Compare the Best Personal Loan Rates in the Philippines
eCompareMo has partnered with the country’s leading banks and lending companies to give you the power to choose the best Personal Loan product for your every need. As the Philippines’ largest fintech company for financial comparison, we are committed to delivering the following:
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- What is a Personal Loan?
- Why apply for personal loans?
- What are the types of cash loans
- How to apply and get approved for a Personal Loan in the Philippines (fast)?
- Best Personal Loans in the Philippines
- BDO Personal Loan
- BDO Asenso Kabayan Personal Loan Unsecured
- BDO Asenso Kabayan Personal Loan Secured
- BPI Personal Loan
- EastWest Personal Loan
- PBCom Personal Loand
- Citi Personal Loan
- Chinatrust Personal Loan
- HSBC Personal Loan
- RCBC Personal Loan
- Maybank Personal Loan
- Security Bank Personal Loan
- Standard Chartered Personal Loan
- AUB Personal Loan
- Planters Bank Personal Loan
- UCPB Personal Loan
- City Savings Personal Loan
- Leverage Personal Loan
- Welcome Personal Loan
- What are the Personal Loan interest rates, fees, charges and payments
What is a Personal Loan?
A Personal Loan is a type of loan from banks that do not require any form of payment security. Many loan lenders in the Philippines do not require any form of collateral from their potential borrowers.
There are plenty of reasons to apply for low-interest personal loans. It can come in handy in different situations. For starters, loans can be used to fulfill your immediate needs. Individuals can also use it for other purposes, such as credit card debt consolidation, tuition fee payment, building a good credit score, and other financial emergencies.
Why apply for personal loans?
- Acquiring a vehicle
- Funding a business venture
- Creating an emergency fund
- Credit card payoff
- Debt consolidation
- Financing home improvements or renovation
- Financing education
- Improving your credit score
- Medical expenses
- Purchasing electronic gadgets
- Starting an investment
- Travel fund
Types of Cash Loans
There are two major types of loan in the Philippines — secured and unsecured loan.
A secured loan requires the borrower to have some sort of collateral as payment security for loan lenders. In the event that the borrower fails to pay the loan amount, lenders will take the asset and use it as a payment for the loaned money.
On the other hand, an unsecured loan refers to a Personal Loan without collateral, but this often comes with a higher interest rate. It is considered higher risk since it doesn’t have any form of security (aka the aforementioned collateral).
How to apply and get approved for a Personal Loan in the Philippines (fast)?
- Make sure that you are eligible for a loan application before applying for one. Check the eligibility requirements below.
- Must be a resident of the Philippines with a valid Philippine billing address
- Must be at least 21 years of age or older
- Must have an annual income that meets the requirements of the chosen personal loan provider
- Must have a postpaid landline or a postpaid mobile phone under your account
- Must have a Tax Identification Number (TIN) and SSS/GSIS No.
You need to check first if you qualify for personal loans before you apply. Also, examine your credit history (namely, if you have any existing debt or loans from other banks). Pre-existing loans or debts may have an impact on your application, and can be a factor for declined applications. Furthermore, make sure that you submit all the necessary documents that the bank requires, and honestly answer all the questions when a bank representative call you for a background check.
Note:There is a higher chance of loan approval for those individuals with existing credit card.
Personal Loan Lenders in the Philippines
There are many providers of cash loan in the Philippines and it is important to know which banks or lending institutions offer the best rates and most flexible payment options. Here is a list of loan products in the country:
Fund your travel expenses, education, or debt at an affordable interest rate when you choose BDO. You can also enjoy a flexible loan amount with a fixed monthly payment term.
- BDO Asenso Kabayan Personal Loan Unsecured
OFW looking for a loan without collateral? Opt for BDO Asenso Kabayan Unsecured Loan. Get as much as P3M, payable within 6 months to 36 months.
- BDO Asenso Kabayan Personal Loan Secured
You can borrow a flexible loan amount of P10,000 to P3 million when you choose BDO Asenso Kabayan Loan Secured. This type of cash loan is for OFWs who have an deposit account with BDO.
Borrow an amount up to three times your gross monthly income. Being one of the most reliable banks in the Philippines, BPI lets you loan money with flexible payment terms and low interest rates.
Whether it is for your tuition, medical needs, or home improvement, EastWest got you covered. It is rated one of the easiest and fastest loan applications in the country, since your loan can be approved in as fast as 3 days.
