Guide to using a lending app

By
Nicole Si
·
Dec 03, 2020
Guide to using a lending app

Lending apps are the turn of the decade’s answer to bridging the gap between loans and accessibility. Traditional loans imposed too many requirements that not everyone could fulfill, such as requiring a bank account, credit history, and high salary, among others. People who couldn’t easily access banks were barred from extended financial services, putting them at a disadvantage whenever the need for cash in the short or long-term arose. 

To solve the issue of accessibility, moneylenders came up with variations of online loans pilipinas, offering online lending services to a large consumer base composed of smartphone users. Now, almost anyone who meets a simple set of requirements can apply for a quick loan, get approved, and receive the cash payout in 24 hours or less.

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One of the best features of a reliable cash lending app is its ease of use. The simple UI and easy steps make for a hassle-free application experience. But if you aren’t particularly tech-savvy or are venturing into quick online loans for the first time, then these tips will help you make the right choices along the way.

Choosing the best lending app for you

Determining the best cash lending app on the market is a highly subjective decision because it all boils down to which lending company offers terms and processes most suitable for your needs. For instance, if you don’t own a bank account, it’s best to pick a lender who can send you cash through a remittance center. Meanwhile, if your income stream is primarily through freelancing or self-employment, then you’ll have to pick a lender with more lax employment requirements. Generally, you want to narrow your search to the following criteria: 

Interest Rate. One of the most important factors that should influence your decision to take a loan is how much it costs–a price tag in the form of an interest rate. For quick online loans that you can apply for with a cash lending app, the interest is usually at 8-20%. It’s important to determine the maximum you’re willing to pay for so you can immediately drop options that are too expensive. 

Extra Fees. Moneylenders usually charge extra fees on top of the interest rate. These fees go toward administrative costs or government taxes and range from P50 to thousands, depending on your loan amount. You may want to watch out for high early repayment fees. 

Requirements. The requirements to apply for online loans pilipinas are fairly simple, but you might not be able to present specific documents requested by some moneylenders. As a result, it’s a good idea to sift through the application requirements when shortlisting lenders to avoid wasting time later on. 

Tenure. Online lending platforms often offer quick loans on a short tenure of six months or less. But there’s still a significant difference between 15 days and five months, so it’s important to choose a cash lending app that offers loans under a tenure that suits the frequency of your income stream. If you have a specific repayment schedule in mind, get in touch with the moneylender to see if they can accommodate it. 

Downloading the app 

Upon deciding on a moneylender, you can visit the Google Play Store to download the corresponding app. Alternatively, you can visit their website and click on the direct link to the Google Play Store. Most lenders only support android devices, so iOS users will have to look into other options. Keep that in mind before proceeding! 

Once you’ve downloaded the lending app, you’ll have to undergo a sign-up process, which differs from lender to lender. But for pera247, mobile verification is required to secure your identity. Like mobile banking, your phone number plays a huge role in verifications. So if you lose your phone, make sure to immediately report it to all your financial service connections, such as banks and lending companies, as they can take the appropriate measures. 

To complete pera247’s mobile verification process, you need to enter the one-time pin (OTP) sent to your number and create a password–and that’s it! You’ll immediately be redirected to a page containing two loan options: eShoppingLoan and Instantloan.

Picking a specific loan for your need

Choices, choices, choices–online loans are full of them! Moneylenders offer multiple short-term loan programs, and pera247 is no exception. You want to choose the right loan based on your specific needs so you can maximize the cashout and prevent unnecessary use. 

Generally, if you’re constantly thinking, “paano kumita ng pera?” then you might be on-track to starting your own business with a P1,000 capital and can benefit from an InstantLoan. The same goes for when you need quick cash to fund emergencies or immediate, day-to-day needs. However, if you’re looking to borrow money specifically for shopping, then choosing the eShoppingLoan may be the better idea, as it allows you to pay for Lazada purchases up to P50,000 in up to 11 installments. 

Making calculations

The user interface for online lending apps is straightforward and breaks down all the costs for you, so you have very little to worry about. When you click “select loan terms,” you will see a summary of all the fees you need to pay for, interest rate per day, effective interest rate over the entire tenure, due date, and total amount due. The values will adjust as you select different loan terms. 

However, keep in mind that the majority of lending companies increase the total loanable value through a merit-based system. As a first-timer, you might only be able to borrow P1,000. But if you prove to be a good client, then you’ll be able to apply for six-digit loans in no time. 

The application process

Once you’ve settled on the loan terms and click “apply,” you’ll be given the option to link your Facebook account for a higher chance of approval. This measure speeds up the identity verification process, which will, in turn, also quicken the overall processing time of your loan. After, you’ll need to input basic identification details, such as your name and date of birth. 

The next step involves uploading a photo of one government-issued ID, selecting the type of ID you sent in, and inputting your ID number. When done, you’ll be asked to take a selfie holding the ID you used earlier. This part of the process may seem a little strange, but it’s a common practice among mobile-based financial services, as it helps with user identification. Ensure that your photos are clear and that the ID you use is valid and not expired to avoid delays or rejection. 

After, you’ll need to input your email address and the verification code sent to the same email, and then select your marital status, number of dependents, and guarantors. At the bottom of the page, you’ll find a short yes-or-no survey. Upon completion, you’ll be redirected to a page where you input your current address, living situation, employment status, and income. 

On the last leg of the application, you need to answer some questions about your credit history and purpose for lending, then upload a photo of your utility bill, and agree to the terms and conditions. 

Approval 

The approval period for online loans is different for each lender, but you can usually expect feedback within 24 hours. If you get rejected–don’t worry. It could be anything from a blurry ID photo to shaky employment. You can always give it another try! 


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pera247 is a mobile app that offers credit products for honest & hardworking Filipinos. Borrow up to ₱15,000!
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pera247 Lending Corporation is a duly registered lending company under SEC (SEC Registration No.: CS201734339 with Certificate of Authority No.: 2582)