2021 Update: Personal Loans In The Philippines With The Lowest Interest Rates
9 min readInterest rates are to personal loans what colors are to cars and shoes. They’re the first thing you see when looking to borrow money from a financial institution.
Of course, there are other important things to consider, such as loan repayment terms, collateral/guarantor requirements, approval time, and income requirements, among others.
It is but wise to search for the bank with the lowest interest rate before taking out a personal loan, as this is the basis for how much the monthly amortization and annual payments will cost.
In short, the lower the interest rate, the less you’ll pay on top of your loaned amount.
Here are six banks that offer the lowest interest rates in the Philippines for personal loans. We will get into more details about their terms and conditions and fees to give you a better estimate of how much you’ll be paying each month.
What six banks offer personal loans with the lowest interest rates in the Philippines?
In terms of low interest rates, you cannot go wrong with picking one of these six banks
| Banks | Features |
|---|---|
| PBcom | 1.58% |
| RCBC | 1.30% |
| Maybank | 1.50% |
| Citi | 1.26% |
| HSBC | 1.21% |
| BPI | 1.20% |
However, low interest rates are not the only thing you should consider when deciding which personal loan is best for you. You need to take into account the other fees, modes of payment, processing time, and even the eligibility requirements.
Below, we’ve taken a closer look at the personal loans offered by the banks to help you come to a better decision as to which one is the best for you.
1. PBCom
Who is eligible for a PBCom personal loan?
- Borrower is at least 25 and at most 65
- Has an annual salary of P260,000 or a minimum monthly income of P 21,667
- A permanent employee with a minimum gross annual income of P 260,000
- If self-employed, must have a minimum gross annual income of P 300,000. If they have a business, it must have been in existence for 3 years
- Must be a credit card holder. Card must have been issued 12 months prior to the loan application and have a minimum credit limit of P 30,000
What are the acceptable loan purposes?
Tuition or school expenses, car repairs, business, travel, events, and home improvements.
How much can be loaned?
P40,000 to P1,000,000
What are the loan terms?
| Loan Term | Monthly Interest Rate |
|---|---|
| 12 months | 1.58% |
| 18 months | 1.58% |
| 24 months | 1.60% |
| 36 months | 1.66% |
| 48 months | 1.71% |
What is the annual interest rate?
33.40% to 37.40%
What are the modes of payment?
- Postdated checks
- Automatic Debit from a PBCom account
| Other fees | |
|---|---|
| Processing fee | P2,500 (deducted from loan amount or paid over the counter) |
| Late Payment fee | P500 or 3% of installment amount, whatever is higher |
| Returned Check fee | P1,000 per returned check |
| Manager’s Check | P55 |
| Closure Handling fee | P800 or 5% of the total outstanding balance, whatever is higher |
What are the documentary requirements?
| Document | Employee | Self-Employed |
|---|---|---|
| Completed and signed application form | Yes | Yes |
| 2 valid government IDs | Yes | Yes |
| 2 recent monthly credit card statements | Yes | Yes |
| Copy of the front of credit card | Yes | Yes |
| Copy of Latest ITR | Yes | Yes |
| Three monthly pay slips | Yes | |
| Certificate of employment | Optional | |
| Latest Audited Financial Statements | Yes | |
| Post-dated checks | Yes | |
| Photocopy of the Certificate of Business Registration with SEC or DTI (if loan purpose is for business use) | Yes |
How long is the loan approval process?
3 to 5 days
2. RCBC
Who are eligible for an RCBC Personal Loan?
- Borrower is at least 21 and at most 65 years old upon loan maturity
- Minimum annual income of P 360,000, or gross monthly income of at least P30,000
- Permanently employed with a company
- If borrower is a business owner, must have been in business for at least 3 years, and profitable for at least 2 years.
- Must be a credit card holder.
- A linked bank account
What are the acceptable loan purposes?
Medical bills, credit card bills, tuition or school expenses, travel, and home improvement.
How much can be loaned?
P50,000 to P1,000,000
(Read: A Comparison Guide To Choosing The Right Loan For Beginners)
How long are the loan payment terms?
