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Non-Collateral Personal Loans: Complete Information!


Non-collateral loans, popularly known as personal loans are kind of loans against which you don’t have to pledge any physical security.

What are Non-Collateral Loans?

Although you need to have a good credit score with a continuous source of income to get this kind of loans, the loan rates for these kinds of loans are high since there is more risk involved. The loan amount starts from PHP 10,000 to as much as PHP 200,000 depending on person’s credit score. It can keep you away from risking your assets.

Benefits of Non-Collateral Loans

The benefits associated with this kind of loans are:

  • Easy to apply as you do not need to pledge any physical security against this kind of loans.
  • Usually one gets immediate funding based on his credit score.
  • These loans get faster approval based on documents submitted at the time of applying for the loan.
  • Very useful for short-term funding needs.

Types of Non-Collateral Loans

The most common types of non-collateral loans available in the market are listed below.

  1. Student loan – Given to students to support their educational needs including tuition fees and stationary.
  2. Cash Loan – This kind of loan is available for advance cash needs like a family vacation, utility bills, These are easy to apply and do not require much background check. Only the borrower must have a continuous source of income.
  3. Emergency Loan – This kind of loans target people who have been struck by any financial crunch and is need of immediate financial needs like monthly bills.
  4. Maternity Loan – This covers all the pregnant ladies. The loan amount usually depends on the basic pay of the pregnant lady.
  5. Calamity Loan – This covers the people who have been struck by any natural calamity and require funds to re-establish themselves.

Options Available for Non-Collateral Loans in the Philippines

Although there are options available for loan for OFW with collateral, however, most of the OFW don’t own a property and can avail good amount of non-collateral loans in the Philippines. The various options available for non-collateral loans in the Philippines are listed below:

  • BPI or Bank of the Philippine Islands – There interest rates vary with the tenure chosen by the borrower to repay the loan. Higher the tenure higher will be the interest rates.
  • BDO – This is one of the largest banks in the Philippines offering various options under non-collateral loans.
  • Standard Chartered – This bank offers non-collateral loans for a period varying from 12 to 48 months.
  • East West Bank – This is another bank offering non-collateral loans to Filipinos.
  • RCBC – This bank offer non-collateral loans at fixed rates which do not vary with the tenure of the loan. Usually, the rate payable is around 16{cd01305ab2721fd43c16ff036ef4f7cf719d3bcd28c83c0a9abd1469c0f603e2} which can be changed based on a change in bank’s policies.

The customer opting for non-collateral loans must seek such loans intelligently as they come at a higher rate of interest and usually have a shorter period for repayment.

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