How to Get Collateral Loans in the Philippines

Last Updated – Feb 1, 2024 @ 2:38 pm

For banks and other lending institutions, the process of lending involves taking on some degree of risk.

This is because there’s always a chance that the borrower will not return the capital loaned, therefore causing the lender to incur a loss. 

So how do lending institutions deal with this? There are two ways.

First, lenders must assess the creditworthiness of borrowers. Second, they must secure the risk through collateral.

What is Collateral Loan?

A collateral loan is a type of secured loan wherein the borrower pledges a certain asset such as a property or financial security to get approved for a loan.

If they are unable to pay the lender, the lender can recover the loan amount by getting ownership of the borrower’s collateral. 

When it comes to collateral loans, the value of collateral can be used to negotiate loan terms such as tenure, interest rate, and loan amount.

This is why when it comes to collateral loans, the borrower usually gets larger amounts and can take advantage of longer tenures depending on the collateral pledged. 

Related: 9 Ways to Borrow Money in the Philippines

Types of Collateral that are being accepted in the Philippines

Here are some of the collateral that you can use when applying for a loan.


This is one of the most common types of collateral used by Filipinos.

The property can be the borrower’s house and lot, commercial property, residential lot, condominium unit, or vehicle, among many others.

If the borrower fails to pay back the loan, the lender will take ownership of the property and sell it for less than its market value.


Equipment that is used in one’s business operation can also serve as collateral. These are usually heavy equipment such as a machine, training equipment, and office equipment.

Cash security

Borrowers can also use cash as collateral. To do this, they need to take out a loan from the bank where they have an active account.

By doing this, they are allowing the bank the right to the cash in their active account to recover the amount in their loan. 

Inventory financing

This is when a borrower pledges his stock, raw materials, finished goods, or any inventory to secure a loan.

Invoice financing

Here, the lender will provide the borrower with a loan against the future invoice that the borrower will be receiving. 

Blanket liens collateral

A blanket lien gives banks and lenders the right to seize all types of collateral owned by a debtor if payment is not made.

Theoretically, this gives lenders a legal interest in the assets that serve as collateral.

Pros & Cons of Collateral Loans

Here are some of the advantages and disadvantages of collateral loans.


It makes it easier to get a loan for those with low credit score

Borrowers with low credit scores usually have a hard time getting approved for loans since banks are very strict in their approval process.

However, by using collateral, banks can become more flexible with the approval process as they can minimize their risk.

Borrowers can enjoy lower interest rates

With a collateral loan, the risk taken by lenders is lower. This means that they can discount the interest rates depending on the collateral’s value.

Borrowers can also take advantage of a higher negotiating power since the collateral gives them the ability to set their terms.

Borrowers can get more money

The value of the collateral determines how much a borrower can get.

This is why when it comes to collateral loans, the borrower can get larger amounts and take advantage of longer tenures depending on the collateral pledged.

It can build your credit score

A borrower’s credit score is upgraded when a loan is repaid on time. By doing this, it can help build a good credit standing.

This can be extremely beneficial in the future when the borrower wants to apply for another loan.


The process is more complicated compared to unsecured loans

When it comes to collateral loans, the borrower needs to clearly state the value of the pledged collateral, and if it is subject to any other debt.

This can be a very tedious and time-consuming process for both the borrower and the lending institution.

Borrowers may lose their property 

If the borrower fails to pay, the lender can take ownership of the property and sell it. This is why borrowers must always put more than enough money aside in case they fail to pay their debt.

Borrowers are required to have a valuable asset

If the borrower has a low credit score, the only way for him to get approved for a loan is by having collateral.

However, if the borrower doesn’t have enough assets, they will have a hard time getting a loan.

Secured vs. Unsecured Loans

When you are taking a loan, it is always best to know and understand the terms involved to avoid any confusion in the future.

Before making up your mind about taking a collateral loan, you first have to know the difference between secured and unsecured loans. This way, you can make a more informed decision.

As stated above, a secured loan is collateralized and the borrower must use his assets such as properties to secure the loan.

Meanwhile, an unsecured loan is a loan that doesn’t require the borrower to put up any collateral. This is because the lender trusts that the borrower can pay off the loan.

Despite not being required to pledge any asset to get approved for a loan, the amount will still be subject to the borrower’s credit.

This means that if the borrower has a good credit standing, he or she is more likely to get approved and enjoy a lower interest rate.

However, if the borrower has a low credit standing, the interest rate can be much higher.

