Personal Loans: 9 Ways to Borrow Money in the Philippines

Last Updated – Aug 22, 2023 @ 10:27 am

Making ends meet is a huge challenge especially if you’re dealing with unexpected expenses or problems such as job loss.

If you’re short on funds, borrowing money is one of the fastest and most convenient solutions you can try. 

Loans are structured in a way that can be very beneficial to people who need money fast. However, some forms of debt are better than others.

If you’re smart with the debt you take on and you’re able to pay it off responsibly, it can be the ultimate solution for your situation.

What is a Loan?

A loan is an agreement between a person or organization (the lender) and another person or organization (the borrower) so one may be able to meet his/her financial obligations.

In a loan, the lender agrees to lend the borrower a certain amount of money at a specific interest rate over a specific time period, and the borrower agrees to pay back the money borrowed over the terms agreed upon.

Types of Loans in the Philippines

There are many types of loans in the Philippines, but before you know the most common ones, you first need to understand the difference between secured and unsecured loans.

A secured loan is a loan in which the borrower pledges some asset, or collateral, as a guarantee for the loan. For example, if you need a short-term loan, your home can be your collateral.

If you fail to pay the loan back, the lender will have the right to sell the house and get some of their money back.

Meanwhile, an unsecured loan is a loan that doesn’t require the borrower to pledge collateral or any asset as a guarantee for the loan.

Here are the most common types of loans that you can find in the Philippines.

Personal loan

A personal loan is a type of loan that allows you to borrow a specified amount of money from the lender for a specific purpose.

Personal loans can be used for a variety of purposes, from short-term debt consolidation to one-time expenses.

Housing loan

A housing loan is a type of loan that can be used to own a house or lot. It is also known as house financing.

Calamity loan

A calamity loan is a type of loan that can be used to help Filipino families recover from natural disasters such as typhoons and floods.

Auto loan

An auto loan is a type of loan that can be used to buy a car or motorcycle. It is also known as motor financing.

Appliance/gadget loan

An appliance/gadget loan is a type of loan that can be used to buy appliances and gadgets such as a refrigerator, air-conditioning unit, washing machine, and cellphone.

Business loan

A business loan is a type of loan that can be used to start a business, expand a business, or buy inventory and equipment.

Salary loan

A salary loan is a type of loan that automatically deducts loan payments directly from your salary at the time of deduction.

Installment loan

Also popularly known as “Buy Now, Pay Later”, this is a type of loan offered by lending institutions for commercial use, where borrowers can repay for their purchases in staggered payments. 

Pros & Cons of Getting Personal Loans in the Philippines

Like any borrowing option, taking out a personal loan both have positive and negative consequences.

Let’s take a look at the pros and cons of personal loans in the Philippines.


Can be used for a wide array of purposes

You have the freedom to use money from your personal loan for whatever you want. For example, you can use it to pay off credit card debt, buy a car, handle medical bills, and more.

Quick access to cash

Personal loans are very accessible. Some lenders even offer instant approval and can have your money transferred to your bank account in a few minutes.

Improves credit score

When you pay back your personal loan on time, it will improve your credit score. This can be extremely beneficial when it’s time to apply for a big loan in the future, like a house mortgage or car loan.

High borrowing limit

If you need a big amount of money instantly, personal loans can be the ultimate solution because most offer a high borrowing limit.

This way, you can get the money you need without having to come up with a big amount of cash upfront.

Debt consolidation

Debt consolidation is often the primary reason for people to get a personal loan.

If your credit cards are overflowing with debt, a personal loan can be a great way to consolidate that debt and repay it in a more convenient manner.

Most personal loans don’t require collateral

Most personal loans don’t require you to put up any asset as collateral to secure the loan.

This way, you can get the loan you need without being worried about losing any assets.


High-interest rates

Many personal loans have high-interest rates compared to other types of loans. This can cause more strain on your monthly budget.

Expensive penalties

Personal loans usually have steep penalties for late payments, which can add up over the course of a few months.

Can make your credit score plummet 

If you’re unable to pay back the loan, your credit score will suffer. This can make applying for a home or car loan much more difficult in the future.

Some may require collateral

While most personal loans don’t require collateral, there are still others that require it.

