For several decades, banks have always been the first place of choice when people need a loan. They have gradually instilled in their minds that they have to queue, wait and submit some required documents for their loan to be approved. However, this scene has gradually changed as fast approval loan services in the Philippines become more and more popular today.
Everything has become simpler and more convenient thanks to the development of technology and the internet. Banks and financial companies are now offering a wide range of fast-approval online loans. The demand for instant loans in the Philippines has become easier than before. Fast loans stand out with the advantage of no mortgage, no 3rd party guarantee, no income proof, and no complicated paperwork. Borrowers do not have to wait long for their application to be approved as the whole loan procedure takes only about 1 hour. As a result, fast loan approval in the Philippines quickly became the current trend of borrowing.
This has been evident in profit growth thanks to the development of fast online loan services for banks and financial institutions in 2021 and this trend is expected to continue in 2022. Notably, because of a suitable monetary policy stance maintained by the Central Bank and the economic recovery, fast loan approval Philippines may reach further growth and bring about significant profits.
2022 is a year of growth for fast approval loan services in the Philippines
According to data from Bangko Sentral ng Pilipinas, total loans in the Philippines recovered in 2021 to grow 5.4%, after a contraction in 2020 due to the drag from the COVID-19 pandemic. Nicholas Mapa, senior economist at ING also told S&P Market Intelligence that loans are likely to continue their growth streak for a bit longer as the BSP keeps rates unchanged.
BDO Unibank Inc., the country's largest bank by assets, reported its loan growth accelerated to 5.52% in the nine months to September 30, 2021, after dipping to 3.42% in 2020 from 7.43% in 2019. Other major banks also saw a recovery in 2021, with the Bank of the Philippine Islands’ loan growth climbing to 0.26% in the nine months of 2021 from a 4.60% contraction in 2020. Philippine National Bank’s lending grew to 3.98% in 2021 after it contracted 8.80% in 2020 from 12.15% growth in 2019.
"The growth trajectory has been observed to the extent that some banking indicators will be maintained”, BSP Deputy Governor Chuchi Fonacier said at a February 9 meeting with journalists ahead of questions about the possible implications for loan growth if the exchange rate rises.
S&P Global Ratings said in a February 23 report it expects 5% to 7% credit growth in 2022, and that it would boost bank profits. The average return on assets will return to pre-pandemic levels of 1.2%, compared with 1.1% in early 2021. However, Ratings also noted that the rapid pace of policy growth "could reduce demand for credit, push some consumers to the brink of default, and put pressure on small and medium-sized businesses."
The BSP kept its benchmark interest rate unchanged at 2.0% at its February 17 review meeting, seeking to support the economy as it recovers from the COVID-19 pandemic. The Philippine economy grew 7.7% year over year in the fourth quarter, accelerating from 6.9% growth in the previous quarter and a turnaround from the 8.3% contraction in the prior-year period. Growth for the full year stood at 5.6%, higher than the government's target range of 5% to 5.5% for 2021. The country aims to accelerate its GDP growth rate to between 7% and 9% in 2022.
The BSP does not appear to be in a hurry to raise interest rates as several global central banks, including the US Federal Reserve, prepare for a rate hike. Governor Benjamin Diokno said at a February 9 press conference that "We do not need to keep up with the US Fed's monetary policy adjustments and therefore we will try to be patient to ensure that we are indeed on the way to recovery. I do not want to change course in the middle of the recovery period."
Prices of goods and services in 2022 are at a higher level than ever. The minimum jeepney fare is now 11 pesos, without considering the hike in prices of essential items. With the increasing cost of living, the situation of “shortage” of money is inevitable. Thanks to technology, e-wallets, and online banking services for fast loan approval in the Philippines, people’s lives have become more comfortable, and borrowing money is also faster and more convenient. Whether it is a short-term loan, a utility loan, or a fast cash loan for an unexpected need, there are many options available today. Fast approval lending in the Philippines offers users the option to borrow money with reasonable repayment terms.