26 Legit Online Loan Apps & Platforms in the Philippines

Last Updated on – Sep 25, 2023 @ 1:42 pm

Disclaimer: Grit PH is not affiliated with any of the online lending platforms and banking institutions featured in this post. The sole purpose of this guide is to educate our readers with how online cash loans work and the best options available for them to choose from. 

Sometimes, it’s inevitable.

No matter how hard you try to shove it down to the bottom of your list of options, borrowing money can be your best and quickest solution to a financial dilemma.

You might be thinking, “I don’t want to be in debt to anyone, especially to people I know. It’s embarrassing.”

Hey, we’ve all been there. Yes, it’s never easy to borrow something, especially if it’s money. That’s a fact. There’s a certain stigma surrounding the word “utang”. Our gut tells us to avoid it as much as we can.

But the reality is, it shouldn’t always be that way.

Borrowing money doesn’t necessarily mean we’re desperate. Just ask the millions of business owners who borrowed money to raise capital to start their venture. Or the student who was able to take her exam on time even though her parent’s remittance was a day late.

To these people, borrowing money is a tool. It’s something you use to move your current situation forward. In the TV Show, “Who wants to be a Millionaire?”, contestants can use a “lifeline” to help them answer the question. I’d like to think of borrowing and lending money the same way.

It’s a helpful answer to an otherwise difficult and time-sensitive problem.

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What are Online Lending Companies?

Online lending companies, also known as online lenders or digital lenders, are companies that provide loans and other forms of credit over the Internet. They often leverage technology to streamline the lending process and provide a more convenient and efficient service than traditional banks or credit unions.

These companies offer various types of loans, including personal loans, small business loans, mortgages, student loans, auto loans, and more. The process of applying for a loan is typically handled entirely online, with applications, approvals, and funds disbursement all done electronically.

Many online lenders use alternative data and sophisticated algorithms to assess risk and determine eligibility, allowing them to provide loans to borrowers who might not qualify for traditional loans. This includes borrowers with lower credit scores or without a long credit history.

Online lenders are typically characterized by:

1. Speed and Convenience: The entire process can be completed online, often within minutes or a few hours. There’s no need to visit a physical branch or meet face-to-face.
2. Flexibility: They often offer a wider range of loan products and may be more willing to tailor a loan to a borrower’s specific needs.
3. Transparency: Fees, interest rates, and loan terms are often clearly presented upfront, allowing borrowers to compare options easily.
4. Accessibility: They may provide services to underserved markets, such as individuals with lower credit scores, self-employed, or small business owners who might struggle to secure loans from traditional banks.

However, like any financial service, online lending also has its risks. These can include higher interest rates or fees than traditional banks, data security concerns, and the potential for predatory lending practices. Therefore, it’s important to do thorough research and consider multiple lenders before deciding on an online loan.

Traditional Lending Companies vs. Online Lending Platforms

The willingness of Filipinos to try digital and cashless payment methods is proof that we’re slowly recognizing the benefits of online technologies.

Take E-commerce, for example. I’m willing to bet that you already purchased a product or service through popular sites like Lazada or Shopee. This e-commerce boom in the recent years is a clear signal that Pinoys are opening up to other methods of accomplishing financial transactions.

The same is true in the lending category. The rising popularity of online lending services shows there is a need for this type of service. Fast, convenient, and hassle free—things that can’t be said if you try to borrow money from the bank.

The following section aims to show us key advantages and disadvantages of Traditional and Online lending platforms.

Traditional Lending Companies

Pros	Cons
You can borrow larger amounts	More stringent approval process
Regulated by independent authorities	Requires more paperwork
Complies with banking regulations	Takes longer to get funded
	Short-term loans for small amounts are still hard to get approved

Online Lending Platforms

Pros	Cons
Loans get approved faster	Since the process is done online, borrowers run the risk of getting their data hacked
Quick and 24/7 online application	Absence of independent regulatory authority for monitoring activities
Fewer requirements	Since process is done online, borrowers run the risk of getting their data hacked
Allows lending of small amounts for short-term periods	Max amount that can be borrowed is less than banks

Also Read: Complete Guide to Pag-IBIG Fund: Benefits, Loan Programs, & Online Registration

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Types of Online Loans in the Philippines

1. Quick Cash Loans

A fast cash loan is a loan that you can apply to receive funds into your account directly and quickly. Fast personal loans are one option to pay for emergencies and other short-term borrowing needs.