This can make it risky for you to borrow money because there’s a possibility that you may lose your collateral, forcing you to pay more money than what you borrowed.

Can increase your unnecessary debt

If you’re not careful, the personal loan can result in unnecessary debt.

If you’re taking out a personal loan to pay off your debt, you may end up spending the loan money on something else instead.

Most Popular Purposes of Loans among Households in the Philippines (Data)

In recent years, more Filipinos have been getting loans. From 29% in 2017,  it skyrocketed to 41% in 2019. Considering the importance of loans in filling a wide array of financial gaps, this isn’t surprising.   

But what are the most common reasons why Filipinos get a loan?

It turns out, 55.1% of Filipinos who get a loan use it for the purchase of basic goods. Meanwhile, 25.2% of those who get a loan use it for business start-ups or expansion. The third most common reason for loans is for payment or to settle other debts at 12.1%. 

Purchase of basic goods55.1%
Business start-ups or expansion25.2%
Payment or to settle other debts12.1%
Health-related expenses11%
Education-related bills8.2%
Real estate4.8%
Consumer durables4.4%
Travel for leisure0.6%
Other reasons8%

Filipinos also take out loans for health-related expenses (11%), education-related bills (8.2%), vehicles (7.2%), real estate (4.8%), consumer durables (4.4%), and travel for leisure (0.6%). Other reasons for getting a loan made up 8%.  

Source: Statista

Cheapest Ways to Borrow Money in the Philippines

If you’re looking for the cheapest way to borrow money in the Philippines, you’re not alone. Here are some of the options you can consider.


Average Interest Rate: 25% – 36%1

If you plan to borrow money and pay it back in a short period of time, the cheapest option is to apply for a loan from your bank.

Most banks offer personal loans with competitive interest rates. The borrowing limit is high, and you can get the money to your account in a few days.


  • Customizable loan terms
  • Flexible repayment schedule
  • Easy debt consolidation
  • Easy approval


  • Stringent and longer approval process
  • There are many requirements
  • High Interest Rates
  • Harsh penalties for late payments

Banks that offer some of the lowest interest rates for personal loans:

BankInterest Rate (per month)

Learn More: How to Get a Bank Loan in the Philippines

Credit Card Cash Advance

Average Interest Rate: 2% monthly interest rate2

If you need to borrow money and pay it back right away, you can consider borrowing money from your credit card.

Most credit cards allow you to borrow money through a feature called cash advance or cash advance loan. All you need to do is insert your card into an ATM and receive your cash.


  • Quick access to cash


  • Limited borrowing limits
  • High interest rates

Government Loans

Average Interest Rate: 10%3

The government of the Philippines offers a few types of loans that are specially structured to fit the needs of the Filipino people.


  • No collateral required
  • Low-interest rates
  • Easy approval


  • Limited borrowing
  • Can have strict application requirements

Some examples of government loans in the Philippines include:

Pag-IBIG Multi-purpose Loan

Pag-IBIG Multi-Purpose Loan is a personal loan that you can use to pay for any kind of expenses. The loan has a longer loan repayment period, but the interest rate is lower than other personal loans.

Learn More: Complete Guide to Pag-IBIG Fund

SSS Salary Loan

This type of loan is equivalent to one month’s worth of salary. However, only SSS members who have at least 36 months of contributions and six months of contributions in the last year can apply for this type of loan.

Learn More: Complete Guide to SSS Online

Collateral Loan

Average Interest Rate: 0.39% – 2% per month

There are many collateral loan options in the country that you can leverage if you need money instantly.

One example is the Security Bank Finance Car4Cash which you can secure using your car’s OR/CR. For this loan, you can still keep using your vehicle.

Another choice is the AsiaLink Collateral Loans. Here, you can enjoy lower interest rates and higher loans that can reach P10 to P20 million.


  • Low interest rates
  • Easy application


  • Loan amounts are limited depending on collateral
  • You can lose your collateral


Cooperatives are not-for-profit organizations that are focused on providing financial support for their members.

Cooperatives are democratic and member-controlled, so you can also get involved in making decisions. The following are examples of cooperatives you can join in the Philippines.

