Choosing a personal loans can be challenging. Learn how to decide between a range of loan offers to find the best personal online loans for your financial situation. As a parent, there might have been a time when you have fallen short of budget to sustain the needs of your family, such Friendly interest rates as to cover your children’s education expenses.

Or perhaps you or any of your family member is going to work abroad, and you lack the sufficient money to pay for all the costs.

It might also be that there was an unexpected accident or emergency situation that had you needing to cover all the hospital bills and you lack the money to pay for all of it.

In those instances, and in many other instances, a personal loan is a viable way to fund your financial needs.

What is a personal loan? Here’s a guide

A personal loan, technically speaking, is a form of bank loan that can be availed by borrowers for them to meet their financial needs.

But, as a borrower, whether or not you would be granted of a loan depends on your credit history and your ability to pay using your personal income. Be that as it may, personal loans are more than just this technical definition of it.

This is because a personal loan can help you during your toughest financial times, whether you be an employee, self-employed, expat/foreigner, or an Overseas Filipino Workers.

As a matter of fact, personal loans are arguably one of the most flexible loans there is as it is not entirely based on you securing a collateral, it is usually a matter of your credit worthiness as a borrower and your minimum income.

Why Should I Consider a Personal Bank Loan over other Alternative Options?

In the Philippines, one of the most common ways to borrow instant money is through “5-6” lending, which serves as an informal quick cash loan.

Considering that the processing time for banks loans may require longer waiting time and that the lending conditions and requirements, including the financial documents and the minimum income requirement, of banks can be quite stringent, it is comprehensible why people resort to ‘5-6’ lending.

However, many do not realize that instead of it helping them get through the financial challenges, it may be one of the reasons why you may fall deeper into debt.

In contrast, while bank loans may have a stringent process and has a longer approval time, is is definitely worth the wait and the effort.

But why?

There are a 3 number of reasons why. Let me get you into some of those.

1. Friendly interest rates

Informal lenders, such as “5-6” lending, may charge up to 20% interest rate per month. Here’s a trivia. The reason why it’s called 5-6 is because for every ₱5.00 that you borrow, you have to pay back ₱6.00. With this said, if you are to borrow ₱50,000.00 from 5-6 lending, you shall repay ₱60,000.00. The interest rate then is appallingly 20%.

Five words. That is painstakingly too much.

“But is it not the same for bank loans? They do charge interest too, right?”

You may have been asking this question right now. Well, the answer is yes. Banks do charge interest rates, but NOT as large as “5-6” lending does.

Case in point, in contrast to informal lending, such as 5-6, where the minimum interest is 20%; with banks loans, you can avail a loan with an interest rate that is as low as 9%. With our help, we can help you find the most ideal bank loan option that you can avail with lesser interest rate.

To illustrate this further, here is an example. If you are to borrow ₱50,000.00 from a bank, with the right bank loan product, you will only need to repay back around ₱55,000.00 thereby enabling you to save ₱5,000.00 You can do a lot with the ₱5,000.00 that you get to save. Truly. But, then again, it all boils down to finding the right bank loan product for you, which we can help you find on the succeeding chapters.

2. No hidden costs/charges

It is invariably violable of the borrower’s right, but there are informal lenders who intentionally does not make it clear how much interest you are obliged to pay. That is against the law, particularly the Truth in Lending Act or RA 3765, but these informal lenders are able to get away with it precisely because they are informal, not legitimate lenders, and therefore the transactions cannot be sufficiently monitored by the tasked government agencies. This leaves the borrower helpless and with no option but to succumb paying for whatever amount the lender says the borrower has to pay for.

In contrast, with banks being formally recognized and legitimate lending institutions, it is easier to track the transactions. And so if it is the case that they violate the law, that they fail to give you a clear statement in writing of the loan amount and the annual interest package, you can file a complaint easily.

But filing complaints are rare instances when it comes to bank loans, as they almost always disclose how much the loan amount is and the annual interest package. With this said, it is safe to say that bank loans can give you more security.

3. Lesser tendency to fall into the cycle of debt

Informal lenders are more than willing to lend more than what you can actually afford to pay back, which is quite tactical, on the part of lenders.

This is because since you opted to avail how much you can actually pay back, as a borrower, you are more likely to fail in paying on time, which also means that you are obliged to take a larger interest. There may even be a time that you have to avail another 5-6 loan so that you get to pay back your original loan. That is how you get to fall into the cycle of debt.

In contrast, banks will only allow you to borrow how much you can actually pay back, as they also take into consideration your source of income and your assets, which would lessen your tendency to fall into the cycle of

A Common Misconception About Bank Loans

“Having a loan means you are unreliable when it comes to money and that you are not good at saving.”

There has often been a misconception that those who have loans are not good at saving, that they should have just saved efficiently so that they’re not going to need to avail a loan. But that is not as simple as they deem it to be, right?

No matter how good you save, it just sometimes ain’t enough to pay for unexpected emergency situation expenses.

Moreover, living in a country where only the price of goods and services increases, but rarely the wage or income of employees or workers, coupled by you having a responsibility to still provide to your family, budgeting everything to get through the month or the week can be overwhelming.

Though it is understandable where the sentiment of others is coming from, considering how some would even go as as far as availing a loan to finance their expensive lifestyle, that is not essentially the case all the time.

You can never expect when an emergency situation will happen and you cannot always expect yourself to be able to save exactly how much you’re going to need to finance the expenses for an emergency situation.

Now, with a personal loan, taking heed of course that you’re going to use it for your needs and not your wants, it can actually provide you the cash that you need as of the moment, which you can pay over time using your personal income.

This is also why if you are really unreliable with money, as other people deem you to be, then the bank would not allow you to have one. But you were able to have one, which only proves that you are reliable enough that the bank trusts that you’re going to pay back how much they lent

10 Some (Emergency) Situations Where You Can Use a Personal Loan

You may need to avail a personal loan for a number of reasons.

1. Pay for medical bills

We can never know when hospital emergency situations on your family will happen.

If you don’t have enough savings to cover unexpected accident expenses, which may oblige you to pay, for instance, a ₱30,000.00 hospitalization bill, a personal loan can fill in the gap for that.

2. Work Abroad or Travel Abroad

As a Filipino vying to work abroad or someone who has a family member who wants to work abroad, the processing of the required documents can be strenuous.

You have to pay for different types of fees, such as placement fees, documentation fees (e.g. passport, Philhealth), training fees, and other fees your agency may ask you to pay.

This is when a personal can be convenient, as it can help you shoulder the cost including even travel expenses, if applicable.

3. Cover education expenses

While student loans are specifically made to pay for educated related expenses, a personal loan can be used for a wide range of uses, not just for your child’s tuition fee, but also for your child’s allowance, apartment/dormitory installment payment, or his/her everyday needs.

4. Carry out home renovations

We can never expect when natural disasters will happen and the impact that it might cause to your home.

It may leave your house vying to be rebuilt after a natural disaster, considering how the potential flooding might reach your house.

Now, to make up for this, a personal loan can cover the expenses for the renovation.

5. Raise Capital For Business

Fueling your businesses’ growth may require a business expansion. And business expansions would not be possible without additional cash outlays. Now, a personal loan can make that business expansion possible by lending a borrowed capital or extra fund to finance the growth opportunities of your business.

6. Consolidate divided debts

A personal loan can help you roll into one multiple types of debt (e.g. credit cards, medical bills) in just one entity so that you’re not going to need to pay to multiple creditors every month.

So basically what happens here is that the bank will take charge of paying your other loans, and you, as a borrower, are going to pay to a single banking entity.

This has an advantage as it can potentially lower the interest rate that you have to pay and also can save you some time going to different locations to pay off your debt.

7. Special Occasions (e.g. wedding)

Some spouses-to-be often resort to credit cards to pay for a special occasion, such as their wedding.

A personal loan can be a good option also though, as not only could it give you the leverage to stick to a spending plan, but also it can make the after-wedding budgeting easier, debut, birthday, and other family gatherings considering that there is a monthly installment payment, which you have to comply on.

8. To Pay for a vacation/travel

In 10-30 days, you could be sitting on a beach, visiting a new city, or dancing the night away on a cruise—and have the trip totally paid for.

Though it’s often practically better not to go on a vacation if you don’t actually have a money on hand for that, there are trips that you can’t just miss.

Having a work so overwhelming or home duties so stressing, you deserve to treat yourself sometimes, and a personal loan can make that possible.

9. Emergency Funeral Funds

At some point in your life, there may come a time when you find yourself facing the likelihood of paying for a loved one’s funeral.

And in such as instance, it is not always the case that you get to earn enough to cover the expenses.

With a personal loan, they can lend you the money you need which you can use at your own discretion.

What make this personal loan, which serves as your funeral loan, an apt option is that you don’t necessarily have to have a collateral, as it is based on having a good credit history, as well as if your personal income is within the minimum requirement. It is likewise readily available.

10. Business Auto Repair Loans

There may be instances when it is more advisable to avail a personal loan than a car loan.

Though car loans are great in such a way that they have a typically lesser interest rate, are specifically designed so that you can purchase a car, and can give you the propensity to avail a larger loan amount, they are limited in such a way that you cannot use a car loan to cover additional car expenses, and this is when a personal loan becomes a

How Do Personal Loans Work? A Beginner’s Guide

It is pretty simple. Once, your personal loan is approved, the bank will lend you the amount of cash you intended to borrow in a lump sum, which means that they will give you the amount in a single payment.

As a borrower, you will pay the exact amount plus the interest rate, in monthly installments.

As for the time frame, it boils down to the specific type of loan that you availed, which may vary from bank to bank.

There are banks that offer a personal loan payable in six months, while there are those that offer a personal loan payable in 3 years or 36 months.

Always choose a loan term that fits your budget.

Steps To Take When Getting a Personal Loan From a Bank

1. Know how much debt can be handled by you by computing for your debt-to-income ratio.

If you want to avail a bank loan, one of the key points to consider is that when you avail a bank loan, it must not plunge you into debt even further. And so it is essentially important that you work on your debt-to-income ratio to know how much debt can be handled by you, considering your personal income. As a rule of thumb, is is essential that the percentage value will NOT surpass 40% of your income. If the computed percentage value is less than 40%, it means that you are less likely to run into trouble when making your monthly payments.

