While vaccines are still in trials and more laboratories around the world are working to create a vaccine to the COVID 19, governments around the world have been issuing and lifting lockdown protocols. These lockdowns have severely hampered the movement of people, goods, and negatively affected commerce.
For this reason, the Central Bank governor in the Philippines aims to digitize 50% of financial transactions by 2023. The governor stated that the country is on track to achieving this goal due to the aforementioned pandemic and the effects it had created. Due to people staying at home, financial transactions online sparked 25% higher before the lockdowns. This is estimated to be equal to 2.13 million additional bank transfers, amounting to PHP 64.62 billion. In addition to this, the House of Representatives approved a bill to tax said transactions by 12%.
With all that being said, online transactions also involve loans. The year 2020 has been very difficult for many people as businesses and jobs have been closed or suspended. Due to months of economic slowdown and pretty much near inactivity, many lost their jobs and look for alternative means of producing income. Many are left to scavenge on their own such as the jeepney drivers who resorted to begging on the streets. Others had to be creative and those with tailoring skills sold face masks, although not necessarily medical-grade. Regardless, it put food on the table. And since people were stuck at home, those with a green thumb tried their luck in gardening.
Regardless, any individual planning to start a business or just looking to pay the bills are going to look for easy personal loan as an alternative means to fund these things, if savings is not an option.
Standard requirements for bank loans
Traditionally, one must have a bank account to get a loan from a bank and this is just one of many requirements. Let’s explore what the other requirements are.
1. Savings Account must be well maintained. – a well-maintained account will show lenders that you are responsible enough in taking care of your finances, you may not be an accountant but keeping it clean will go a long way in making sure of increasing your chances of getting a loan.
2. Credit Score – a credit score is an important factor to consider when lenders look for candidates. A bad credit score is due to a poorly maintained bank account. If your records show a history of unpaid debts, late payments, maxed-out credit cards,etc., this can lessen your chances of getting a loan. Make sure you have a good credit score before considering getting a loan.
3. Know the requirements of getting a loan – assuming you have a good credit score, here are more requirements you must fulfill: you must be 18 to 60 years old, the savings account is under your name, you have a job or businesses, and that said job or business yields enough financial capacity to pay back a debt.
4. Pick your lender – the requirements listed above are just the typical requirements for a major bank, but that list can vary depending on who is lending. Make sure to do your research first before filing for a loan.
5. Decide on the amount – while you do your research for a lender, make sure to use their loan calculators. These are apps built into their respective websites. Decide on the amount you need and make the necessary calculations. This way, you will be able to estimate if you can pay back the amount. Play around with those calculators.
Unfortunately, the bank does not always approve a term loan. Often requires guarantors, collateral, or a lot of documents that can not all residents of the Philippines.
Digital alternative to bank loans
Alternatively, if you are unable to meet the requirements and you need immediate financing, you can opt for a faster alternative that does not demand too much. Robocash.ph is a loaning service that gives people an easy entry into getting a financial loan.
Please note that the first loan from Robocash is without interest. This is a very advantageous offer. Often people are afraid to try an online loan, despite the positive Robocash reviews. Here you do not risk anything. Take your first loan and return exactly the same amount, without extra interest.
It is very important that the service provides is fully online. Robocash also has offline offices across the country. But now, in the period of lockdown, especially digital services are in demand, which allow us not to leave home at the risk of infection.
Finally, since many lockdown protocols are loosening up around the country, this can also be an opportunity to reopen a suspended business, and thus, you are going to need additional financing to repay unpaid rent, bills, employee salaries, etc. You don’t need to worry about timing as you can get the borrowed amount in just a short while so your businesses can get back into action.