money-lending apps

Intro to Money-Lending Apps: Kapit sa lending?

Known to be hardworking, Filipinos have always strived to stand firm amidst poverty and economic crises. Kapit sa patalim, a popular tagalog phrase which literally means to “hold on to a blade”, is probably the perfect way to symbolize Filipinos’ determination to make something happen, no matter the repercussions. In most cases, they keep holding on to the knife to survive, even though it is already hurting them. The phrase is particularly used when dealing with financial troubles. Perhaps now, it can also be changed into a funnier but significantly truer Kapit sa lending because now, you no longer hold on to a knife, but rather, onto money-lending applications.

Lexico.com’s definition of lending states that it is “The action of allowing a person or organization the use of a sum of money under an agreement to pay it back later,” (Lexico.com, “Lending: Definition of Lending by Lexico”, 2020). From the time of its conception until now, collaterals, guarantors, and cosigners have been required to ensure the welfare of lenders and borrowers alike. Eventually, competition among lenders arose and so did the creation of different platforms to access and apply for loans. 

With the unstoppable development of financial technology, or Fintech, through the years, we now have what is known as Digital Lending. This is how financial institutions have adapted to the many changes brought about by the digital age to cater to their consumers better. Fintech has made money-lending far easier, faster, and more accessible, especially to those who lack requirements for the typical bank loan process. Understanding the needs of the masses has pushed app developers to come up with different loan types that could fit the specific situation a potential customer is in. One of the products of this process is the Microloan. 

What is a Microloan?

Merriam-Webster defines a Microloan as “a small loan, typically used for financing entrepreneurial projects by impoverished individuals and groups especially in poor or developing regions” (Merriam-Webster, Inc., 2020). For money-lending applications, Microloans offered can range from PHP 1,000 to PHP 15,000, payable between 7 days to 6 months. People can take advantage of micro-lending due to its flexible requirements, quick application process, and training opportunities (there are also cases that training will be provided as it is designed to help people in regulating funds for entrepreneurs). 

On the other hand, some disadvantages of the Microloan is that consumers are subject to small loan amounts, higher and numerous payments, and other miscellaneous restrictions (Tallent, “Microloans: Pros and Cons”, 2020). There are also risks with consumer protection concerns; including loan stacking, high interest rates, harassment, and various privacy concerns (Tambuyung, “ONLINE LENDING: A CONVENIENT SERVICE FRAUGHT WITH RISKS”, 2020).  Because of this, one might ask how safe is it exactly to try out micro-lending? Would you dare borrow money from a lending app? How then can you safely and securely try it out?

How do you ensure the credibility of a money-lending app?

The answer lies in vigilant consumer behavior. Giving out personal information really matters and you have to know when, how, and whom you are giving your details to. As a consumer, one must make sure to check the credibility of the lender through the various sources available to him or her. Online feedback, reviews, and ratings, as well as the number of people using the application, can help you discern whether or not it is credible or not. 

Responsible micro-lending

Microloans allow lending to reach far more people than any other financial process did in the past and its main purpose is to provide consumers with financial assistance. However, this must also go both ways. A consumer must not, neither accidentally or intentionally, neglect his/her obligation once her loan has been approved. Like in any other lending process, using money-lending apps require a good credit standing and the best way to achieve this is to maintain good repayment history. Should you place a Microloan, always remember your due date and make sure to pay the earlier the better as this will make it easier not only for the lender but, ultimately for you, the borrower, as well.

ATOME is the perfect money-lending app for you!

Finding the right money-lending app for you will largely depend on loan amount, interest rates, payment terms, payment options and channels, penalties, and other required charges that a particular app provides. With the current slew of options in Fintech, you will not have trouble finding the perfect one for you.  

ATOME, short for Access TO MorE, is a money-lending application whose mission is to harness technology to create accessible financial services to build better lives for everyone. It aims to cater to the financial needs of Filipinos through its various light and easy installment Microloan plans. Not only does it provide speedy cash disbursement, loan approval, and customer service processes, but it also upholds the confidentiality and security of all its clients’ personal details. The application process takes as fast as 5 minutes and cash disbursement is available within 24-48 hours of approval. 

With its close to perfect rating on Google Play and millions of certified users, ATOME comes truly highly recommended as a money-lending app, whether you are a new user or simply want to reloan!Now, what are you waiting for? Kapit sa patalim or fast, easy, and secure money-lending with ATOME? Make the right choice now!

money-lending-apps-Atome

REFERENCES:

  1. Lending: Definition of Lending by Lexico. (2020). Retrieved February 16, 2020, from https://www.lexico.com/en/definition/lending
  2. Microloan. (2020). Retrieved February 16, 2020, from https://www.merriam-webster.com/dictionary/microloan 
  3. Tallent, D. (2020, February 8). Microloans: Pros and Cons. Retrieved February 6, 2020, from https://www.caminofinancial.com/microloans-pros-and-cons/?fbclid=IwAR3YC-zmkbldjQEjKg9BoF_DZkQ5cnAH7BN15AffmPRDpZ_f_vFME2N1gTg 
  4. Tambuyung, S. (2020, April 10) ONLINE LENDING: A CONVENIENT SERVICE FRAUGHT WITH RISKS. Retrieved February 16, 2020, from http://m.ateneo.edu/udpo/article/Online-lending-A-convenient-service-fraught-with-risks 

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