Admit it. At one point in your life, you borrow money from your sister, friend, co-worker, and even submitted a loan application in the bank. Despite the monthly income and savings you have, the money is not enough to finance a particular need. Don’t feel bad because even businessmen and big companies borrow money for additional working capital. In fact, utang has been a part of Filipino culture to help us get through tough financial situations.
Where can you borrow? Consequently, what are the perks and downside of borrowing from different entities?
Read on to find out.
Family or Closest Friends
These are the people you always turn to in times of need, whether it’s financial or otherwise. More than that, they are willing to help you and lend you money – as long as you don’t abuse it.
The good thing about borrowing from family or any of your closest friends or colleagues at work is that there is no deadline. You can “pay when able” as long as you pay. You don’t have to worry about interest rate since you are only bound to pay the amount you borrowed.
The downside is that there will always be a risk in your relationship, especially if you can’t pay on time. The next time you are in need, you might have a hard time borrowing from them since you don’t live up to your promise.
Private Individuals
Aside from your friends and family, other private individuals such as independent lenders can lend you money in times of need. Unlike your friend or anyone in the family, these individuals may impose an interest, depending on what you agreed on, which can either be a fixed interest rate or incremental.
The downside of borrowing from private individuals who are not licensed lenders is the interest rate. Surely, you want to keep the rate as low as possible. On the other hand, the private lender wants a higher rate to earn profit from the transaction.
Paluwagan System
This is common in the workplace. The idea of paluwagan is that a group of people, regardless of how many, will collect a certain amount from each other and will be placed in a common fund. Then, you will decide among yourselves the lineup on who gets the fund first, second, and so forth. Once the collected fund goes to the first in line, new funds will be collected again until everyone gets their share.
This is good depending on the number of participants, agreed contribution, and willingness to continuously give so that everyone can get their share. Nonetheless, you might have a hard time sustaining the paluwagan system.
5-6 Lending / Loan Sharks
Desperate times call for desperate measures. This is the reason why despite the skyrocketing interest rate, some people still borrow from loan sharks out of urgent need and necessity.
You can borrow from loan sharks IF you can pay immediately (which means the next day). Otherwise, stay away from them since you’ll end up swimming in debt.
Banks
If you are looking for safety and legitimacy in the world of borrowing, then banks won’t let you down. Banks can offer various loan products depending on your specific need, which could come with additional benefits.
Banks mean well. Still, banks want assurance that they will be paid no matter what happens, which is why they ask tons of documents to prove that you are worthy of credit. Loan processing take some time too, usually a week or more. This is not ideal if you are in a hurry and you need money instantly.
Private Financial Companies
These are companies with assets not as big as banks but are legitimate and recognized by the BSP to function as lenders. Similar to banks, they also offer loan products that cater to a specific need, although it may not be as extensive as what banks can offer.
The good thing about private financial companies is that the requirements are more flexible. Some companies even have online application facility where borrowers can apply and submit required documents, thereby making borrowing easier and more convenient. Loan processing and cash disbursement are faster too, which usually takes one day to less than a week.
Balikbayad is among the trusted and legitimate financial companies that can help you address your financial needs. Send your application now and we will get to you as soon as we can.
Hello!
At this moment in time..i need to have a loan amounting to 1.5million payable for 25yeats with low interest and monthly payments..it will be a great help to me. I.am employed in de la salle lipa,10 years in service..my monthly salary was 16,236..my husband and i were planning to start a small business in which we want to prove to his family that we can handle our lives not depending with them. We want to start in our own..so please help me..
Thanl you.
Hello April. Is your husband working overseas? As much as we want to assist you, Balikbayad offers loans specifically for OFWs. You may try checking other lenders that offer loans for non-OFW borrowers. Thanks 🙂
Hello…can i avail loan using my monthly remittance from my husband abroad? My monthly remittance is 30,000 regularly
Hi Analiza. Yes, you can apply for a loan. Please present a copy of your husband’s remittances as proof of income when you apply 🙂
hi can i apply loan without bank accont & i loss all my government id but i know my sss no.
Hi Jovannie! Unfortunately, banks need at least one government ID to verify your identity as a borrower 🙂 Some banks don’t require bank account since if approved, you may opt for check. For the IDs, we suggest that you execute an Affidavit of Loss and re-apply since ID is a vital requirement when borrowing money.
may i ask how will i have to chance to have a loan?? thank you.. emergency purpose only.