Where to Get Collateral Loans in the Philippines

Wondering where you can apply for a collateral loan?

Here are some options.

1. Tonik Big Loan

Tonik Big Loan can help you access large sums of money through collateral loans, using condominium titles. This product stands out due to its all-digital application process, which simplifies and accelerates loan approval and disbursement.

Loanable amount:

  • Ranges from ₱250,000 to ₱5 million

Loan terms:

Flexible, spanning from 12 to 60 months


  • Open to Filipino citizens
  • Applicants should be aged between 23 to 55 years
  • Ownership of a fully paid condo unit in Metro Manila is required


  • A valid government-issued ID is mandatory
  • Recent bank statements and payslips
  • The Condominium Certificate of Title must be provided

2. Security Bank

Security banks also offer great collateral loans, specifically for people who want to use their car or home as collateral.

Here are two of Security Bank’s collateral loans.

Security Bank Car4Cash

This is one of the best car loans in the country. You can loan up to 2 million, and the best part is that the bank will not seize your car during the duration of the loan.

All you need to do is submit the OR/CR for safekeeping. 

Interest rates:

Age of Car12 months18 months24 months36 months
0 to 5 years1.25%1.25%1.50%1.75%
6 to 10 years1.50%1.50%1.75%2.00%

Loan amount:

  • P100,000 to P2 million

Processing fee:

  • 3% of loanable amount

Requirement for vehicles:

  • Must be registered under borrower’s name or under business name if business is a sole proprietorship owned by the borrower
  • Must be owned by borrower for at least 6 months at point of application
  • Should not be encumbered
  • Car type must either be passenger or pick-up car e.g. trucks not allowed
  • Cannot be for commercial use (such as used for Grab/TNVS), and cannot be a public utility vehicle / yellow plate (such as taxi, jeepney, UV express, FX, etc.)
  • Can be brand new or used
  • Maximum age of 10 years at point of application

Requirements for borrowers:

For employed:

  • At least 21 years old but not more than 65 years old upon loan maturity
  • 1 valid government-issued ID with photo
  • Photocopy of OR/CR (must be under the borrower’s name, unencumbered and owned for at least 6 months)
  • Screenshot from Google maps of home and company address
  • Income Documents, any of the following:
  • Certificate of Employment and Compensation (issued within the last two months)
    • Latest ITR / BIR Form 2316
    • Latest one (1) month payslip
  • Regular and permanent with current employer and employed for at least one (1) year
  • Minimum gross monthly income:
    • For Metro Manila: PHP 15,000
    • For outside Metro Manila: PHP 12,000

For self-employed:

  • At least 21 years old but not more than 65 years old upon loan maturity
  • 1 valid government-issued photo ID
  • Latest one (1) year Audited Financial Statements (AFS) with at least the previous year’s comparative financials
  • Latest three (3) months bank statements
  • SEC/DTI Certificate of Registration
  • Business permit/Mayor’s permit
  • Latest GIS (if corporation)
  • Photocopy of OR/CR (must be under the borrower’s name, unencumbered and owned for at least 6 months)
  • Screenshot from Google maps of home and company address
  • Must be the owner or a majority owner with at least 40% stake, and
  • Business should have a positive net worth in the last two (2) years
  • Minimum gross monthly income of PHP 100,000

Security Bank Home Equity Loan

With this loan, you can use your home’s value to help you secure cash fast.

This loan can also be used to refinance or take out another housing loan from other banks if the home equity portion is more than 50% of the outstanding balance upon your loan application.

Interest rates:

1-3 Years5 Years10 Years
Home Equity Loan Rate6.25%7.00%8.75%

Loanable amount:

  • Minimum: P1 million
  • Maximum: P10 million


  • Up to 70% of appraised value for residential properties
  • Up to 60% of appraised value for vacant lot

Payment terms:

  • 15 years when collateral is owner occupied
  • 10 years when collateral is not owner-occupied

Approval time:

  • 10 banking days


  • 21 to 65 years old upon loan maturity
  • Earning minimum monthly income of P50,000
  • Permanent employee or practicing professional
  • For employed individuals, practicing professionals, and OFWs (or spouses of OFWs) only

Documents required:

3. AsiaLink Collateral Loans

If you want to use your vehicle as collateral, you can apply for any AsiaLink Collateral Loan. However, make sure that your case was released later than the 2000s, unless you have a truck.

You must also supply full documents and certificates from the transport department. Following your application, the bank will evaluate the value of your car.