Typical Requirements: 

• Valid IDs (1 must be government-issued)
• Proof of billing
• Must be a regular employee
• Valid contact numbers and email address

Related: How to Get Student Loans in the Philippines

2. Seafarer Loans

Loans created and intended for sea-based Overseas Filipino Workers (OFWs)

Typical Requirements: 

• Filipino Citizen
• Valid IDs 
• Meets lender’s minimum monthly basic salary requirement
• Contract of employment with POEA validation, Seaman’s Book, Seafarer’s Registration Certificate, Proof of Embarkation or Disembarkation, Allotment Certificate, 
• Proof of billing

3. Product Loans

Essentially a personal loan that’s made for the purpose of purchasing a specific product. Things like: gadgets, furniture, appliances, etc.,)

Typical Requirements:

• Valid IDs (1 must be government-issued)
• Proof of billing
• Must be a regular employee
• Valid contact numbers and email address

4. OFW Loans

A type of loan that caters to the specific needs of Overseas Filipino Workers and their families. Some lenders offer it to OFWs who are just about to embark abroad for a work contract (not currently working yet).

Typical Requirements: 

• Filipino Citizen
• Valid IDs 
• Meets lender’s minimum monthly basic salary requirement
• Latest Contract of Deployment
• Copy of Working Visa
• POEA Overseas Employment Certificate
• Proof of residency/billing 

5. Salary Loans

A type of loan (amount is typically based on the pay period gross earnings of the borrower) that’s required to be paid in full or in installments when the borrower receives their next paycheck. 

Typical Requirements: 

• Filipino Citizen
• Valid IDs 
• Latest payslips
• Copy of ITR
• Certificate of Employment
• Meets lender’s minimum monthly basic salary requirement
• Proof of residency/billing

6. Business Loans

A type of loan specifically offered to businesses who need capital for start-up or funding for expansion (growth).

Typical Requirements: 

• Valid IDs 
• Latest ITR with BIR stamp
• Latest bank statements
• Valid DTI Registration docs
• Valid Business or Mayor’s Permit
• Valid DTI Registration docs

Additional requirements for partnerships/corporations:

• Valid DTI/SEC Registration documents and GIS
• Partnership / Board Resolution documents
• Continuing Suretyship Agreement

7. Franchise Loans

Exclusive loan offering for individuals who plan on operating a franchise business.

• Valid IDs
• Franchise Certificate
• Latest bank statements
• Valid DTI Registration docs
• Valid Business or Mayor’s Permit
• Valid DTI Registration docs

8. Pawn Loans

Loans that are collateral-based – in which the loan is secured by valuable items owned by the lendee (and will be given back when the loan is repaid).

Typical Requirements:

• Government-issued IDs
• Collateral (valuable items such as jewelries, gadgets, etc…)

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Top Online Loan Apps & Lending Platforms in the Philippines

Before we dive into the list, an important note: The SEC continues to monitor and crack down on illegal online lending sites¹ who harass and violate their borrowers privacy². 

One of the main reasons we created (and continuously update) this guide is to help steer you away from questionable online lending platforms who violate its user’s privacy and rights. Grit is not affiliated with any of the online lending platforms mentioned on the following list. 

Our goal is to simply educate our readers with how online cash loans work and provide a quick summary of some of the most popular and legit online lending programs for easy reference.

Here’s a list of the top Online Lending Services you can use today.

1. Tonik Bank Loans

Tonik aims to revolutionize finance in Southeast Asia by providing access to a digital bank that is not intimidating, simple, and effective. Applying for a quick loan online has never been this easy thanks to Tonik. 

Interest Rates:	6.99% p.a.
Maximum Loan Amount:	PHP 50,000 – PHP 5,000,000
Loan Approval Duration	24 hours
Loan Terms	6 – 60 months
Loan Products	Quick loan, Flex loan, Big loan

Note: 5.4% interest rate for those who link their salary payroll ATM card

Required Documents:

• One valid ID (Philippine Passport, Philippine Driver’s License, Unified Multi-Purpose ID (UMID), Social Security System (SSS) ID, Professional Regulation Commission Identification Card (PRC ID), Card type Postal ID)
• 1-month payslip

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2. GLoan

GCash has grown in popularity due to the rise of digital transactions and the convenience it provides, especially in areas where access to traditional banking services is limited. Additionally, it provides its users with access to loan services through GLoan.