CooperativeInterest Rate
Paglaum Multipurpose Cooperative3%
Mutual Savings and Credit Cooperative1.56%
Gata Daku Multi-Purpose Cooperative1.25% – 3.5%
San Jose Koop1.7%
ACDI Multipurpose Cooperative1.5% – 2%


  • Interest rates are low
  • Applications are easy
  • Payment features are flexible


  • Limited loan amounts
  • Loans are limited to specific members

Fastest Ways to Borrow Money in the Philippines

If you’re looking for the fastest way to borrow money in the Philippines, there are plenty of options for you to choose from. Here’s a list that you can consider.

Lending apps & platforms

Average Interest Rate: 12% – 35%

There are a number of lending apps and platforms that you can use to borrow money.

These services are more accessible than traditional banks because they can be accessed through your smartphone.

Because they are web-based, you can apply even when you’re on the go.

Some of the most popular apps and platforms are:

Lending AppInterest Rate
Tala14.86% – 18.32%
Cashalo4% – 25%
Tonik1.47% – 7% (per month)
Robocash0.5% – 1.39% (per day)


  • Easy application
  • Quick loan (within 24 – 48 hours)


  • High-interest rates
  • Loan amounts are limited

Know more about lending apps and platforms here.

Installment Loans & Buy Now Pay Later programs

Average Interest Rate: 0% – 1% per month

Installment loans and Buy Now Pay Later programs are designed to help you by allowing you to spread the cost of your purchases over several months or years.

These loans usually have a fixed interest rate throughout the loan term, making it easy to budget your finances.

Some examples include:

  • Tonik Bank Installment Loan
  • Home Credit
  • Tala
  • Lazada Loans
  • Grab PayLater
  • BillEase
  • CLiQQ Loans
  • Shopee SPayLater

Learn More: Best Installment Loans & Buy Now Pay Later Apps in the Philippines

P2P Lending

Average Interest Rate: 12% – 36%

Peer-to-peer (P2P) lending is a concept that has sprouted in recent years. It is a way for individuals to get a loan without having to go through a bank or any other financial institution.

P2P lending platforms are designed to connect lenders and borrowers. The borrower can submit the loan application online and after that, the lenders will approve and fund the loan.

Some examples include:

  • Vidalia Lending
  • Kiva Philippines
  • SeedIn
  • Acudeen


  • No collateral required
  • Easy application
  • Flexible repayment


  • High-interest rates


Average Interest Rate: 3% – 4.5% per month

Pawnshops are a type of loan where you can secure a loan by using any asset you own as collateral. This can include your personal items such as jewelry.


  • Easy access to cash


  • High interest rates
  • You may lose your collateral

Top Personal Loans in the Philippines

Looking for the best personal loan in the Philippines? Here are some of the most popular loan offers you can apply for from banks and other financial insitutions. 

Tonik Flex Loan 

Tonik Flex Loan boasts some of the most competitive interest rates for personal loans in the Philippines. Not only does it offer financial affordability, but the application process is also streamlined, often resulting in approvals within just 24 hours.

This combination of low rates and quick processing makes it an attractive option for those in urgent need of funds or those looking to minimize their borrowing costs.

Furthermore, as a digital-first platform, Tonik ensures a hassle-free online application experience, allowing borrowers to manage their loans conveniently from the comfort of their homes or on the go.

This loan does not require any credit history. You also don’t need a credit card to qualify for this loan. 

  • Interest rate: starts at 1.47% per month
  • Loan amount: up to P250,000
  • Loan terms: up to 24 months 
  • Processing duration: 1-day approval

How to apply:  

  1. Download the Tonik App and create an account.
  2. Click “loans,” and select “Flex Loan.”
  3. Fill up the needed information and get pre-approved for your loan. 
  4. Upload the requirements (can be found here).
  5. Wait for the credit team to contact you for verification.
  6. Wait for the approval notification on your Tonik app.
  7. Submit pending documents to Tonik. 

SB Finance Personal Loan

SB Finance is made possible by Security Bank and Krungsri. They offer a digitally-enhanced experience geared towards Filipinos who want to meet all their financial goals.

With the SB Finance Personal Loan, you can turn your dreams into reality. This loan does not require any collateral or credit card. 