To calculate your debt-to-income ratio, just compute all your total monthly debt payments, and then afterwards, you have it divided by your total gross monthly income (Note: gross monthly income: monthly income before the deduction of tax contributions etc.)

To illustrate this even further, suppose that you pay ₱5,000.00 a month for your personal loan and then another ₱3,000.00 a month for the rest of your debts. Your monthly debt payment will then be ₱8,000.00. Suppose your total monthly income (gross monthly income) is ₱25,000.00. Your debt-to-income ratio is then 32% ( 32%<40) which means that you are less likely to run into trouble when making your monthly payments.
In case you are curious, here is how we were able to compute the value, 32%.
calculate your debt-to-income ratio, loan_in_the_philippines_01.jpg

Math can be a challenge sometimes, so if you want keep things simple, here is a link, which you can use to compute for the percentage. No sweat. Just type in your total debt monthly debt payment on the left side and your personal gross monthly income on the right side.

Fundamentally speaking, knowing your debt-to-income ratio is necessary because it can guide you so you would know how much you can realistically afford to pay. Moreover, considering that you have a specific overview of how much you can realistically afford to pay, it could potentially help you not be tempted to borrow more than what you can realistically afford to pay, as you get to take into consideration your personal income and the other debts you are paying.

Example computation for personal loans with a principal amount of ₱20,000.00

Principal amount ₱20,000.00
Interest Rate 1.2% per month
Loan Tenure 12 months
Processing Fee ₱1,500.00
Net Payout ₱18,500.00
Total Interest Payable ₱2,880.00 for 12 months term
Monthly Payment ₱1,906.67
Total Amount Payable ₱22,880.00 for 12 months

2. Know the different financial/banking institutions and the personal loan options they offer. Choose a loan option with a competitive interest rate and loan term that first your budget.

To better know the different banking institutions and the personal loans they offer, we will be discussing, in the upcoming sections, the different financial institutions in the Philippines and the loan options they offer.

Now, if you have already chosen a bank, the next thing to consider is to choose a personal loan type that gives a competitive interest rate and loan term. Banks offer personal loans where the interest rate may range from 6%-30% and it may vary depending on the loan term.

3. Keep maintaining a good credit history and/or a savings account

To be able to qualify for a loan with a low-interest rate payment, one of the key considerations is that you must have a good credit history. If you have other outstanding loans in banks, make sure that you always pay it on time, as it can help increase your chances of being approved of a loan in the future.

Maintaining or having a savings account is likewise essential, more so if you regularly contribute to your account, as it may demonstrate your likelihood to pay for your personal loan. This is a bonus point and can likewise increase your chances of being approved of a loan in the future.

Get Your Personal Loan Approved With These 6 Tips

Before knowing how to increase your chances of being approved of a loan, it is necessary that you understand first the reason why most loan applications are rejected. Refrain from doing these if you want to get your bank loan approved.

Common Reasons why loan applications are rejected:


1. Have a good credit history, or better, have no credit history

If you are not that familiar with credit score, a credit score is a rating used by lenders to evaluate the creditworthiness of a particular borrower. The higher the score is, the more likely it is for the bank to grant you a loan.

Now, as a prospect borrower who already has an experience with credit, you may be thinking, how do I increase my credit score?

You see, banks do background checks to evaluate the credit worthiness of a borrower. And part of that background checking process involves double checking your loan history.

Do you always pay your credit account payments on time? How much total debt do you have? How much is the total credit you’re using? All these questions play a huge role in improving your credit score.

Now, if it is the case that you have a poor credit score, do not be discouraged. There is no fast way for it to be fixed, but you can always make up for it by rebuilding your credit. Make yourself worthy of their trust by always paying on time your other credit accounts, if you have one. Moreover, make sure that you close any unused credit account, as it increases your overall credit limit, thereby also raising a red flag for your bank as it is perceived negatively by them. If you are planning to avail a loan in two weeks to one month, utilize that waiting time to improve your credit score.
notes, loan_in_the_philippines_03.jpg

2. Be sure to pass all the required documents

If you fail to pass all the required documents, your loan application will be most likely screened out. So be mindful. Look to it that you get to bring with you all the needed documents as you go to the bank.

And though there are sites that can help you so that you would know the requirements, it is better if you inquire in the bank. If you can’t make it to the bank, you can give still give a call to their support team or send them an email. This is because some banks may require documents other than what they initially specified.

3. Be honest.

Banks will do a background check to verify if the information you provided in the application form is true.

So by providing a false information, be that a dishonest loan purpose or document falsification, not only will they not grant you a loan, but also it will tarnish your credit reputation thereby making it unlikelier for you to avail a loan in the future, no matter how badly you need it.

4. Have the right expectations

When applying for a loan, make sure that you have the right expectations. You can expect little but never expect too much.

In case you don’t meet the qualifications, have a back-up plan. If you want, look for other banks that also offer rates that are as competitive as UCPB’s loan plans.

5. Don’t hesitate to ask

If there is something about the loan package that confuses you, do not hesitate to ask questions. If as you browsed online, you saw a loan package that matches your interest, try contacting the bank directly for confirmation.

If you want, you can also make an appointment in person so that they can better discuss the essential documents needed, the timeline, interest rate, or the timelines, which you need to know before you get started with the approval process. Banks don’t always make available online some necessary information needed when applying for a loan.

So, it’s really good to still ask questions to have a better assurance. In that way, you can spare some of your time going back and forth to the bank just so you can pass the other requirements needed.

6. Avail only what you know you can afford to pay.

You know yourself better than anyone else.

If you yourself are aware that you have several other financial responsibilities than would make it difficult for you to pay the loan on of before its due date, then opt for a lesser loan amount.

To be sure, know your debt to income ratio, which was discussed just awhile ago.

This can help you assess how much loan amount you can realistically afford to pay considering all your other debt repayments.

Online Loan Philippines The Best Personal Loan Options to Choose From

There is no best product loan option that applies to everyone for every prospective borrower has different circumstances. As an employed applicant, for instance, there are bank loan options that leaves you at a more advantaged position.

The same goes for self-employed applicants, Overseas Filipino Workers, and foreigners.

Aside from that, we all have unique priorities when it comes to choosing the most ideal product loan choice.

It can be that your priority is choosing a bank with the lowest interest rate. Other than that, you may also want to take into consideration the fees and charges.

Furthermore, you may likewise wonder which banks offer online loan application. Or maybe, as a foreigner, you may be wondering which banks offer loan application to foreigners.

Now, to help you with this, we can summarize the different information from different banks, and also other things you take into consideration when deciding, which bank to apply for.


1. BDO UNIBANK ₱1,300.00 (for employed and self-employed)
  ₱1,200 (for OFWs and seafarers)
2. BPI ₱1,500.00
3. CITIBANK ₱1,750.00
4. EASTWEST BANK ₱1,900.00
5. HSBC ₱1,500.00
6. MAYBANK ₱2,000.00
7. PBCOM ₱2,500.00
8. RCBC ₱1,500.00
9. SECURITY BANK ₱2,000.00
10. STERLING BANK ₱2,000.00
11. UCPB ₱1,500.00

Looking at the table above, it is safe to assume that processing fee wise, the best option is BDO as it charges the lowest processing fee, amounting to ₱1,300.00 among all the 11 banks covered. Next great options are UCPB, RCBC, BPI, and HSBC, all of which amounting to ₱1,500.00.

However, this is not an enough information because you must also look into the interest rate all the banks charge. Note that not because a bank offers a low processing fee does not mean that they also have the lowest interest rate.


A summary of the interest rates of the different banks, Personal-Loans-in-the-Philippines.png

As an OFW, when you take into consideration the interest rates of the different banks, one of the best loan option for you to avail is BDO Unibank’s Kabayan loan, which is tailor made to fit the personal loan needs of OFWs. Its interest rate is as low as 0.79% monthly if you put up a collateral, which is a formidable rate definitely.

BPI’s personal loan option for OFWs is worth considering as well.

The monthly add-on interest rate is only at 1.20%. More so, since the monthly add on interest 1.20% is fixed, you need not worry about it suddenly increasing. Also, great options are BDO, Citibank, and HSBC.

Biggest Banks Offering Personal Loans Online

Bank of the Philippine Islands – BPI Banco de Oro
Philippine Bank of Communication – PBCOM
Rizal Commercial Bank of Communications – RCBC

For those applying online, just refer above to know which among the covered 11 banks Offer an online loan application.



As a foreigner, the list above, on the left, are the banks you can consider as you apply for a loan. However, there is no definite answer if the interest rate would still be the same as Filipino self-employed or employed borrowers.

But as your reference, you can refer to the table above on the list of interest rates of the different banks which offer loan option to expats or foreigners.

How to apply and get approved for a Personal Loan in the Philippines (Fast)

For you to be avail to avail a personal loan, you must meet the following eligibility criteria:

1Citizenship: Must be a Filipino citizen (by birth or by legalization)
Note: There are still banks that allow foreigners/expats to avail personal loans provided that they meet the eligibility criteria.
For more information, continue reading below.

2Age requirement: Must be at least 21 years old (but not exceeding 65 years old upon loan maturity)
Note: The age requirement may vary for different banks, but there are those that offer loans where the minimum age requirement is 20 years old and the maximum is 70 years old. For self-employed clients, the minimum age requirement is typically 25 years old.

3Income: Has to have a stable source of income from employment or from business. The minimum gross monthly income requirement is usually ₱20,000.00.
Note: Banks impose different minimum gross monthly income for you to be able to avail a bank loan. Metro Manila-based banks often require higher minimum gross monthly income, while those located outside that area typically require lesser minimum gross monthly income.

For more information, continue reading below.

Personal Loan Documents Required – Documents Checklist

The loan process application is a tedious process. Some banks may ask for additional requirements, but normally the needed requirements are as follows. Note that this is applicable to all banks.