Hello Precious! Lenders follow different guidelines for their loan facilities. We suggest that you start with building your credit history first since this is crucial when applying for a loan. Please check this post as your guide – https://www.loanranger.ph/blog/tips-and-tricks-boost-your-credit-standing/
Hi,
Im an OFW and working here in Kuwait for almost 10 yrs.. I badly need 1 million pesos and im willing to pay it in 3-5 yrs time or depends on your term..
My current salary ranges 65,000-70,000/ monthly depends on the rate
Kindly please contact me- bherlie_027@yahoo.com
Thank you
Hi Berlie! Please fill out the online application form for pre-approval. Thanks!
https://www.balikbayad.ph/apply-now
Lara.
Hi.i need a capital to have at least a sari sari store to my place.100k.i am workinv as a dh.here in vietnam.
Hi Mila! If you’re planning to apply for a loan with Balikbayad, please fill out this form for pre-qualification – https://www.balikbayad.ph/apply-now Thanks!
Hi I badly need 2m pesos asap for my husbands business. I’ll pay it off in 1 year. My husband is from overseas and now we are living in the Philippines. I work for him online. Our family income is about 500k php monthly. Would I or him be eligible for a loan?
Hi Meds! Do you have a specific lender in mind? You can approach them and ask about the requirements of the loan 🙂 As much as Balikbayad wants to help you, we require that your husband is physically in the Philippines since he will be required to sign loan documents. Nonetheless, you can ask your preferred lender if allottee loan is allowed since your husband is overseas. Thanks!
Good day, can my mom apply for a loan of 1M? She had worked in Dubai a few years ago. She has no credit card but we, her daughters, will be the one to pay for the loan in one year. We have credit cards. My sister is a Nurse in Saudi and I am a teacher in a public school. Can we apply? Thank you.
Hi Queenie! That would be a good arrangement, but some lenders may require that your mom be physically present when applying for a loan since she will be asked to sign certain documents. Otherwise, there are lenders who allow allotee loans 🙂
hi good day..im a regular employee in makati… can i apply for a loan of 10000
Hi Anna! Apparently, Balikbayad offers loans to OFWs only. You can try online cash loans or personal loan from banks. You can check this website to learn more about your options – http://www.cash-loan24h.com/ 🙂
Hi can someone like working as a permanent contractual employee, apply for a certain amount of money? no credit card and ITR. 10,000.00 monthly income no deductions
Hi Joyce! Yes, you can apply naman. You might want to consider online cash loans since they have more relaxed requirements. You can check out this website since it reviews various online cash lenders in the Philippines – http://www.cash-loan24h.com/ 🙂
Hi how can I borrow,my husband is ofw he salary is 30000,
Hi Janice! Yes, you can borrow naman po. There are lenders naman po that could help, depending on the purpose of your loan.
Hi!I’m employed with 18000 salary. Can I loan 75k? What the best lender company for this one?
Hi Misha! We can’t assure that. Lenders look into various factors like monthly income, assets, and existing financial obligations to determine how much they could lend someone. If you have assets or investments, then they could grant you 75k.
hi! how to apply fior a loan around 1.5million welling to pay monthly according to your percentage for how many year.im working abroad for 10years
Hi Cindy! Please use the online calculator to find out how much you can pay monthly. Thanks! 🙂
Hello I’m Julia. I’m from Germany and at vacation here to marry my fiancee. Sadly we dont have enough money anymore for the wedding and I wanted to ask if it will be possible that I can lend the needed 150.000,00 pesos for our wedding. I get money monthly from the government and would pay it off.
Thank you for your help.
Hello! Personal loan is more applicable for your needs. You can check out banks or other private lending institutions since ours is more focused on the business aspect. Thanks!
Hello. I need at least 100k. My salary is 41000 monthly. Can i apply for a loan even if I have bad credit? I had a delinquent credit card account and I want to settle all my bills and consolidate them in just one loan. i had experienced medical emergencies in the past and ended up with small loans from private lenders.
Hi Tin! You may coordinate with your bank on how to consolidate your existing loans and rectify your credit history. If you wish to apply with us, please fill out the online application first for pre-approval. Thanks 🙂
Hi! I want to apply a loan for 300,000 pesos payable in 5 years. Someone can help me please ?
Hi Greyz! Do you have a specific lender in mind? You can contact and apply directly with them.
Can I apply for utang, to pay my tuition. I badly need it because my enrollment is near. I hope u notice this message.
