A personal loan is a type of unsecured loan, meaning it does not require any collateral (which can be any valuable property belonging to the borrower) to secure the loan. This distinguishes personal loans from secured loans—like home loans or auto loans—which require the borrower to pledge an asset to the lender. If the borrower fails to repay a secured loan, the lender can take possession of the collateral. In contrast, with unsecured personal loans, the lender does not have any specific asset to claim if the borrower defaults, which can make them riskier for the lender but also more flexible for the borrower.
Personal loans are often used for large, one-time expenses that don’t fit into the more restrictive terms of other types of bank loans, like mortgages or car loans. While home loans and auto loans are specifically designed for purchasing real estate and vehicles, respectively, a personal loan can be used for a variety of significant purchases or costs. These can include major medical bills, home renovations, appliance upgrades, or school tuition, among other sizable expenses.
With the Philippines now experiencing strong economic growth and digital transformation, financial institutions like Maya have begun to offer an assortment of online loans, including easy no-collateral loans like Maya Personal Loan. If you are already a regular Maya user, it could be one of the best loans available to you since Maya can refer to your previous activity to offer customized, easy-to-manage terms on your loans that would best fit your needs.
Still, it’s worth remembering that personal loans tend to be best for specific circumstances. Let’s look at the general pros and cons of these loan types so you can decide whether a Maya Personal Loan is what you need in your situation:
Pros of Personal Loans
- Predictable Fixed Interest Rates. Unlike many similar loan products, personal loans offer fixed interest rates, making monthly payments predictable and helping reduce the burdens on your cash flow. This avoids the surprises associated with variable-rate loans and keeps your finances stable for the duration of the term.
- Use Your Funds for Any Need. Some loan types stipulate the areas where the money can be spent. This can be burdensome since you have to accurately record invoices for a lender who may not even understand your needs. Personal loans, on the other hand, allow flexibility in spending, making them invaluable for more general spending categories like home improvements or even medical emergencies and gadget upgrades.
- Fast Approval and Disbursement. One of the key advantages of taking out a personal loan through Maya is the instant disbursement of funds. While personal loans from traditional banks can take weeks to process and approve, Maya offers a much faster solution. Once your loan is approved, the funds are immediately disbursed into your Maya Wallet. This seamless, digital experience ensures you have quick access to the funds you need, without the long waiting periods often associated with other types of loans and with loans from traditional banks, in particular.
- No Collateral Required. Personal loans are unsecured, so there’s no need to risk valuable assets like your car or home. With a Maya Personal Loan, you’ll enjoy peace of mind, knowing that your most prized possessions will remain with you.
Cons of Personal Loans
- Higher Interest Rates for Lower Credit Scores. If you have a low credit score, a personal loan can come with higher repayment costs. In these instances, a secured loan will let you use collateral to provide better terms.
- Late Fees and Penalties. Missing payments on personal loans will often lead to fees and affect your credit score for an extended time. Credit cards or other loans that offer flexible repayment may be more forgiving options.
- Shorter Repayment Terms. Personal loans come with fixed terms which may not work well with larger amounts if your cash flow is not predictable. Alternative loans that have very long terms may be better if you need to spread out the burden of very large loan amounts.
How to Apply for a Maya Personal Loan
Getting a Maya Personal Loan is easy, especially if you’re already a regular Maya user. You can apply in just 3 easy steps:
- Open the Maya App on your phone, go to the Loans tab, then tap Apply Now.
- Complete your application and tap Submit. Loan amount and interest rates are subject to credit evaluation to be done by Maya.
- Soon, you will be sent a Maya Personal Loan offer that is customized to your needs. Tap Accept if you’re happy with the offer. If you accept your Maya Personal Loan offer, the full amount will be instantly transferred to your Maya Wallet.
What Do I Need to Qualify for a Maya Personal Loan?
You’ll qualify for a Maya Personal Loan if you:
- Are 21 to 65 years old
- Are a Filipino citizen living in the Philippines
- Have an upgraded Maya account
- Are an active Maya User
If you aren’t a Maya user, be sure to download the Maya app and begin your financial journey with us. The more you use Maya, the better your chances of getting great terms on your Maya Personal Loan and other Maya lending products.
Perks of Maya Personal Loan
With a Maya Personal Loan, you’ll enjoy:
- Favorable loan terms and conditions that are matched to your needs.
- A monthly add-on rate as low as 0.77% and enjoy lighter payments of up to 24-month installments.
- Instant disbursement to your Maya Wallet when you accept your loan offer.
- A maximum loan amount of up to Php 250,000—use Maya Personal Loan to update your home or expand your business.
Support Your Financial Vision With a Maya Personal Loan
In the right situations, personal loans will give you significant financial flexibility right when you need it the most. Still, they come with a few unique considerations that make them less appropriate for certain kinds of spending. Developing a realistic idea of your needs can help you come up with a realistic loan application, putting you much closer to your goals.