Personal Loans Requirements for Employed Applicants:

  • Duly-filled application form
  • At least 2 of these govt-issued valid IDs (original and photocopy)
  • Passport
  • NBI clearance
  • Driver’s license
  • SSS card
  • Postal ID
  • PRC ID
  • Voter’s ID
  • Barangay Clearance
  • Police Clearance
  • Senior citizen ID
  • Taxpayer’s Identification Number (TIN)
  • latest 1×1 and/or 2×2 ID photo
  • Any two of these billing statements: electric bill, credit card bill, phone bill, TB subscription bill, water bill
  • Certificate of Employment
  • Latest 2 months payslip
  • Any of the following:
  • 3 months original copy of payslip with BIR stamp or Bank stamp (BIR Form 2316)
  • latest Income Tax Return (ITR)

Requirements When you’re self-employed:

  • Duly-filled application form
  • At least 2 government issued valid IDs (original and photocopy)
  • Passport
  • NBI clearance
  • Driver’s license
  • SSS card
  • Postal ID
  • PRC ID
  • Voter’s ID
  • Barangay Clearance
  • Police Clearance
  • Senior citizen ID
  • Taxpayer’s Identification Number (TIN)
  • Latest 1x1 and/or 2x2 ID photo
  • Photocopy of latest Income Tax Return with bank stamp (BIR Form 1700 or 1701)
  • Photocopy of Audited Financial Statements for the last 2 years
  • Business registration documents (whichever is applicable): DTI registration/SEC Registration/Mayor’s Permit
  • Any of these billing statements: credit card bill, electricity bill phone bill, TB subscription bill, water bill
  • Photocopy of Bank Statements for the last six (6) months (OPTIONAL)

Personal Loans Requirements For Foreigners in the Philippines:

The most common nationalities of expats you’ll meet in the Philippines are: South Korea, China, United States, Japan, Australia, Taiwan, Canada, United Kingdom, Singapore, Malaysia, Hong Kong, Germany, Indonesia and France.

Note: As a foreigner, there are only a few banks that offer loan option to foreigners/expats. This is because one of the most common eligibility criteria for personal loan, by most local banks, is that you must be a Filipino citizen.

Note, though, that some international banks may allow you to avail their loan options provided that you have a history of banking with them.

But it should not just be a history of banking, but a GOOD history of banking with them. The longer you have stayed in that particular bank, the more likely would they approve your loan application.
So loyalty also counts.

To make things easier for you, we have compiled a list of local and international banks that caters to the personal loan needs of foreigners/expats. Also listed below are the general requirements needed.

List of local and international banks in the Philippines that offers bank loan to expats/foreigners.

  • Banco De Oro (BDO)
  • HSBC
  • Citibank
  • Maybank
  • Philippine Bank of Communication (PBCom)
  • Rizal Commercial Bank of Communications (RCBC)
  • Security Bank
  • Sterling Bank of Asia

General Requirements Needed:

The general requirements specified below are applicable to all foreigners or expats, regardless of whether you are issued with immigrant visa, a foreigner with Filipino ties, or a foreigner with dual citizenship.

So long as you have been residing in the Philippines for more than 3 years, and you get to secure these requirements with you, you have a higher chance of getting your loan approved. Here are the requirements needed:

  • Duly accomplished application form
  • At least 1 valid ID – original and photocopy (e.g. Passport, )
  • Alien Certificate of Registration / Immigrant Certificate of Registration
  • Copy of Employment Contract or Certificate of Employment
  • Letter from the Embassy (if Embassy Official)
  • Any of the following (photocopy):
  • Alien Certificate of Registration (ACR)
  • Special Investor’s Resident Visa and Visas Philippine Economic Authority or Visa with Eo226
  • Work Permit and valid Visa
  • Valid passport with Resident Visa

For Overseas Filipino Workers / Seaman

  • Duly-filled application form
  • Latest and unexpired POEA ID or OFW ID (original and photocopy)
  • 1 more government issued valid ID -original and photocopy (any of the following)
  • Passport
  • NBI clearance
  • Driver’s license
  • SSS card
  • Postal ID
  • PRC ID
  • Voter’s ID
  • Barangay Clearance
  • Police Clearance
  • Philhealth Card
  • Certificate of Employment with details on salary, position, and length of service – original copy (should be authenticated by the Philippine Consulate)
  • Agency based: POEA contract or Employment contract with boarding date
  • Seaman’s book (for seafarers/seamen)


Thanks to the advancement in technology, it is already possible to apply for a personal loan online. This is definitely helpful if you are an OFW, or somebody who does not have the time to go to the bank to inquire or to pass all the required documents.


List of Banks in the Philippines that offer online loan application

  1. Banco De Oro (BDO)
  2. Bank of the Philippine Islands (BPI)
  3. Citibank
  4. Eastwest Bank
  5. Maybank
  6. Rizal Commercial Bank of Communications (RCBC)
  7. Security Bank

How To Qualify For A Personal Loan Online – A Simple Way to Borrow

As regards the step-step guide, the steps may vary depending on the bank where you want to avail a loan.

And so for additional information, as to how, it would be better if you check on the more detailed step-by-step guide for different banks as we proceed.

We will tackle the step-by-step guide for the different banks that offer online loan application. So stand by.

But if you want an overview on how to do it, it is simple.

  1. Simply visit the link specifically intended for the bank’s online loan application.
  2. Fill out the application form, and click ‘apply’.
  3. Submit a scanned copy of the documentary requirements to the designated email specified by the bank. Note that some banks may require other ways to do so though.
  4. Wait for a call from the bank’s representative to notify you about the next steps to accomplish.

Benefits of Personal Loans Online: 3 Ways They Can Help You

1 Ease of Access
Online loan application provides the advantage of being easily accessible. So there is no longer a need to go through the strenuous lines in the bank while waiting for your turn.

All you need is a stable internet connection, email address, and shop where you can have the documentary requirements scanned, and you can apply anywhere you want.

2 24-7 access to online loan application
With online loan application, there is no need to beat the business hours of the bank. So long as you have an internet connection, you can apply at any time you wish to.

And so if you are working throughout the day and got no time to visit a local branch to apply or inquire, you can take care of everything during the night or during midnight, whatever time you want.

3 Less Travel Expenses
With the transaction in loan application being online, it gives you the convenience to apply even at the comforts of your home.

This also means no longer needing to commute nor invest in car fuel, which likewise means that you get to save some money, which you are supposed to alot when you go to the span branch.

Applying Personal Loan in the Near Branch: A Step-by-Step Guide

Step 1: Go to the nearest branch in your area. Make certain that you bring with you all the needed documents, which are listed above.

Note: Before you go, it would be better if you contact the bank and ask if there are additional documents, which you may need to pass. This is to save you some time going back and forth to the bank, as some banks may require you to bring additional documents, which are not listed above.

Step 2: If it is already your turn, submit all these requirements to the bank officer who will take charge of checking all your documents.

Step 3: Prepare to pay for processing fee, which ranges from ₱1,500.00-₱2,500.00.
Note: There are banks that do not necessarily require you to pay instantly, but would just deduct the processing fee amount from your loan proceeds or when you cash out the loan.

Step 4: If upon assessment, they see that you are able to bring all the necessary documents, then you are good to go. Wait until the bank contacts you if your loan is approved.

Note: The processing of your application usually takes 5-10 business days after your submission of application form.

2 Advantages of Personal Loan in the Bank & Why its a Good Option

1 Can give comfort when dealing with bigger transactions
Loan application in itself is a heavy transaction, especially for first time loan applicants. There are lots of things you need to ask about, and some information on the internet may be outdated. Note that the interest rates imposed by some banks are subject to change without prior notice on their website.

With this said, if you are dealing with a transaction that involves a large sum on money, inquiring at a branch would give you comfort because you are more certain that the information you are curious about and the answers they would give you are the updated and not the outdated ones.

2 Provides convenience when dealing with a complicated application circumstance/case (e.g. re-availing a loan)
For people who are new to loan application, applying in a branch would be a more ideal choice as the bank officer would have a better leverage in responding to your queries considering that the transaction is face-to-face. As an applicant, this would also enable you to explain your complicated circumstance directly and openly.


  1. Bank of the Philippine Islands (BPI)
  2. CitiBank
  3. Eastwest Bank
  4. Security Bank
  5. Sterling Bank
  6. BDO
  7. HSBC
  8. RCBC
  9. Cashmart
  10. FundKo
  11. Esquire Financing
  12. MoneyMatch Philippines
  13. Tala Lending
  14. GoBear
  15. First Circle

1. Bank of the Philippine Islands (BPI)

As a matter of fact, BPI is the third largest bank in the Philippines in terms of assets, and as of 2017 has 839 branches and 22 kiosk branches nationwide BPI has been hailed in 2016 by The Corporate Treasurer as the “Best Bank in the Philippines” in terms of cash management, risk management, and trade finance.

Moreover, it was awarded as the Best Private Bank With Commercial Banking Abilities in the Philippines by the leading business and finance magazine, Euromoney.

BPI offers a wide range of banking and financial services, and among which are its loan products, which include:

  • BPI Auto Loan
  • BPI Housing Loan
  • BPI Ka-Negosyo Loan
  • BPI Personal Loan
  • BPI Personal OFW Loan

But since this guide is about personal loan, we will talk about BPI personal loan a bit more. Now, to know more about BPI personal loan, keep on scrolling.

Why choose BPI? Advantages and Benefits

  • The interest rate for BPI personal loan is fixed, and so you need not worry about your monthly installment changing, as the monthly installment for BPI personal loan never changes.
  • BPI personal loan offers flexible payment terms (12 months, 18, 24, 30, or 36) you can take advantage of. This makes it easier for you to choose a payment term that fits your budget.
  • Among the banks being discussed, BPI offers one of the most competitive interest rates, which is as low as 14.40% annually with a monthly add-on interest rate as low as 1.20%.

A Step-by-Step Guide on How to Apply for Personal Loan in BPI


  • Loan Amount: Minimum of ₱20,000.00, maximum of ₱1,000,000.00 (subject to your paying capacity)
  • Approval Duration: Within 5-7 banking days
  • Loan Terms: 12 months, 18 months, 24 months, 30 months, 36 months
  • BPI interest rate: 14.40% annual interest rate with a fixed add-on interest rate of 1.20% per month

BPI Table of Interest

Product name Interest Rate Interest Type
BPI Personal Loan – 12 months 1.20% Monthly Add-On Rate
BPI Personal Loan – 18 months 1.20% Monthly Add-On Rate
BPI Personal Loan – 24 months 1.20% Monthly Add-On Rate
BPI Personal Loan – 30 months 1.20% Monthly Add-On Rate
BPI Personal Loan – 36 months 1.20% Monthly Add-On Rate

Frequently Asked Questions about BPI Personal Loan:

Q: My gross monthly income is below the minimum income requirement, can I still proceed with the application?
A: Yes, you can still proceed with the application. However, the credit valuation, as well as approval process, is subject to the eligibility criteria, and so you have no chance of getting your loan approved.So, yes, you can proceed, but it is more of a waste of time. To better assess your readiness for a loan, here is a link for BPI’s loan readiness test:
Q: I have no BPI savings account . Can I still be allowed to apply?
A: Yes, you can still apply for a loan from BPI. But once your loan is approved, BPI will request you to open a BPI account, as that is where they would deposit the loan proceeds.

