money. Unlike other private lenders where you have to physically be there, online loan apps don’t require that. It can be done over the internet and your loan can be approved within a day or two.

Online loans are becoming a more and more popular facility because of the convenience it provides. Also, if you’re going to borrow money from these online loans, it’s not that difficult. They’re not asking for deep credentials like how private banks and lenders do.

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No credit checks

Experiencing credit checks, especially if you’re applying for a loan is normal. With online loaning apps, however, they do little-to-no credit checks. What they’ll usually do is just ring your number to see if the number you gave was legitimate.


Most online loan apps just ask for one (1) or two (2) valid IDs. However, some of them might ask for proof of income. But those are the only things needed for you to be approved.

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The process just takes about one (1) to two (2) business days. The form you have to fill out is easy – it’s just like a regular personal information form. Should you be approved, the lender will then disperse the payments through their partner banks or through remittance centers. How easy is that?

Overall, the convenience of these online loan apps make is such a positive thing. It saves a lot of time and effort. But what downsides to these online loan apps have? Are there things that aren’t as good as what the overall convenience is?

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Advantages and disadvantages of online lending

Now that you’re aware of the whole process, what you need, there also are the pros and cons of online loan apps. You might have already heard of the news about some online lending companies doing bad practices, or you might have heard that they have ridiculously high-interest rates.

Here are the advantages and disadvantages of online loan apps:

Advantages (pros)


One of the best things about these online lenders is that they operate ’round the clock. At any given time of day, you can go and apply. However, approval-wise, it does be done within the next business day.

Read: Citibank Personal Loan: How can I Apply?

Nevertheless, loan applications can be done at any given time and day.

No strict documents and requirements

Most online loan apps just ask for one (1) or two (2) pieces of a valid ID. Although some lenders ask for proof of income or proof of employment, both things are easy-to-get. Unlike applying for a loan from a bank, a ridiculously large amount of requirements are asked.

Can be done online

In applying for these online loan apps, you don’t need to be physically at their office. In fact, it can be done 24/7, via the app! As long as you have an internet connection, you’re eligible to apply!

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Easy approval

No, you don’t have to wait for someone to show up at your house; no need for you to wait for an officer to call you. The approval-time is easy – it’s usually just within a day or two! This is one of the reasons why most people prefer online loan apps because it’s not going to make you wait for a week!

Disadvantages (Cons)

Of course, if there are good things, there are bad things to it as well. If you’re up-to-date with our current events, you know that some online lending corporations are forced to be closed down due to their bad practices.

Although some of those are true,  not all of them are like that. Here are some of the disadvantages or cons of these online loan apps.

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Higher interest rates

One of the things that most people loathe about these online loan apps would be the interest rates. The interest rates are ridiculously high, as it would make you think that they’re not legitimate.

For example, if you would be approved of a loan worth P2,000.00, you’ll just be getting P1,600.00 and as payment, you’d have to pay up P2,200.00. How ridiculously high is that?

No respect for privacy or debt-shaming

Another thing that makes most people complain is the fact that these online lenders do debt-shaming. If they cannot contact the person who they lent, they’ll run through the contacts of this person.

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How can they do that? Well, remember before you registered, it asked you if you’ll allow them to do a scan of your contacts? That’s how they do it. Unwillingly, you gave the authorization for them to do this.

Short-term loans

Usually, the loans would be just for a week (7 days) or two (2) weeks (14 days). It’s quite rare for an online loan app to have a month-long loan. So in technicality, the term is short and it’s only going to be for your short-term use.

What online loan apps are legitimate in the Philippines?

Although there are many online loan apps available in the country, there are only a few who are legitimate. In fact, we helped you and got the list from MoneyMax PH of the best and the list of what they think are “legitimate” online loan apps.

Here they are:

If you need information about a specific lender’s terms and interest rates, you can click on a link to know more info about it. Nevertheless, we hope we were able to give you the information you need about online loan apps.

What do you think about them now? Are they worth your time? It would be useful if you really need the money quickly and swiftly but the interest rate might be too much for you.

Source: MoneyMax Philippines

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