Hundreds of online lending institutions are operating in the Philippines, but not all of them are legitimate and reputable. Taking advantage of the strong growth of online loans, many fraudulent organizations deceive people by disguising as lending institutions. You should be aware of the tips for choosing the right legitimate and trustworthy online lending institution to secure your personal finances.

1. Assess your loan demand

Before seeking a lender, you must first assess your loan demand. What is the purpose of your loan? How much do you need to borrow? How is your repayment plan? You should also take into account your debt-to-income ratio to assess your repayment ability, which will enable you to determine the loan amount, loan term, and affordable interest rate. 

Assess your loan demand and repayment ability first

2. Investigate the online lending institutions

In the next step, you may start seeking, investigating, evaluating and comparing lending institutions. First, you should check the website of Securities and Exchange Commission (SEC) of the Philippines to make sure that your target lender is a legitimate entity which is licensed for business. After verifying that the entity is a legitimate organization, you may start testing the quality of the service by looking at reviews on Google, reading comments on the entity’s social pages, asking people around, or financially savvy people.

You may also compare different online lending institutions, especially comparing the interest rates and costs incurred. You should choose the lender that optimizes your costs.

3. Assess loan terms and conditions


Furthermore, you may also assess loan terms and conditions. The reputable lending institutions always transparently clarify all loan terms and conditions. If the organization is afraid of and tries to avoid to mention to loan terms, you may suspend your decision and think more carefully about them. Understanding all the loan terms and conditions will further secure your online loan experience.

Always remember to carefully assess loan terms and conditions

4. Assess the lender’s eligibility criteria

The online lending institutions normally do not require too many criteria to qualify for a loan. Most of them will only ask you for personal information, photo of legitimate ID, active bank account, etc. Others may ask for payslip or credit records, credit documents, which can facilitate the application approval and bring you a better interest rate. You may investigate and compare the eligibility criteria of different lenders, and then choose which one you can best satisfy.

5. Services and customer care

Customer service and care is also a factor that you should take into account. During the online loan application process, you may fall into force majeure events such as late payment, unsuccessful transactions, additional costs, violation of loan terms. In these difficult situations, you will need the support of professional customer care team to help you find the optimal solution.

You should choose a lending institution with good customer service

6. Registration and approval process

The registration process of online lending institutions is almost the same. Approval time takes from half an hour to several hours, depending on the lender’s review system and technology. If you are in an urgent situation when an instant loan is required, you may choose large lenders to save time waiting for approval and disbursement.

7. Data security and privacy

Of course, no one wants leakage of their personal information or transaction information. Make sure that your target online lending institution can guarantee the strict confidentiality and data privacy. Ideally, this provision should be clearly specified on the loan agreement so that this obligation of confidentiality is legally binding upon the parties.

Ensure confidentiality of information in the contract terms

8. Publicity and transparency

The reputable online lending institutions do not hesitate to openly disclose the costs incurred around the loan, including consulting fees, application initiation fees, management fees, etc. It is the obligation of the lender to be transparent on these costs and how they are deducted from the loan. You should carefully investigate these costs and beware of organizations that try to hide them from you.

MoneyCat has become the leading online lending institution in the Philippines over the years thanks to constant satisfaction of the criteria of an ideal lender. Furthermore, MoneyCat has been constantly improving and developing the services. If you apply for online loans at MoneyCat, you will experience additional advantages including free financial advice, maturity reminders, interest rates for those with good credit scores. In addition, thanks to the advancement of technology, the MoneyCat system can review and return the results within 30 minutes. MoneyCat is one of the online lending institutions with a simple, fast and convenient approval process in the Philippines.

Choosing a legitimate and reputable online lending institution can take a while, but it is essential to ensure you have a safe online loan experience. If you are still confused among hundreds of lenders, you can put your trust in MoneyCat.