How to Invest in Peer-to-Peer Lending: Top 4 P2P Lending Sites in the Philippines

Last Updated on – Nov 29, 2023 @ 2:24 pm

Quick Take

How to get started with P2P lending in the Philippines?

Want to lend money to grow your wealth? P2P Lending is the ultimate way you can do this. To get started, follow these steps:
1. Research various P2P platforms and open an account in your platform of choice. 
2. Verify your account. 
3. Put funds into your account through bank transfer.
4. Set your interest rate, or agree on the fixed rate of the platform.
5. Wait for lending requests, or enable auto-bid on loans. 
6. Lend money to a borrower for a fixed period. 
7. You may set your limit on how much money you want to lend, as well as your interest rate. 

Have a few thousand pesos sitting around, doing nothing?

Looking for a better rate of return for your money?

You’re in luck—in this comprehensive guide, we’ll show you what P2P Lending is and how it can earn you a significantly better ROI compared to other investment vehicles.

What is P2P Lending?

Peer-to-peer lending or P2P pools money from its members/investors and lends them to borrowers.

Unlike a traditional bank format wherein the bank is the exclusive source of funds for the borrower, P2P lends money chipped in from a group of investors.

There’s also the option to fund the whole loan by yourself, if you want (investor).

Related: How to Invest & Grow your Money

How does P2P Lending work?

In a nutshell, it’s essentially your typical “Paluwagan” with a few modifications. However, instead of simply taking turns in getting lump sums of accumulated cash from participants, you earn from it via interest gained by the money you lend.

P2P lending classifies participants into 2 groups: Lenders and borrowers.

Lenders: Investors. They fund the capital needed by the borrower. The money is then pooled or combined in order to accommodate varying amounts of capital to be borrowed.

Borrower: Borrows money from investors/lenders.

It’s similar to how a mutual fund works. P2P allows you to be an investor even if you don’t have a lot of money to invest with. But instead of pooling your money with others in order to buy stock, P2P combines it with money from other investors then lends it to borrowers.

P2P differentiates itself from Mutual Funds, however, by having the option of funding the whole loan by yourself (investor). You also get to pick investments on your own.

Furthermore, gains are not based on the performance of your investment in the stock market. You earn via interest paid by the borrower.

Related: Online Loans: 17 Best Online Lending Companies in the Philippines

Why invest through a P2P Lending platform?

Better rates of return for your money

The average interest rate for a typical bank savings account is 0.25% per annum.

If you had Php100,000 invested, in a year your ROI (return on investment) is 250 pesos. Just enough to buy you an Amazing Aloha burger meal from Jollibee.

Hey, I like that burger, but as an investor looking to earn decent ROI, the bank is definitely not the place for me.

Compare that measly return with an average return rate of 10-15% from P2P (for FundKo, for example) platforms, you’re looking at a Php10,000 ROI in a year assuming a 10% return via interest.

That’s a hell lot of Amazing Aloha burgers! Clearly, all rates are not guaranteed but I know you get my point.

The option to diversify your investments reduces risk

With P2P platforms, you can spread out your investment across multiple loans.

What will this accomplish?

A diversified portfolio makes use of the law of averages—so even if one or more of your investments give a negative ROI, your other winning picks can “even out” your returns overall.

Potential passive income stream

With a regular savings or even MF account, you’re money is essentially tied (if you’re starting out).

Why? Because you have to let it sit there in order to accumulate any significant returns.

Especially if you don’t have that big of a capital to begin with. P2P lending platforms have the option to give you a monthly payout from your investments.

Sure, MFs can do that too but then again, P2P presents a faster opportunity to set a passive income source due to the higher ROI (per current P2P lending averages).

Low barrier entry investment option

How much do you need to start investing?

For as little as Php5,000, you can start funding loans from borrowers then start building up on your investment as your ROI grows (when you reinvest the earnings).

Compared to stocks, this feature makes it more enticing to first-time investors looking to test the waters.

Tends to be “faster” in reaching significant gains versus MF or banks

As mentioned earlier, the ROI advertised on these P2P platforms allows you to build up your earnings and assets faster (as of this writing, at least) compared to Mutual funds or regular savings account.

Even the current rates of the best personal savings accounts offered by banks right now seem to be no match in terms of yearly ROI from P2P (based on averages posted on P2P sites).  

