Lazada Loans. Apply for Personal Loans Online

What are Lazada Loans?

Lazada, a prominent online shopping platform in the Philippines, introduced Lazada Loans in 2019 as a short-term lending program, offering a convenient "buy now, pay later" payment option. Functioning as an alternative payment method for users facing immediate financial needs, Lazada Loans collaborates with accredited lenders to facilitate the service. This lending program allows users to apply for loans directly through the Lazada website or app, providing a swift approval process on the same day. Shoppers can utilize the approved loan amount for purchases on Lazada or even for bill payments within the app.

The application process for Lazada Loans is entirely online, eliminating the need for physical visits to stores and paperwork. The program boasts easy accessibility, allowing users to apply anytime and anywhere. Moreover, Lazada Loans offers flexible installment plans without the requirement of a credit card. The service ensures accredited lenders, vetted by Lazada, providing a layer of security for users.

Key Features

1. Online Application Process. Lazada Loans offers a seamless and entirely digital application process, eliminating the need for physical visits or paper forms.

2. Flexible Installment Plans. Users can choose from a range of installment plans, allowing for repayment options as short as 15 days or extending up to a 24-month term, providing flexibility based on individual financial preferences.

3. Accredited Lenders for Security. Lazada collaborates with accredited mobile lenders, ensuring a vetted and secure lending environment for users, minimizing the risk of scams or fraudulent activities.

4. Low-Interest Rates for First-Time Borrowers. First-time borrowers may benefit from a 0% interest rate, offering an attractive incentive. Subsequent loans may have normal interest rates ranging from 2% to 4%.

5. Fast Approval Process. The approval process is primarily digital, and Lazada emphasizes a quick turnaround time, with approvals ranging from instant to a maximum of 24 hours.

6. Credit Limit Increase with Repayment. As users responsibly repay their loans, the credit limit with each lender increases, enabling them to access higher loan amounts with subsequent applications.

7. Wide Range of Acceptable IDs. Lazada Loans accept various government-issued IDs, including Passport, Driver’s License, Social Security System (SSS), and Pag-IBIG, ensuring flexibility in the application process.

8. Clear Repayment Channels. Repayment is directly between the user and the lender, and Lazada Loans provides clear information on repayment channels, including bank transfers, over-the-counter channels, and bills payment centers.

9. No Expiry for Wallet Credits. The credits in the Lazada Wallet from a Lazada Loan do not expire, allowing users to shop at their convenience or save credits for future purchases.

Pros and Cons

Pros

Cons

Reliability

Lazada Loans, backed by Lazada, one of the largest and most reputable online shopping platforms in the Philippines, provides a reliable financial solution for users seeking short-term funding. With its inception in 2019, Lazada Loans has quickly become a trusted name in the online lending landscape, offering a seamless and secure borrowing experience. As part of the Lazada ecosystem, the lending program leverages the platform's robust infrastructure, ensuring a reliable and efficient application and disbursement process. Users can have confidence in the credibility of Lazada Loans, given its association with a well-established and widely recognized e-commerce brand.

Lazada Loans' reliability is further underscored by its collaboration with accredited mobile lenders, adding an extra layer of legitimacy to the lending process. The program's partnerships with reputable financial institutions demonstrate a commitment to responsible lending practices and customer security.

How to Apply for a Lazada Loan?

Apply for a loan

1. Activate Your Lazada Wallet. Ensure that your Lazada Wallet is activated. This serves as the dedicated platform for receiving and managing your loan credits. If you haven't activated your Lazada Wallet, you can do so within the Lazada app or website.

2. Choose a Lazada Loans Partner Lender. Navigate to the Lazada Loans section and select your preferred partner lender. Lazada collaborates with accredited mobile lenders to offer diverse lending options. Click on the partner's logo to initiate your loan application.

3. Submit Your Application. Complete the loan application form provided by the selected partner lender. The requirements may vary, but a government-issued ID, such as a Passport, Driver’s License, SSS, or Pag-IBIG, is typically a minimum requirement. Some partners may request additional documents like proof of billing or a recent pay slip.

4. Wait for Approval. After submitting your application, patiently wait for approval from the partner lender. The approval lead time can vary but is generally expedited, with some approvals taking as little as a few hours and up to a maximum of 24 hours.