Keep in mind that this loan is only meant for Filipinos 21 to 65 years old (upon loan maturity). SB Finance also has a minimum income requirement of Php15,000 for those employed in Metro Manila and Php12,000 for those employed outside Metro Manila. 

Those who are self-employed must be an owner/majority owner with at least a 40% stake in the business. The company must also be operating and profitable for at least 2 years and must have 1 trade reference.

The minimum gross monthly income for self-employed individuals is Php60,000.

  • Loan Interest rate: 39.43% per annum
  • Loan amount: Php30,000 to Php 2 million
  • Loan terms: up to 26 months 
  • Processing duration: 5 banking days

How to apply:  

  • Download the Zuki mobile app and create an account.
  • Scan all the copies of the required documents.
  • Select Personal Loan and fill up the necessary details.
  • Wait for your loan amount to be disbursed.

RFC Personal Loan

For over 55 years, RFC has been considered a trusted financing partner of thousands of Filipinos looking for alternative sources of funds.

This non-bank financial institution stands out with its credit offers that help businesses and individuals maximize their potential.

RFC Personal Loans include Education Loans, OFW Loans, Professional Loans, Lessor’s Loans, Vehicle Modification Loans, Institutional Salary Loans, and Home Improvement Loans. 

  • Interest rate: 1.5% to 4% per month
  • Loan amount: Php 10,000 to Php 3 million
  • Loan terms: up to 36 months
  • Processing duration: 3-5 banking days

How to apply:  

  1. Visit and fill out the form.
  2. Wait for the team to verify and process your application.
  3. Get your cash. 

You may also call: 

  • Globe: +63945-833-7483 
  • Smart: +63 961-136-1160 
  • Landline: (+632) 8584-6033

CIMB Bank Personal Loan

CIMB operates in 16 countries in the Asia Pacific Region. It provides innovative digital banking products and services that allow Filipinos to easily manage their finances.

Its Personal Loan offers instant disbursement and a very convenient all-digital application process. 

For this loan, applicants must have a minimum gross income of Php15,000. If employed, they must be tenured for at least 6 months, or 1 year of continuous employment, unless employed in the top 15,000 corporations. If self-employed, the business must be operating for at least one year.

  • Interest rate: 1.12% to 1.95% per month
  • Loan amount: Php30,000 to Php 1 million 
  • Loan terms: up to 60 months
  • Processing duration: 1-2 banking days 

How to apply:  

  1. Download the CIMB app and create an account.
  2. Select “Personal Loan” and check your eligibility.
  3. Input your desired amount and tenure.
  4. Provide your mobile number and verify it via OTP.
  5. Perform a selfie check.
  6. Submit your application.
  7. Wait for the preliminary checking, and then submit your income document and company ID (if applicable).
  8. Select your disbursement channel.
  9. Wait for the credit team to decide whether or not to reject or approve your application. 

Welcome Bank Personal Loan

This rural bank is one of the subsidiaries of Welcome Financial Group based in Korea. Its personal loan doesn’t require collateral.

However, applicants must have an active credit card with a Php20,000 credit limit. Applicants must also be employed for at least 1 year, and have a minimum of Php50,000 monthly income.  

  • Interest rate: 1.39% to 1.7% per month
  • Loan amount: Php50,000 to Php 1 million
  • Loan terms: 12 to 36 months 
  • Processing duration: n/a

How to apply:  

  1. Fill out the application form here
  2. Prepare all the required documents and wait for Welcome Bank staff to call you.
  3. Wait for the approval.

Citibank Personal Loan

This popular bank has cemented its status as one of the most trusted institutions in the country not only for individuals, but also for businesses.

The Citibank Personal Loan is one of the best options for those who need cash urgently since you can get approved as fast as 24 hours.

  • Interest rate: 26.9% to 30.9% APR (lower for existing Citi customers)
  • Loan amount: up to Php2 million
  • Loan terms: 1 to 5 years
  • Processing duration: 24 hours

How to apply:

  1. Visit their website.
  2. Fill up the loan application form.
  3. Submit your requirements.
  4. Wait for your loan to get approved.

HSBC Personal Loan

For over 140 years, HSBC has been serving Filipinos with its network of branches in Cebu, Davao, and Metro Manila, among many others.