Hi Mai! You can check personal loan facilities offered by banks and other private lending institutions. Thanks 🙂
I need immediate loan for a million pesos. Any terms payable .Please respond as soon as possible
Thank you
Hello Florence. Please fill out online application form first for pre-approval. We will try to get back to you as soon as we can. Thanks!
can i apply for personal loan amount of 80k for 3years installment,,my monthly salary is 10k-13k..hope for your reply
Hello! You might want to check banks that offer personal loans since this is more appropriate for your needs:)
Hi just would like to check the eligibility of loan. Thank you.
Hello! Is this for Balikbayad? Did you submit an online application already? You can reach Balikbayad here (https://www.balikbayad.ph/contact-us) so they could further assist you. Thanks!
Can i loan of 50k in 24 mnths payeble my salry is 14k to 15k
Hi Robbin! Yes, that is possible. Pls submit documents for proof of your capacity to pay such as bank statements and salary slip. Thanks!
Hi can i ask if can loan the tourist?
Hello. That would depend on the lender. Pls check your preferred lender’s requirements regarding this. Thanks!
My husband and I are resident of Ireland already but are still Filipino citizens. Both working and needs to borrow 2million. Can we avail Balikbayan loan?
Hi Jas. You need to be in the Philippines to avail of the Balikbayad loan since you will be required to sign loan documents 🙂
Hello, can i ask? Can I loan 1million even still I’m an student ?
Hi Johan. You need to have a co-borrower and security worth more than 1M so lenders will approve your loan application.
Hello, I’d like to ask lang po if there is an opportunity to borrow atleast 1M. I am a nurse po and planning to work while studying abroad in Australia, however, wala po kasi akong means to apply for such visa and enrollment fee. I am currently working as a nurse din pero nasa 19k lang po salary ko, so impossible po talaga ako makaipon ng required amount. Thanks.
Hello Marie. There are several factors lenders consider on whether to approve or reject your loan application. Among them are capacity to pay and security. If you could provide this and show that you can cover for the 1M loan, then may possibility na ma-approve.
Hi po, just wanna ask if pede po b ako mg avail ng off loan worth 50k without comaker po sna I’m currently working here in Abu Dhabi for almost 6 years. And how many days po Kya bgo
Mkrelease kz po Emergency leave po ako from tomorrow?
Thanks
Thanks
Hi Mary. As much as we want to help, lenders need to follow strict requirements as per BSP regulations. You may avail of a loan, but some lenders require physical appearance (to sign loan documents) before they could approve or release the money.
Hi, can i borrow 2 million? With a monthly salary of 26,000 I am an ofw.
Hi Maria! This will depend on your lender. If you have assets that you can use as a security, together with your monthly salary, your preferred lender could grant you the loan 🙂
hi can i borrow money just 30k,, and i payback after 6 months..
Hi Jay! Please apply directly to your preferred lender. Thanks!
I Want to loan 150.000 im good payer. Payable 10 years
Hello! You may apply directly to your preferred lender 🙂
hi! good day! is there anyway that we can apply for a 600k loan payable for 1-3years po kayo? My husband is an ofw dn po., salary is ranging from 90-100k. Thank you!
Hi Trezia! That will be subject to the lender’s approval. If you can show other proof of income or assets, then they could extend 600k loan. Thanks!
I have an existing Security Agency, and I am renting for 6 years amounting to 20 thousand per month, I would like to look for an opportunity, to buy the place we are renting right now, and expand our existing security business not only to deploy security guards but to establish training center and that can cater our security enhancement programs…
Hi Richard. Sounds like a good plan! Do you have a particular lender in mind? We suggest that you keep in touch with them since they are better qualified in assisting you in making this goal happen 🙂
Hello
I just wanna ask if I can borrow money if I’m going to be an international student in Singapore? I have plans. Does it have an interest rate?
Thank you so much.
Hello CJ. Do you have a preferred lender in mind? You can check with them regarding the requirements and procedures. Thanks!
Hi, I am not an OFW but I am planning to work abroad particularly New Zealand. However, my first step would be to take up a short course in NZ and it would cost around 1M to be able to get there. I’m planning to loan half of 1M (500k) payable 3-5 years. While I’m there, of course I can work part time while studying. Do you also provide loan to the likes of me who have dreams of working/living abroad?
Hi Grace! For now, Balikbayad does not cover this type of loan purpose. However, there are lenders that offer personal loans, which are more catered to your needs. Thanks!
Hello!
Non-OFW po, regularly employeed with 15,000 basic salary, where can i apply for a loan amounting to 200,000 payable only for 2years
Hi Cristina. You can apply through private lenders. Please visit their websites, complete the requirements, and submit your loan application since they will be the ones assessing your account. Thanks.