You can take out a loan for 6, 18, 24, and 36 month periods. The monthly add-on rate is 1.7%.
What are the modes of payment?
- Postdated checks
- Automatic Debit from an RCBC account
| Other fees | |
|---|---|
| Processing fee | P1,500 or 1% of loan amount, whichever is higher, not exceeding P5,000 |
| Late Payment fee | 5% p.a. on any outstanding balance |
What are the documentary requirements?
| Document | Employed | Self-Employed |
|---|---|---|
| Completed and signed application form | Yes | Yes |
| 1 month pay slip/original certificate of employment | Yes | |
| Copies of 2 government IDs | Yes | |
| Copy of latest ITR 2316 | Yes | |
| Copy of latest monthly credit card bill (optional) | Yes | Yes |
| Copy of recent utility bill | Yes | Yes |
| Copy of Business Papers (DTI, SEC and GIS, Mayor’s Permit, Professional License) | Yes | |
| Copy of two years’ worth of financial statements and ITR | Yes | |
| Copy of latest 3 months’ worth of bank statements | Yes |
How long is the loan approval process?
7 to 21 days
3. Maybank
Who are eligible for a Maybank enAble Personal Loan?
- Borrower is at least 23 and at most 65
- Minimum annual income of P 300,000, or gross monthly income of at least P 25,000
- Should be permanently employed with their company for 2 years
- If the borrower is a business owner, must have been in business for at least 5 years
- Need to present a landline number
- Will need to open a linked bank account
What are the acceptable loan purposes?
Travel, tuition and school expenses, appliances, and home renovation.
How much can be loaned?
P50,000 to P1,000,000
What are the loan terms?
Loans can be taken out for 12, 18, 24, and 36 month periods. The monthly interest rate is 1.50%
What are the modes of payment?
- Postdated checks
- Automatic Debit from a Maybank Account
| Other fees | |
|---|---|
| Processing fee | P2,000 |
| Documentary Stamp Tax | P1 for every P200 if the loan is over P250,000 |
In addition, you need to get credit life insurance if applicable.
What are the documentary requirements?
| Document | Employee | Self-Employed |
|---|---|---|
| Completed and signed application form | Yes | Yes |
| Copies of 2 government IDs | Yes | Yes |
| Copy of latest monthly credit card bill | Yes | Yes |
| Copy of recent utility bill with residence address | Yes | Yes |
| Original certificate of employment with compensation/1 monthly pay slip | Yes | |
| Copy of latest ITR or BIR Form 2316 | Yes | |
| SEC/DTI Certificate of Registration | Yes | |
| Latest 2 years ITR with tax receipt and BIR stamp | Yes | |
| Last 6 months’ worth of bank statements | Yes | |
| List of 3 major suppliers and customers> | Yes> |
How long is the loan approval process?
5 to 10 days
4. Citi Personal Loan
Who is eligible for a Citibank Personal Loan?
-
- Age to be eligible must be between 21 to 60 years old
-
- Minimum annual income must be P250,000
-
- For employed: Must be a permanent employee for at least two (2) years
- For self-employed: Must have a continuously operating business for three (3) years
- For professionals: Must have at least three (3) years of practice
What are the acceptable loan purposes?
Travel, home renovation, debt consolidation, emergency loan, business, and education are just some of the eligible loan purpose of Citibank.
How much can be loaned?
P20,000 to P2,000,000
What are the loan terms?
You can repay your Citibank personal loan within one (1) to five (5) years of flexible loan terms. The monthly interest rate is at 1.26%.
What are the modes of payment?
You can choose to pay your monthly amortization over the counter, online banking, a post-dated check, or via ATM transfer.
