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The Advantage of Short Term Loans in the Philippines

Last updated: April 11, 2024

Key takeaways:

  • A short term loan is an instant loan for a short period of time – from a few days to a few months with minimal requirements
  • Уou can get a quick short term loan from Digido up to 25,000 pesos for 7 to 30 days
  • Digido offers a short-term loan for new customers at 0% interest rate
  • Apply for a short-term loan and get your money in 30 minutes
How much money do you need?
10 000
min ₱ 1 000
max ₱ 10 000
You will have to return*: 10 000
All your data is under secure protection!
*Interest payments are approximate. The final loan amount and interest rate must be confirmed in your loan agreement after loan approval
Who can get a Digido loan?
You are 21-70 years old
You are a Filipino citizen
You have a valid government ID

Easy short-term loans Digido

Even with meticulous planning and efficient financial management, unexpected expenses can push things out of track. For an individual, it could be an unpaid electricity bill or a medical emergency. But for entrepreneurship, it could be pending invoices or a replacement of a faulty machine.

Short term loans with an easy approval process can be the right choice for such emergencies. Learn in this article what is a short-term loan and what are its advantages and disadvantages.

Get a Short Term Loan at Digido
  • First loan with 0% interest rate for 7 days
  • Get up to PHP 25,000 in just 4 minutes

What is a Short term loan?

A short term loan provides quick financial aid for days to months with fewer requirements. These online loans are for emergencies and usually have smaller amounts than traditional mortgages.

Features of short terms loans:

  • Such loans usually don’t require collateral securities or impressive income requirements.
  • You can avail short term loans for any purpose, such as to settle unpaid Meralco bills, fund a vacation, or settle the hospital bills.
  • Conventionally these loans demand a one-time settlement with interest. But some lenders permit extension of the duration by charging additional fees.
  • In the Philippines, short term loans are provided through banks, lenders, or micro-finance agencies.
  • The majority of loan providers use online portals for loan approval and privileges the users to avail loans anytime, from anywhere. It eliminates the need for frequent travel and avoids loss of workdays as well.

Read more:
Fastest Loan Approval in the Philippines

Digido Fast Loan Philippines

Short term loans in Digido

Digido Finance Corporation, a state-licensed, legit finance institution (1) with SEC Registration and an official Certificate of Authority, is the most popular destination for the Filipinos to finance their short term requirements.  Fully-fledged online lending system provides instant access to fast, easy and reliable sources of short-term funding at any time of the day or night.

Digido Loans: Conditions, terms, amounts

Digido offers a wide range of 24/7 short term loans with high approval rates more than – 90% of applications are approved. Loan applications can be processed through our website or convenient mobile App.

👉 Who is eligible to apply

The loans are open for all Filipino citizens within the age group of 21-70 years. The other prerequisites are a valid government ID and a active mobile phone number.

If you are interested in short loans for the unemployed, Digido is available for freelancers, employed individuals, selected professionals the self-employed. At Digido, short term loans for pensioners are available to you.

👉 Amounts and terms 

For first-time borrowers, there are specific terms to note. Initially, you’re limited to borrowing up to 10.000 pesos with a loan period spanning 15 days. The silver lining? Your first loan will be interest free! That means you’ll repay exactly what you borrowed, not a peso more.

However, if you are a repeat borrower with a history of complete payment of previous loans, you can opt for installment loan repayments of 30 days with loan amount up to 25.000 pesos.

Below is a table of Digido’s short-term loans and interest rates:

Borrower category Amount (PHP) Duration Payment Type Interest
First Time 1,000 – 10,000 5 – 15 days One Time 0% daily
Repeat 10,000 – 25, 000 7 – 30 days One Time 1,5% daily

Requirements for Digido Borrowers

  • Only one valid government ID is needed to apply for short term finance from Digido
  • You can apply for short term personal loans without payslip and without a guarantor. If you can present supporting documents such as payslip, COE, ITR, company ID, DTI (if self-employed or with business), that would be more beneficial for improving your creditworthiness.
  • Repeat borrowers do not need to present any documents.

Once the loan approval is complete, the system will automatically transfer the amount to your account within a few minutes.

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Short Term Loan Philippines

Why choose Short Term Loan Digido?