The different AsiaLink Collateral Loans are:

  • Car mortgage
  • Truck mortgage
  • PUV/PUJ/Taxi loan
  • Multicab loan
  • Brand new & Pre-owned car financing
  • Brand new & Pre-owned truck financing


  • Application Form
  • Official Receipt & Certificate of Registration (OR/CR)
  • Latest Picture of Vehicle 
  • TIN / Tax Identification Number
  • Franchise/Permit to Operate (PUV/PUJ/Taxi loan)
  • Documented Source of Income (for multicab loans and financing loans)
  • Offer to Sell / Purchase Agreement for Pre-Owned Car (for financing loans)
  • Quotation for Brand New Car (for financing loans)

4. GDFI Car Collateral Loan

Another option if you want to use your car as collateral is the GDFI Car Collateral Loan.

With interest rates as low as 1.30%, this affordable loan is an awesome option for people who need fast cash.

Just like Security Bank’s car loan, GDFI will only keep your vehicle’s OR/CR in their custody. Therefore, you can still use your car. 


  • Must be a Filipino citizen with documented source of income


  • Any 2 valid IDs (Government Issued)
  • Copy of Latest OR/CR (Official Receipt and Certificate of Registration)
  • Latest Electric and Water Bill
  • TIN (Tax Identification Number)
  • Proof of income

If Employed:

  • Latest 3 months’ payslips

If with business:

  • Business permit

If remittance:

  • Latest 3 months Proof of remittance/receipt.

5. Maybank Loans

Maybank Auto Loan Refinancing 

This is another loan where you can use your car as collateral. This will enable you to maximize your assets if you need cash for any purpose.

For this loan, you can use any vehicle, even those that are almost 10 years old.

Maximum loanable amount:

  • 60% of the vehicle’s appraised value

Loan terms:

  • Up to 24 months

Application process:

  • 3 banking days 


  • No adverse records
  • Business in operation for at least 3 years


  • Accomplished application form
  • 2 valid IDs (borrower and spouse / authorized signatory)
  • Latest income tax return
  • Compensation certificate, income indicated (if employed)
  • Business Papers (SEC Registration, Articles of Incorporation & By-Laws if Partnership and Corporation; DTI Registration if Single Proprietorship)
  • Latest 3 Months Bank Statements (if self-employed)
  • Latest Audited Financial Statements (for Corporate Borrowers)
  • Copy of LTO Registration, Original LTO Registration and LTO Official Receipt of the vehicle for unit inspection and car history verification

MayBank Home Equity

If you want to use your home as collateral, this loan is a great choice. Through this loan, you can maximize your property and get fast cash to use for a vacation, capital for a new business, or to take care of any emergency.

Interest rates:

1 year8.75% p.a.
3 years9.50% p.a.
5 years10.75% p.a.

Maximum loanable amount:

  • Up to P5 million or 70% of your home’s appraised value (whichever is lower)

Minimum loanable amount:

  • P500,000

Loan terms:

  • Up to 10 years for residential house and lot, condominium, and townhouse


  • Age plus the term of the loan should not be more than 65 years old once the loan matures.
  • Gainfully employed in a reputable company for at least 2 years; or
  • Own a business that has been registered and operational for at least 3 years and has been profitable in the last 2 years.

For overseas workers:

  • Contract of employment for 2 years

For seafarers:

  • At least in an officer-level position and should be working for at least 2 continuous years

*An attorney-in-fact is required for overseas workers or seafarer applicants

Requirements for borrowers:

If Employed:

  • 3 months payslip
  • Income Tax Return (latest year)
  • Certificate of Employment for both spouses

Self-employed / Entrepreneurs:

  • Business Registration/Permits
  • Latest 2 years Audited Financial Statements
  • Company profile/business background or List of Major Suppliers and Customers with contact details (at least 5)
  • Income Tax Return (latest 2 years)
  • Latest 6 months Bank Statements/Passbook

Overseas Workers:

  • Contract of Employment / Employment Certificate
  • History of Employment / Latest Crew Contact (if applicant is a Seafarer)
  • Latest 6 months bank statements/proof of remittance
  • Latest ITR (if applicable)

Requirements for collateral:

House and Lot:     

  • Copy of Tax Declaration (Lot and Improvement)
  • Copy of Transfer Certificate of Title (TCT)


  • Copy of Condominium Certificate of Title (CCT)
  • ·  Copy of Master Deed of Declaration and Restriction Copy of Tax Declaration

Home Construction:

  • Building Plan
  • Bill of Materials/Construction Cost Estimates


  • Updated Statement of Account from originating institution
  • History of payment from originating institution

Other requirements:

  • Application Form 
  • Authority to Conduct C.I.
  • Life Insurance Form
  • SPA Forms

6. Blend PH Auto-Sangla Loan

Consumers can avail of the Auto-Sangla (ORCR) Loan from lending platform Blend PH. You can get your loan request approved in as fast as 24-48 hours. For the loan terms, you can choose from 6-24 months.

