Sudden and unforeseen expenses are some of the worst things a person could experience. These can disrupt budgets, such as hospitalization and car repair. Add that to other pending payments such as overdue credit cards, utility bills, and loans and it becomes harder and harder to budget finances. Luckily there is a salary loan that can pay some of the borrower’s financial needs. Also known as Payday Loan (PDL), cash advance loan, or check advance loan, it is a monetary loan that is either paid in full or installments on the borrower’s next paycheck. The total amount of a salary loan is based on the gross earnings of the borrower for each pay period.

Just like other loans, the buyer will have additional debt if the salary loan isn’t settled on time due to interest. But if it’s paid punctually, the amount won’t balloon too much. There will still be interest, but not enough to make the loan unpayable. What will make a salary loan uninteresting is if it’s from a non-PDL lender. They require numerous documents, may have long lead times, and require the borrower to be present in their office. These things, along with having collateral, make salary loans uninteresting.

 

No collateral required

Non-PDL lenders require a collateral, or an asset that can be accepted by the lender to secure its loan with the borrower. If the borrower defaults or fails to pay the loan back, the lender can resell it to recover losses. Lenders with PDLs don’t have this problem. If the salary loan will be used to buy a car or a home, the lender won’t resell them if the borrower defaults. PDL comes with a daily interest rate to make up for any potential loss.

Minimal documentation

Also called an unsecured loan, it only requires the borrower a couple of things. This promises convenience and immediate funds in exchange for interest. The borrower just needs to submit to the lender a government-issued ID/s, personal data, and employment details to file a salary loan.

PDL lenders do not require the borrower to pass these to their office to file for a salary loan. Everything is web-based now, making it even more convenient for the borrower and the lender. Now the borrower can spend more time on other tasks and appointments, and will be notified by the lender if the application has been approved via SMS. Some lenders would even ask for the most commonly used messaging application of the borrower upon application. They adapt and use current technologies to reach out to the borrower, adjusting to the applicant’s needs to ease the process.

Easy approval

Non-PDL lenders can process the application and deposit the loan in the bank account of the borrower in less than 24 hours. PDL lenders, on the other hand, take a lot of time and requirements from the borrower. These are not something the borrower has because his/her needs require urgent funding. Unlike PDL lenders, banks process loans from anywhere between three (3) to five (5) working days. This is undesirable for people who need money right away. Some lenders, like Robocash, could even give the loan in less than five (5) minutes after approving the application. Its convenience factor makes PDL lenders so compelling. Having the ability to get financial help in less than one day is empowering for people in need. The borrower can then use the loan to fund temporary needs, especially debt that needs to be paid immediately, which gives enough breathing room to pay for future financial needs. Its quickness is something to be desired, despite having a higher interest rate than “traditional” lenders, because it can serve multiple uses.

Multipurpose in nature

Because a salary loan can be awarded quickly, it can be used to pay off utilities, car repairs, mortgage, and even hospitalization bills. If there is a sudden financial need, a PDL can take care of it.  Having virtually no lead time and can be reacquired after paying it completely, including interest, a salary loan is an emergency fund that is easy to get. Simply present a valid ID, personal and employment details as well as the bank account for the loan deposit upon application.

The lender would inform the borrower via text or call that the loan has already been approved and deposited in the bank account. Some lenders even have a timer built in their app that counts down to their approval. Having these little touches make all the difference when it comes to making the loan process as convenient and reliable as possible. It keeps the applicant always updated with the status of their loan, giving them peace of mind that it will arrive in the fastest time possible.