Related: 8 Best Online Investment Platforms in the Philippines

Pros & Cons of P2P Lending Investments

Potential for better returnsThe possibility of borrowers defaulting is still present
Allows you to diversify your investmentsInterest is taxable (if not done automatically by the P2P platform, it is the responsibility of the lender)
You get to pick which loans you want to fundYour capital may not be invested at all times (see tips below for advice)
Ability to access your money at quickly 
Requires little money to start with 
Process if setting up an account is easy 
Monthly gains can be a form of passive income 

Top P2P Lending Platforms in the Philippines

1. Blend PH

Minimum InvestmentP5,000
Returns6% – 30% p.a.
Loan ProductsPersonal loan, business loan, franchise loan, seafarer loan, educational loan, fast loan, salary loan, and auto sangla loan.
Loan Interest Rate1% – 36% per month
Loan Terms3 – 36 months

Blend PH is an online peer-to-peer funding platform that is managed by Inclusive Financial Technology, Inc. 

The platform offers several loan products (including salary, seafarer, and franchise loans), in which investors/lenders can invest as low as P5,000 – and earn through interest income (ranging from 6% – 30% per annum).

2. SeedIn

Minimum InvestmentP1,000
Returns7% p.a.
Loan ProductsP2P business financing
Loan Interest Ratestarts at 2% per month
Loan Terms1 – 12 months

The largest business financing platform in Southeast Asia, SeedIn connects local businesses that need short-term loans with individuals and businesses looking for short-term investments. That makes SeedIn a peer-to-business (P2B) platform for lending and investment. 

SeedIn offers attractive benefits to retail and institutional investors, including competitive annualized returns starting at 7%, short-term tenured investments ranging from one to 12 months, and monthly interest pay-outs.

3. Investree

Minimum InvestmentNA (investment bidding)
ReturnsUp to 36% p.a.
Loan ProductsInvoice financing, purchase order financing
Loan Interest Rate2% – 4% per month
Loan Terms15 – 720 days

Founded in 2015 in Indonesia, Investree is dedicated to empowering small and medium-sized businesses. With a strong commitment to supporting SMEs, Investree has facilitated financing for over 1,400 businesses.

Through their platform, individuals can earn up to 36% yield per annum on their investments. This not only serves as a means for investors to grow their wealth but also help SMEs secure funds for their growth.

4. Lend PH

Minimum InvestmentNA (investment bidding)
ReturnsVaries (depends on the lenders/investors)
Loan ProductsPersonal loan, business loan, and cash advance
Loan Interest RateVaries (depends on the lenders/investors)
Loan TermsVaries (depends on the lenders/investors)

The site looks similar to job posting boards where you post your needs (if you’re a borrower) and then wait for a lender to fund your loan. The site does not look very stringent though in terms of verification of its borrowers and lenders.


The PH-section of this non-profit organization’s page shows loan requests from fellow Pinoys mostly needing funding for their businesses.

With as little as $25, you can help fund a fellow Filipino’s capital so they can operate their business (and climb out of poverty).

Note: The platform’s mission is to help change lives by making 0% interest rate loans available to its borrowers. So this is not necessarily an investment. 

Tips to Succeed in P2P Lending in the Philippines

1. Do your due diligence

As with any form of money-making investment, it all starts with knowing what you’ll be getting into. Keep in mind, this is not a get-rich scheme.

At the very least, read about how the whole system works (since you’re reading this, you’re off to a good start), compare lending sites, factor in all personal preferences (site’s user interface, ease-of-transaction, etc.,).

If you can, seek help from other experienced investors through groups or meets.

While not everything or everyone will be helpful, it may give you better insight on how to approach investing in P2Ps.

2. Start small

One of the main reasons why P2P looks appealing to investors is the low entry point requirement.

Imagine, even if you only have 5 or 10k in cash, you can start investing and have decent rates of return for your money.

The added benefit of being able to help others makes it even better.

3. Know thyself – how much risk can you tolerate?

“The greater the risk, the greater the reward” as the popular quote says.

But it really varies from one investor to another, so just because you’re friend thinks a particular loan will yield terrific results means you should follow suit.

Don’t listen blindly to advice, especially when there’s money involved.

As yourself, “what’s my risk tolerance?” “Am I more of a conservative type, risky, or something in between (moderate)?

