2020 Update: Personal Loans In The Philippines With The Lowest Interest Rates

8 min. read By eCompareMo on

Interest 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.

Personal Loans In The Philippines With The Lowest Interest Rates

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 MyCash Personal Loan?

  • Borrower is at least 21 and at most 70
  • Minimum annual income of P 240,000, or gross monthly income of at least P20,000
  • Permanently employed with a company for 2 years
  • If borrower is a business owner, must have been in business for at least 5 years
  • Must be a credit card holder. They must have held that card for at least 2 years
  • 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)

What are the loan terms?

You can take out a loan for 6, 12, 18, 24, and 36 month periods. The monthly add-on rate is 1.30%.

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
Two Monthly pay slips/original certificate of employment Yes
Copies of 2 government IDs Yes
Copy of latest ITR Yes
Copy of latest monthly credit card bill Yes Yes
Copy of recent utility bill Yes Yes
Copy of Business Papers Yes
Copy of two years’ worth of financial statements and ITR Yes
Copy of latest 6 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

About the author

eCompareMo

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