Q: I am an OFW, and I am currently residing abroad for work. Can I apply for a BPI Personal Loan?
A: Yes, you can apply online via BPIexpressonline. Simply follow the guidelines for online loan application above. However, if it is the case that your loan is approved, you must be physically present to sign all the documents in any BPI branch in the Philippines.

Q: I am an OFW, and I was recently notified by BPI that my loan is approved. However, my arrival day in the Philippines is two weeks from now. Would BPI still grant me my personal loan?
A: Yes, BPI would still grant you the personal loan. Your loan is valid for one month from the date of approval. And so you have until 30 days to spare to arrive to the Philippines, so that you can sign all the documents you need to sign in any BPI branch.

Q: How do I pay for monthly installments?
A: Payment of monthly installment is via automatic debit (ADA) from your BPI deposit account. This automatic debit (ADA) will run monthly on your schedule due date.

Q: I am a foreigner married to a Filipina. Can I apply for a BPI Personal Loan?
A: As of now, BPI Personal Loan is only available for Filipino citizens. If it is the case that you want to avail a loan, one option you have is to ask your Filipina wife to work on the application process named after her. But this option is not advisable though. But there is no need to worry, there are several other local banks that can provide your personal loan needs as a foreigner.


Globally, Citi is the leading global bank with more than 200 million customer accounts in more than 160 countries around the world.

Aside from being known for its corporate and investment banking, trade finance and services, wealth management solutions, credit cards, and insurances, Citibank is likewise notable for its personal loan service, which can help you achieve your goals. Whether that be to attain your home renovation plans, or educational dreams, Citibank can make those possible for you. It is also useful especially during emergency situations.

Why choose Citibank? Advantages and Benefits

  • 1Citibank has one of the fastest approval duration, which is as fast as 24 hours. Just make certain that you are able to submit all the documents needed to avoid any form of delay from happening.
  • Citibank offers one of the most flexible payment terms. You can choose from a minimum loan tenure of 1 year to a maximum loan tenure of 5 years.
  • The maximum loan amount Citibank permits is up to ₱2,000,000.00. How much they would allow you to borrow is subject to your paying capacity though.
  • In Citibank Personal loan, there is no need to put up a collateral.
  • Citibank provides 2 modes of disbursement. You can choose between branch pick-up or having it delivered to your billing address.

A Step-by-Step Guide on How to Apply for Personal Loan CitiBank


  • Loan Amount: ₱20,000.00 to ₱2,000,000.00
  • Approval Duration: Within 5-7 banking days
  • Loan Terms: 12 months, 18 months, 24 months, 30 months, 36 months
  • CitiBank interest rate: 2.40%

Citibank Fees and Charges:

  1. Processing Fee: ₱1,750.00
  2. Stamp Fee (applicable for loan amount above ₱250,000.00 or if the loan amount is for business purpose): you shall pay a document stamp tax worth ₱1.50 for every ₱200.00 of the loan amount. This will be deducted from your loan proceeds prior to release.
  3. Late Payment Charges: late payment fee of ₱500.00 or 6% of the past due amount

Frequently Asked Questions about Citibank Personal Loan

Q: What is the minimum age requirement to be allowed to avail Citibank personal loan?
A: In a Citibank personal loan, the minimum age requirement is 21 years old, but you should not be more than 65 years old upon loan maturity

Q: I have not received any call from Citibank notifying me whether or not my loan application is approved. What do I do?
A: In case there is no one from Citibank notifying you of the status of your loan application, you can contact Citibank’s citiphone via the numbers below to ask for an update:

  1. For applicants based in Metro Manila: 995 9999
  2. Metro Cebu: 234 9999
  3. Other Provinces: 02 995 9999
  4. From Abroad: +63 2 995 9999

Q: Would it be okay if I assign someone to receive my loan proceeds on my behalf?
A: Unfortunately, you cannot assign someone to receive your loan proceeds on your behalf. For your security, Citibank only considers you as the sole person eligible to get your own loan proceeds.

Q: Can foreigners apply for Citibank’s personal loan? Or only Filipino citizens can apply?
A: Certainly, foreigners can apply for Citibank personal loan. However, as a foreigner, you are required to have a valid Philippine billing address to avail one.

3. Eastwest Bank

Legally known as East West Banking Corporation, East West Bank was founded in 1994 in Manila. It was the first bank granted by the Bangko Sentral ng Pilipinas (BSP) with a commercial banking license ever since the liberalization of banking in the mid 1990s. And ever since its establishment, Eastwest bank has been continuously growing and expanding its operation to cater to the banking needs of more and more Filipinos and even foreigners, as well.

Just within 2 decades and a half, the bank was able to emerge as one of the fastest growing universal banks in the Philippines, with 447 stores to date, including EastWest Rural Bank. And as of March 2018, East West Bank is the 12th largest bank in the Philippines in terms of assets, the 5th biggest issuer of credit card, and the 4th largest auto loan provider in the country today.

Aside from auto loans, also notable is East West Bank’s personal loan product, which requires no collateral and offers a fixed equal monthly installment.

Why Choose East West? Advantages and Benefits

  • The annual interest rate for Eastwest personal loan per annum, which is 22.68%, is fixed. Its fixed monthly installment is also fixed.
  • With EastWest Personal Loan, there is no need to put up a collateral for you to avail a loan.
  • There is also no need for you to have your co-maker of guarantee so that you can avail.
  • EastWest Personal loan offers flexible disbursement options: either you pick it up at the head office or the bank, or they get the money deposited to your bank account.

A Step-by-Step Guide on How to Apply for Personal Loan in Eastwest Bank


  • Loan Amount: ₱25,000.00 to ₱2,000,000.00
  • Approval Duration: Within 5-7 banking days
  • Loan Terms: 12 months, 18 months, 24 months, 30 months, 36 months
  • EastWest interest rate: 1.49% to 1.89%

EastWest Table of Interest:

With existing credit card for at least 12 months

Product Name Monthly Add-On Rate Effective Interest Rate per annum
EastWest Personal Loan- 12 months 1.49% 41.67%
EastWest Personal Loan- 18 months 1.59% 42.93%
EastWest Personal Loan- 24 months 1.59% 41.62%
EastWest Personal Loan- 36 months 1.69% 41.94%

Without credit/With credit card less than 12 months

Product Name Monthly Add-On Rate Effective Interest Rate per annum
EastWest Personal Loan- 12 months 1.89% 52.21%
EastWest Personal Loan- 18 months 1.89% 51.33%
EastWest Personal Loan- 24 months 1.89% 49.68%
EastWest Personal Loan- 36 months 1.89% 46.92%

Frequently Asked Questions about East West Personal Loan

Q: For us to be able to apply, are we required to have our own credit card?
A: Before, having your own credit card was a requirement to be eligible to apply for an East West personal loan. However, East West changed their policy and now accepts personal loan from applicants with no credit card. However, the interest rate would be higher if you have no credit card existing for at least 12 months. So applying for East West personal loan without existing credit card is not advisable.
Q: How do I pick my loan proceeds?
A: Loan proceeds will be released via a manager’s check, which you must personally pick from an East West Bank head office.
Q:Can foreigners apply for East West Personal Loan?
A: Yes, foreigners can apply for Eastwest personal loan provided that they are permanently residing in the Philippines.

4. Security Bank

Formerly known as Security Bank and Trust Company, Security was actually the very first private, Filipino-owned commercial bank after the second World War. Almost 67 years after it was founded in June 1951, it established a formidable reputation as 10th of the top universal banks in the Philippines.

In 2012, Security Bank was even rewarded two of the most prestigious banking awards globally. It was awarded as the Strongest Bank in the Philippines by the Asian Banker of Singapore. But not only that. It was also awarded by the Financial Times in London as the Bank of the Year in 2012.

Security Bank offers a wide range of services, and among which are its loan products. Security Bank’s loan products include:

  1. Car Loan
  2. Employee Loan
  3. Home Loan
  4. Personal Loan

Why choose Security Bank? Advantages and Benefits

  1. Security bank offers flexible loan amount, which can be as high as ₱2 million pesos. This is subject to the buying capacity of the borrower.
  2. The monthly add-on rate is as as low as 1.39% per month.
  3. There is no need to put up a collateral to avail the loan.
  4. There is no need to have a guarantor to avail the loan.

A Step-by-Step Guide on How to Apply for Personal Loan in Security Bank


  • Loan Amount: ₱30,000.00 to ₱1,000,000.00
  • Approval Duration: Within 5-7 banking days
  • Loan Terms: 12 months, 18 months, 24 months, 30 months, 36 months
  • Security Bank interest rate: 1.39% to 1.69%

Security Bank Table of Interest:

Product Name Monthly Add-On Interest Rate Annual Percentage Rate
Security Bank Personal Loan – 12 months 1.39% Begins as 29.48%
Security Bank Personal Loan – 18 months 1.49%
Security Bank Personal Loan – 24 months 1.59%
Security Bank Personal Loan – 36 months 1.69%

Security Bank Fees and Charges:

  1. Processing Fee: ₱2,000.00 (amount to be deducted from the loan proceeds)
  2. Stamp Fee (applicable for loan amount above ₱250,000.00 or if the loan amount is for business purpose): You shall pay a document stamp tax worth ₱1.00 for every ₱200.00 of the loan amount. This will be deducted from your loan proceeds prior to release.
  3. Late Payment Charges: P3% of the amount due or ₱500.00 (whichever is higher)

Frequently Asked Questions about Security Bank Personal Loan

Q: What are the available methods of payment?
A: Payment of the monthly amortization is through a postdated check.
Q: Can foreigners apply for Security Bank’s personal loan?
A: As of now, Security Bank’s loans is available only to Filipinos. So as foreigner, you are eligible to apply yet.