Its personal loan has one of the lowest interest rates in the country, which is great for those who want to maximize their savings. However, the HSBC Personal Loan late fee is 36% per annum. Considering this, make sure to pay your loan on time. 

  • Interest rate: as low as 0.65% per month
  • Loan amount: Php 1 million or 6x monthly gross salary (whichever is lower)
  • Loan terms: 6 months to 36 months 
  • Processing duration: 5 banking days

How to apply:  

  1. Visit an HSBC branch in your area.
  2. Fill out the loan application form.
  3. Wait for your loan to get approved.


  • Call (02) 8858-0000

Blend PH Personal Loan

Blend PH is developed by Inclusive Financial Technologies, Inc. This peer-to-peer platform aims to promote ethical lending and responsible borrowing through connecting borrowers like you to lenders who want to grow their wealth through investing.

The Blend PH Personal Loan is a great option for those who typically don’t meet stringent bank requirements.

  • Interest rate: 1.5% to 3% per month
  • Loan amount: Php50,000 to Php 2 million
  • Loan terms: 12 months to 36 months 
  • Processing duration: 24 to 48 hours

How to apply:  

  1. Create an account on Blend PH here.
  2. Apply for your loan and submit all the required documents.
  3. Wait for the Blend PH team to validate and verify your information. 
  4. Wait for your loan to be forwarded to partner lenders for funding.
  5. Once a lender decides to fund your loan, you will be notified. 

Union Bank Quick Loans

In recent years, Unionbank transformed itself into one of the most innovative and digital-forward banks in the country.

Its Quick Loans allow you to get extra cash fast to fill any financial gaps. 

  • Interest rate: starts at 26.9% per annum
  • Loan amount: Php1,000 to Php 1 million
  • Loan terms:1 month to 12 months 
  • Processing duration: as fast as 60 seconds

How to apply:  

  • Login via the Quick Loans website here, and access the link provided on your email or SMS.


  1. Download the Unionbank online app, or access your account on your web browser.
  2. Look for the button that says “You qualify for a loan.”
  3. Follow the instructions.
  4. Wait for your loan to be approved. 

Metrobank Personal Loan

Whether you want to take a vacation, pay for a new phone, or start a new business, this loan by Metrobank is an amazing option.

Although the processing is quite long, this loan has one of the lowest interest rates in the Philippines. This loan also has minimal requirements. All you need is a Signed Promissory Note and Disclosure Statement, and a valid government ID. 

  • Interest rate: minimum ACR (annual contractual rate) of 30.516%
  • Loan amount: up to Php 1 million
  • Loan terms: up to 36 months
  • Processing duration: 7 banking days

How to apply:  

  1. Fill out the application form here.
  2. Wait for a Metrobank representative to call you and give you further instructions. 

BDO Personal Loan

BDO personal loan is a type of unsecured loan that allows individuals to borrow money for various purposes such as medical emergencies, travel, home renovation, or debt consolidation.

  • Interest rate: starts at 25.98% per annum
  • Loan amount: up to Php 2 million
  • Loan terms: up to 36 months
  • Processing duration: 7 banking days

How to apply: 

  1. Visit any BDO branch near you.
  2. Bring all the necessary requirements:
    • Government-issued IDs
    • Certificate of Employment
    • Completed Application Form
    • Proof of Income
      • Employed: Latest ITR, payslip, and/or credit card statements
      • Self-Employed: Latest ITR, bank statements, Business Registration (via DTI or SEC)

BPI Personal Loan

BPI offers competitive fixed interest rates for their personal loans. They have a streamlined process for loan approvals, and once all necessary documents are submitted, the approval can be relatively quick and can all be done online.

  • Interest rate: up to 25.60% p.a.
  • Loan amount: up to Php 3 million
  • Loan terms: up to 36 months
  • Processing duration: 7 banking days

How to apply: 

  1. Apply online and fill up their online application form

EastWest Personal Loan

EastWest Bank is one of the prominent banks in the Philippines, offering a range of financial products, including personal loans.