Interest Rates:	1.59% – 6.57%
Maximum Loan Amount:	PHP 125,000
Loan Process Duration	1 minute for pre-qualified GCash users (high GScore)
Loan Terms	5 – 24 months
Loan Products	personal loans, buy now pay later

Requirements:

• Verified Gcash account with a high GScore

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3. Home Credit PH

It operates as the Philippine arm of global consumer finance company Home Credit Group which has a presence in 11 countries across the globe.

Their core business is non-cash, no-collateral in-store financing to qualified mass market consumers seeking to purchase appliances and other gadgets. Right now, they also offer cash loans to customers via the Home Credit PH app.

Interest Rates:	The lowest interest rate is 1.83%. (varies depending on the terms of the loan price and repayments)
Maximum Loan Amount:	PHP 150,000
Loan Approval Duration	Same day
Loan Terms	6 – 60 months
Loan Products	Cash loan, Credit Card, Buy Now Pay Later

Requirements:

• 2 valid IDs (one government-issued)
• Filipino between 18-68 years old
• Employed/Self-employed

How to Apply:

There are 3 ways to get access to Home Credit’s various loan products:

• Download and apply via the Home Credit app
• Apply via Telesales – by calling the following numbers:
  • Landline: (02) 7753 57141
  • Smart, Sun, PLDT, TNT: 1 800 10 234 3000
  • Globe & TM: 1 800 8 905 0303
• Apply through their wide network of partner stores. You can use their partner store locator here.

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4. SB Finance

SB Finance is a collaborative venture between Security Bank Corporation and Bank of Ayudhya (Krungsri) from Thailand. The company offers a diverse range of both secured and unsecured loan products in the Philippines.

Interest Rates:	1.2% – 3.5%
Maximum Loan Amount:	PHP 2,000,000
Loan Process Duration	5 banking days
Loan Terms	2 – 48 months
Loan Products	personal loans, collateral loans

Requirements: 

If Employed:

• One valid government-issued photo ID
• Certificate of Employment and Compensation issued within the last six months
• Latest ITR
• Latest monthly payslip

If Self-Employed:

• One valid government-issued photo ID
• Latest 1-year Audited Financial Statement (AFS) with at least the previous year’s comparative financials
• SEC Registration / DTI Certificate
• Business Permit / Mayor’s Permit
• Latest GIS (if corporation)
• Latest bank statements (three months)
• List of three trade references (at least one supplier and one customer) with contact details

For online application, fill out the form here. For branch application, download the form here. 

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5. ACOM Philippines

ACOM Co., Ltd. is a consumer finance company based in Tokyo, Japan. It is one of Japan’s leading consumer finance companies, and now provides a range of financial services, including unsecured loans, in the Philippines as well.

Interest Rates:	4.988% per month
Maximum Loan Amount:	PHP 500,000
Loan Process Duration	3-5 days
Loan Terms	6 – 10 months
Loan Products	REVOMAX – unsecured loan of up to P500,000

Requirements:

• Government-issued ID
• Proof of employment (SSS/TIN)
• Monthly salary of at least P10,000

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6. RFC Loan

RFC, established as Radiowealth back in 1935, started as a car and radio manufacturer before fully transitioning into one of the most stable financing institutions in the country in the mid-90s.

This lending platform boasts various products from corporate lending, SME loans, and multi-purpose cash loans – providing access to these services to Filipinos from the countryside.

Interest Rates:	Interest varies depending on the type of loan
Maximum Loan Amount:	PHP 3,000,000.00
Loan Process Duration	Approval duration varies depending on the type of loan
Loan Terms	3 – 36 months
Loan Products	Cash loan, Financing loan

Requirements:

• 2 valid government IDs (if employed, include company ID)
• Proof of Billing
• Proof of Income (3-month payslip)
• Residential, Business, or Employment Address Map
• Certificate of Employment
• Business Barangay/ Business/ DTI Permit (for business owners)
• Fill out the application form here

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7. Tala

Tala is an online lending platform that operates through their Android app. It’s targeted mainly to people who need quick cash loans for as small as Php1000.

