Compare Personal Loans

Zyane Tan

Last updated: 3 June 2019

Find and compare personal loans from PHP30,000 to PHP1,000,000 from a range of lenders

* The personal loan offers compared on this page are chosen from a range of personal loans finder Philippines has access to track details from and is not representative of all the products available for comparison in the market. Products are displayed in no particular order or ranking. The use of terms ‘Best’ and ‘Top’ are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing personal loans.

What do you want to learn about?

Finding the right personal loan

How a personal loan works, the types that are available and how to choose.

Comparing features and costs

Features that make a personal loan competitive and how much the loan will cost.

How to apply and get approved

Eligibility criteria, documents you need to supply and how to improve your chances of being approved.

Finding the right personal loan

This section is about:

• How a personal loan works
• How to choose a personal loan
• What types of personal loans are available

What is a personal loan?

A personal loan is a secured or unsecured lump sum payment or line of credit between PHP10,000 and PHP1,000,000 over up to 48 months. You can use the money for a range of purposes, such as buying a car, consolidating debt, paying for a wedding or even undertaking renovations. Personal loans are an agreement between you and a lender for you to have a certain amount of money and pay it back over time.

How do personal loans work?

Personal loans are a lump sum payment or a line of credit that you pay back over time. While these loans differ slightly between lenders, generally you can expect the following:

• Application and approval. You can apply for a personal loan from a bank, credit union or standalone lender online, over the phone or in-branch, depending on what application types the lender offers. The time it takes to be approved depends on the lender, but it can range from anywhere between 60 seconds to a week or two.
• Loan contract. When you are approved for a loan you will need to agree to a loan contract that sets out certain terms. These terms include long you’ll have to repay the loan, what fees you’ll need to cover, and the rate of interest you’ll be charged on your loan amount.
• Loan terms. Your loan terms will be set out in your loan contract. Generally, loan terms range between one and four years.
• Loan costs. Lenders agree to lend you money in exchange for interest, which is charged annually. This interest can be fixed or variable. Other loan costs include processing fees and charges. You should also check if you will be charged fees for repaying your loan early or making additional repayments.
• Loan types. There is a wide variety of personal loans available in the market, with each one coming with a set of terms and restrictions. For instance, when you apply for a car loan the lender often requires that the entire loan amount be used for your car purchase. The car is also often required to be used as security in case you default on the loan. An unsecured personal loan, on the other hand, is less restrictive and you can use the loan amount in almost any way you choose.

How do I go about choosing a personal loan?

The types of personal loans that are available to you

There is a wide range of personal loans available in Philippines. You can be eligible for any one of these loans depending on your income, employment situation, what you’re taking out the loan for, how much you can afford to repay and how good your credit is. Find out what loan may work for you with the below options.

• Secured personal loans. This type of loan works by you offering an asset as security in exchange for lower rates and fees. Usually, this loan is used to purchase a car, but other types of assets can be used as well.
• Car loans. Looking to purchase a new or used car? You can opt for a car loan through a bank, lender or even using dealer finance in order to help you make your purchase.
• Unsecured personal loans. If you don’t want to put up an asset as security, or want to finance something unsuited to a secured personal loan, you might want to consider a loan that doesn’t require a guarantee.
• Line of credit. You’ll get access to a set credit limit, but only pay interest on the funds you’ve used. You can consolidate debts or even fund a range of purchases with this type of loan.
• Debt consolidation loan. Existing debt can be managed by taking out a debt consolidation loan. Consolidate separate loan accounts into one easy-to-manage loan with a potentially lower rate and with fewer fees.
• Overdrafts. An overdraft is a lot like an unsecured loan but it is generally attached to your everyday bank account. You are given a set amount that you can withdraw from your account, once your own funds have been exhausted.
• Bad credit loans. If you have bad credit but are in need of a loan, there are still options available to you. Either apply with a lender who doesn’t perform a credit check, or who accepts applicants with negative listings on their file.

How to compare personal loans

This section is about:

• What makes a personal loan competitive
• The interest rate and fees to expect
• Working out your borrowing power

Features of personal loans: What makes a loan competitive?