5. Receive Loan Proceeds in Your Lazada Wallet. Once your application is approved, the loan amount will be credited directly to your Lazada Wallet. You'll receive notifications via SMS and in-app notifications to confirm the availability of funds.

6. Start Shopping. With the loan amount in your Lazada Wallet, you can begin shopping on the Lazada platform. Explore a wide range of products, from gadgets to groceries, and use your wallet credits to make purchases.

Conditions and Requirements

Conditions

1. Interest Rates. Lazada Loans feature competitive interest rates, including a 0% interest option for first-time borrowers. Subsequent loans may attract normal interest rates, typically ranging from 2% to 4%. It's advisable for borrowers to review and understand the specific interest rates associated with their chosen lender.

2. Loan Limits. For first-time lenders, Lazada Loans offer an initial loan amount ranging from ₱4,000 to a maximum of ₱20,000. The minimum loanable amount is ₱500, and as borrowers repay loans in full and on time, their credit line with each lender increases, potentially allowing for higher loan amounts in the future.

3. Repayment Terms. Lazada Loans provide flexible repayment terms, allowing borrowers to choose from a variety of installment plans. The repayment period can be as short as 15 days or extend up to a 24-month term, giving borrowers the flexibility to select a plan that aligns with their financial capabilities.

4. Loan Disbursement. The loan proceeds are disbursed directly to the Lazada Wallet registered to the borrower's account. It's important to note that Lazada Loans are not cash loans; the funds can only be spent within the Lazada platform.

5. Credit Line Increase. Responsible repayment behavior leads to an increase in the borrower's credit line with each lender. This feature allows users to access higher loan amounts with subsequent applications.

6. Collateral and Guarantor. Lazada Loans do not require collateral or a guarantor, simplifying the application process. Borrowers can apply for a loan without having to provide assets or involve a third party in the borrowing arrangement.

Requirements

1. Activated Lazada Wallet. Borrowers must ensure that their Lazada Wallet is activated before applying for a loan. The Lazada Wallet serves as the designated account for receiving and managing loan credits.

2. Government-Issued ID. A valid government-issued ID is a fundamental requirement for the loan application process. Acceptable IDs include a Passport, Driver’s License, Social Security System (SSS), and Pag-IBIG. The specific ID requirements may vary depending on the partner lender.

3. Proof of Billing and Pay Slip (Varies). Some partner lenders may require additional documents such as proof of billing and a recent pay slip. Borrowers should carefully check the specific requirements of their chosen lender to ensure a smooth application process.

4. Minimum Cash-In Amount for Wallet Top-Up. In cases where the Lazada Wallet balance is insufficient to cover the total purchase amount, borrowers may need to top up their wallet. The minimum cash-in amount is ₱20, and various methods, including bank transfer and OTC, are available for wallet top-ups.

5. Responsibility in Loan Repayment. Borrowers are responsible for adhering to the agreed-upon repayment schedule and terms. Regardless of whether the wallet credits are utilized, the loan must be repaid according to the specified repayment schedule.

Best Places to Get a Loan Today

Digido

Apply for a loan

Digido is an online loan company in the Philippines, offering non-collateral cash loan services. They provide a fully automated online portal for a seamless loan application process. Key features include:

• Automated application process.
• Loans for various purposes, including emergency and OFW loans.
• No collateral required.
• Online loan calculator.
• Transparent interest rates, with a commitment to fair lending practices.
• Loan accessibility for unbanked individuals.
• Secured operations, fully licensed and registered under the SEC.

MoneyCat

Apply for a loan

MoneyCat is an online payday loan provider in the Philippines, offering efficient financial solutions with an easy-to-navigate online registration form. Their features include:

• Swift approval process, usually within 24 hours.
• Flexible loan amounts ranging from PHP 500 to PHP 20,000.
• Convenient application methods via website or mobile app.
• First loan free of charge for new users.
• Licensed by the SEC, ensuring reliability and legitimacy.

Finbro

Apply for a loan

Finbro is an online lending platform providing quick loans with durations of up to 12 months and amounts ranging from ₱1,000 to ₱50,000. Their service includes:

• Online application process that can be completed in 15 minutes.
• Transparent conditions with no extra costs.
• 24/7 service availability.
• Data protection for users.
• Higher interest rates for repeat loans.
• No mobile app for accessibility.

