Review of OLP (Online Loans Pilipinas) – A Loan App to Avoid
If you've been considering using the Online Loans Pilipinas (OLP) app, you might want to rethink it after recent changes to its fees and terms. I used to recommend OLP because it was easy to use, had lower interest rates, and allowed the removal of additional services. However, things have changed, and now there are several concerns that potential borrowers should be aware of.
What Has Changed with OLP?
In the past, OLP had a 15% interest rate, and it was straightforward to remove additional services like the loan guarantee. Back then, it was relatively easy to manage. But now, they've significantly raised their fees, making the loan more expensive. The addition of services like the loan guarantee is non-negotiable and difficult to remove, which is problematic for borrowers who want to keep their payments manageable.
When I checked the app recently, my credit limit had decreased to just Php 5,000. This happened because I hadn’t used the service in a while. OLP now requires you to keep using the app regularly to maintain or increase your credit limit. Additionally, after borrowing, they start pressuring you to repay early, which seems like a tactic to generate extra revenue.
Why the High Fees?
OLP has introduced new charges that make loans more expensive. For example, if you borrow Php 5,000 for 30 days, you'll need to repay Php 6,500, which includes additional service charges. The service charges can be challenging to remove, with one option (the electronic doctor) being easy to uncheck. However, even after removing this, the loan guarantee charge still applies, which increases the total repayment amount.
I tried removing the additional services and was told that this could take up to seven days. While the cancellation was processed fairly quickly, the added loan guarantee remained, making the loan more expensive than expected.
Is OLP Still Worth It?
While the loan disbursement process is quick, with no accidental loans (you must confirm all loans via OTP), the downside is the high fees that are tacked on. The initial promise of "zero-interest" loans for first-time borrowers is misleading, as it is offset by a service fee.
For repeat borrowers, while the loan process remains smooth, the fees have increased over time. The loan guarantee, which used to be easily removable, is now difficult to get rid of and adds to the financial burden.
My Verdict
Unfortunately, I no longer recommend OLP as a loan option. While it is still easy to access and disburse loans for repeat customers, the excessive fees and added charges make it a poor choice for new borrowers. If you’re not careful, it could become a financial trap. I advise being cautious with your accounts and considering other, more affordable loan apps.
Hopefully, this review helps you make a more informed decision about your borrowing options. Stay tuned for better loan apps in future posts!
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