Summary table

Lender Amount Interest rate p.a. Term
Cash Mart PHP 5,000 to PHP 30,000 3.5% per day 28 days
Cashwagon PHP 7,000 to PHP 20,000 15.16% Up to 180 days
Vidalia PHP 5,000 to PHP 50,000 4-6% monthly Two months to one year
OneMain Financial
(5/5) 2 voice
PHP 20000 - 2000000
from 12 to 60 days
Interest rate
for 1% per day
Vidalia
(5/5) 2 voice
PHP 5000 - 500000
from 2 to 12 days
Interest rate
for 0.6% per day
Cash Mart
(4.67/5) 3 voice
PHP 5000 - 50000
from 0 to 1 days
Interest rate
for 0.8% per day
Robocash
(4.6/5) 5 voice
PHP 1000 - 25000
from 0 to 1 days
Interest rate
for 1.65% per day

Salary loan eligibility

Lender Age Employment type Credit score Annual net income Loan amount
Cash Mart At least 21 years old at the time of the application, but not above 50 years old when the loan matures
  • Fixed (employed locally and abroad, such as OFWs and seafarers)
  • Self-employed
  • Professionals
Non-bearing; as long as the borrower is employed Not mentioned, as long as the borrower is currently employed PHP 5,000 to PHP 50,000
Cashwagon 20 years old upon loan application, but not exceeding 60 upon loan maturity Fixed, self-employed, and professionals, as long as they are residents of the Philippines None, but the borrower must have a job with permanent income At least PHP 72,000 or PHP 6,000 every month PHP 7,000 to PHP 20,000
Vidalia The borrower must be 20 to 60 years old upon loan application and loan maturity respectively Permanent/regularly employed borrowers only None, but borrower must be employed PHP 180,000 (PHP 15,000 per month) for employed applicants, and PHP 360,000 (PHP 30,000 per month) for self-employed borrowers Minimum of PHP 20,000 and maximum of PHP 50,000

 

Cash Mart

One of the easiest moneylenders to apply for, Cash Mart is open to all borrowers who are employed and residing in the Philippines. Whether they are regularly employed, self-employed, have bad credit or low annual income, Cash Mart can extend a loaning hand. Ease of application doesn’t stop there. Cash Mart only has three steps in its application process: fill out its online application form, wait for a call/SMS, and receive the cash. To be eligible for a loan, Cash Mart requires any latest proof of billing, company and government-issued ID, and latest one-month payslip.

Once the borrower qualifies, Cash Mart will call the borrower to validate all their documents and other information. If all goes well, the validation officer will tell the borrower to expect the loan within one (1) hour after the loan has been approved. The call may also be about verifying erroneous/misspelled information, so it’s a must to proofread everything on Cash Mart’s application form before sending it.

Cash Mart is open to all job types: regularly employed in the Philippines, freelancers, store sari-sari store owners, TNVS or Transport Network Vehicle Service drivers, Overseas Filipino Workers (OFWs), etc. As long as the borrower has a stable source of income, he/she may be able to borrow. The number of documents and requirements vary from one job type to the other.

Once the loan is approved, the borrower may negotiate loan repayment terms with Cash Mart. It can be a weekly (four times per month), biweekly (twice), or even monthly (once) loan term. All these payment terms have equal parts, especially weekly, together with interest rate. This must be settled with Cash Mart immediately to avoid being charged additional fees.

Cash Mart has numerous payment channels, including 7-Eleven, LBC, Cebuana Lhuillier, Bayad Center, Robinson’s Payment Center, SM Payment  Center, ECPay, and M Lhuilier. There are about 3,000 7-Eleven stores, 74 SM Supermalls, 1,252 LBC branches, nearly 2,500 Cebuana Lhuillier outlets, 12,000 Bayad Centers, 130 M Lhuillier branches, and 9,000 ECPay partner outlets in the Philippines. Two of these, 7-Eleven and ECPay, operate 24 hours a day.

Having multiple payment options allow the borrower to settle their loans on time, any time. All they need is to prepare their documents for the loan, which isn’t that many.

Documents required for a salary loan

Cash Mart requires documents to identify the borrower and see if they are capable of paying back the loan. These may vary according to employment type. The documents needed from a full-time employee in the Philippines are different from the ones needed from an OFW or Grab Driver.

