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Salary loans in Cebu have long been the preference of working class families. This is because these are short term cash loans offered to them without any security. The amount of the loan is determined on the basis of a review of a person’s salary. Thus, most of the time, borrowers pay a small amount of cash for education or business expenses as well as for other unplanned expenses.

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Most Filipino borrowers refinancing their Philippines salary loan in Cebu is to pay for living expenses during temporary stint in other states or countries. In many cases, the borrower returns to the Philippines after a few years. Borrowers may take a new job in the meantime and use the paycheque from the previous employer. This will be beneficial for the employer as he gets his employee insured and thus, the employer gets his salary from the bank. The bank, in turn, declares the borrower as employed and not as self-dependent.

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