When comparing your personal loan options, it’s helpful to keep in mind the range of features that are available with these loans. When comparing, here are some of the questions you’ll need to ask.

• Does the loan have a competitive interest rate? Rates on personal loans will be either fixed or variable. Compare rates across similar loan products to ensure you’re getting the best deal. If the loan is risk-based, meaning you receive a rate based on your credit history and your general risk profile, you’re generally able to receive a rate estimate before you apply without it affecting your credit score. This way you can use the risk estimate to compare your options.
• What are the fees and charges? You’ll need to consider all the fees and charges associated with the loan. Common fees include processing fees, early repayment fees and late payment fees. You may also be charged to use additional features of the loan.
• Is there repayment flexibility? How often are you able to make repayments? Are you able to make additional repayments or pay off the loan early without penalty?
• Do the loan terms match your needs? Personal loans are usually offered for terms of between one and four years, with other loans on offer for shorter time periods. Some lenders are more restrictive than others when it comes to how long you have to repay your loan – for instance, only offering terms of 6, 12 or 24 months. Make sure the loan terms on offer are what you need. Long term loans over four years often see lower repayments but a greater amount of interest paid.

The interest rates and fees to expect on personal loans

The interest rate and fees you are charged depend on the loan you apply with , but each loan type comes with similar costs, and understanding these can help you compare personal loan options.

The interest rate

Your interest rate will either be fixed or variable. Car loans tend to come with fixed rates while unsecured loans offer both, but you will find a mix of variable and fixed rates within each loan type. Variable rate loans mean the loan is more flexible and comes with longer loan terms, but fixed rate loans usually come with restrictions, such as not allowing you to make extra repayments. Fixed rate loans also come with shorter terms, usually up to three years.

Personal loans can also come with set interest rates or risk-based interest rates. Set interest rates mean the loan comes with a single rate that all approved applicants receive. Risk-based rates mean the personal loan will come with an interest rate range and you will be approved for an interest rate within that range. The factors that influence what rate you get depend on your credit history, the amount you apply for and the loan term and the details you provide in your application.

The fees

There are three types of fees you should expect: Upfront fees (processing fees), ongoing fees (monthly, annual or direct debit fees) and fees that are charged if you default on the loan or miss a repayment.

Applying and being approved for a personal loan

Who is actually eligible for a personal loan?

Eligibility for personal loans depends on a few different things:

• If you have a low income. Applicants with low incomes can still be approved for personal loans. It’s always a good idea to check the borrowing requirements and check your repayments with a calculator.
• If you have bad credit. You’re still able to apply for certain personal loans if you have negative marks on your credit file. Bad credit loans are still possible. You might end up paying a higher interest rate on these loans, so it’s important to compare a range of offers before applying.
• If you have existing credit card or personal loan debt. You may still be approved for a new personal loan if this is the case, but you should calculate your repayments and your debt levels before continuing.
• If you don’t meet the minimum requirements. You still might be able to apply with a guarantor. This is where someone, usually a family member such as a parent, agrees to ‘guarantee’ your personal loan should you fail to meet your obligations.

What documents will I need when applying for a loan?

Each bank and institution have their own criteria that you will have to meet to finalise your loan application.

• Proof of identification

  You will usually need any of the following to prove your identity:

  • Valid government-issued photo ID
  • Passport
  • Utility bill showing your address

• Proof of income

  You will need to verify your income, with the actual verification required differing between lenders. Common requirements are as follows:

  • Certificate of employment and compensation issued within the last six (6) months
  • Latest ITR
  • Latest one-month payslip
  • Bank statements
  • SEC Registration / DTI Certificate (if self-employed)
  • Business Permit / Mayor’s Permit (if self-employed)
  • 2 years audited financial statements (if self-employed)

• Other documents

  You may also need any of the following documents:

  • Statements from other loan accounts/credit cards

• If you're applying for a car loan

  Applying for a car loan requires various documents to have the car verified:

  • Purchase order (for new cars) or registration card (for used cars)
  • Engine number and registration plate details
  • The car dealers contact information or the sellers contact details if a private sale
  • Tax invoice and receipt for the car or purchase price if a private sale

How do I know which type of personal loan I need?