For salaried individuals

The borrower must have any one of the latest proof of billing, including utilities, cable, and internet/phone bill. This must be accompanied with a company ID and most recent one-month payslip, as well as a valid government ID. To check if the ID is still valid, its expiry date must not be beyond the last month the borrower pays off the loan. The following are examples of government IDs: Driver’s/Firearms License, NBI/Police clearance, Postal/Voter’s/Unified Multi-Purpose ID (UMID)/OFW ID, and Tax Identification Number (TIN) card. These apply for full-time, freelancers, store owners, businessmen. The requirements for seafarer’s allottees and OFWs are different.

For seafarers allottees, they must have a government-issued ID, seaman’s passport, book, registration certificate (SRC), overseas employment certificate (OEC), and employment contract validated by the Philippine Overseas Employment Association.

Seafarers allottees must also present the following proof of income: six months latest remittance slip, latest proof of billing (see above), and a proof of relationship. It can be a birth certificate that proves the seafarer is the borrower’s parent/daughter or son/sibling, a marriage contract that certifies the seafarer is the spouse or husband, and a proof of allotment. It can be the latest allotment slip or allotment certificate from the company the seafarer works for.

The same requirements also apply to OFW allottees. They must also have a working visa, a colored passport ID. OFW allottees do not need an allotment slip nor a six-month remittance slip.

 

For self-employed individuals*

Grab/Taxi and other TNVS drivers are allowed to apply.  Their documents are significantly less than full-time and allottee borrowers: one valid government ID and recent one month statement of account and proof of billing are the only documents needed for them to apply for a loan.

The proof of billing and statement of account are more than sufficient to prove their financial capacity to pay their loan back. Submitting more documents will speed up the approval process because Cash Mart has more documents to work on.

These requirements also apply to other freelancers and professionals, even sari-sari store owners, online sellers, and other jobs that make the applicant their own boss. As long as they have the abovementioned requirements, they are welcome to apply for a loan. Numerous times even, if they pay their loan on time.

Cashwagon

Managed by the Green Money Tree Lending Corporation, Cashwagon is known for its ability to approve loans in less than five (5) minutes, approving 92% of all applicants. The borrower can then multitask while waiting for Cashwagon’s response to the application. If the borrower qualifies for the loan, Cashwagon has one of the best treats from any PDL lender: an interest-free first time loan of up to PHP 7,000. This is unprecedented from any lender, given interest is the lifeblood of every lending business. They rely on interest to keep their business afloat, which increases per day and when the borrower forgets to pay the loan on time. Cashwagon removing interest for first-time lenders means they are serious in giving their borrowers the best loaning experience. But on the 11th day, the loan will start gaining interest. Even though Cashwagon’s second loan is not interest-free, they were still able to help reduce the amount needed by the borrower to pay on their first loan.  Together with Cashwagon’s ability to approve loans quickly, the company becomes a compelling choice for borrowers who want something fast and reliable. It’s proven itself millions of times — 2,829,205 times to be exact by borrowers in their reviews, which is usually a 9/10 to 10/10 star rating.

Like Cash Mart, Cashwagon partnered with 7-Eleven (via Dragonloans), Bayad Center, SM Payment Counters, Robinsons Department Store & Supermarket, LBC, and Landbank’s ATM. SM Payment Counters are located at the SM Department Store, Supermarket, Savemore, and Hypermarket. These make loan payment easier and accessible in any city, especially with Cash  Mart’s 7 PM deadline one day before the due date.

Cashwagon also has an app for borrowers who want to inculcate them in their lives more. For those who want more speed, faster cash disbursement, and other special offers only available to Cashwagon lenders, the app is a must-have on any smartphone or mobile device. Cashwagon will soon release the app on the Apple App Store, but until then only Android devices can download the app. Lastly, the convenience Cashwagon gives is further elevated by the number of requirements and documents it needs from the borrower: just four — the borrower must be 20 to 60 years old, has a steady source of income, personal details, and other related bank account information.