Kviku

Apply for a loan

Kviku is an online lending institution known for providing short-term loans with a fully automated online service. Their main features are:

• Simple and user-friendly loan procedures.
• 24-hour approval process.
• No hidden fees or charges.
• 100% online lending experience.
• Competitive interest rates at 0.16% daily.
• Flexible repayment terms up to 180 days.
• Registered and authorized by the SEC, ensuring reliability.

Ways to Receive the Money

The primary and most common method of receiving Lazada Loans is through direct crediting to the borrower's Lazada Wallet. Once the loan application is approved, the loan amount is seamlessly transferred to the borrower's Lazada Wallet, creating a dedicated balance for use on the Lazada platform.

Products

1. Buy Now, Pay Later Loans (₱4,000 to ₱20,000 with the ability to increase the credit limit). The core offering of Lazada Loans revolves around the "Buy Now, Pay Later" model. Users can access short-term loans that allow them to make immediate purchases on the Lazada platform and repay the borrowed amount over a specified period. This financial product is designed to accommodate users who require instant funds for their online shopping needs.

2. Flexible Installment Plans. Lazada Loans provide users with the flexibility to choose from a variety of installment plans. Borrowers can opt for repayment terms as short as 15 days or extend to a 24-month term, allowing them to align their repayment schedule with their financial capabilities.

Reasons for Getting Rejected for a Lazada Loan

1. Incomplete or Inaccurate Information. Providing inaccurate or incomplete information during the application process can lead to rejection. It's crucial to fill out all required fields accurately and submit the necessary documents to ensure a thorough evaluation.

2. Insufficient Eligibility Criteria. Borrowers must meet specific eligibility criteria set by Lazada Loans and their partner lenders. Failure to meet these criteria, such as age requirements or minimum income thresholds, can result in rejection.

3. Creditworthiness. While Lazada Loans may not require a traditional credit check, some lenders evaluate creditworthiness through alternative means. Poor credit history, outstanding debts, or a history of late payments may impact the approval decision.

4. Unverified Identification. Lazada Loans often require a valid government-issued ID (e.g., Passport, Driver’s License, SSS) for verification. Submitting an unverifiable or expired ID can lead to rejection.

5. Multiple Outstanding Loans. Having multiple outstanding loans, especially with the same or different lenders, may raise concerns about the borrower's ability to manage additional debt. Lenders may reject applications to mitigate potential risks.

6. Inadequate Repayment Capacity. Lenders assess the borrower's repayment capacity based on income and financial obligations. If the borrower's income is insufficient to cover the proposed loan amount or if there are concerns about repayment ability, the application may be rejected.

7. Frequent Loan Applications. Submitting multiple loan applications within a short period may signal financial distress or a higher risk of default. Lenders may view this as a red flag, leading to rejection.

8. Inconsistent Information. Inconsistencies between the information provided in the application and supporting documents may raise doubts about the borrower's credibility. Lenders prioritize accuracy and consistency during the application review process.

9. Previous Loan Defaults. If a borrower has a history of defaulting on previous loans, it can significantly impact the likelihood of approval for a new loan. Lenders may be hesitant to extend credit to individuals with a track record of non-payment.

How to Repay a Lazada Loan?

1. Loan Agreement Details. Familiarize yourself with the terms and conditions of your loan agreement. Check the repayment schedule, including the installment amounts and due dates. This information is crucial for ensuring timely payments.

2. Repayment Channels. Lazada Loans provide multiple repayment channels for borrowers' convenience. These channels may include bank transfers, over-the-counter (OTC) channels, and bills payment centers. Each lender will specify the available channels in your loan agreement.

3. Direct Communication with Lender. While the loan disbursement is through Lazada, the repayment is exclusively between you and the lender. Direct communication with the lender is essential for any queries or clarifications regarding the repayment process. Lenders often provide contact information for customer support.

4. Bank-to-Bank Transfer. If bank transfer is one of the accepted repayment channels, you can initiate payments directly from your bank account to the lender's specified account. Ensure that you use the correct reference numbers and details provided by the lender to facilitate smooth transactions.