Interest Rates:	0.5% per day
Maximum Loan Amount:	PHP 25,000
Loan Approval Duration	24 hours
Loan Terms	2 months
Loan Products	Cash loan

Requirements and Application process:

• Phone and ID.
• Note that step 3 of their process requires that you sign up using your Facebook account.

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8. Cashalo

Cashalo is a mobile-app (Android and iOS) that provides a fast, affordable, and secure access to quick funds.

Interest Rates:	3.95%
Maximum Loan Amount:	PHP 7,000
Loan Approval Duration	1 – 2 business days
Loan Terms	1 – 3 months
Loan Products	Cash loan

Requirements and application process:

• Gov’t issued ID, payslip, company ID, bank account details. Download and install the app, register your account.

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9. Digido

Formerly known as Robocash, this online lending platform offers a fast and convenient way for Filipinos to access loans. Digido boasts a wide array of loan products such as auto loans, home loans, and personal loans.

Interest Rates:	11.9%
Maximum Loan Amount:	PHP 25,000
Loan Approval Duration	24 hours
Loan Terms	3 – 6 months
Loan Products	Cash loan

Requirements and application process:

• Complete the application form, and submit your ID and phone number.
• Indicate how you want to transfer your loan. Digido has partnered with various major retailers so you can use this loan in many ways.
• Confirm your consent for this online loan. You will receive confirmation through text or telephone. Then, your loan amount will be transferred in real-time.

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10. CashMart PH

This Singapore-based company was established in 1969 and have extended their reach here in the Philippines. They have a variety of loan products that range from Personal loan, Salary Loan, Car Loan, and OFW Loan.

Interest Rates:	1.12% – 22.40%
Maximum Loan Amount:	PHP 30,000
Loan Approval Duration	24 hours
Loan Terms	1 – 5 months
Loan Products	Personal loan, Car loan, OFW loan, Salary loan

Requirements and Application process:

• Two proof of billings (Meralco, water bill, cable, internet, or PLDT bills)
• and at least one valid government ID/Company ID with one-month payslip

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11. Blend.ph

They are a peer-to-peer (P2P) lending platform which aims to provide a safe and accessible place connecting lenders and borrowers.

Interest Rates:	1% -8%
Maximum Loan Amount:	PHP 2,000,000
Loan Approval Duration	Loan application will be posted for auction for a period of 14 days (for P2P lending) Loan processing is 24-48 hours (for direct loans via Blend.ph and their other partner lenders like Netbank, Welcome Bank, Right Choice Finance, and Forbes Lending)
Loan Terms	3 – 36 months

Requirements:

• Complete the online registration
• Valid IDs

Types of Loans being offered:

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12. EasyCash PH

EasyCash is a local financial services company that use scalable infrastructure and technology to build an online platform for lending and borrowing for Filipinos.

Interest Rates:	10% (plus 15% processing fee)
Maximum Loan Amount:	PHP 10,000
Loan Approval Duration	1 – 2 working days
Loan Terms	1 – 3 months
Loan Products	Cash loan

Requirements and application process:

• Create an account via their website
• Wait for approval confirmation

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13. Asteria

Asteria is based on Makati and received full license from the SEC. Their goal is to, “provide online, hassle-free service to our new and existing clients.”

Interest Rates:	0.9% per day
Maximum Loan Amount:	PHP 20,000
Loan Approval Duration	24hrs – 120hrs
Loan Terms	3 months
Loan Products	Cash loan

Requirements and application process:

• Register for an account. Confirm enrollment via email.
• Note that you’ll be asked to submit requirements (IDs) before you can complete the loan request.

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14. UPFinance

UPFinance is an online lending platform that aggregates the best offers from various lending institutions in the Philippines.

The platform provides detailed information (including loan calculators) for the different loan products available from the banks, lending companies, and cooperatives they promote .

Interest Rates:	0.4% – 5%
Maximum Loan Amount:	PHP 100,000
Loan Approval Duration	24hrs – 120hrs
Loan Terms	3 – 60 months
Loan Products	Personal loans

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15. PawnHero

PawnHero is the first online pawnshop in the country. Leading the modernization of one of the oldest industries in the world (started in ancient China over 3,000 years ago).

