The correct choice of the loan type is the first step to the fast loan approval. There are three main types of personal loans in the Philippines:
- Secured loans. The main condition of the secured loans is the collateral. The presence of collateral makes the application process simpler. You don’t have to collect a pile of docs. The interest rate is lower and the general process of the loan taking is faster. It’s a good choice for people with the low credit history or without it at all.
- Unsecured loans. Unlike the previous case, these loans don’t require collateral. The result- higher interest rate, screening process, and the requirement of the good credit history.
- Loans for OFWs. Loans available to overseas Filipino workers. These loans are also divided into secured and unsecured types.