What is a loan app?
A loan app, short for loan application or mobile lending app, is a digital platform that enables users to apply for and receive loans directly through a smartphone or tablet. These apps streamline the loan application process, often providing quick approval decisions and convenient access to funds. Users can typically complete the entire loan application, approval, and fund disbursement process through the app, eliminating the need for traditional in-person visits to banks or loan offices. Loan apps have gained popularity for their accessibility, speed, and flexibility in serving a wide range of borrowers.
Pros and cons of loan app
Pros
- Convenience:
24/7 accessibility, allowing applications from anywhere with an internet connection. - Swift and automated application processes:
Result in quick loan approval decisions, often within minutes. - Enhanced accessibility:
As these apps cater to a broader range of borrowers, with fewer document requirements and less stringent credit score criteria. - Offers flexibility with smaller loan amounts and shorter repayment terms:
Making them suitable for addressing sudden expenses or short-term financial needs.
Cons
- High Costs:
Interest rates on these apps, particularly for smaller loan amounts, can be significantly higher than traditional loans, resulting in substantial financial burdens. - Debt Trap Potential:
The ease of access and quick approvals may tempt users to overborrow, contributing to a cycle of debt and financial instability. - Data Privacy Concerns:
Sharing personal information on these apps raises security and privacy risks, necessitating careful app selection and user vigilance. - Temptation for Impulse Spending:
Instant access to funds can encourage impulsive spending beyond immediate needs, exacerbating financial situations for users.
| App | Service | How to apply loan | Repayment | Max Loan Amount | Interest |
|---|---|---|---|---|---|
| etomo | Fast approval and easy to apply cash loan | – Personal & address information – Employment & financial information – A valid Govt ID (Driver’s License, UMID, National ID) – A valid email address – A valid mobile phone | 3,6,9,12 months | Up to PHP 100,000 | 6% per month |
| Home Credit | – Cellphone Installments – Product Loans – Cash Loans – Qwarta – Credit Card | – Filipino Citizen – Primary ID – Proof of income – Minimum age 18 years old. | 6 months to 60 months | Up to PHP 150,000 | Interest rates vary depending on your chosen product or offer. |
| SLoan (Shopee) | Cash loan for Shopee users | – Active Shopee account – 21 to 65 years old. | 3,6,12 months | Up to PHP 100,000 | 1% to 5% per month |
| Atome | Buy Now, Pay Later feature | – Filipinos at least 18 years old – Registered Atome user with past in-app transactions – Active mobile number – Valid ID with the full legal name – Had a bank account | Up to 12 months | Up to PHP ₱50,000 | Starts at 1.75% |
| JuanHand | Cash loan | – Filipino citizen – Between 20 and 60 years old – Have a stable source of income – Have at least one government-issued ID | Up to 3 months | Up to ₱25,000 | 9% to 12% |
| Asialink | – Sangla OR/CR – Vehicle Financing – Doctor’s Loan | – Filipino citizen – Between 21 and 60 years old – Stable source of income – Valid contact number – Other requirements depending on the loan you’re applying for, such as a copy of OR/CR, Offer to Sell/Purchase Agreement, PRC ID, and more | Up to 48 months for OR/CR Loan and Vehicle Financing; 12 months for Doctor’s Loan | Depends on loan product | As low as 1.5% for OR/CR Loan and secondhand car loan; 1.75% for Doctor’s Loan |
| Esquire Financing Business Loan | business loans to small and medium enterprises (SMEs) | – Duly filled-out and signed Application Form (Version – LAP.10.2017) – TIN ID and any other government-issued ID proof of the Principal Borrower – Latest three (3) months Bank Statement and Bank Certification – Photocopy of valid Barangay Business Clearance – Photocopy of valid Mayor’s Permit – 2″ x 2″ ID picture of the Principal Borrower – Picture of the Business : Exterior and Interior – Proof of billing (not older than 2 months) for Business and Residence – Sketch/map of Business and Residence location with nearest landmark | Subject to the lender’s approval | Up to ₱10 million | Subject to the lender’s approval, depending on the loan amount and repayment term |
| GDFI Loans | – Sangla OR/CR – Vehicle Financing – Doctor’s Loan – Tuition fee | – Must be a Filipino citizen – Applicant must be between 21-65 years old – Proof of incom – Any 2 valid IDs (Government Issued) – Copy of Latest OR/CR (Official Receipt and Certificate of Registration) – Latest Electric and Water Bill. If not in the name of the borrower, you must submit additional proof of residence. (Any documents under your name and with your current address) – TIN (Tax Identification Number) | 6, 12, 18, 24, and 36 months | Starts at ₱10,000 | The APR interest rate depends on your personal circumstances and will be between 1.25% and 1.60%. |
| Digido | Cash loan with a maximum amount of PHP 25,000. | – A Filipino citizen, 21-70 years old and has a valid Government ID – Your mobile phone number is not blocked – You have registered on the website | Weekly or monthly instalments. | PHP 1,000 to PHP 25,000 | 0% to not exceed 1.5% per day |
| Cash Mart | – Personal loan – Salary loan – Car loan – OFW loans. | – Salaried and commission-based employees/self-employed/taxi or Grab drivers at least 21 years old – Valid government-issued ID – Latest one-month payslip/statement of account – Latest proof of billing | – Weekly (due date every seven days) – Biweekly (due date every 14 days) – Monthly (due date every 28 days) | ₱3,000 to ₱150,000 | 0.06% to 1% per day depending on the loan term |
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