Their technology allows their users to appraise their items online and offers the convenience of doing all the necessary steps at home. PawnHero accepts valuable items (for collateral) that range from cameras, smartphones, designer bags, jewelry, gaming consoles, laptops, TVs, watches, tablets, sunglasses, to speakers. 

Interest Rates:	3.5% – 4.99% per month
Maximum Loan Amount:	Any amount (no minimum/maximum)
Loan Process Duration	1 day after the item is picked up from the address
Loan Terms	3 months (can be extended upon request)
Loan Products	Pawn loan

Requirements:

• 2 government valid IDs
• Collateral item

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16. BillEase

This installment loan app allows Filipinos to pay for online and offline purchases with 0% interest. It doesn’t have service charges, late payment fees, and other hidden costs. 

Interest Rates:	0% – 3.49%
Maximum Loan Amount:	PHP 40,000
Loan Process Duration	24 hours
Loan Terms	2 – 24 months
Loan Products	Cash loan

Requirements:

• At least 18 years old with a stable source of income
• Latest proof of income
• Proof of billing
• 1 government-issued ID

Application process:

• To use BillEase, submit an application form and wait for your approval.
• Once approved, an initial credit limit will be set for you and this can be used to purchase from over 800+ merchants.

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17. JuanHand

This loan app provides instant lending as well as other personalized financial services geared towards Filipinos regardless of their credit history.

Interest Rates:	0.3% per day
Maximum Loan Amount:	PHP 15,000
Loan Approval Duration	5 minutes
Loan Terms	1 – 6 months
Loan Products	Cash loan

Requirements and application process:

• Download the JuanHand app and sign up using your mobile number
• Complete your profile with the required personal information and contact information
• Click apply
• If denied, re-submit the application according to the hint.

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18. UnaCash

UnaCash helps Filipinos fill financial gaps through a credit line. This can be used to cash out or pay for items from partner merchants. This “buy now, pay later” service also boasts flexible loan terms which is extremely beneficial for those using a credit line for the first time.   

Interest Rates:	0% – 16%
Maximum Loan Amount:	PHP 50,000
Loan Process Duration	24 hours
Loan Terms	2 – 6 months
Loan Products	Cash loan

Requirements and application process:

• Download the app
• Fill in your personal information
• Select the loan terms
• Wait for approval
• Get your money

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19. Atome Cash

Atome is a leading buy now, pay later platform in Asia. The company is now providing cash loans for users in the Philippines, accessible directly through their app.

Interest Rates:	Not Available at the moment
Maximum Loan Amount:	PHP 50,000
Loan Process Duration	24 hours
Loan Terms	2 – 12 months
Loan Products	cash loan, credit card, buy now pay later

Requirements:

• Completed application form (via the app)
• Government-issued ID

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20. Vidalia

Vidalia Lending Corp. effectively combines conventional credit practices with the latest technology, resulting in a constantly improving credit evaluation system that learns and optimizes using monthly loan repayment and delinquency data.

Borrowers can avail themselves of loans ranging from ₱5,000 up to ₱500,000. Vidalia is supported by a team of experienced private investors with extensive knowledge of the local Financial Industry.

Interest Rates:	4% – 6%
Maximum Loan Amount:	PHP 500,000
Loan Process Duration	24 hours
Loan Terms	2 – 12 months
Loan Products	personal loans, salary loans, business loans, e-commerce loan

Requirements:

• 2 valid IDs
• Proof of billing

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21. AEON Philippines

AEON Credit Service Co., Ltd., based in Japan, has established subsidiaries and operations in several countries across Asia, including the Philippines. It focuses on serving customers in the regions where AEON Group retail facilities are present.

Interest Rates:	2.25%
Maximum Loan Amount:	Subject to credit evaluation.
Loan Process Duration	24 hours
Loan Terms	6 – 12 months
Loan Products	personal loan, furniture loan, appliance loan

Requirements:

• 2 valid IDs
• Proof of Billing
• Proof of Income

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22. Finbro

Finbro, an online lending platform in the Philippines, specializes in providing quick cash loans to manage unexpected financial needs.