Different type of personal loans suit different loan purposes. Here is how to find the right loan to suit your needs:

• If you’re looking to buy a car: You can consider either a car loan or an unsecured personal loan. A car loan is preferable if the car you’re looking to purchase is eligible to be used as security (not all used cars are) as the interest rates are lower. However, if you’re buying a used car that is older, don’t want to use the car as security for the loan or want to borrow extra funds for something else as well, you may want to consider an unsecured personal loan.
• If you want to consolidate debt: You can consider an unsecured personal loan or doing a balance transfer. The right option for you will depend on the type of debt you want to consolidate, how much debt you have and what products you are eligible for.
• If you want to pay for a wedding, take a holiday or pay for home renovations. You may want to consider an unsecured loan. These can come as either a lump sum payment or a convenient line of credit that you can draw on when you need to.
• If you need to borrow less than PHP30,000. You won’t have many options from banks for loans of this amount, so you may need to consider a personal overdraft, a line of credit or a credit card. You can also consider a short term loan but keep in mind these are very high-cost forms of credit and should only be taken out if you have no alternatives.
• If you have an asset, such as a vehicle, to offer as security. You can consider a secured personal loan. This involves you attaching an asset you already own to take advantage of a more competitive interest rate. You can then use the funds for any purpose.

I need a loan for debt consolidation

Debt consolidation loans work by letting you bring debts from different credit accounts together so you can pay them off with one rate and one set of fees.

When you’re comparing loans for debt consolidation:

• Consider whether the new loan will save you money. Work out your new monthly repayment and if this will be lower than what you are currently paying.
• Think about your eligibility for the loan. If you have a lot of debt from several accounts you may not be able to consolidate all of it, or if you have bad credit you may need to consider your bad credit debt consolidation options.

How can I improve my chances of the loan being approved?

There is no way to guarantee you’re approved for a personal loan, but giving yourself the best chance at being approved starts with meeting the eligibility criteria set by the lender. To further your chances of being approved, keep the following in mind:

• Establish your borrowing capacity. What repayments can you afford? Lenders will use a variety of criteria to decide how much you’re eligible to borrow, but you need to know how much you can afford to repay.
• Building a good banking history. Keep your account in good standing to build a positive relationship with your bank, even if you don’t plan on borrowing from them.
• Keep your credit rating in good standing. Make sure you keep track of all your payments, from credit cards to utility bills, because any arrears, debts, or missed payments will affect your ability to access credit.
• Keep track of your saving goals. If you manage to contribute to your savings regularly, it shows lenders that you are likely to manage ongoing loan repayments.

How to apply for a personal loan

1. Get ready to make your purchase. Make sure you know how much you want to borrow and have worked out that you can meet the repayments.
2. Choose a secured or unsecured loan. If you already own an asset or are looking to buy one, then a secured loan may be an option. If not, you may want to consider your unsecured personal loan options.
3. Decide between a fixed or variable rate. A fixed rate loan means your repayments are set for the life of the loan and can’t fluctuate, whereas a variable rate loan can increase or decrease your repayments over the life of the loan.
4. Choose your terms. A calculator can help you work out your repayments.
5. Start your personal loan research and comparison. This is an important step to finding the best loan option for you.
6. Click through and apply. Once you find the loan you want to apply for, simply click ‘Go to Site’ to apply.

The questions we’ve been asked about personal loans

• How quickly can I get the money from my personal loan?

  Different lenders can have your loan amount transferred to you within different amounts of time. Some banks are able to offer existing customers same-day personal loans, and some payday lenders can have loan amounts transferred to new customers within an hour of approval. If you are in need of the cash as soon as possible it is advisable to check to see how long it will take to receive your loan amount before you apply.

• What is the average interest rate on a personal loan?