Documents required for a salary loan

Cashwagon only has two requirements: the borrower’s personal information and bank details. The first will be used to identify the borrower’s family history, educational background, employment, and residential address. The company will not check the borrower’s credit history nor require any proof of billing. They just need to know if the borrower is at least 20 years old upon filing the application and 60 years old when the loan matures. At age 20, Cashwagon is certain the borrower has sources of income and a bank account or even an ATM or debit card where the loan can be deposited.

For salaried individuals

All salaried individuals must present their personal information and bank account details. The first is needed by Cashwagon to document the buyer’s identity. Any valid government-issued ID will do, such as Driver’s/Firearms License, NBI/Police clearance, Postal/Voter’s/UMID/OFW ID (if applicable), and TIN card.

To check if it’s still valid, the ID must not be expired upon application. It should still be okay a month before the loan is fully paid, otherwise Cashwagon will ask for other IDs. These can either be issued by the government or the company where the borrower is employed.

Cashwagon accepts all banks as long as they are located in the Philippines. Credit score doesn’t matter to them as long as the borrower fills out their application form and submit all their requirements. The loan may be used by the borrower to pay existing debt or pay overdue bills. All Cashwagon cares about are their requirements and if the application form is filled out correctly, which is available on their website or mobile app.

For self-employed individuals

Self-employed and regularly employed applicants have the same requirements. They must be employed with a stable source of income and at least one valid government-issued ID. These are some of the IDs that Cashwagon will accept: driver’s license, firearms license, UMID, Postal ID, Voter’s ID, TIN ID.

Like salaried individuals, they must successfully accomplish Cashwagon’s application form, available on their website or mobile app. The application form will contain the borrower’s employment background, personal details, and bank account where the loan will be deposited. This is the most important requirement of Cashwagon, and must be proofread before submitting to avoid errors in the system.

Unlike regularly employed individuals, self-employed applicants do not need to present any proof of income. Cashwagon does not pay attention to the borrower’s credit standing, and will award the loan if all the documents and application form are correct. Cashwagon knows some applicants take a loan to repay debt and other overdue loans, fund a car repair, or pay for hospital bills. Having a stable-paying job is enough for Cashwagon to consider an applicant, since the loan may be used to repay existing debt.

Vidalia

With one of the highest maximum loan amounts and lowest monthly interest, Vidalia allows borrowers a more competitive option for loans. Vidalia is able to offer a high loan amount because it connects with its investors on its peer-to-peer lending platform. They invest in loans, which benefits them, the borrowers, and Vidalia.

The company won’t worry much if some of its borrowers default. The money that the investors put into the company can recover whatever the company lost as well as lower its interest rate.

Unlike its competitors that charge up to 30% interest a month, Vidalia only has a 4-6% monthly interest rate. It’s very affordable for customers who want a significantly higher loan but don’t want to take too much risk. First-time borrowers can take advantage of the moderately high minimum loan amount, while repeat-borrowers can loan a very high amount without racking up too much interest.

Another thing that’s worth noting is Vidalia’s  unusual payment tenure, starting at two (2) months. Not all companies do this, but it’s still for the benefit of the borrower. Since the payment is extended to two months, the principal or the total loan amount needed by the borrower to settle, will be lessened. Tenure can even be extended to 12 months if the borrower will loan a huge amount.

Despite having one of the highest loanable amounts and lowest monthly interest rates, Vidalia has some drawbacks. Unlike other PDL companies, it can take Vidalia up to five days to produce the loan. If it’s only a small amount or the company saw nothing in the applicant’s documents, Vidalia can grant the loan in two (2) days.

The borrower can apply for a loan, use and repay it, reapply for another loan, then wait for it to be deposited in two (2) days. Vidalia is not the best option for individuals who need the money in less than an hour. They don’t work that way, since Vidalia wants to make sure the borrower is capable of repaying them. The company will make a few calls to confirm and verify the borrower’s identity and the submitted requirements. Another downside of a Vidalia loan is it’s only issued via bank check. It’s as good as money, as long as it’s encashed or deposited before the bank’s cut-off period. The check can only be claimed from Monday to Friday, which may be unfortunate for loans filed mid-week because they may be released the following week.

