Personal loans can be a good option if you need cash for a specific purpose. This types of loans are very popular with Filipinos. With the many basic necessities that we need to provide for every day, everybody is exposed to unexpected money emergencies.

If compared personal loans with credit cards, then these are much simpler products. Many of the banks and financial institutions in Philippines offer this loan as a part of their retail lending products. Processing of loans takes longer than other lenders, typically from 3 to 7 days. This may not be the best option if you need extra cash right now.

What is a Personal loan?

A personal loan is a loan taken out for a short period of time, typically between 1 and 5 years. Personal loans online are much simpler products. You borrow a fixed amount of money for a fixed period of time. These are loans are not collateralized and not secured collateralized, but the requirements are much more tough in order to qualify. There can be many reasons why you might want to take out a personal loan. Perhaps you’d like to buy a car, consolidate your debt, expenses like tuition and travel fees, improve your home, go on a holiday, or you are getting married. Getting approved for one is relatively easy and on practice a personal loan in the Philippines doesn’t require a collateral.

Personal loans can be categorized into 4 types:

  1. Unsecured Loan (No collateral is required);
  2. Secured Loan (Approved on the basis of collateral);
  3. Personal loan for OFWs (Tailor made loans for Overseas Filipino Workers);
  4. Top Up Loan (Gives borrowers an option to borrow more money and add it on top of their existing loans).

How it work – 4 simple steps to get your personal loan:

  1. Gather the necessary information. There are a number of documents private lenders may require you to provide when applying for a loan. It’s important that you gather these documents ahead of time to ensure your loan request is processed quickly.
  2. Fill out application form. Firstly, you have to fill a simple application form which will demand your basic personal, financial and employment information given on the site.
  3. Choose a loan option. Check your loan options from our partner banks and lenders and choose the best one.
  4. Get approved. Once you’ve submitted your materials and filled out a loan application, all you have to do sit back, relax, and wait for approval. Sometimes this happens almost immediately, while others may require a few days.

Best personal online lending companies in the Philippines

Below is a list of the best online lending services with lowest you can use today:

Name Interest rates Loan approval duration Mim limit for loan Max. limit for loan Min. Loan Tenure Max. Loan Tenure
CashMart PH 0.8 – 3.5% 1 day PHP 5,000 PHP 50,000 14 days 6 weeks
FundKo 12% – 35% 2-5 working days PHP 10,000 PHP 200,000 3 months 12 months
Loansolutions.PH 1.2% 24 hours PHP 15,000 PHP 1,000,000 3 months 5 years
Monily 1 – 1,33% 24 hours PHP 2,000 PHP 20,000 65 days 90 days
Gobear Depends on the bank you chose to go with Depends on the bank you chose to go with PHP 50,000 depends on monthly income 6 months 5 years
LoanRanger 3,25 – 19,5% 24 hours PHP 3,000 PHP 10,000 5 days 30 days
Binixo 1 – 30% 24 hours PHP 2,000 PHP 20,000 1 day 30 days

Personal loan lenders with lowest rates – Philippines 2018

Check below the list of private lenders with lower incomes:

Bank Name Interest Rate Min. Loan Amount Loan Amount Approval duration Loan Tenure
BDO 1.25%-1.30% PHP 10,000 PHP 10,000.00 – 3,000,000.00 Within 7 working days 3 months – 3 years
BPI 1.20% PHP 20,000 PHP 20,000.00 – 1,000,000.00 Within 5 and 7 days 1 – 3 years
China Bank Savings 1.55%-1.95% PHP 30,000 PHP 20,000.00 – 2,000,000.00 N/A 1 – 4 years
Citibank 2.40% PHP 30,000 PHP 20,000.00 – 1,000,000.00 Up to 72 hours 6 months – 5 years
East West Bank 1.49%-1.69% PHP 15,000 PHP 25,000.00 – 2,000,000.00 3-5 Bankig days 1 – 3 years
Equicom Savings Bank 2.71%-2.9% PHP 20,000 PHP 15,000.00 – 1,000,000.00 No Information 1 – 3 years
HSBC 2.17%-3.0% PHP 14,000 PHP 35,000.00 – 5,000,000.00 Within 5 and 7 days 6 months – 3 years
Maybank 1.10% PHP 18,000 PHP 50,000.00 – 1,000,000.00 5-7 working days 1 – 3 years
PBCOM 28.4%-37.4% PHP 30,000 PHP 40,000.00 – 1,000,000.00 N/A 1 – 4 years
Security Bank 1.39%-1.69% PHP 15,000 PHP 30,000.00 – 1,000,000.00 Up to 48 hours 1 – 3 years
Standard Chartered 1.10% PHP 24,160 PHP 20,000.00 – 2,000,000.00 Up to 48 hours 1 – 4 years
Sterling Bank of Asia 1.45% PHP 30,000 PHP 50,000.00 – 1,000,000.00 Up to 2 working days 1 – 3 years

Some of the advantages of a personal loan:

  • Easy application process;
  • Few documents required;
  • No collateral needed;
  • Multipurpose;
  • Shorter loan tenure;

What are requirements for a personal loan?

Most Banks and lending Companies have more or less the same eligibility requirements, here are the basic:

List of Required Documents:

For employed:

  • Completely fill out application form;
  • 2×2 picture;
  • Certificate of Employment;
  • Latest Payslip(s);
  • Income Tax Document;
  • Latest Utility bill statements;
  • Company Identification;
  • Government-issued Identification.

For self-employed:

  • Completely fill out application form;
  • Copy of Registration of Business Name;
  • 2×2 picture;
  • DTI for single proprietors;
  • SEC Documents for partnerships;
  • Audited Financial Statements (for the last 2 Years);
  • Income Tax Document;
  • Bank Statements;
  • Any valid identification.

Other requirements to prepare:

  • Marriage contract, if married;
  • Bank statement or certification;
  • Billing statement to verify the address.

Some personal online lenders can have their list of required documents. Check it out before you apply.

Who can apply for a personal loan?

  • Must be at least 21 years old or older;
  • A Filipino citizen currently living in Metro Manila, Pampanga, Batangas, Bulacan, Cavite, Rizal, Laguna, Bulacan, Tagaytay, Tarlac, or Zambales;
  • Currently employed, self-employed, or OFW/Seafarer’s Allottee.

Can I borrow with bad credit history?

Here’s the good news: Yes, you can still borrow money even with bad credit history.

The process will just be more difficult and may require you to complete a ton of paperwork, more background checks, and possibly longer wait times.

How to use personal Loan Calculator?

Use the personal loan calculator to find out your monthly payment and total borrowing amount. You can use personal loan calculator in order to work out the amount each of your personal loan repayments will be.

Start by entering how much you want to borrow in the field marked Loan amount. Then use the personal loan calculator to:

  • Simulate your payback period in years or months;
  • Calculate the ideal interest rate on your loan;
  • See how much you would pay in principal and interest.

When is the perfect time to apply?

The perfect time for you to get one is if you are avoiding risking a large or valuable asset. Remember, you don’t need to offer any collateral when applying for a personal loan.