  • Interest rate: starts at 41.67% p.a. (Effective Interest Rate)
  • Loan amount: Php 25,000 Php 2 million
  • Loan terms: up to 36 months
  • Processing duration: 7 banking days

How to apply: 

  1. Apply online via EastWest Bank’s website.

Related: The Complete List of PayPal Bank Codes & SWIFT Codes (BIC) of Philippine Banks

Lending & Borrowing Options to Avoid in the Philippines

Sometimes, you may be offered loans and credit opportunities outside reliable institutions.

While their offers may seem attractive, you need to think about the risks involved. Here are some lending and borrowing options to avoid.

Payday loans

Payday loans are short-term loans that are usually small amounts and with high-interest rates. These loans are meant to cover your expenses until your next payday.

However, if you fail to pay off your loan on time, you’ll be charged a lot of late fees.

If you do choose to apply for these loans, always confirm that you can really afford to pay the money. Otherwise, you may end up in debt.

Loan sharks

These loans are illegal and unregulated. The loans are given out by people who earn money from the usurious interest rates on their loans.

They also have no scruples about intimidating their customers and threatening them with violence if they do not pay up.

High-interest loans

When you are looking for a loan to cover your expenses, it may be tempting to jump into a loan opportunity with a high-interest rate.

However, it is not worth it if you can’t afford the debt. If you can’t pay back your loan, you’ll be charged a lot of fees and penalties.

Tips for Getting your Loan Application Approved in the Philippines

Even if you have a stable income, your loan application can still get rejected. We’ve rounded up some tips that you can use so you can get your loan application approved in the Philippines.

Increase your credit score

Having a good credit score can make you eligible for better interest rates. Getting on top of payments can make your credit score look more positive and seem more responsible to potential lenders.

Check your debt-to-income ratio

Your debt-to-income ratio is the percentage of your monthly income that is spent on your mortgage, credit cards, and other debts.

Having a high debt-to-income ratio can lessen your chances of getting approved for a loan. If you plan to apply for a loan, you may want to consider lowering your debt-to-income ratio first.

Don’t take out a loan that’s too high

If you need a loan, it may be tempting to take out the highest amount that you can qualify for. However, this can lead to debt trouble in the future.

If you take out a loan that you can’t afford, it can be very hard to come up with the money. You may even have to resort to taking out a loan from illegal lenders to pay back your debts.

Always compare lenders

Different lenders have different interest rates and loan features. Before you decide on a lender, always check their interest rates, loan features, and loan conditions. 

Have your requirements ready

If you want to get a loan easily, you need to make sure that your requirements are clearly outlined and easy to understand.

Having your requirements organized can make your loan application process much faster.

Tips for Paying Off Debt 

Paying off your debt is one way to keep your finances in check. We’ve gathered some tips that you can use to keep your finances in check.

Create a budget

A budget can be a helpful tool that helps you keep track of your spending and gives you a clear idea of how much you owe.

By tracking your expenses, you can get a better idea of where your money is going and what you can do to pay off your debt faster.

Prioritize debts with high interest

If your loans have lower monthly payments, it can be tempting to focus on them first. However, it is best to pay off your high-interest loans first and then work your way down.

Pay more than the minimum

If you have a number of loans and you can afford it, it may be best to pay more than the minimum payments. This can reduce the time that it will take for you to pay off your loans.

Pay your bills on time

Paying your bills on time is another way to pay your loans on time. This can also help you avoid late fees and penalties, and it can also increase your credit score.

Consider debt consolidation 

Debt consolidation is a way to combine all of your debts into one loan. Instead of having several loans to pay back, you can have one loan.

Through this method, you can make your payments easier to manage, which can make it easier for you to pay off your debts.

Make more money

If you want to get out of debt, one of the most effective ways to do it is to make more money. By earning more money, you can afford to pay off your debts and reduce your debt-to-income ratio.

This can also make you eligible for more loans in the future.

Consider hiring a financial advisor

A financial advisor can help you run your finances and give you an idea of where your money is going.

Your financial advisor can also help you to come up with a budget that you can use to keep your finances in check.

Personal Loans in the Philippines FAQs

Here are some of the most common questions asked about getting personal loans in the Philippines:

How do I qualify for a personal loan in the Philippines?

The qualification usually requires proof of citizenship or residency, stable income (of at least P15,000 per month), valid identification, and a good credit history.

What are the common interest rates for personal loans in the Philippines?