Advantages of Short term loans

The most striking attribute of the short term loan is instant loan availability. Traditional loans might be cheaper, but one has to wait for weeks to get the money. These loans have advantages such as:

  • Quick Approval: Short term loans often have a faster approval process than long-term loans
  • Minimal Requirements: They often have fewer requirements and less paperwork than other types of loans  than longer-term loans
  • Unsecured: Short-term loans don’t require collateral, making them unsecured loans
  • Single Repayment: Some might require a one-time repayment at the end of the loan term
  • Extension Option: Some lenders allow tenure extension for additional fees
  • Online Availability: Many short-term loans are available online, providing convenience to borrowers
  • Flexible Use: Can be used for various purposes like bills, vacations, or medical expenses
  • Extension Option: Some lenders allow tenure extension for additional fees
  • Varied Providers: In places like the Philippines, they’re offered by banks, lenders, and micro-finance agencies
  • Convenient Access: Borrowers can avail loans anytime, from anywhere
  • No High Income Needed: Doesn’t usually demand a high income

The eligibility requirements for short term cash loans online are quite minimal, and people with a bad credit history also have a chance of availing the loan. The lender does not bother about your purpose of  short term loan. You can spend it on your child’s school fees or for dinner with your girlfriend. But traditional loans such as car loans, can’t be diverted for other expenses.

I want to borrow ₱ 10000
Min: ₱ 1000
Max: ₱ 20000
Payment Terms 10 days
7 days
21 days
My Monthly Gross Income ₱ 20000
You return*: 10 000
All your data is under secure protection!
We recommend taking a loan!

* Interest payments are approximate. The final loan amount and interest rate must be confirmed in your loan agreement after loan approval.

Disadvantages of Short term loans

The primary problem of short term loans is high-interest rates. Late fees for missing a payment would be quite expensive. So the borrower will try hard to avoid any such instances by adopting a frugal lifestyle, affecting the quality of his life.

Short term loan amounts are small and are not sufficient to meet your long term financial needs. For instance, you can utilize this to replace your car tires but can’t use it to purchase a car.

Moreover, failing to repay can impact one’s credit score significantly.

Types of Short term Personal loans in the Philippines

Short term loans are an unavoidable part of each Filipino’s life. Some of the examples of short term cash loan in the Philippines are:

✔️ Credit lines

The bank or lender approves a loan amount for you, but unlike traditional loans, the entire amount will not be transferred to your account.

You can withdraw money from the account whenever required within the loan limit. As you use only a portion of the loan amount, the interest is applicable only for the availed loan, not for the full amount.  The interest rates for such schemes tend to be on the higher side. But one can maintain their credit limit and avoid penalties by timely repayment of the amount withdrawn.  Even though collateral security is not essential, your credit score has a crucial role in the approval of your quick and easy short term loans. Credit Cards are excellent examples of the line of credit loans.

✔️ PayDay Loans

A payday loan is an ultra-short-term loan to overcome your immediate financial crisis until the arrival of your next paycheck. The maximum loan duration would be a couple of days or your next payday.

Usually, the credits will get approval without any document verifications or collateral securities. But the interest rates would be very high. The lenders cover their risk of such loans by demanding post-dated checks or access to your salary account.

The targeted market for such loans is low-income, vulnerable groups of small-time traders or individuals with a poor credit score and irregular income. However, such loans are also in demand among ordinary workers or office employees, because they are easy to obtain and have a high level of approval. Payday loans, unless used diligently, can end one to debt traps. However, if debts are repaid on time, there is nothing dangerous about such loans, on the contrary, they can help in difficult life situations.

✔️ Installment Loans

Typically EMIs are a feature of long term loans that often runs years or decades. But you can get such an installment feature for your short term loans too.

Almost every major financial institution in the Philippines facilitates a user to convert his short term loans to installment loans. It enables the borrower to have a clear picture of his monthly financial obligations and helps him to plan his economic activities accordingly. There can be additional charges such as the processing fee, penalties for missing installments, or pre-closure for early settlement of the quick short term loans no credit check.

✔️ Merchant Cash Advances

Merchant Cash Advance loans or MCA are popular among merchants who are reeling under severe financial stress. Here, the lender infuses funds to the merchant’s capital, and in return, he gets entitlement over a portion of the sales through credit cards for a specified period.

Even though such a loan could bail out a merchant from a short term financial crisis, continuous loss of your sales revenue can pose a threat to your cash flow. However, for many small businesses, such a loan can be a salvation.

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Short Term Loan App

Where to Get Short Term Loans in the Philippines?

A quick online search reveals numerous short-term loan options in the Philippines. ach has its advantages and drawbacks, so it’s crucial to compare rates and repayment terms. Notable providers include:

Loan Provider Overview Loan Amount Interest Rate Repayment Period
Digido Digido Finance Corp offers short-term loans without needing a bank account, as they can disburse to e-wallets, you can pick up your money online e.g. with a GCash. ₱1,000 – ₱25,000 0% for the first loan (not exceed 1.5% per day) 7 days to 6 months
Cashalo Primarily for installment shopping with over 1000 partners. They also provide cash loans via their app. ₱1,000 – ₱12,000 0% to 5.99% monthly 3 to 8 months
GLoan by GCash For GCash users, they offer loans directly deposited to the GCash account. ₱5,000 – ₱25,000 2.89% standard monthly (varies per user) 9 to 12 months
MoneyCat They offer a convenient loan process, allowing borrowing from as low as ₱500. Timely repayment can lead to increased loan amounts. ₱500 – ₱20,000 11.9% monthly (0% for the first loan) 3 – 6 months
BillEase Initially a “buy now, pay later” app, they now offer cash loans through the “Cash Disbursal” feature. ₱500 – ₱40,000 Fixed 3.49% monthly 30 days – 12 months

Note: The information about loan providers presented in the table is subject to change and borrowers are advised to contact their chosen financial or lending company directly for the most updated information.

