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ATM Loan and Payday Loan
I could only think of two things when I hear the words ATM loan. First, ATM cards as we all know need have its minimum maintaining balance in order for the owner to use it and have the account running. This is the regular ATM card account wherein you can deposit and widthdraw anywhere or any bank as long as they are affiliate of your bank where the account exists.
Along with the ATM account, there is a cash loan allowable depending upon the category to which your card is attached to. Many didn’t know that their ATM accounts can actually get them a loan from the bank where their account exists. Some would prompt for an out side loan just to get cash money to use for any reason.
In the Philippines however, since there is a company attached ATM account where there is actually no need for a minimum balance to use it or have it running without fear of getting the said account closed. With this type of ATM account, you can get money only when it is payday. This type of ATM will not allow you however, to get qualified for a bank loan via the said category.
However, there are certain lending companies and small enterprises whose business is owned not by a corporation but instead maintained by individuals who are willing to give ATM loan without any other collateral but the ATM card itself provided that you are currently employed and your ATM card is active. This types of loan is considered an ATM loan or more of a personal loan for which the only guarantee that the lender holds on to is the fact that they have your ATM and that you are not jobless and your salary will be the one at stake at the end of the payday. In other countries, they call it as payday loans.