Other fees
| Processing Fee, includes documentary stamp tax | P1,750 |
| Early Repayment Penalty | 4% of unbilled principal |
| Late Payment Penalty | P500 or 6% of past due amount, whichever is higher |
What are the documentary requirements?
| Document | Employed | Self-Employed |
|---|---|---|
| Duly accomplished application form | Yes | Yes |
| At least two (2) copies of photo-bearing government IDs | Yes | Yes |
| Latest Income Tax Return (BIR Form 2316) or latest 1 month full pay slip | Yes | |
| Latest Income Tax Return (BIR Form 1701); and Audited Financial Statements (AFS) of the business with independent auditor’s report and balance sheets and tax receipt | Yes | |
| SEC/DTI Certificate of Registration | Yes | |
| Copy of recent utility bill with residence address | Yes | Yes |
| Photocopy of latest monthly credit card bill | Yes | Yes |
How long is the loan approval process?
Loan approval can be as fast as 24 hours
5. HSBC
Who are qualified for an HSBC Personal Loan?
- Borrower is at least 21 and at most 69
- Minimal annual income of P168,000, or a gross monthly income of at least P14,000 if employed and P50,000 if self-employed
- Permanently employed with their company for 2 years
- If the borrower is a business owner, must have been in business for at least 2 years
- Must have a credit card
- Must have two of the three: Residence landline, office landline, mobile phone number
What are the acceptable loan purposes?
Travel, educational expenses, and credit card payment.
How much can be loaned?
P30,000 to P500,000
(Read: 5 Dangerous Traps To Avoid When Applying For A Personal Loan)
What are the loan terms?
| Loan Term | Monthly Interest Rate |
|---|---|
| 6 months | 1.29% |
| 12 months | 1.22% |
| 18 months | 1.21% |
| 24 months | 1.22% |
| 36 months | 1.25% |
What are the modes of payment?
- Postdated checks
- Automatic Debit from an HSBC account
- Payment centers
| Other fees | |
|---|---|
| Processing fee | P1,500 to be deducted from the loan proceeds and P750 if the loan term is 24 or 36 months |
| Documentary Stamp Tax | P1 for every P200 if the loan is over P250,000 or for business purposes |
| Late Payment fee | 36% per year on all overdue amount, or a minimum of P300 |
| Amendment fee | P500 per amendment of loan details, after the drawdown |
What are the documentary requirements?
| Document | Employee | Self-Employed |
|---|---|---|
| Latest ITR or BIR form and an original pay slip | Yes | |
| ITR and audited financial statement for the last 3 years | Yes | |
| Copy of valid government ID with photo | Yes | Yes |
| A copy of recent billing statement with residential address | Yes | |
| SEC/DTI certificate of registration | Yes | |
| Business or Mayor’s permit | Yes | |
| Last 3 months bank statements | Yes | |
| Proof of residential address | Yes |
How long is the loan approval process?
As fast as 5 business days
6. BPI
Who are eligible for a BPI Personal Loan?
- Borrower must be at least 21 and at most 60
- Must have an annual income of P 240,000 or a minimum gross monthly income of P20,000
- Should be a permanent employee for at least one year
- If the borrower is self-employed, they must have been in business for at least 2 years.
- Borrower will need to open a linked bank account
What are the acceptable loan purposes?
Tuition or school expenses, home improvement, travel, and medical expenses.
How much can be loaned?
P20,000 to P1,000,000
What are the loan terms?
| Loan Terms | Monthly Add-on Rate | Annual Effective Interest Rate |
|---|---|---|
| 12 months | 1.20% | 25.60% |
| 18 months | 1.20% | 25.74% |
| 24 months | 1.20% | 25.59% |
| 30 months | 1.20% | 25.33% |
| 36 months | 1.20% | 25.03% |
What are the modes of payment?
- Automatic debit from a BPI deposit account
| Other fees | |
|---|---|
| Processing fee | P1,500 to be deducted from the loan proceeds |
| Late Payment fee | 5% of the missed payment |
What are the documentary requirements?
| Document | Employed | Self-Employed |
|---|---|---|
| Yes | Yes | Yes |
| Yes | Yes | Yes |
| Yes | Yes | Yes |
| Yes | Yes | |
| Yes | ||
| Yes | Yes | |
| Yes | Yes |
How long is the loan approval process?
Five to seven business days
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