5. Sterling Bank

Sterling Bank of Asia Inc., commonly known as Sterling Bank, is a savings bank that provides personal and corporate banking services to its clients in the Philippines. The formation of Sterling is primarily motivated by a mandate by the government to create a specialized financial institution to fuel the growth and development of small and medium enterprise sectors (SME). As of now, Sterling Bank has 47 branches nationwide. And in its years of operation, it earned its place as one of the top 10 thrift banks in the Philippines.

Sterling Bank’s deposit services include savings account, checking account, time deposits, and consumer loans. Among its offered consumer loan are salary loan, home loan, personal loan, and auto loans. But since this site is about personal loan, we will delve deeper into Sterling Bank’s personal loan product.

May your reason for availing a personal loan be to renovate your house, expand your business, pay your monthly bills, or to fund a vacation, Sterling Bank personal loan is here to make that happen for you.

Why choose Sterling Bank? Advantages and Benefits

  1. Sterling Bank personal loan offers a flexible loan-able amount, which is up to 1 million pesos. How much you would granted a loan depends on your paying capacity as a borrower.
  2. There is no need to have a guarantor nor put up a collateral in Sterling Bank.

A Step-by-Step Guide on How to Apply for Personal Loan in Sterling Bank


  • Loan Amount: Minimum of ₱50,000.00, Maximum of ₱1,000,000.00 (₱1 million)
  • Approval Duration: 5-7 banking days
  • Loan Terms: 12 months, 18 months, 24 months, 36 months
  • Interest Rate: 1.4%-1.45% interest rate

Table of Interest:

Product Loan Monthly Add-On Rate Annual Rate
Sterling Bank Personal Loan – 12 months 1.45% 17.40%%
Sterling Bank Personal Loan – 24 months 1.45% 17.40%%
Sterling Bank Personal Loan – 24 months 1.45% 17.40%%
Sterling Bank Personal Loan – 36 months 1.45% 17.40%

Fees and Charges

  1. Processing Fee: ₱2,000.00
  2. Stamp Fee (applicable for loan amount above ₱50,000 or if the loan amount is for business purpose): You shall pay a document stamp tax worth ₱1.00 for every ₱200.00 of the loan amount. This will be deducted from your loan proceeds prior to release.
  3. Late Payment Charges: ₱300.00 or 5% p.a. on any balance outstanding, whichever is higher

Frequently Asked Questions about Security Bank Personal Loan

Q:What are the available methods of payment?
A:Payment of the monthly amortization is through a postdated check.
Q:Can foreigners apply for Security Bank’s personal loan?
A:As of now, Security Bank’s loans is available only to Filipinos. So as foreigner, you are eligible to apply yet.

6. BDO Unibank

Banco De Oro, legally known as BDO Unibank, is the largest bank in the Philippines in terms of total assets, which amounts to ₱2.49 trillion as of September 2017. It also has one of the largest distribution networks with 2,542 ATM machines operating nationwide making it easily accessible wherever you are in the Philippines.

Moreover, as an OFW, BDO is an ideal option for it has 29 overseas remittance and representative centers across Asia, Europe, North America, and the Middle East. BDO Unibank even has a branch in Hong Kong.

BDO Unibank offers a wide range of banking services, and these include credit card services, remittance, finance and leasing, retail banking, private banking, loan and deposit products, and a lot more. But since this guide is about BDO personal loan, we will delve into the personal loan aspect more. But for you to have an overview of the loan products offered by BDO, BDO’s loan products include:

  1. Auto Loan
  2. Home Loan
  3. Personal Loan
  4. SME (Small and Medium Sized Enterprises) Loan

As for their personal loan, BDO offers a personal loan exclusive for OFWs, aside from their loan options for employed, self-employed, and foreign nationals residing in the Philippines. This loan option for OFWs and seafarers is what makes BDO a unique and exceptional choice for the said people. Aside from this, BDO also offers a wide range of corporate, commercial, and retail banking services. From cash management, insurance, leasing and finance, loan and deposit products, remittance, and banking, BDO can be your go-to personal loan option.

Why choose BDO Personal Loan? Advantages and Benefits

  • BDO offers a loan with a flexible loan amount, which ranges from Ten Thousand to 3 Million pesos.
    BDO is one the few local banks that offers the highest maximum personal loan amount.
  • The monthly payment is fixed for BDO personal loan. The effective per annum rate ranges from 25-27%, with an add-on rate as low as 1.25%.
  • BDO personal loan is ideal for OFWs and seafarers as it offers a personal loan product especially tailored to cater to the needs of OFWS and seafarers. They call it the BDO Kabayan Loan. For more information about BDO Kabayan, refer to our guide on how to apply for BDO personal loan.

A Step-by-Step Guide on How to Apply for Personal Loan in BDO


  • Loan Amount: Minimum of ₱10,000.00, maximum of ₱1,000,000.00 (subject to your paying capacity)
  • Approval Duration: Within 1-2 working weeks
  • Loan Term: 6 months, 12 months, 18 months, 24 months, 36 months
  • Interest Rate: Fixed rate of 17.07% per annum, 1.25% add-on interest rate per month if the loan term is 12 months or more (1.30% add-on interest rate per month for 6 months loan term)

Table of Interest

Product Name Monthly Add-On Rate Effective Rate Per Annum
BDO Personal Loan – 6 months 1.30% 26.27%
BDO Personal Loan – 12 months 1.25% 26.63%
BDO Personal Loan – 18 months 1.25% 26.76%
BDO Personal Loan – 24 months 1.25% 26.58%
BDO Personal Loan – 36 months 1.25% 25.98%

Fees and Charges

  • Fees and Charges (to be deducted from loan proceeds, so no need to pay to the branch during application)
  • Processing Fee: ₱1,300 for employed and self-employed Filipinos working in the Philippines, ₱1,200 for OFWs/seafarers (BDO Kabayan Loan)
  • Stamp Fee (applicable for loan amount above ₱250,000 or if the loan amount is for business purpose): you shall pay a document stamp tax worth ₱1.00 for every ₱200.00 of the loan amount.
  • Late Penalty Fee: 5% of the outstanding balance or ₱300.00, whichever is higher

7. Hongkong and Shanghai Banking Corporation (HSBC)

Hongkong and Shanghai Banking Corporation (HSBC) is one of the world’s largest banking institution with 38 million customers worldwide. Its network covers 66 countries across the globe. It has branches in Africa, Asia, Europe, Middle East, And North America.

In the Philippines, HSBC has been around for over 140 years already, and it has a network of branches in Metro Manila, Cebu, and Davao. HSBC is 15th among the largest banks in the Philippines in terms of assets.

Why choose HSBC? Advantages and Benefits

  • Take advantage of HSBC promos when you choose their personal loan. Promos can include SM gift passes for loans amounting to ₱100,000.00 and up.
  • HSBC provides competitive interest rate for their personal loan. It can be as as low as 14.52%
  • You can make extra repayments anytime you want.

A Step-by-Step Guide on How to Apply for Personal Loan in HSBC


  • Loan Amount: ₱30,000.00₱500,000.00
  • Approval Duration: 5-7 banking days
  • Loan Terms: 6 months, 12 months, 18 months, 24 months, 36 months
  • Interest rate: 14.52%-15.48%

Table of Interest:

Product Name Monthly Add-On Interest rate Effective Interest Rate
HSBC Personal Loan – 6 months 1.29% -1.79% 2.17% – 3.00%
HSBC Personal Loan – 12 months 1.22% -1.71% 2.17% – 3.00%
HSBC Personal Loan – 18 months 1.21%-1.72% 2.17% – 3.00%
HSBC Personal Loan – 24 months 1.22%-1.74% 2.17% – 3.00%
HSBC Personal Loan -36 months 1.25%-1.80% 2.17% – 3.00%

Fees and Charges

  • Processing Fee: ₱1,500.00 to be deducted from loan proceeds, ₱750.00 for 24 and 36 months tenor.
  • Stamp Fee (applicable for loan amount above ₱250,000.00 or if the loan amount is for business purpose): You shall pay a document stamp tax worth ₱1.00 for every ₱200.00 of the loan amount. This will be deducted from your loan proceeds prior to release.
  • Late Payment Charges: 36% per annum for all overdue amounts or minimum of ₱300.00

Frequently Asked Questions about HSBC Personal Loan

Q:To avail a personal loan from HSBC, is it required for me to have a guarantor or co-maker?
A:There is no need to have a guarantor to be able to avail HSBC personal loan.
Q:Is putting up a collateral required in HSBC personal loan?
A:No, there is no need to put up a collateral for you to be able to avail.
Q:Where can I get my loan proceeds from HSBC?
A:You can get your loan proceeds by personally going to the bank.

8. Rizal Commercial Banking Corporation (RCBC)

Established in 1960, the Rizal Commercial Banking Corporation (RCBC) was licensed by the BSP for both commercial and investment banking. And 58 years after it started its operation, RCBC has grown continuously and is now 10th of the largest private domestic bank in the Philippines.

As of 2016, it has over 481 branches and 1,488 ATMs nationwide.

RCBC offers a wide scale of financial services, and among which are its loan products, which include:

  1. RCBC Business Loan
  2. RCBC Car Loan
  3. RCBC Personal Loan (MyCash Loan)
  4. RCBC Housing Loan

But since our primary focus is personal loan, we will talk about RCBC’s personal loan option. So what is it that makes RCBC personal loan stand out?