Interest Rates:	6% (plus 9% processing fee)
Maximum Loan Amount:	PHP 50,000
Loan Process Duration	10 minutes – 24 hours
Loan Terms	12 months
Loan Products	personal loans

Requirements:

• 1 valid ID
• Completed loan application form
• Selfie
• Stable monthly income

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23. Skyro

Skyro is an online lending platform managed by Advance Finance Solutions, Inc. and Jungle Lending, Inc.

Interest Rates:	1.5% per month
Maximum Loan Amount:	PHP 250,000
Loan Process Duration	1-2 days
Loan Terms	6 – 12 months
Loan Products	personal loans

Requirements:

• 1 valid ID
• Fully accomplished online application form via their website
• Scheduled call with one of their representatives

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24. MoneyCat

With its user-friendly registration and quick fund transfers, MoneyCat simplifies the entire borrowing experience. 

What’s unique about this loan provider is that your first loan with MoneyCat is interest-free. To apply for a loan, you just need to fill out a short online registration form. This will just take 5 minutes of your time. There’s no need for complex paperwork or time-consuming bank visits.

Interest Rates:	Free for first loan, 11.9% monthly thereafter (194% max APR)
Maximum Loan Amount:	PHP 20,000
Loan Process Duration	24 hours
Loan Terms	3 to 6 months
Loan Products	cash loan

Requirements:

• Must be 22 years old or older
• A Filipino and currently residing in the Philippines
• Currently working or have a stable source of income
• Have a personal (active) mobile phone number
• Have a bank account
• Have any of the following IDs – SSS, UMID, TIN, driver’s license, passport, or voter ID. 

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25. PesoLoan

PesoLoan is the go-to choice for people looking for inclusive and accessible digital financial services. With PesoLoan, borrowers can access loans of up to P50,000, provided they maintain a good credit record with the company.

One of the standout features of PesoLoan is its flexibility in loan repayment. The company offers a variety of payment channels, including options such as GCash, 7-Eleven, MLhuillier, RDPawnshop, QR Code, and Bank Transfer. 

Additionally, PesoLoan takes pride in its quick and straightforward loan application process, which takes just three minutes to complete. Borrowers can expect their loan applications to be assessed within 24 hours. 

Interest Rates:	20% common interest
Maximum Loan Amount:	PHP 50,000
Loan Process Duration	24 hours
Loan Terms	91 to 120 days
Loan Products	cash loan

Requirements:

• Must be at least 18 years old
• Filipino citizen 

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26. Online Loans Pilipinas

Online Loans Pilipinas specializes in online micro and consumer financing. Its mission is to improve the financial well-being of its customers.

Their application process is very simple. It only requires just one valid ID. There’s no need for collateral, payslips, or proofs of billing. 

For returning customers, Online Loans Pilipinas offers an attractive incentive. By repaying your loan on time, you can qualify for an increased loan amount of up to P20,000 on your subsequent loans. Borrowers can also request a 30-day extension for their repayment period.

Interest Rates:	0% if you pay back on your first payment date, 200% maximum APR
Maximum Loan Amount:	PHP 20,000
Loan Process Duration	less than 5 minutes
Loan Terms	up to 30 days (borrowers can get a 30-day extension)
Loan Products	cash loan

Requirements:

• Must be 22 – 70 years old
• Located in the Philippines (nationwide)
• Employed individuals or selected professionals
• Have a valid bank or e-wallet account 

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How to Get Fast Online Cash Loans in the Philippines

Getting a fast online cash loan in the Philippines involves a few general steps, though the exact process can vary depending on the lender.

Here are some basic steps:

1. Choose a Lender: Research and select a reputable online lender that operates in the Philippines. We have listed some well-known platforms above. Make sure the lender is registered and operates legally.
2. Check the Requirements: Each lending platform will have its own set of eligibility criteria and requirements. Common requirements often include being a Filipino citizen, being of legal age (at least 18 years old), having a valid government-issued ID, having a stable source of income, and possessing a bank account or e-wallet (like GCash) for fund transfer.
3. Apply Online: Once you’ve chosen a lender and made sure you meet the requirements, you can apply for the loan through the lender’s website or mobile app. You will typically need to fill out an application form with your personal details, loan amount, and loan duration.
4. Submit Necessary Documents: You may be asked to upload or email copies of certain documents, such as government-issued IDs, proof of income (like payslips or bank statements), or proof of address.
5. Wait for Approval: After you’ve submitted your application, the lender will review it. Many online lenders use automated systems that can approve loans within minutes or hours. However, some applications might take longer.
6. Receive the Funds: Once approved, the loan will be disbursed to your specified bank account or e-wallet. The time this takes can vary between lenders.
7. Repay the Loan: Ensure that you repay your loan on time to avoid late fees or penalties, and to maintain a good credit history. Most platforms will have several repayment options, including bank transfer, payment at a physical location, or through an e-wallet.

Please note that while online loans can be a convenient way to get cash quickly, they often come with higher interest rates and fees compared to traditional bank loans.

Always borrow responsibly, and be sure to read and understand the terms and conditions of your loan before you agree to them.

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Tips on how to get your online cash loan application approved faster in the Philippines

1. Know what type of loan you need?

The first step is deciding what you will be using the money for. Decide on the amount and choose if you want to go for a secured or unsecured loan.

Secured means you have to put up something as collateral for your loan. Unsecured loans are more lenient in terms of requirements but have generally lower ceilings for the max amount you can request.

Types of Personal Loans in the Philippines

Personal Loans takes the biggest share in the loan market because of the simplicity and ease of access in funding a myriad of financial reasons and obligations. For the financially savvy out there, it is an open-ended loan where the principal is paid over a fixed term along with applicable charges.

Personal loans can be categorized into 4 types:

1. Secured Loan – Approved on the basis of collateral. For example, a time deposit account held by the borrower from the same bank. In general, the interest rate is lower compared to unsecured loans due to the security factor. Application and paperwork is simpler as well because the bank already has your information through the account you have with them. Suitable for borrowers with no/low credit history.
2. Unsecured Loan – No collateral is required. Banks and lenders rely on the information and credit history they will get from you. Interest rates are slightly higher due to the higher risk involved. Strict screening process is required in order to determine the terms that will be granted to the borrower.
3. Personal loan for OFWs – Tailor made loans for Overseas Filipino Workers. Available in both secured and unsecured packages.
4. Top Up Loan – Does exactly how it sounds like—top up your existing loan. Gives borrowers an option to borrow more money and add it on top of their existing loans.

Secured and Unsecured Loans

Since almost all current loans fall under these two types, it’s a good idea to get a quick view of each strengths and weaknesses.

Secured Loans

Pros	Cons
Access to larger amounts for your loan	Failure to pay the dues in full may result to your collateral to be taken away
Easier to apply for and get approved (due to the security factor)	There are some secured loans that penalize early repayments
Extension of repayments are accepted

Unsecured Loans

Pros	Cons
Quick and easy way to borrow cash	Only viable if you have good credit history and sufficient income
More flexibility with regards to repayment terms	Interest rates are generally higher

2. Build a good credit rating

In the Philippines, we don’t have a centralized credit reporting like first world countries. This means banks and creditors rely on other means to determine if you have a good credit history.

TransUnion, one of the biggest credit reporting agencies, have reports they show to Metrobank, BPI, HSBC, and Citibank showing who have good credit histories.

Non-partner banks go to Consolidated Cancelled Credit Cards (CCAP 4) or Bankers Association of the Philippines Credit Bureau to obtain the same info. Bottomline is, strive to pay your dues on time and keep overall dept low.

What is Credit Report?

You might have seen this article mention “Credit Report” or Credit history several times. What is it, exactly? In a nutshell, it’s a detailed report of your credit history. Lenders rely on these reports to determine if you are eligible to take a loan. They also use this to determine the terms if you get approved.

Here’s what you need to remember: A good credit report means a higher chance of getting your loan approved and getting better interest rates.

Can you still 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.

Here are tips you can follow to get better success in getting your loan approved even with bad or negative credit history:

• Be super thorough with the completion of required documents
• Submit the requirements as early as you can
• Don’t request for several loans at the same time
• Spend time looking and reviewing the best possible lenders
• Patience is a virtue

Related: 10 Best Credit Cards in the Philippines

3. Choose the right lender

Each bank or online lending platform have its own strengths and weaknesses. The key is to find the one with the best features that match your preferences.