Even if Vidalia can deposit the loan, the borrower must still visit its office to sign loan documents. Might as well encash the check afterwards instead of waiting for the bank to clear it, which can take 24 hours to three (3) days. This isn’t a problem for PDL lenders because they use bank deposit. It can take as fast as five minutes for Robocash to deposit the loan in the borrower’s account, but not exceed 24 hours.

To pay back the loan, the borrower must prepare a Postdated Check (PDC). The borrower can also request Vidalia to send field collectors to pick up payment if PDCs are not available. They can drop by daily or weekly, depending on the borrower’s preferred schedule.

OneMain Financial
(5/5) 2 voice
PHP 20000 - 2000000
from 12 to 60 days
Interest rate
for 1% per day
Vidalia
(5/5) 2 voice
PHP 5000 - 500000
from 2 to 12 days
Interest rate
for 0.6% per day
Cash Mart
(4.67/5) 3 voice
PHP 5000 - 50000
from 0 to 1 days
Interest rate
for 0.8% per day
Robocash
(4.6/5) 5 voice
PHP 1000 - 25000
from 0 to 1 days
Interest rate
for 1.65% per day

Documents required for a salary loan

Vidalia has four documents for both salaried and self-employed individuals: two (2) valid government-issued IDs, such as a passport, driver’s license, TIN ID, etc.; any proof of billing — utilities, internet, credit card bills; recent two (2) months payslip; and Certificate of Employment with Compensation (COEC).  The ID must not be expired prior to and during the loan. To know until when the ID is valid, check its expiry date. The borrower will only be eligible for a loan if he/she is (1) a Filipino, (2) 20 to 60 years old, and (3) has a monthly net income of PHP 15,000 and PHP 30,000 for permanently employed and self-employed applicants respectively.

Particulars Cash Mart Cashwagon Vidalia
Interest rate per annum (p.a.) 3.5% per day 15.16% 4-6% monthly
Loan amount PHP 5,000 to PHP 30,000 PHP 7,000 to PHP 20,000 PHP 5,000 to PHP 50,000
Processing fees None None None
Part payment None None None
Pre-closure charges None None None
Locking period None None None
Tenure One (1) month One (1) month Two (2), three (3), four (4), six (6), nine (9), 12

Salary loan interest rates

Among the three lenders, Vidalia has one of the lowest interest rates, followed by Cashwagon, and Cash Mart. Vidalia is attractive to first-time and repeat borrowers because of its competitive interest rate. Even though it doesn’t have the greatest, most seamless transaction method, the borrower won’t be drowned by interest. Some users may not have a problem preparing PDCs, or waiting for five (5) days just to get the check. But for those who do, the company loses its flair despite having one of the lowest monthly interest rate among lenders.

Cashwagon has staying power thanks to its interest-free first loan of up to PHP 7,000. There is no catch – everyone who loans with Cashwagon for the first time gets this promo. It will only incur interest if the loan is still unpaid after 10 days.  The second loan, which can only be “unlocked” by  repeat-borrowers who loan from Cashwagon again, will have interest. Even if it has interest, Cashwagon was able to bring down the total amount needed by the borrower to repay.

Cash Mart only asks requirements that suit their borrower’s  employment type. With a quick and simple application process, coupled with a one-hour loan deposit time after approving the loan, Cash Mart truly embodies being cash smart. This quickness justifies its daily interest rate. The company is always there, for all employment types. OFWs, small-time entrepreneurs, freelancers, corporate employees, etc. will always have a source of emergency income support their salaries. They can get their loan one hour after it’s approved, without ever visiting Cash Mart’s headquarters.

Why you should apply for a salary loan at Robocash

Robocash is all about speed and convenience. The ability to get a loan anytime without worry, using tech to give its borrower the loan that they need. Other lenders may give a higher loan amount, charge lower interest rates, or have investors backing it up. But Robocash utilizes its speediness to give the borrower peace of mind that they will be able to settle their finances as soon as possible.