Why choose RCBC? Advantages and Benefits

  • RCBC makes convenient your payment option as it offers an Auto Debit Arrangement (ADA) with your RCBC savings/checking account so that you would no longer need to go to the branch to pay for your monthly amortization.
  • Aside from that, RCBC also offers flexible payment terms as short as 6 months and as long as 36 months.
  • RCBC offers free financial advice from RCBC experts.
  • Though one of the eligibility requirement is for you to be a principal card holder, in RCBC, you don’t need

A Step-by-Step Guide on How to Apply for Personal Loan in RCBC


  • Loan Amount: Minimum of ₱50,000.00, maximum of ₱1,000,000.00 (subject to the paying capacity of the borrower)
  • Approval Duration: 5-7 banking days
  • Loan Terms: 6 months, 12 months, 18 months, 24 months, 30 months, 36 months
  • Interest Rate: 15.60% interest rate per annum

RCBC Table of Interest

Product Name Monthly Add-On Rate  Interest Rate Per Annum
RCBC Cash Loan – 6 months 1.3% 15.60%
RCBC Cash Loan – 12 months 1.3% 15.60%
RCBC Cash Loan – 18 months 1.3% 15.60%
RCBC Cash Loan – 24 months 1.3% 15.60%
RCBC Cash Loan – 30 months 1.3% 15.60%
RCBC Cash Loan – 36 months 1.3% 15.60%

RCBC Fees and Charges

  • Processing Fee: ₱1,500.00 for approved loan of ₱150,000.00 (or 1% of approved loan amount for loan amount more than ₱150,000.00)
  • Stamp Fee (applicable for loan amount above ₱250,000 or if the loan amount is for business purpose): You shall pay a document stamp tax worth ₱1.00 for every ₱200.00 of the loan amount. This will be deducted from your loan proceeds prior to release.
  • Late Payment Charges: 5% per annum for every outstanding balance

Frequently Asked Questions about RCBC Personal Loan

Q: Can foreigners apply for RCBC personal loan too?
A: Yes, foreigners can apply for RCBC personal loan too provided that they satisfy the eligibility requirements for foreigners.
Q: What are the options available when I pay my monthly amortization in RCBC?
A: RCBC gives you an option whether to pay via an Automatic Debit Arrangement (ADA), but you can also opt to pay issuance of postdated checks through your RCBC checking account.

9. United Coconut Planter’s Bank (UCPB)

Originally referred to as ‘Cocobank,’ United Coconut Planter’s Bank (UCPB) is a bank that primarily caters to the needs of coconut farmers, but now extends its services to other clients as well.

It also caters to the banking needs of OFWs, employed individuals, and self-employed individuals.

Throughout its 55 years in operation, UCPB has established a formidable reputation in providing efficient customer service and advanced financial products. As a matter of fact, it belongs to one of the top 20 universal banks in the Philippines, and now has 188 branches and 279 atm machines nationwide.

UCPB offers a wide range of financial services, and noteworthy among those are its loan products, which include:

  1. BizEasy Loan (business loan)
  2. DrivEasy Loan (auto loan)
  3. HomEasy Loan(housing loan)
  4. Your Easy Salary Loan (personal loan)

Why choose UCPB? Advantages and Benefits

  • UCPB YES loan offers flexible payment terms, which allows you to pay in accordance with how much downpayment you can afford to pay.
  • UCPB requires no collateral.
  • If you are in dire need of a salary loan ranging from ₱50,000-₱300,000 UCPB offers a salary loan that lets you apply with friendly payment terms of up to 3 years.
  • You don’t need to have a credit card, you just have to be a current account holder whose gross monthly income is at least ₱30,000.00 for Metro Manila based and ₱15,000.00 for provincial based applicants.
  • There is no need to have a guarantor nor a co-maker to be able to avail the loan

A Step-by-Step Guide on How to Apply for Personal Loan in UCPB


  • Loan Amount: minimum of ₱50,000.00, maximum of ₱300,000.00
  • Approval Duration: 5-7 banking days
  • Loan Terms: 12 months, 18 months, 24 months, 36 months
  • Interest Rate: 18% per annum, 1.5% monthly add-on interest rate

UCPB Table of Interest

UCPB YES Loan Monthly Add-On Interest Rate Annual Interest Rate
UCPB YES Loan -12 months 1.5% 18%
UCPB YES Loan -18 months 1.5% 18%
UCPB YES Loan -24 months 1.5% 18%
UCPB YES Loan -36 months 1.5% 18%

UCPB Fees and Charges

  • Processing Fee: ₱1,500.00
  • Stamp Fee (applicable for loan amount above ₱250,000 or if the loan amount is for business purpose): You shall pay a document stamp tax worth ₱1.00 for every ₱200.00 of the loan amount. This will be deducted from your loan proceeds prior to release.
  • Late Payment Charges: ₱300.00 or 5% of outstanding balance, whichever is higher

Frequently Asked Questions about UCPB Personal Loan

Q: How long is the duration of the approval process?
A: It takes an average of 5-7 banking days to process your application. However, it may take you longer or shorter depending on whether or not you are able to pass all the required documents and the additional requirements. It may also depend on how prompt the bank officers are in processing and how complicated your circumstance is as a borrower.
Q: Can I avail a loan without having a bank account in UCPB?
A: Yes, you still can avail UCPB’s loan products without necessarily having a bank account in UCPB. However, once you get approved of a loan, the bank will prompt you top open your own bank account as there is where they would deposit your loan proceeds.

Alternative Lending: Best Non-Bank Personal Loans Online in the Philippines

This section runs you into the top online lending companies and platforms in the Philippines. You can expect to know here a brief background of the online lending companies for you to know their origin and establishment period and to understand their guiding principles that guide their actions.

This way, you would get to have a glimpse of their commitment principles.

Aside from this, also included here are the pros and cons of choosing that particular online lending company. This is so that you can assess their strong points, that you can utilize to your benefit, and the weak points that you must also take into consideration as a borrower.

Moreover, we will also list here the online lending companies’ and platforms’ available loan options, the documentary and eligibility requirements, and a guide on how to apply for the online lending companies’ loan options. We hope this could help.

1. CashMart PH

To give you a brief overview, Cashmart is SEC (Security and Exchange Commission) licensed private lending company originally established in 1969 in Singapore. And since then, it was able to establish a formidable reputation as a company that offers a wide range of ethical and affordable with a fast loan process and with transparent terms.

Recognizing the necessity to extend their trustworthy service to their neighboring countries, Cashmart made available their loan solutions to the Filipino people. And thus, the establishment of CashmartPh.

Cash Mart is the leading online loans provider in Philippines


  • Cashmart is one of the online lending companies with a low interest rate with a weekly loan term option, which is at 0.8%. . So the repayment amount can be divided into three weekly schedules.
  • Cashmart is in partnership with some of the most trusted local banks in the Philippines, including BDO, BPI, and Metrobank. And so, securing access to the funds is convenient and made easier.
  • Cashmart’s website has a 256-bit verified encryption, which is one of the most secure encryption methods in safeguarding the information of the users against possible cracking of sensitive records.
  • Has multiple loan repayment channels to choose from, which include Bayad Center, 7-Eleven, LBC, SM Payment Center, etc.
  • Cashmart has almost always been applauded for their fast transaction process and excellent customer service by their loyal and verified customers, which is a testament that they are true to their commitment.

How to Apply for Cashmart’s Loan Solutions


  • Step 1: Fill out the application form. The company representative will call you within a day to notify you of the status of your application.
  • Step 2: Wait until your documents will be verified by our specialists.
  • Step 3: Sign the contract with all terms and conditions and get your money.

Cashmart Loan Options Available

  • OFW loan
  • minimum of ₱5,000.00 maximum of ₱30,000.00 loanable amount
  • 1.1-2.5% interest rate
  • Personal loan
  • minimum of ₱5,000.00, maximum of ₱50,000.00 loanable amount
  • 0.8-3.5% of interest rate
  • Salary loan
  • minimum of ₱5,000.00, maximum of ₱30,000.00 loanable amount
  • 0.8-3.5% of interest rate
  • loan terms: 3-5 weeks (weekly repayments. 2-4 weeks (bi-weekly repayments, 28 days (one time repayment)

2. FundKo: Peer to Peer Lending Platform

FundKo is a SEC registered, peer to peer platform where people can invest their money or borrow money. So what it does is it matches people who need funds with other people who have excess cash. Fundamentally, FundKo is a subsidiary of Guevent Investments Development Corporation (GIDC), which is a company that has more than 50 years of experience in financing, transportation, and real estate in the Philippines.

Now, as a lending platform, in FundKo, by going direct to peers, the borrower can enjoy better rates. On the other hand, lenders earn higher than bank deposit rates. What makes FundKo stand out is that it gives you a feeling of ‘community’ because the process that underlies it is built under the presumption of people helping other people. Fundko, here, serves as sort of an intermediary as it takes care of the document verification, credit and background checks, loan agreements preparation, monthly collections and repayments management.

Pros of Choosing Fundko

  • FundKo has an online portal that makes it easier for borrowers to monitor the status of their loan.
  • All transactions are paperless
  • Usually positive customer service reviews, such as having attentive and efficient loan officers

Cons of Choosing Fundko

  • The website can be quite tricky to navigate, as a first timer. And so you may need to alot an extra time to familiarize yourself on how it works.
  • Though the approval time frame of 3-5 days is fast, the funding process takes a lot of time to be accomplished.

How to Apply for a FundKo Personal Loan


  • Step 1: Fill out the application form and submit the requirements online. You can access the website above.
  • Step 2: Register a new account by putting in your full name, email address, and preferred password.
  • Step 3: FundKo will send a confirmation to your email address. So please check your email, and confirm.
  • Step 4: Once your account has been activated, kindly click this link: and fill out the necessary information.
  • Step 5: FundKo will send you a text message stating your Loan ID and secret code (please keep this for identity verification purposes) if your application is successful.

Loan Options Available

  • Business Loan
    – Loanable Amount: Minimum of ₱20,000.00, maximum of ₱1,000,000.00
    – Loan Terms: 3 months, 6 months, 9 months, 12 months
    – No collateral required for small business loans
  • OFW Loan
    – Loan terms: 3 months, 6 months, 9 months, 12 months
    – No need for collateral
  • Maternity Loan
    – To cover pregnancy-related consultations & supplements or to be prepared for a cesarean operation
    – Loan Amount: Minimum of ₱20,000.00, maximum of ₱200,000.00
    – Loan Term: 12 months
    – Payable within 12 months
    – Interest is as low as 1.25% per month
  • Working Student Loan
    – available to employed individuals looking to pursue further studies
    – Loanable Amount: Minimum of ₱20,000.00, maximum of ₱50,000.00
    – Loan Terms: Payable within 3-6 months
    – Interest rate is as low as 2% per month
  • Personal Loan
    – perfect for funding your home renovations, business ideas, and other projects
    – Loanable amount: minimum of ₱20,000.00, maximum of ₱200,000.00
    – Interest Rate: 1.25% interest rate per month
    – Loan terms: 3 months, 6 months, 9 months, 12 months
    – No need for collateral

3. Esquire Financing Inc.

Esquire Financing Inc. is an SME-lending company offering fast, hassle-free, non-collateral business loans especially tailored to fit the needs, goals, and cash flows of each small and medium-sized business owners.

