Thinking of taking out a loan soon? Whether you’re going to use it for investment, home remodelling or your dream wedding, it’s important that you have a financial budget that will aid you. A personal loan can help you when you’re in dire need of cash – especially if we’re talking about hundreds of thousands of pesos.

Before you apply for a personal loan with non-collateral, you have to understand what a non-collateral loan is.

What is a Non-Collateral Loan?

A non-collateral loan is a type of unsecured loan where you are not required to put up an asset (e.g., house, car, investment) as a collateral. A collateral is something put up as security for repayment of your loan. If you can’t pay for your loan, the bank will take your collateral. Your loan can be used as long as it’s for personal legal reasons such as house remodelling, business start-up capital, or investments. With the non-collateral loan, you borrow money from a bank or another lender and approve of making regular payments until your loan is paid in full.

Advantage of Non-Collateral Loan

If you don’t want to risk your collateral, applying for an unsecured loan can help you a lot. Unlike a loan with collateral, you have to have an asset that’s valuable enough to make a loan like a house or a car. With a non-collateral loan, it’s also easier to comply with the requirements. The rate can also be generally lower than taking a cash advance on your credit card.

Disadvantage of Non-Collateral Loan

It might be a little difficult to apply for a non-collateral loan compared to a loan with collateral. Since you are not required to put up a collateral, banks are more cautious when it comes to approving this type of personal loan. You also have to pay a higher interest rate on a non-collateral loan than a loan with collateral.  

How to Get Approved Fast 

Banks have different requirements when it comes to getting approved. However. they ensure the borrower’s identity and capacity to pay. You are required to bring documents such as a valid or government-issued ID, contact details (you have to be able to provide your landline, mobile number, or email), your statement of credit history and statement of the purpose of your loan.

Compare Non-Collateral Loans with GoBear

Most personal loan companies in the Philippines are non-collateral loans. You can find and compare different non-collateral loans from banks and financial institutions with GoBear that offers many solutions that can adapt to your budget and needs.

Personal loans are a great solution for personal use. With a non-collateral loan, you get to pay your repayments based on your financial capacity and monthly disposable income. Make sure you are responsible for your personal loan.

Find the best deals on non-collateral loans with GoBear today and get a personal loan that best suits your financial capacity. Make smart decisions by comparing personal loans with GoBear today!