Criteria of Short term loans

Short term loans typically target those who are unable to secure a conventional bank loan. The reasons could be many, such as bad credit or lack of regular income or lack of time.

  • The primary eligibility criteria for a short term in the Philippines are:
  • You must be a Filipino citizen
  • The minimum age for the applicant is 20-21 years.
  • Your age shouldn’t exceed 65-70 upon the maturity of the loan. The exact age requirements need to be known in each specific company.
  • The applicant should be a resident of the Philippines with an active mobile number.

Each bank and lender use different parameters to assess your eligibility for a loan. For some, credit scores may be a leading star; your income source might be the decision-maker for some. However, most lenders provide fast short term loans online at higher interest rates than banks. However, many more people can get such fast loans.

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Short term personal loan

When is a Short term loan in the Philippines Helpful?

Short term loans are a feasible option only if you have a foreseeable source of income for repayment.

Suppose you own a bakery. You have received a bulk order for the next weekend. But you have some pending invoices with your supplier, and it needs payment before procuring materials for the order.

You know that you will get a lump sum payment within a few days. So spending some extra on interest would be a viable option rather than losing the order altogether.

In short, a short term loan should be capable of revenue generation or mitigation of an impending loss.

Any short term personal loan is an option only when there are no other short term sources of finance. For instance, your car requires an immediate repair, and you badly need it to go to work. But you don’t have money to spend on the repairs. If you stop working, there won’t be any paychecks. Your bills will accumulate, and it will have severe consequences in the future. A short term loan will fetch you the money to fix the car and to evade all these unnecessary complications.

Therefore, we advise you to carefully weigh all the pros and cons before making a quick loan, be sure to decide from which funds you will return it. And then the quick loan will be your assistant in business and personal life.

Learn about
Multi-Purpose Loans in the Philippines

Can I get a Short term loans with Bad credit?

Bad credit is a solid reason for banks to reject your loan application. Still, you may have a chance with Micro-finances and online lenders. But they may exploit your situation by jacking up the interest rates or service charges. As a long term strategy, always try to avoid loans until the full repayment of your existing loans (2).

How to apply for a Short term loan?

If you type “short term loans near me” into your search, you will see many options. But we recommend Digido of course! All major lenders, such as Digido, follow a simple online system for loan approval. You can create a user account in the portal and submit your documents to fulfill the eligibility criteria. The system will check the details and give a loan offer indicating the possible loan amount, term, and interest rate. If you agree, you can accept the short term loan agreement and the fund will reach your account within a few minutes.

Get a Perfect Short Term Loan at Digido!

How to Repay a Short term loan in the Philippines?

You can make the loan payments through a variety of methods such as GCash, Dragonpay payment systems, bank transfers, online payment systems, ATM-based payments, or direct remittance at the bank branches.

Before taking out the loan, be sure to specify how you can repay it. Choose a convenient way to repay in advance. And remember about the repayment date to pay back the debt on time.

What is the Difference between Long and Short term loans?

The significant differences between long-term and short term loans are loan amount, loan processing time, interest rates, and loan duration.

  1. Long-term loans offer large amounts with a repaying window of years or even decades. You can achieve your financial milestones through these loans.
  2. Short term loans are small and are not capable of making long term possessions.
  3. The interest rates for long term loans are much lower than short term credits.
  4. Long term loans undergo strict scrutiny of your documents to ensure your eligibility, increasing the processing time. In contrast, loan approval for short term loans is quite instantaneous.

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  • Are Online Loans Legit?
    Yes, many companies in the Philippines issue loans legally and have a registration number in the government registry. For example, Digido has SEC Registration No. 202003056. Certificate of Authority No. 1272
  • What is the short term loan?
    Short term loans are issued for short periods of time, ranging from a few days to several months, and provide financial assistance to those who need money urgently.
  • Which is better long term or short term loan?
    Usually, long-term loans are more profitable than short term loans, but they are more difficult to obtain and take longer to process.
Disclaimer and Editor’s note


Digido Financial Writers Team is a team of experts in the field of finance and credit, specializing in writing articles for Digido blogs.

Digido Reviews

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    I would definitely give a five (5) star rating to Digido because for so many times since I started using it last October 30, 2020, it saved me from immediate financial needs. The interest is just right depending on the loan term you choose. This is one of my favorite loan apps so far, it has a much lower interest than other loan apps I've tried. The agents are professional and respectful unlike other loan apps.
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