A tremendous change has been witnessed in the personal finance sector in the Philippines. According to the Financial Inclusion Survey Report 2021, nearly half of adults in the Philippines have outstanding loans. Borrowing money is the most popular solution to deal with financial needs, followed by savings and seeking an additional source of income. What are other unexpected changes and what is the reason behind this data? Let’s find out the answer with us.
According to the Financial Inclusion Survey Report 2021 of the Central Bank of the Philippines, nearly half of adults in the Philippines have outstanding debts. These loans mainly come from family and friends and financial institutions. The proportion of adults with outstanding loans has increased from 33% in 2019 to 45% in 2021.
In the Philippines, the most in-demand borrowers include adults aged 30 to 59, people with education, occupation or business owners, workers and women. The top considerations for borrowers in 2021 are loan interest rates, allowable loan limits, payment terms, and flexibility of terms.
The report also pointed out that 6 out of 10 Filipino adults use mobile phones with internet connection and carry out online financial transactions such as transferring money, paying bills, etc. 60% equivalent to 35.3 million people is a significant rise from 17% in 2021. The remaining 40% do not conduct online transactions for such reasons as lack of information, weak mobile signal and slow internet connection.
60% of Filipinos carry out financial transactions online
Data source: https://www.bsp.gov.ph/Inclusive%20Finance/Financial%20Inclusion%20Reports%20and%20Publications/2021/2021FISToplineReport.pdf
The Financial Inclusion Survey Report 2021 of the Central Bank of the Philippines commented that borrowing is the most popular solution among Filipinos to satisfy their financial needs. The most common needs that motivate Filipinos to get online loans include buying property, establishing or expanding a business, dealing with emergencies, repairing homes after natural disasters, and finally, spending for everyday life. Claims are the least used method even for recovery needs when hedging can be useful. Financial support is exploited primarily for recovery needs.
Borrowing is the most popular solution for Filipinos when they need to solve their financial needs
Online loans are the most effective financial solution at this time, especially in urgent financial needs. Some online lenders can approve and disburse your loan in less than 24 hours.
Getting online loans in the Philippines is not difficult, but you must choose a reliable financial institution. Among available financial institutions in the Philippines, MoneyCat is the leading consulting platform which provides effective financial solutions trusted by many people for many years.
The online loan process at MoneyCat has been shortened a lot compared to that of banks. You do not need to mortgage property and submit financial proof. You just need to be a Filipino citizen over 22 years old, have a valid ID card, and have a laptop or smartphone with internet connection. You may apply for an online loan at home or anywhere with 3 simple steps:
Step 1: Visit MoneyCat website or app on Google Play
Step 2: Fill in your personal information completely and accurately
Step 3: Enter the OTP sent to your phone to verify your identity and complete the registration.
MoneyCat’s official website interface
(Source: https://imgur.com/yaydDPM )
After that, you just need to wait for 5 minutes for the system to verify and approve your online loan. The disbursed amount will be quickly transferred to the account provided by you within 24 hours.
Online loans are the current financial trend of many Filipinos, especially after experiencing a pandemic and facing economic fluctuations. MoneyCat is a lender trusted and chosen by many people because of its simple and professional working process. Contact us if you are in need of an urgent approval online loan or any financial difficulties.