When urgent financial needs arise, it’s crucial not to let desperation cloud your judgment when seeking a loan. The Philippines, like many countries, has its share of fraudulent schemes targeting unsuspecting borrowers. Here are some prevalent loan scams you should steer clear of:
Top 10 Fast Online Loans in Philippines – A Valid ID is All You Need Updated in October 2024
| Rank | Lender Name & Application Link | Loan Amount | Loan Term | Interest Rate | Repayment | ID Required | Age Range | Special Feature |
|---|---|---|---|---|---|---|---|---|
| #1 |
SOSCREDIT |
₱1,000 – ₱25,000 | 3 – 12 months | 0% for first loan | Monthly or End of term | Only ID Card required | 20 – 70 | Receive money in 15 mins |
| #2 |
CREDIFY |
₱1,000 – ₱25,000 | 3 – 12 months | 0% for first loan | Monthly or End of term | Only National ID required | 20 – 70 | Receive money in 15 mins |
| #3 |
CREZU |
₱1,000 – ₱25,000 | 2 – 4 months | 0% for first loan | Monthly or End of term | Only ID Card required | 18 – 70 | Easy loan approval |
| #4 |
FINBRO |
₱1,000 – ₱50,000 | 1 – 12 months | 0% for first loan | Monthly or End of term | Only ID Card required | 20 – 65 | Receive money in 10 mins |
| #5 | CREDITIFY Apply Now |
₱1,000 – ₱25,000 | 1 – 180 days | 0.1% | Monthly or End of term | Only ID Card required | All accepted | Approve Bad credit |
| #6 | CASHSPACE Apply Now |
₱1,000 – ₱25,000 | 2 – 4 months | 0% for first loan | Monthly or End of term | Only ID Card required | 18 – 70 | Easy loan approval |
| #7 | DIGIDO Apply Now |
₱1,000 – ₱25,000 | 3 – 6 months | 0% for 7 days | Monthly or End of term | Only ID Card required | 21 – 70 | Receive money in 4 mins |
| #8 | KVIKU Apply Now |
₱500 – ₱25,000 | 60 – 180 days | 1.2% per month | Monthly or End of term | Only ID Card required | 18 – 65 | Receive money in 5 mins |
| #9 | CASHEXPRESS Apply Now |
₱1,000 – ₱20,000 | 7 – 30 days | 0% for first loan | End of term | Only ID Card required | 21 – 70 | Receive money in 5 mins |
| #10 | MONEYCAT Apply Now |
₱500 – ₱20,000 | 7 – 180 days | 0% for first loan | End of term | Only ID Card required | 22 – 65 | Easy loan approval |
1. Fake Lending Companies
Beware of fake lending companies lurking online and offline. These fraudsters often create convincing websites, apps, and social media pages to lure victims into applying for loans. They promise attractive loan packages in exchange for collateral. Once they receive the collateral, they disappear, leaving borrowers in financial distress and without recourse.
2. Phishing Scams
Phishing remains a common tactic used by scammers to trick borrowers into divulging personal information. Victims receive seemingly legitimate SMS or email invitations to apply for loans through fake websites. Unsuspecting borrowers enter their sensitive details, which are then used for identity theft or other malicious purposes.
3. Advance Fee Scam
In an advance fee scam, borrowers are asked to pay a significant upfront fee, often disguised as a processing fee or proof of repayment capacity. Recently, a distressing case involved an overseas Filipino worker (OFW) who fell victim to this scam. The perpetrator initially contacted her through social media and messaging apps, convincing her to make an advance payment to expedite the loan release. Subsequently, additional fees such as OTP charges and credit score enhancement payments were demanded, each time under false pretenses, ultimately leaving the victim financially depleted and without the promised loan.
4. Car Loan Scams
Car loan scams manifest in various deceptive forms, such as the “pasalo” and “labas-casa” schemes. In a “pasalo” scenario, scammers exploit both sellers looking to transfer their car loans and buyers seeking a bargain. The scammer purchases the car, promises to assume the loan payments, but instead resells the vehicle with fake documentation, leaving the original owner liable for the unpaid debt.
Conversely, the “labas-casa” scheme targets individuals by enticing them with promises of financial gains through car loans, often targeting vulnerable groups like public school teachers. Once the loan is secured and the vehicle transferred, the scammer disappears, leaving victims burdened with unaffordable debt.
5. Hidden Charges
Beware of lenders who advertise unrealistically low interest rates but compensate with exorbitant hidden fees. These can include processing fees, origination fees, and other undisclosed charges. Always scrutinize the loan terms and conditions, and if an offer seems too good to be true, it likely is.
6. Collection Harassment
While not a scam in itself, unethical lenders resort to aggressive collection tactics that border on harassment. Borrowers may experience incessant calls, messages, and even public shaming via social media if they fall behind on payments. Some lenders go as far as contacting the borrower’s friends and family, causing immense embarrassment and stress.