There are two major types of loan in the Philippines - secured and unsecured loan. A secured loan requires the borrower to have some sort of collateral as payment security for loan lenders. In the event that the borrower fails to pay the loan amount, lenders will take the asset and use it as a payment for the loaned money.
On the other hand, an unsecured loan refers to a Personal Loan without cash loan agreement forms, but this often comes with a higher interest rate. It is considered higher risk since it doesnt have any form of security (aka the aforementioned collateral). Why apply for Personal Loans. Here are the top reasons Filipinos borrow money.
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