Doing so will help you set the tone for your investing principle and keep you within your operating methods.

It helps avoid spur of the moment decisions which may lead to a loss.

4. Diversification is key

Betting all your funds on just one or a few loans may yield better returns—but it also heightens the risk of netting a loss.

The reason why mutual funds are popular (aside from the low entry point) is because your money is invested across several investment choices/vehicles with the goal of mitigating or lessening the risk.

Unless you’re a very risky-type of investor, diversification should definitely be considered as an investing philosophy.

5. Earn then reinvest

Any true successful business person will tell you that part of their success can be accounted to their ability to fight the desire to “cash in” immediately on their earnings.

Amazon founder and CEO Jeff Bezos, for example, is known for his stringent nature in spending their earnings.

This allowed him to reinvest the money back into growing Amazon into the global ecommerce behemoth that it is today.

From an investing standpoint, perhaps you can reinvest the money first until you reach a certain amount where the earnings can serve as a form of passive income source.

Otherwise, it will rob you of the potential to really rake in significant returns brought about by a larger asset pool.

6. Make sure you don’t have funds lying around (uninvested)

You should make it a habit to regularly check potential deals or loans that aligns with your investment philosophy.

This will help keep your capital “active” and not sitting around on your e-wallet doing nothing.

Money not being invested results to “opportunity lost” that could have otherwise been invested and resulted to a gain.

P2P Lending FAQs

Still got questions about P2P Lending? We’ll discuss them below.

What are the risks associated with P2P lending? 

The main risk of P2P lending is the possibility of default. P2P lending works by pooling the capital of many lenders, and the lenders only get paid if the borrowers pay his/her obligations.

How does P2P lending differ from traditional lending models? 

Traditional lending is based on a relationship between the debtor and creditor, which is usually a large institution. This can be highly inaccessible to millions of budding entrepreneurs who don’t have access to banks.

P2P lending eliminates many of the issues associated with traditional lending. It serves as a platform in which borrowers and lenders connect to one another.

Not only that but P2P lending is dubbed as a solid middle ground between the accessibility of the informal lending market and the inflexibility of conventional finance.

What types of loans are available through P2P lending platforms? 

P2P lending platforms offer a wide array of loan products. These range from personal loans, business loans, student loans, and even home loans.

How do P2P lending platforms assess the creditworthiness of borrowers?

P2P lending platforms usually follow internal and external credit assessment models when checking a borrower’s creditworthiness. Most platforms also have risk assessment analysts on board. 

How are interest rates determined in P2P lending? 

The platforms tend to deal with riskier borrowers. This means they can charge higher interest rates to compensate. If the borrowers don’t have a risky credit score or repayment history, the interest rate will be decreased.

What are the fees associated with P2P lending? 

This depends on your platform of choice. Aside from the 6% to 30% interest per annum, borrowers may also need to settle an administrative fee which is 1% to 8% of your approved loan amount.

What is the typical loan term for P2P lending? 

The loan term depends on the borrower’s preference, but expect it to be between 6 and 36 months, or more.

What happens if a borrower defaults on a P2P loan?

P2P loans are unsecured. Meaning, you can’t go after the borrower’s asset if they default on the loan. That said, the borrower will be charged late fees until they repay the loan.

Disclaimer: All information listed in this article is for information purposes only. Although utmost effort was made to ensure accuracy of information on this website, readers must not solely rely on it in making any investment or financial decision since it does not take into consideration the risk tolerance, financial situation, investment goals, and experience of readers. It is best to consult a professional financial planner or your bank before investing to make a more informed choice and limit your risk exposure.

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About Amiel Pineda

Amiel Pineda is the Head of Content at Grit PH.

He started freelance writing in 2010 doing product reviews and tech news. In 2018, he became a full-time freelancer, writing in the financial space and creating content for clients in various niches.

Prior to freelancing full-time, he worked 7 years in the financial services industry for a Fortune 500 company.

He also writes on his personal blog, Homebased Pinoy (, where he shares tips and guides as a work-from-home freelancer, along with NFT-game guides.

Education: Technological Institute of the Philippines (Bachelor of Science in Electrical Engineering)
Focus: Freelancing, Entrepreneurship, Financial Products, Investing & Personal Finance

Reader Interactions


  1. dan says

    i started p2p lending with fundko. i already earned interest. i prefer it because you get the principal and interest every month which you can reinvest. but i have one loan due 2 days ago. i have a total of 40+ loans to minimize risk.

