The economy is unstable at the moment: prices are rising, but salaries are not. This situation leads to financial difficulties for the majority of Philippinos.

Each of us has taxes and compulsory payments, non-payment of which causes serious problems. In such cases we have to take credits. You can get them in the bank, but you will have to collect a large package of documents and wait a few days for the application processing. You can also ask friends or relatives for money, but sometimes they can not give you the necessary amount. In these cases, microcredits (loans) come to the rescue.

A loan is similar to a bank credit, but it is much easier to get. Loans have their advantages and disadvantages. We will talk about them in this article.

Advantages of loans

Let’s start by listing the advantages of taking a loan from a microfinance organisation.

Simple procedure of borrowing money

You can get a loan from any place in the world via the internet. All you need is Philippine citizenship, a phone, tablet, computer or other device with internet access. You have to fill in the application form on the microfinance organisation’s website. You will receive a response within 10-15 minutes.

Minimum requirements for the borrower

In most cases microfinance organisations do not pay attention to your credit history or current debts. They also do not require proof of your income. To get approved for a loan, you will need to provide accurate information about your identity, including passport details.

You can pay without commissions

Many microfinance organisations offer an interest-free period. Usually, such loans are issued for a period of no more than a week. During this period, you will be able to repay your debt in full without interest.

Credit history can be improved

Certified microfinance organisations can provide information about the borrower to credit agencies. A few successfully repaid microloans can help you correct a bad credit history. This will make it easier for you to get a major credit from a bank in the future.

They help to solve short-term problems

Sometimes there are 2 days until you get your salary but you need money right now. Microfinance organisations will give you a quick loan on your debit card and you can spend the money as you wish.

You can take a loan from several companies at once

Here comes the answer to the main question: yes, you can get money from several organisations at the same time. The most important thing in this case is that you are a solvent borrower. It is not difficult to get multiple loans if you meet all the requirements of the organisations.

Let’s emphasise only 1 disadvantage

The main disadvantage is high interest rates. They are much larger than in the bank. In addition, if you stop paying the loan, it may increase due to a penalty. The payment of the loan on time will reduce your extra payments and improve your credit history.

Thus, loans have only one disadvantage, so you can use this method for solving small financial problems. Microfinance organisations approve loans for almost everyone.