To apply for this loan, create an account on Blend PH and make sure to complete your requirements in 2 weeks. Once verified, your application will be endorsed to Blend PH partners. Once approved by lenders, you will be notified. 

Loanable amount: P10,000 – P3 million

Interest rate: 1.5% per month


  • 25-58 years old
  • Must be a Filipino citizen
  • Must be 1 year employed or 2-year business owner/self-employed

Documents needed:

  • Driver’s license
  • Company ID
  • 3 months’ worth of payslips
  • Payroll bank statement
  • Proof of billing
  • Photocopy of ORCR
  • Valid government-issued ID
  • Business permit
  • DTI permit
  • Latest 2 months’ bank statement

7. Nala Collateral Loan

Nala Collateral Loan offers a practical solution for those in need of immediate financial assistance, accepting both land titles and vehicles (OR/CR) as collateral.

This loan is geared towards those looking for fair and equitable rates.

Loanable amount:

  • Based on the valuation of your property or vehicle

Loan terms:

  • Contact Nala for more information 


  • The original title of the land or vehicle is required
  • Proof of consistent income
  • The latest tax declaration of the property
  • A recent photograph of the property or vehicle

8. JCT EZ Land Title Collateral Loan 

With minimal requirements and an interest rate as low as 1.75%, the JCT EZ Land Title Collateral Loan can help you through tough times.

This loan is only available to residents of Laguna, Metro Manila, Rizal, Cavite, Bulacan, and Pampanga.

Requirements for borrowers:

  • 3 Valid I.D`S
  • Proof of Billing
  • Birth Certificate (If Single)
  • Marriage Certificate (If Married)

Requirements for the collateral:

  • Copy of Original Title
  • Proof of Income
  • Latest Tax Declaration
  • Picture of Property Certificate True Copy of Transfer
  • Updated Real Estate Tax Receipt
  • Tax Clearance
  • Vicinity Map

Tips for Getting Collateral Loans in the Philippines

Now that you’ve decided to get a collateral loan, make sure to remember these tips to ensure you get your money without any hassle.

Go with a reliable lender

Do your background research on the lender you want to get a loan from.

Do they have a good reputation? How about the reviews?

You can contact some of the people who have successfully secured a loan from the lender and ask them how their experience was.

Know your rights

Information is power. Don’t be afraid to ask questions, and keep your loan officer informed about the progress of your loan.

If you find yourself in a situation where you’ve gotten yourself a secured loan but you’re not given what you were promised, report it immediately.

Know what you’re getting into

Before you sign any paperwork, make sure to understand the terms and conditions of the loan.

Remember, your signature is your agreement that you’ll fulfill your responsibilities as a borrower.


No matter what, document, document, document. Take notes of every interaction you have with your loan officer.

If you’re promised something but you don’t get it, it’s easier to point this out if you have proof.

Shop around

Always compare different loans side by side. While some lenders may offer you lower interest rates, be sure to check the fine print.

This is the only way you can be sure that you will be in good hands.

Make sure your collateral is in good condition

Since you’re putting up a property as collateral, it must be well maintained and in good condition.

As soon as it starts to deteriorate, you run the risk of your collateral being compromised.

Keep a record of your asset’s value

Banks are very conservative in valuing your asset’s worth. Do your research and come up with an estimate of your asset’s worth.

If you find out that your asset is worth less than what the lender gave you as collateral, you can fight for a lower interest rate.

Understand the risks involved

While a collateral loan is a good way to get a loan, it’s important to be educated about all the potential risks involved.

If you’re not prepared, you might end up making decisions that will negatively affect you in the long run such as losing your property.

Negotiate when possible

If you have to, negotiate payment terms or the interest rate.

Try to make arrangements that will help you pay off your debt in a way that will be more convenient for you.

Pay the loan off quickly when possible 

The best way to get out of a secured loan is to pay it off quickly.

This way, you avoid the risk of having to pay late fees, penalties, and extra interest that is going to eat up your savings.

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.

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

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