  The average interest rate depends largely on what type of loan you’re applying for. For unsecured loans, the average annual percentage rate (APR) is around 13-26% p.a. As for secured personal loan, the APR is generally lower but depends on the lender and other factors. If you opt for a risk-based lender the interest rate you receive will depend on your perceived risk.

• What can the lender do if you fail to repay a secured personal loan?

  Secured loans, as the name suggests, means that you offer something of value as security on the loan. If you don’t pay you may find the bank will repossess your car and sell it.

• I'm having trouble repaying my loan – what do I do?

  If you are having trouble repaying your loan you’ll need to get in contact with your lender. They may be able to organise a payment plan with you, or be able to offer you some sort of option to help you manage your repayments. You also have the option of getting in touch with a financial counsellor to help you organise a budget.

• Do I have to tell the lender what I'm using the money for?

  The answer to this question depends on what type of loan you are getting. If you are getting a secured car loan then all details of the car and finance agreement and registration must be given to the bank or lender before you receive the money. If, however you are getting an unsecured personal loan, then you only need to give a general idea of the loan purpose to the bank. If you are consolidating debts then you’ll have to give details of your other loans and credits to the institution.

• Can I buy a car with a personal loan?

  Personal loans can be used for purchasing a car especially if you want to buy an older model or a car that does not fit in with a lenders criteria. An unsecured personal loan could be used for a car. It is important to keep in mind that these unsecured personal loans come with a higher interest rate than a loan secured to a vehicle.

• What's the difference between a credit union personal loan and a bank personal loan?

  Credit unions are different to banks in that they operate in a not-for-profit business model. Typically you will find there are not as many fees or charges with a credit union loan which means the interest rate could be lower. Credit Unions are governed by the same regulations as banks so it’s just as safe to apply for a credit union personal loan.

• Why has the interest rate on my personal loan changed?

  If you have a variable rate personal loan, then you may notice that your interest rate may go up or down. This could happen due to a range of factors. If you’ve found your rates have gone up, it may be a good time to consider refinancing your personal loan.

• What's the difference between short term loans and personal loans?

  Whilst a short term loan, also known as a payday loan is a type of personal loan, there are a range of differences that make this type of lending completely different. Personal loans are generally taken out over one to four years, whereas a payday is between 2 to 5 weeks. Payday loans are also for smaller amounts – between PHP5,000 and PHP30,000 – and are available to those with bad credit.

• How much should I borrow?

  Personal loans can vary greatly in size from PHP30,000 and upwards of PHP2,000,000. If you’re purchasing an asset such as a car keep in mind you may need funds to cover insurance. Many banks and lenders will consider up to PHP200,000 and PHP500,000 to be a medium sized loan. If you are only going to borrow between PHP10,000 and PHP30,000 then a small personal loan may suit your needs better.

• How do I repay a personal loan?

  Once you’ve actually successfully applied and received your funds, it’s important to keep your loan up to date. If you’ve applied for a loan with the bank your everyday account is with, then you will probably have automatic direct debit setup. If your loan is with a separate institution then it is a good idea to set up an automatic transfer via internet banking a few days before your due date to allow for processing times. You’ll be able to check your balance, interest rate, repayment dates and schedules. You should login to your loan account regularly to check notifications and payments details. If you want to make additional payments then you could do this by internet transfers, cheque or if your bank allows it – over the counter deposits. If you miss a payment due to insufficient funds then it is important to call the bank and attempt to rectify the situation as soon as possible

• Can I use a personal loan for equipment finance and small business needs?

  Yes, personal loans can help with your business needs too. You can access personal financing to help cover business needs — everything from trucks to equipment can be purchased or even leased with a personal loan. The same is true even if you have bad credit. Business vehicles including company cars, trucks or vans can all be financed with a personal loan. If your business requires specific equipment to purchase or lease, such as forklifts, earthmoving equipment, workshop machinery, or even office equipment, you can take out a personal loan to help cover the costs. You won’t have to hurt your business’ cash flow to make the purchase.

• How can I calculate repayments on my bank personal loan?

  If you want to get a personal loan from any local banks or financial institutions, you can learn how their calculators work on their website.