5. Over-the-Counter (OTC) Payments. Some lenders may offer over-the-counter payment options at designated partner banks or payment centers. Visit the nearest OTC location, provide the necessary details, and settle your payment in person.

6. Bills Payment Centers. Lazada Loans may also be payable at various bills payment centers. These centers facilitate convenient in-person payments, allowing borrowers to settle their dues at locations such as convenience stores, malls, or designated payment outlets.

7. Prompt Payment. Adhere to the agreed-upon repayment schedule. Ensure that payments are made on or before the specified due dates to avoid late fees and maintain a positive borrowing relationship with the lender.

8. In-App Notifications. Lazada Loans may send in-app notifications or reminders about upcoming payments. Stay attentive to these notifications to stay informed about your repayment obligations and due dates.

9. Regular Monitoring. Periodically check your Lazada Wallet and loan account for updates on your outstanding balance, repayments made, and any related transactions. This regular monitoring helps you stay on top of your financial commitments.

Alternatives

Atome

Atome steps in to assist when you find yourself in a tight spot financially. As a Buy Now, Pay Later app in the Philippines, Atome enables users to divide their bills into three equal payments spread across three months. Notably, Atome offers a 0% interest rate, providing a cost-effective solution for those seeking flexible payment options. However, it's important to note that a one-time administration fee of ₱300 is charged in case of late payments. Atome's array of partner brands includes renowned names such as ZALORA, Aldo, Garmin, HairMNL, The SM Store, Boozy, Fitness First, Agoda, and Linen and Homes, offering a diverse range of options for users.

Plentina

For smaller and everyday purchases, Plentina emerges as a notable Buy Now, Pay Later app in the Philippines. With an initial loan amount starting at ₱100, Plentina is designed for those seeking financial flexibility in their day-to-day expenses. The app encourages consistent usage, and as users prove their creditworthiness, more loan offers become available. Plentina operates with a service fee, varying from 5% to 14%, depending on the repayment period. Users can avoid the service fee by settling their loans within 14 days, showcasing Plentina's commitment to rewarding responsible borrowing habits.

GCredit

In collaboration with CIMB Bank, GCash introduces GCredit, a Buy Now, Pay Later program accessible through the GCash app. This personal credit line, available exclusively to fully verified users with high GScores, offers a convenient financial solution. GScores are trust ratings determined by GCash based on users' credit activities. GCredit does not necessitate a guarantor or collateral, providing users with a hassle-free borrowing experience. With loan amounts reaching up to ₱30,000 and a loan term of 45 days, GCredit operates with a monthly interest rate ranging from 5% to 7%.

Digido

Digido Quick Loans emerges as an online lending platform catering to a range of borrowing needs. Offering loan amounts from ₱1,000 to ₱25,000, Digido stands out with its first-time borrower-friendly approach, featuring a 0% interest rate for initial loans. As borrowers establish their creditworthiness, they can access higher amounts up to ₱25,000. The platform prides itself on transparency, with no commissions or hidden charges for users to navigate. Approval within the same day of application ensures that Digido Quick Loans is a reliable choice for those in urgent need of financial assistance. With a loan term stretching from one to six months, Digido Quick Loans offers flexibility to accommodate various repayment preferences.

Editorial Opinion

Important

How to Choose a Lender in the Philippines

1. Ensure that the lender is registered with the Securities and Exchange Commission (SEC) of the Philippines.

2. Investigate if the lender is a member of recognized industry associations in the Philippines, such as the Chamber of Thrift Banks or the Philippines Finance Association.

3. Carefully examine all terms and conditions of your loan contract. This includes understanding the repayment schedule, fees, and any penalties for late or missed payments.

4. Payday loans can have high-interest rates. Make sure the contract clearly outlines the interest rate and total cost of the loan, including any processing fees or additional charges.

5. Familiarize yourself with your rights regarding cancellation. In the Philippines, consumers may have the right to rescind the loan within a specific period after signing the agreement.

6. Research the lender's reputation through customer reviews, complaints, and feedback available online.

Methodology

In Finanso, we've carried out a comprehensive analysis of over 50 lenders in the Philippines, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.