Fast assistance

Robocash focuses on speed. The company can deposit the loan in the borrower’s bank account five minutes after it’s approved. No checks, personal visits, or long wait times. Transactions will never exceed one (1) day. It doesn’t require numerous documents and avoids asking similar ones from the borrower. Robocash will only ask for an ID, personal information, and employment details along with their application form.

Customer needs in forefront

Robocash processes loan applications as fast as it can so that the borrower can enjoy the loan immediately. Its services are available 24/7 to all who need fast cash.

All transactions are internet-based so it’s easy to send documents and get an update on the loan. Robocash can update its client as soon as the application has been approved, through any instant messaging means.

Lastly, Robocash asks the borrower its most preferred payment channel upon application. The company adapts to the borrower and not the other way around, unlike the other lenders.

Compare offers online

Vidalia has the lowest interest rate but the most difficult payment process via checks. This isn’t a concern with Robocash because it auto-debits payment and won’t ask the borrower to visit their office to settle or sign any document.

Cashwagon has one of the best first loan promos, but Robocash beats Cashwagon in the speed it takes to deposit the loan.

Real-time customer support

Robocash has an active customer service hotline that will call the borrower to verify their documents. It will also call and text the borrower to confirm that their loan has been approved and deposited in the bank. The company can be reached using different messaging programs. It also reaches out to applicants who attempted to file a loan on their system through email, asking if they will still continue their application.

How to apply for a salary loan at Robocash

Step 1: Create an account on Robocash’s website

Visit this link, https://robocash.ph/registration, which will redirect you to its registration form. Prepare the following information to make the process seamless: phone number, password, and email. Robocash will also ask if you use WhatsApp, Viber, or Skype.

Step 2: Provide your address and ID

Robocash will ask for one (1) government ID, which you can select from its dropdown menu. It will ask if you are a male or female, and your address (postcode, region/province, municipality, barangay, the usual). Robocash will also confirm if you have any connections to prominent people in the Philippines, other countries, or a multinational group.

Step 3: Indicate your job type

Robocash caters to all job types: private, government, freelancer/self-employed/entrepreneur, unemployed, housewife, call center employee, student or pensioner. You must indicate the name of your company and its contact number, how much you earn every month, when is your payday, status of your employment (regular, probationary, or contractual)

Just like a job application, Robocash will ask for the name of your co-workers and relatives. It will ask for their names and phone numbers.

Step 4: Visit Facebook

Robocash will only process your loan if you have a Facebook account. Otherwise you must reapply at their satellite offices located here.

Frequently Asked Questions (FAQs) regarding salary loan

Q: Is it a good idea to get a salary loan?

A:  Yes. Salary loans can help you settle any existing debt, which you can get in less than 24 hours.

Q: How can I get salary loan?

A: Visit https://robocash.ph/registration to get started. It will ask for a government ID, how much you earn, where you work, and contact information of your relatives. Once you’ve provided them all, log in to your Facebook account to process the loan.

Q: Are personal loans good for your credit?

A: Personal loans are good for your credit because it has a higher interest rate, since it doesn’t have collateral. It’s harder to repay because it incurs interest daily, unlike secured loans that charge it monthly.

Q: How long does it take to get approved for a salary loan?

A: It takes less than an hour for Robocash to approve a salary loan. The company will call you once your application has been approved.

Q: Can you pay off a loan early?

A: Yes. It’s advisable to pay it off earlier to avoid additional interest, which is applied daily.

Q: What is the average interest rate on a loan?

A: Robocash has a fixed daily interest rate of 2.5%. Interest rate varies per company.

Q: Who has the best salary loan rates?

A: Robocash has the best salary loan rates because its loan amount isn’t that high.

Q: Which bank gives the lowest interest rate for salary loans?

A: BPI has a 1.20% monthly interest rate for salary loans. It’s barely unnoticeable, even for high loan amounts.

Q: What is the minimum salary for loan?

A: None. Unemployed individuals can apply for a loan, provided they know someone who can pay it off for them.