  2. Mark says

    Good article but don’t be fooled by Kiva. I’ve been donating to people through Kiva for years and only just found out they charge their borrowers up to 40% per annum in interest. Its actually a real scam. Good people are donating, thinking they are giving generously to those in need, but unfortunately those in need are being taken advantage of.

  3. benjie uy says

    I currently have funds in 4 of these p2p platforms. The returns are definitely better than typical bank placements. However, these come with real risks, the biggest of which, is not lenders defaulting, its the P2P platform guys misbehaving. Why? because all funds go thru them which is the complete opposite of what its supposed to be.

  4. meeows says

    Anyone tried Vidalia? When I applied, I was accepted right away, received an email and received text messages(yes, more than 1 text message). I then followed the next step which is Loan Investment Placement. I received an email right away. But after I transferred my money, I didn’t receive any email nor text messages. 🙁
    How long is the process gonna be? I already emailed and texted them but still no response from them. 🙁
    Is this also a scam company? I hope not.

    • freego says

      thats kinda scary, i was thinking about investing too in Vidalia but something felt wrong. have you tried going to their office?
      if it is bogus, then its time to report it to tulfo or imbestigador to hunt them down.

      • Xio says

        Any follow-up on this comment? Im planning to invest to Vidalia too and I also checked them with SEC. They are recognized with SEC. Have they fixed this problem already?

      • ordep says

        the link doesn’t work. Any updates on this meeows? planning to invest sa Vidalia din pero nagdalwang isip ata ako after reading your comment. 🙂

        • Liam says

          Hi. I am invested in Vidalia for a year and a half now. It is not a scam. I’ve invested on a 6-month term and renewed it twice and so far so good with the rates. You can get higher rates for longer term. Renewal process is also easy, you just have to reply on their email.

    • Ryan says

      What email address did you use to contact them? Have you tried to get in touch with them using the following numbers:
      (02) 8534 2556 | 7718 0358
      0939 927 2375 SMART
      0917 328 4072 GLOBE

  5. Blue says

    i am new to p2p, a colleague told me the story on how i can make big money and she suggested Vidalia. I am really interested to invest a small amount but after reading this message, I guess I have to look for another company that I can trust my money with.

  6. Chita Marzan says

    Hi, am planning to join Blend.Ph. Does anyone have experience on this company? Will appreciate if you can share. Thanks

  7. Japs says

    My problem yung site plus yung returns dapat ng interest dapat last year ba ng 2018 hanngang ngayon wala pa rin hindi daw macontact si borrower..

  8. MU says

    MoneymatchPH website has been down and their email support address is bouncing too.
    I couldn’t get ahold of them, is this co down now?
    I am an investor of this business and I want to know when this started since I seldom get in their website.

  9. PabloEscobar says

    MoneyMatch website is up but everything you click leads to a 404 error—which basically means the website has either been taken down or contains no info. It’s been like that for a month now since December 2019. I’m intrigued by the high interest rate that Vidalia and are offering their investors. Blend is very new, just started in 2018 so maybe they’re a risky bet. Vidalia has been around since 2008, and I’ve been to their office in Shaw Blvd, but an 18% p.a. investment return is very high, almost 10x higher than banks’ time deposit interest rates. I’m worried it might be a pyramid scheme.

    • MMScam says

      It’s been months that their website and facebook is not responsive.
      They dont reply in email, messenger and calls. I cannot withdraw my account from them.

  10. ivan712 says

    Seems like the writer of this article should be more responsible and do their due diligence too. Moreover, please consider taking this article down since most of the sites are either defunct or are possibly pyramid schemes for the protection of the readers.

    • jasonacidre says

      Hi Ivan,

      We’re currently trying to reach out to all the entities we’ve listed on this post to validate if they are still operating (as we often update all of our lists every quarter). So you can expect a new and updated list in the coming weeks.

      Thanks for the heads up.

  11. Andy R. says

    I’m really excited about P2P lending but it sounds like there are a lot of scams out there. Does anyone have a site that they’re 100% sure about, and that they’ve had good experience with? Seems like a lot of P2P sites popped up in PH all at once and it’s time for some to get weeded out!

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