The establishment of Esquire Financing Inc. was a response to the growing needs of small and medium-sized business owners. There are over 1 million registered businesses in the Philippines today, and 99.6% of which are small and medium sized business owners. They employ 70% of the workers, and 32% of the GDP is attributed to them.. Yet, only 20% gets access to the formal financing institutions in the Philippines.

Now, recognizing the difficulty entrepreneurs face when acquiring loans and the potential opportunity for these entrepreneurs to grow their local enterprises, Esquire Financing Inc. devised their loan feature that would address the concerns of the SMEs. They made their loan feature, FAST, HASSLE FREE, AND NON-COLLATERAL making it easy for borrowers to avail the loan product.


Cons of Choosing Esquire Financing Inc.

  • The interest rate is subject to the approval of the credit committee. Depending on the length of the term you opted to choose and the loan amount, the rate may vary.

How to Apply Business Loans in Esquire Financing


  • Step 1: Fill out an online loan application and wait for a call from a specialist.
  • Step 2: Complete application requirements and submit it to the main office of Esquire Financing.
  • Step 3: Claim your loan after 5 days (NOTE: Approved loans are mostly those with complete requirements. You will receive an email on the result of your application. As soon as it has been approved, an EFI Officer will contact you as regards the next step after the approval of your loan)

Esquire Financing Inc: Loan Options Available

  • Esquire Financing Business Loan
  • ₱100,000.00 to ₱10,000,000.00 loanable amount

4. MoneyMatch – P2P Lending Philippines

Money match is one of the leading online platform in the Philippines. The main aim of Money Match is to provide an accessible, efficient, safe, and transparent financial exchange platform for lenders and borrowers. It is currently being managed by FinTech Global Resources, Inc., which specializes in peer-to-peer lending.

Now, being peer-to-peer, it gets to do away from the intermediation of the financial institutions, which also means that you should not worry about additional fees.


Pros of Choosing MoneyMatch

  • Money Match has flexible payment terms. You can opt to pay with a loan term (6, 12, 18, or 36 months)that fits your current financial status)
  • With Money Match, you can get as low as 12% interest rate per year even without collateral
  • The approval duration only takes 3-5 working days.
  • The interest rate for Money Match’s secured loan option is only 0.917%** a month.

How to Apply Personal Loan in Money Match


  • Step 1: Provide all the necessary information in the online application form. (NOTE: Incompletion and inaccuracy would lead to a decline in application. So make sure that you prepare and scan all the documentary requirements. Speaking of inaccuracy, all the information will be adequately checked through credit investigation, so do not attempt to falsify any information).
  • Step 2: Upload clear copies of the document requirements. Note that your loan application will not be processed without these documents.
  • Step 3: After submitting all the necessary documents, you will be notified of the status of your application either through call or through email. So stay put and take note of the approval duration).
  • Step 4: Upon approval of your loan application, lenders will be notified of a new loan application up for auction. You have to accept a lender’s bid to get funded!

Loan Options Available Money Match Personal Loan

  • Loan amount: minimum of ₱25,000.00
  • Payment Terms: up to 36 months
  • Approval Time: 3-5 working days

5. Tala Philippines

Tala is a mobile technology and data science company that uses alternative data to deliver instant credit and help customers in building their financial identities through its smartphone app.

What makes Tala a unique option is that it is different from the traditional credit scoring. Tala’s built up proprietary underwriting models takes into consideration thousands of mobile data points, which include network diversity, social connectedness, geographic patterns, and financial transactions.

And then from there, it scores customers in real time, without necessarily relying on the borrower’s credit history.

Tala is headquartered in Santa Monica, but recognizing the needs of some other countries, it continued to expand its operation in different countries in the world. One of which is the Philippines. It also has branches in Kenya, India, Mexico and Tanzania.


Pros of Choosing Tala Philippines

  • Tala Philippines provides utmost convenience by enabling tracking of the status via a smartphone app
  • Tala Philippines requires minimal requirements, and the primary requirement is a government-issued valid ID and a facebook acount only.
  • The loan approval duration may take only less than 1 day.
  • Tala offers convenient cash disbursement options. It can be via e-wallet, bank deposit, and Padala Centers
  • Aside from that, Tala also has easily accessible loan repayment options: 7-Eleven,, Cebuana Lhuillier, or M Lhuillier
  • Tala is trusted by several verified customers. A proof to that is its high customer satisfaction: 4.7 rating on Google Play and positive customer reviews i.e., fast transaction and approval on facebook.

How to Apply for Personal Loan in Tala Leanding


  • Step 1: Download the Tala Philippines app on your smartphone, and then register.
  • Step 2: Open the app in your smartphone, and click on “Apply Now.”
  • Step 3: Fill out the loan application form.
  • Step 4: Sign in to your Facebook account.
  • Step 5: Submit a photo or scanned copy of your valid ID.
  • Step 6: Accept the loan offer and choose your preferred repayment option.

Cons of Choosing Tala Philippines

  • Unfortunately, Tala is only available only to Android users, as of now.
  • First-time borrowers can loan only PHP 1,000. However, your loanable amounts increases in increments the more you build a good reputation of repaying your loan on time
  • For late repayments, you must pay for a hefty 8% penalty fee

5. GoBear

GoBear is a comparison website. And being a comparison site, it makes it easier for you to compare insurance plans and financial products and to find the one that’ fits your needs the most. Gobear also got that simplified information that summarizes all the necessary things you need to know about the different banking institutions and lending companies in the Philippines.

To give you a brief overview about GoBear, it is actually Asia’s first and only metasearch engine for insurance and banking services. Following successful operations in Singapore, Thailand and Malaysia, it was launched in the Philippines in 2016.


Likewise, GoBEar is the first ever fintech startup company that launched in the Philippines. Now,as for what you can do in the website, GoBear can provide you all the relevant information you need to know about the different financial products, credit cards, travel insurance, and personal loans, in the Philippines. This is so that you can compare the information in one single screen.

Why GoBear

  • Though GoBear partners with banking institution and lending companies so that it can provide accurate details, it does not necessarily promote a particular product product. And so rest assured that their reviews and all the results they show reflect the fact of the matter, and therefore are completely unbiased.
  • By enabling you to compare and by showing you the best deals, GoBear gives you the opportunity to save some money.
  • GoBear is completely free for you to use.


Loan Options Available

  • Personal Loans
  • Home Loans

6. First Circle

First Circle is a Philippine-based financial technology lending company. And what it provides is that it gives strong businesses with supply chain financing to meet larger client demands and also to improve bargaining position with trading partners. First Circle was launched in 2016. And since then, First Circle $1.3 million dollars and served thousands of small and medium enterprises (SMEs) from various industries. These enables SMEs to grow their business without worrying about lack of working capital.

First Circle is both accredited and endorsed by the Department of Trade and Industry and also the members of American and European Chambers of Commerce. It also partners with Lazada, Xend, GoNegosyo, PhilExport, Zalora and Zomato. Aside from this, First Circle is likewise a pioneer data provider to the Credit Information Corporation (CIC) and also the first fintech company to be licensed by the Securities and Exchange Commission (SEC) in the Philippines.


Pros of Choosing First Circle

  • Know all costs upfront so you never have to worry about hidden fees or charges.
  • In First Circle, it would only take 5 business days to process your application. So expect the status of your application to be updated to you within a week after process all the documentary requirements.
  • First Circle provides a marketplace in which you would know all costs upfront so you never have to worry about hidden fees or charges.
  • First Circle is trusted by several verified customers. A testament to this is its high customer satisfaction: 4.6 rating on facebook plus overwhelming positive customer reviews. It is often commended due to its fast and seamless transaction and also efficient customer service.

How to Apply for a Loan in First Circle


  • Step 1: Click the Button
  • Step 2: Answer a few simple questions to allow First Circle to calculate your risk. Everything will be facilitated online, so you can still come back to edit your profile information at any stage.
  • Step 3: If you are a first time applicant, you must submit the required documents. (NOTE: This will allow First Circle to understand your business and conduct a risk assessment. One of First Circle’s representatives will contact you to help with the application process, in case you are going to need one). After which, they will then tailor an offer that suits the needs of your business, while taken into consideration your financial situation)
  • Step 4: If you have submitted the required documents, and your business passes our underwriting requirements, we will send you an offer as soon as the application is processed.

First Circle Loan Options Available

  • Unsecured Business Loans
  • Loan duration: up to 6 months
  • The monthly add on interest rate is between 1.99% – 3.49% (NOTE: Interest rates will vary depending on the business profiles of both the applicant and the business associated with the purchase order or invoice)
  • The processing fee amounts to only 1.99% of the total loan amount

Top 8 Ways to Pay Off Any Loan Faster

Loans are a temporary provision of money that usually comes with an interest and further agreement of terms. Paying loans are sometimes toilsome and stressful. Beating the loan schedules and deadlines will not always be an easy task. But with the proper execution of ways to pay our loans and bits of advice on how to add sufficient amount of money to our current funds and monthly income, we can deduct some of our monetary loads from our loans.

1. Through Checks

One of the basic ways to pay for a loan is through check. This is a way to transfer and transact with the bank without requiring too much effort and time. Checks are convenient to use. It does not require you to carry loads of cash for it to be transferred to the payee. You can also keep track of the record of the checks. Checks are given by a bank when you open a checking account. By the issuance of a check, a person could pay the other party through the bank. It basically holds a power that orders the bank to release a specific amount of money from the given account for a specific payee. However, some checks may bounce due to insufficient funds. Thus, the bank cannot release the money.

2. Through direct debit or salary loan

One may also try to transact through direct debit to salary loan. A salary loan is a short-term loan for the employees that should be paid in full or installments as automatically debited from their next paycheck. It comes from the company or the social security system (for government employees, Government Service Insurance System). It also serves as a promise to pay through your salary by deduction.

3. By using your bonuses

People may also pay their loans by their bonuses. A bonus is a compensation or a reward for the employee for one’s work in a company which is given by the employers in their own discretion. This is an addition to the worker’s normal wage. It is not only limited to current employees but also the prospective ones (i.e. signing bonus). A bonus may be given for many reasons. Some of these are being able to finish a mission or a project successfully, being in Christmas season, repaying for the loyalty and contribution of the employee, and serving for acts of generosity, motivation, and compensation. However, this does not necessarily be existing. It is given voluntarily and usually randomly.