How to Identify Legit Online Loans in the Philippines?

Identifying legitimate online loans can sometimes be a challenge, especially with the rise of online scams. However, the following tips can help you determine the legitimacy of an online lender:

1. Check Registration and Licenses: A legitimate lender should be registered and licensed by the appropriate financial regulatory bodies. In the Philippines, for instance, online lending platforms should be registered with the Securities and Exchange Commission (SEC).
2. Investigate Online Presence: Legitimate companies will likely have a professional website and possibly social media presence. Be wary if the lender only operates via a mobile app and doesn’t provide any other business information.
3. Look for Contact Information: A legitimate lender will provide contact information such as a physical address, email, or phone number. You can try reaching out to confirm their legitimacy.
4. Read the Fine Print: Be sure to read all the terms and conditions before accepting a loan. Legitimate lenders will clearly state the loan’s interest rate, fees, repayment terms, and any penalties for late or missed payments.
5. Check for Secure Website: If you’re applying for a loan online, make sure the lender’s website is secure. The URL should start with “https://” (the ‘s’ stands for secure), and there should be a padlock icon next to the URL.
6. Read Customer Reviews and Complaints: Look at reviews or complaints about the lender from other customers. Sites like the Better Business Bureau or your local SEC can be good resources.
7. Trust your instincts: If something seems too good to be true, it probably is. High-pressure sales tactics, urgent communications, or pushy requests for personal information are all red flags.

It’s important to do your due diligence and understand the terms of any loan before you agree to it. Don’t hesitate to ask questions or seek advice if you’re unsure about anything.

How to Avoid Online Loan Scams

Here are some general tips on how to avoid such scams:

• Don’t Rush: Avoid lenders that pressure you to sign on the dotted line. Legitimate lenders will not rush you into a loan and will ensure you understand the terms and conditions before signing.
• Beware of Upfront Fees: Be wary of lenders asking for fees upfront before you’ve received the loan. While some legitimate loans may require certain fees, these are typically deducted from the loan amount or paid along with the repayments.
• Avoid Guaranteed Approval Offers: Be skeptical of lenders who offer guaranteed approval regardless of credit score. Reputable lenders usually check your creditworthiness before granting a loan.
• Protect Personal Information: Never share your personal information online unless you’re sure the company is legitimate and the website is secure.

Remember, if something seems too good to be true, it probably is.

4. Borrow for the right reasons

Borrowing money is a great tool for busting you out in dire financial situations as well as funding personal endeavors.

Just make sure that you are borrowing because you need it for something important. A lot of people go into debt because “they had to” buy a new TV or smartphone but not responsible enough to pay their monthly bills.

Important: Build an Emergency Fund.

When to take Business & Personal Loans

At the surface, the answer to this one is quite obvious. For funding any business venture, go for a Business loan. For (almost) anything else, take a Personal loan.

However, there are underlying principles that you need to ask yourself before borrowing a huge sum. Aside from doing your due diligence researching all terms and conditions for each bank, following these 3 basic rules in borrowing money will help keep things in perspective.

1. Don’t request for a loan for funding your personal consumption, like products or travel expenses.
2. Personal loans are typically best in times of emergency
3. Loans should be used as a tool to advance your asset value. For example, if you take a loan to buy a multicab-van to make your business deliveries faster, it will pay for itself over time due to the time savings it brings your business. It also allows you to reach and serve more potential customers which results to more profit.

Another question you should ask is, “Is taking a personal loan the best solution to my problem?”

And to help you find some answers, here’s a quick rundown of the pros and cons of requesting a personal loan:

Pros	Cons
Allows you to borrow more than a credit card	High interest rates
EMI of Personal loans are fixed monthly, which translates to easier tracking and budgeting	The idea of “lesser interest rates with higher loan amounts” might tempt you to borrow more than what you need
Rate of Interest is Fixed in most cases.	You can get charged a pre-termination fee for paying off your loan early
You can choose the length of the repayment period

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Complete List of SEC’s Recorded Online Lending Platforms

Below is the full list of online lending platforms operating in the Philippines (based on the records of the Security and Exchange Commission as of November 29, 2021).

1. SEC.gov.ph
2. Privacy.gov.ph