Interest rates can vary between banks and financial institutions, which can range from 15% to 50% per year (which highly depends on the loan term and credit history).

How long does it take for a personal loan to get approved?

While some banks might offer approvals within 24 hours, the general processing time can range from a few days to a couple of weeks, depending on the bank and the completeness of submitted requirements.

How much money can you borrow from personal loans in the Philippines?

The amount can range from P10,000 to P3,000,000. The amount of money you can borrow from personal loans in the Philippines largely depends on the bank or financial institution, as well as the borrower’s qualifications such as income, credit history, and existing liabilities.

To provide a general idea:

  • Minimum Loanable Amount: Many banks start their personal loan offerings at PHP 10,000 to PHP 30,000.
  • Maximum Loanable Amount: For well-qualified borrowers, some banks and lending institutions can offer personal loans ranging from PHP 500,000 to PHP 3 million or even more in some cases.
  • Income Requirements: The loanable amount is often contingent on the borrower’s monthly income. Many banks require borrowers to have a minimum monthly income (e.g., PHP 15,000 to PHP 50,000) to be eligible. The higher the income, the more substantial the potential loanable amount.
  • Loan Tenure: The amount you can borrow might also be influenced by the loan’s term or duration. Longer terms might allow for larger loan amounts, but this also means you’ll be paying interest for a more extended period.
  • Other Factors: Other factors, such as the borrower’s employment type (e.g., regular employee, self-employed, overseas Filipino worker), employment stability, credit score, and existing financial obligations, can influence the loanable amount.

It’s essential to remember that even if a bank approves a high loanable amount, borrowers should assess their capacity to repay and consider the interest and other charges over the loan’s term.

Can foreigners apply for personal loans in the Philippines?

While some banks allow foreigners with stable income and residency to apply, others might have stricter requirements. It’s recommended to check with the specific bank.

What is the typical repayment period for a personal loan?

Repayment periods commonly range from 12 months to 36 months, though some institutions might offer longer terms.

Are there any penalties for early loan repayment?

Some banks may charge a pre-termination fee for paying off a loan before the end of its term. It’s essential to read the loan agreement details.

Can I apply for multiple personal loans at once?

While it’s possible to apply for multiple loans, it might affect your credit score and the bank’s assessment of your ability to repay.

What happens if I can’t repay my personal loan on time?

Late or missed payments can result in penalties, higher interest charges, and a negative impact on your credit history.

Do I need collateral for a personal loan?

Personal loans in the Philippines are typically unsecured, meaning you don’t need to provide collateral. However, this can mean higher interest rates compared to secured loans.

How do I compare different personal loan offers?

It’s essential to look at the interest rate, repayment terms, fees, loanable amount, and customer reviews when comparing loan offers.

Can I apply for a personal loan online?

Yes. Many banks and financial institutions in the Philippines now offer online applications for personal loans, especially with the rise of digital banking platforms.

What are the consequences of defaulting on a personal loan?

Defaulting can lead to legal actions, higher penalty fees, increased interest rates, and a severe hit to your credit rating.

Disclaimer: Grit PH strives to post up-to-date information on all investment, banking, and other financial products we feature. However, information may change without notice. Therefore, we do not guarantee the accuracy of the information listed on the website, including those provided by third parties at any particular time. 

It is best to review the updated terms and conditions of your chosen financial institution. Grit PH is not affiliated with the companies mentioned in the article. All testimonials and opinions are representative only of the writer’s experience, but the results will be unique to each individual.


  1. eCompareMo
  2. MoneyMax
  3. MoneyMax

About MJ de Castro

MJ de Castro is the lead personal finance columnist at Grit PH.

MJ started her career as a writer for her local government’s City Information Office. Later on, she became a news anchor on PTV Davao del Norte.

Wanting to break free from the shackles of her 9-to-5 career to live by the beach, she pursued remote work. Over the years, she has developed a wide specialization on health, financial literacy, entrepreneurship, branding, and travel.

Now, she juggles writing professionally, her business centering on women’s menstrual health, and surfing.

Education: Ateneo de Davao University (AB Mass Communication)
Focus: Personal Finance, Personal Development, Entrepreneurship, & Marketing

Reader Interactions

Leave a Reply

Your email address will not be published. Required fields are marked *