4. Freelancing Job

In order to pay for your loan, one may do a freelancing job. A freelancer is a person who is self-employed and is not within a full-time employment in a company or the government. Sometimes they engage in a company but only temporarily. Many also work independently by creating their own brand in their industry of specialization. By being a freelancer, you may engage in writing some essays, articles, and papers that would be paid for a certain amount of money. Some may also engage in personal and online tutorials which do not take many hours of the day. The services are more on the creative industries. It is different from the regular salary basis in regular employment.

There are more freelance jobs out there. Opportunities are out in the open and can be found online. In freelancing, diverse fields and works can be covered. One can write, program, design, draw, transcribe, translate, produce entertainment productions, or advertise. Other freelance jobs may include some customer service jobs, developer, photographer, part-time sales involvement and many more.

5. Sidelines (e.g. Online selling)

Sidelines can also be a good help for extra income, and perhaps to pay enough for the loan. You may venture to different forms of selling. One can find a vast amount of choices from this. Engaging in online selling can be one. Online selling does not only take the form of a person being a medium of selling from the main store to the buyer but it could also be selling your pre-loved items, albums, display materials, collections, or furniture on Shopee, Lazada and other trusted online shops. Instead of letting your things cramped in your house without being utilized, this way can serve in dual purpose: for your loans and for general cleaning and house organization.

6. Cut down family expenses

You may also want to cut your monthly expenses. But do not be too hard on yourself. Plan with a fixed percentage of your income for specific expenses. In the midst of planning, you need to find ways of cutting some of your expenses without compromising your basic needs. You may reduce your food expenses if you look for other quality brands for your food at cheaper prices. A big saver for food expenses is when you cook your food at home and pack it for lunch or in-between meals. You may also cut your water and electricity bills by conserving them. Simple unplugging of unused devices can be a big help. Also, for other expenses, you can utilize inexpensive or free sites for entertainment or apps. You must avoid buying too much of everything to avoid spoilage, surplus and unnecessary expenses.

7. Direct Selling

Another one is direct selling which usually can be found in main stores for selling cosmetic products such as Avon, Natasha and many more. It is a way to earn money easily while selling the commodity faster because of its low cost.

8. Craft-making

If you are artistic enough, you can engage in craft making and illustration to create some magnets, personalized shirts, shoes, bags or keychains, and artworks such as paintings, animations, illustration for books, projects, and assignments. You can also establish a mini-food stall outside your house for merienda or in-between meals and rice meals in a small container or box.

These are some of the ways on how to conveniently pay our loans. It will always differ on how we execute, take or perform the following. You may choose to do some when the burden of repayment or schedule for payment are pressuring you again. After all, our goal is to pay our loans smoothly without sacrificing much our lifestyle and peace of mind.

Pros and Cons: Lending Companies Vs Direct Loan to the Bank

Brief Overview of What Lending Means

Lending is the disposal of money or property with the expectation that it will be repaid or returned. The common types of loans include short-term and long-term commercial loans, hire purchase loans, working capital loans, credit cards, and fixed asset loans. We borrow and pay for our loans in different credit institutions. People often borrow from banks, non-bank lending companies, and other financial institutions. But we can also borrow money or property on the daily basis from our acquaintances, friends, family and your savings. Borrowing and lending is a critical transaction. That is why we need to become more knowledgeable about the risks and benefits we are about to enter when we borrow small to large amounts of money.

However, we may not be aware of what to expect and what to experience in these money-lending businesses. There may be good benefits and advantage that could invite you to borrow large amounts of money in these companies. But inevitably, there also disadvantages. For both in banks and in other lending companies, what is absolute is that we are not always free from some inconveniences along the way. This section will provide a detailed explanation for this. The pros and cons for both bank loans and other lending companies will be presented.

Brief Overview of Banks

Banks are inevitably the most common place where you could lend money. People usually use bank loans for capital, for expansion or for recovery in businesses. It is said that bank loans are one of the most common forms of finance for small to medium-scale businesses. A bank loan can also be called a bank advance. It is an advance of a certain amount of money to the borrower by the bank. It is arguably the most common form of loan capital for an enterprise. It provides medium or long-term credit. It may also take the form of secured or unsecured.

Pros and Cons of Choosing Banks


Low and many fixed interest rates

Many of which offer low and fixed interest rates. It is good to loan in a bank due to the fact that it has low and fixed interest rates along with monitored monthly payments. In this sense, it is more reliable and cheaper to engage with banks for loans.

Increase in credit worthiness

Another advantage of bank loan is that the transaction may also be a stepping stone to establish a good relationship with the bank to ask not only for advice on loans but also for their other services.


Stringent loan requirements

Banks, however, may have lower interest rates compared to private lending companies but are strict in terms of loan requirements. We should make sure to make our payments on time to avoid the burden of repayments. Banks do not usually manage where you use your loan.

Bank loans with no collateral is too expensive

Banks usually do not require a collateral. In case you are unsure yet, a collateral is a security pledged for the loan repayment. But given that they do not require a collateral, they often charge high interest rates.

Rigorous application process

Also, banks do not release the loan too fast for everybody. Securing a bank loan requires a rigorous process, lots of paper works and weeks of waiting time. Banks are also strict when it comes to requirements, payment deadlines and mutual agreements. With their strict requirements, banks sometimes do not approve the loans for businesses who failed to meet the standards of the bank. The ones who fail can come to private lending sectors but they will come across high-interest rates.

High late payment fees

When you cannot pay on time, you will suffer from the burden of repayment. This burden is made when we fail to pay for our loans on a specific schedule. In effect, the assets can be withdrawn. It is also possible that there will be a negative reputation for you in the credit-related institutions. This is definitely a disadvantage on the borrower’s part.

Pros of Choosing a Lending Company

On the other hand, we can also borrow from the alternate lending companies or non-bank lending companies.


Do not have rigid, strict requirements

One of the pros of the alternative lending companies is the complete opposite of the bank loan. These companies do not have rigid, strict requirements and hectic process in applying. Usually, starting small businesses do not seek loan capitals from the bank but from other lending companies because the process is not too strained. Applying for the loan is guaranteed to be easy with only a few requirements as a demand. You can even secure financing even though you did not do well on bank loans.

Quicker approval time

Aside from an easy application, the approval is also quicker than in the bank loan. Banks often take time to verify financial data from the borrower and to check the requirements. Whereas the lending companies do not use the borrower’s credit standing as a hindrance to letting the businesses borrow small to a large amount of money. In this way, alternative lending companies attract borrowers by the means of simplifying the application process.

Offers flexible loan terms without collateral

Alternative lending companies also exercise flexible loan terms and sometimes without collateral. These terms depend on their own devisal unlike the almost absolute schedule of the bank loans.


High interest rate

As much as it invites us to borrow money from these companies, it also makes us rethink our decisions upon seeing higher interest rates from that of the bank loan. The interest rates from the private lending companies, as estimated, ranges from 4% to 7%. In contrast to the bank loan, the interest rates fall from the range of 1% to 2%. With the high interest, it may be hard to pay the installment on time. In the Philippines, some lending companies require a short repayment period. The payment could be burdensome because of its high interest and the need to pay for it in a short amount of time.

Proliferation of scammers in the lending industry

Another thing to be cautious about is the proliferation of the scammers in the lending industry. Lots of transactions in scamming can be identified in online engagements. Now that we are warned, it is better to directly engage to the employees of the private lending company who is responsible for the lending itself. We must also be careful about providing our personal and business information. We must also be careful on the agreements being made for the loan and try to clarify the payment, schedule, and fees to be collected.

Less time consuming

No need to go through all the hassle of going to bank branches and waiting in line, which enables you to save more and more time.

Online Cash Loans – Get Solution for Your Personal Loan Queries

Online Loans here in the Philippines

1What is the difference between secured and unsecured loans? What are the advantages of each?
Unsecured loans, such as personal loans, typically do not require a collateral. This is in contrast to secured loans, which is applicable to home loans and car loans, where you are obliged to put up an asset or collateral before you would be allowed to avail it. Here, the bank will hold the title or the deed that you will use as a collateral, until you get to pay the home loan or the car loan in full. If there is an advantage in a secured loan, it is that it usually has a lower interest rate. And so if it is the case that your personal loan application gets turned down, you may opt to vye for a secured loan.

2 How long does it take for the processing of personal loan to get approved?
Normally, it takes 5-7 business days to process the approval of a personal loan. But it may take longer or shorter depending on how you comply with the rules set by the bank.

3 Why is it that the Philippines have a relatively high credit interest rate?
This concern can be attributed to the fact that credit cards have no legal recourse if it is the case that the borrower does not pay. Moreover, in the Philippines there is no centralized database so that banks can easily check on the borrower’s creditworthiness. And so there is a greater tendency for them to grant loans to people who have a low creditworthiness.

4 What are loan terms?
Loan Term is a finance provided by the lender for a fixed duration of time and must be repaid in regular installments.

5 How do the comparison websites earn money if their website is practically free of use?
The comparison websites, like eCompareMo and iMoney get to sustain their operation through a variety of channels, such as funds from investment entities. They also earn revenue from their advertisers, while there are other comparison websites that was offered referral fees from banks.

6 Can comparison websites like iMoney lend me money too?
No, comparison websites cannot lend you money. What they do, however, is they help their customers find the best banking loan option that fits their needs and circumstances.

7 What are the ways to spot a scam lending company?
Identifying a scam lending company can be quite challenging. To give you some reminders, one of the telling way to spot a scam is if after telling you that you qualify for their loan, they ask you to give them money or deposit money to their bank account outrightly. You may also find them too aggressive in rushing you to make a decision with over-the-top promises.

Another telling way is if their email address appears like a generic email address, but is spelled incorrectly. They may also not have a contact information online. Also to take note of is when they outrightly guarantee you that your loan is going to get approved. It is a scam as there is no legitimate lender who will guarantee a loan approval ever. But most importantly, one of the most telling ways to spot a lending scam is if their promises sound too good to be true, such as when they offer to provide you money more than what you applied for and they offer too much free gifts.

8 How can OFWs apply for a personal loan even if they are working abroad?
There are banks that allow you to apply for a personal loan online. As to how you can apply, it is actually pretty simple. Visit the website of the bank. Fill out all the necessary information. Scan all the necessary documentary requirements, and then if approved, the loan proceeds may be released to your beneficiary. Some of the banks that offer such an option are BPI and BDO Unibank.

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