More and more financial institutions emerge along with the strong development of online loans. This is also an opportunity for fraudulent individuals or groups to pretend to be financial institutions to defraud our money. To secure your own personal finances, keep in mind the signs to stay away from scams when applying for online loans in the Philippines in the article below.
Legitimate lenders understand that getting a loan is not a small deal. It is a commitment that requires the borrower to spend a good deal of time on careful examination and consideration. So they will often give you time for thinking and rarely put the screws on you. On the contrary, fraudulent institution will want you to quickly enter into the loan application so that they can completely defraud. If your target lender always push you to sign a contract, they are probably weaving a plot and do not give you the time to spot the red flags. Don’t fall for this tactic.
Beware of urges
Some scammers will ask you to pay a fee upfront. They will call this amount with names such as consulting fee, application initialization fee, etc. and will urge you to quickly pay the money for faster approval. Be careful with these requests. Legitimate financial institutions may charge you fees, but those fees are deducted from the loan later and not required to pay upfront.
Really reputable lenders will clearly tell you how much time they need, the procedure to get your loan approved. But for scam institutions, they will only give vague answers, without a specific timeline. Whatever request you share, they will agree to accept, but then no commitment is satisfied. This is a sign of a fraudulent organization.
No single commitment is satisfied
Initially, you should check whether this financial institution is legitimate in a very simple way. All legally incorporated financial institutions in the Philippines are required to declare and register with the Security and Exchange Commission (SEC), which is the management and regulatory body that examines financial institutions operating in the Philippines. Please spend time visiting the official SEC website to look up information about your target organization.
Following that, you can examine if the website provides fundamental contact details such as a phone number, email address, and physical address for the lender, even if it is merely a rudimentary form of contact information.
Check all information on the lending institution
You may also check on Google or social media to see how people around you rate this lender: How is the service? How is their advice? Are online loans of good quality?, etc. Make sure to research and learn about the lender as much as possible.
Make sure you are familiar with the terms and conditions clearly stated in the agreement, including repayment terms and interest rates, incidental costs, hidden costs, etc. to avoid being surprised when you pay the loan.
The Philippine government plays an important role in helping its citizens avoid loan scams. The government properly informs the public and protects them from any fraudulent activity. So if you find a financial institution that is fraudulent or is operating illegally, you can report it to the SEC or other relevant authority.
Report to the competent authority when suspected of fraud
There are too many risks when choosing an online lending institution in the market. You may consider MoneyCat for peace of mind. As one of the leading online lending financial institutions in the Philippines, MoneyCat is proud to be a reputable, quality-guaranteed institution, which has been trusted and chosen by Filipinos for online loans. MoneyCat ensures the transparency of all terms and costs and brings you a secure experience when applying for online loans here.
We hope that our guide to identify and avoid scams when applying for online loans in the Philippines can be useful for you. Among various lenders, MoneyCat is one of the legitimate, reputable and trustworthy organizations that you can trust.
Mga setting
Additional
service
Logout 
