5 Reasons Why You Should Borrow Money from Private Lending Companies

There are instances when you will need money to finance certain needs of the family. Apparently, your salary as OFW is not enough to purchase in full your dream house or finance the business you plan to put up. That’s okay. You can always turn to banks to help you finance your needs (with interest, of course).

Apparently, traditional banks are not your only option in case you want to apply for a loan. Over the years, private and independent lending companies are on the rise, giving not just OFWs but also potential customers more options in terms of lending.

The next question is this: which is better, traditional banks or private lending companies?

Here are reasons why you need to consider private lenders too:

1) Easier and faster approval

All lending companies, whether traditional banks or private lenders, are regulated by the Bangko Sentral ng Pilipinas (BSP). Nonetheless, banks follow stricter regulations and implementations that reduces the chances of small and starting business owners to put up their business.

This is why private lending companies can be helpful. Approval is easier and faster because of the lesser restrictions and requirements imposed.

2) More affordable loan processing fees

Between banks and private lenders, the former has lower interest rates. Here’s the catch: banks can be opportunistic and look for other ways to earn money. At times, they get it from processing fees.

That’s not all. Banks would often deduct the fees from the loanable amount. This means if you borrowed P100,000, you won’t get the amount in full since the fees were already deducted.

This is a different case when you apply in private lenders. Private lending companies like Balikbayad has affordable processing fees and will not deduct the fees in the amount you borrowed.

3) Offers competitive rates 

Banks will say that their interest rates are lower. That’s true. On the other hand, private lending companies provide competitive rates that will suit your financial needs and capacity to pay. The rates may not be lower than what banks offer, but as long as you use the money in the right investment, you won’t even notice the difference.

4) Loan terms are customized according to borrower’s needs

Traditional banks are often subjected to both internal and external audit. This is why it is important that all the requirements set forth by the Monetary Board are complied with. Any lacking documents could delay your loan application and even compromise approval.

This is a different case for private lenders. Loan requirements can be patterned according to borrower – as long as the basic requirements are met such as age and proof of income. In other words, requirements are more flexible and easier to comply with.

5) A good boost in credit history

Banks are strict when it comes to credit history. Anything negative in your credit score could make them think twice on whether or not you are worthy of credit. Thankfully, private lending companies look at it differently, although credit score still matters.

The good thing about borrowing money from private lending institutions is that it allows you to boost your credit history. Just make sure you will fulfill your financial obligations by paying on time and in full and your are good to go.

In case you are looking for a private lending company, consider Balikbayad among your options. It makes lending easier and more affordable for every OFW.

9 Replies to “5 Reasons Why You Should Borrow Money from Private Lending Companies”

  1. Hello Mam/Sir
    Good Day
    Isa po akong ofw dito singapore
    San po pwd makapag loan Emergency loan po…nasa hospital po kc apo…
    Salamat po

    1. Hi Annabell! We’re sorry to hear about this. Mayroon naman po mga lenders sa Singapore na maaari po ninyo mahiraman or humingi po tayo ng tulong sa Philippine Embassy or Filipino community. Most lenders po in the Philippines require po na kayo ay physically present sa Pilipinas upang ma-process ang loan application. Hoping for your speedy recovery!

  2. Hi Po ma’am anong bangko Po pwede mag loan ng house improvement! Ofw Po ako dito sa Kuwait, gusto Ko mag loan kapag magbakasyon ako this coming may para matapos ang bahay Ko bago ako bumalik dito sa Kuwait!
    Thank you Po!

    1. Hi Che-che! What bank do you have in mind? We don’t have a list of banks na may overseas branches so you can check po each bank like BPI and BDO to see kung may branches po sila abroad. Salamat.

  3. Ofw po ako dito sa malaysia…urgent money po sana willing din po akong isanla atm ko sa payday balok ko rin saan po kya pwede o salary loan…malaysia ako…tnx po sa sasagot

    1. Hi Joann. You may check legit lenders in Malaysia to assist you on your cash needs. Some lenders in the Philippines po kasi require physical appearance.

  4. Dear Maam,
    Good afternoon.
    Nakabalik na po ako work sa ibang bansa OFW ditto sa Thailand hindi po ako ng tulong saan po ako maka loan para ma redeem ko yung bahay naka loan sa ibang banko at na foreclosed na at hangang January 2021.

    Please need your advise.


    1. Hi Rey! You can apply for a loan from your preferred lender. You can visit their website and check the requirements needed to process the loan. Thanks and stay safe!

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