PBCOM offers one of the personal loans with low interest rate in the Philippines since it lets borrowers loan up to P1M, with an interest rate of 1.33% per year.
Apart from being a top credit card provider, Citibank also offers salary loan, wherein the borrower can loan up to P2M with flexible payment schemes between 1 to 5 years. Furthermore, your loan application can be approved in as fast 24 hours, provided you have submitted the necessary documents.
Whether you are employed or self-employed, Chinatrust lets you avail flexible loan options with an affordable interest rate. You can choose to pay back your loan between 12 to 36 months.
Want an easier and faster loan application? Opt for HSBC. You can loan from P30,000 to P500,000, with flexible payment terms up to 36 months.
RCBC lets you borrow money from a minimum of P50,000, up to P1 million, with a flexible loan tenure of six months to 36 months.
Looking for a collateral-free and quick loan application? Choose Maybank. Borrowers can loan up to P1 million at an interest rate of 1.30%.
- Security Bank
Loan up to P1 million with 1.39% interest rate per year when you choose Security Bank. Minimum loan tenure is 12 months, up to 36 months.
- Standard Chartered
You can loan up to P2 million and enjoy exclusive privileges when you choose Standard Chartered. Interest rate is set at 1.10%, whatever loan tenure you select.
- Asia United Bank
AUB offers multi-purpose loan to all employees of companies accredited by the bank. The loanable amount is from P30,000 to P250,000. Moreover, borrowers can pay their monthly amortization through salary deduction.
- Planters Bank
Planters Bank lets you loan a minimum amount of P30,000, up to P1 million, with no collateral needed. Pay your monthly amortization at an interest rate of 1.50% up to 1.75%, depending on the loan tenure you choose.
Borrow any amount in the range of P50,000 to P1 million when you choose UCPB. Interest rate is at 1.50%, regardless of loan tenure you select.
- City Savings
City Savings is especially made for teachers. Borrowers can loan from a minimum amount of P20,000 up to P875,000, with a fixed interest rate of 1%, payable in 12 months to 36 months.
Leverage Business Owners Personal Loan is the perfect choice for short-term financial needs. You can borrow a minimum amount of P30,000, up to P500,000, with an interest rate of 3.50%.
- Welcome Finance
You can loan up to P500,000 with Welcome Finance, provided that you have a minimum annual income of P180,000. Interest rate is at 1.60%.
What are the Personal Loan interest rates, fees, charges and payments
Depending on the bank or financial institution you apply with, interest rates may range from 1% to 3%. Moreover, some banks charge an additional fee for the processing of your application. The processing fee varies from P1,000 to P2,000, depending on the lender.
Several banks and financial institutions offer flexible payment terms, giving borrowers the freedom to pick what agreement works best for them. Payment terms may vary from 3 months, 6 months, 18 months, 24 months, even up to 60 months. Note that the longer the loan tenure, the higher the interest rate. However, some banks offer a fixed interest rate.
In the event the borrower fails to settle the monthly repayment on the given due date, they will be charged a late payment fee. Usually, banks charge around 3% to 4% per month.
Below is a sample computation for personal loans with a principal amount of PHP20,000:
|Interest Rate||Fixed rate of 1.5% to 3% per annum maximum|
|Loan Tenure||1 year loan tenure to 3 years per annum|
|Total Interest Payable||PHP3,600|
|Total Amount Payable||PHP23,600 for 12 months|
NOTE: The amount indicated above is a sample computation and may vary depending on the loan provider, loan amount, and payment terms you choose.
Personal Loan FAQ's
Can I get a Personal Loan without collateral?
Yes. This type of Loan is called an unsecured loan, where the lender won’t require any collateral from the borrower. However, expect a higher interest rate when you opt for this one.
How to get a Personal Loan without a credit card?
Even you don’t have any credit card, you can still apply for a loan. However, if a credit cardholder applies for a loan, they have a higher chances of getting approved.
How much can I borrow and over what period of time?
You may get as much as 4x of your gross monthly income, with a minimum amount of P20,000 to P2 million maximum, subject to approval. The period of time for the loan payment will depend on your chosen amount and payment term. But, keep in mind that the longer payment term means higher interest rate. Furthermore, you can use an online loan calculator to project how much interest you will be paying with your chosen loan amount and payment terms.
What happens if I fail to pay the monthly repayment?
In case you failed to pay your monthly installment on time, your unpaid amount will be charged a late payment penalty fee ranging from 3% to 10%, depending on your chosen Personal Loan provider.