Personal loans are very popular with Filipinos as they help them to fulfil their dreams and take care of their financial responsibilities. If you are in need of urgent financial assistance, you can apply for a personal loan from any of the leading banks and financial institution in Philippines. Such a loan can help you to fulfil a multitude of your personal needs such as debt consolidation, vacation, medical emergency etc.
A Personal loan functions similar to any of the other loans provided for procuring tangible assets such as a car and house. Many of the leading banks and financial institutions in Philippines offer this loan as a part of their retail lending products. No matter what the need is, you can apply for a personal loan as banks do not really ask questions on the purpose of availing a loan.
Compared to other products in the loan market today, a personal loan comes with nearly zero frills, easy to understand terms & conditions and does not require a guarantee or a collateral to secure the loan amount. The borrowed amount along with interest charges can be paid back in easy installment on a monthly basis.
Personal Loan Interest Rates – Philippines
|Bank Name||Loan Name||Interest Rate||Minimum Income||Loan Amount||Loan Tenure||Loan Approval Time|
|BDO Personal Loan||1.25% - 1.30%||P10,000||P10,000.00-P3,000,000.00||3 Months – 3 Years||Within 7 working days|
|BPI Personal Loan||1.20%||P20,000||P20,000.00-P1,000,000.00||1 year – 3 Years||NA|
|China Bank Savings Personal Loan||1.55% - 1.95%||P30,000||P20,000.00-P2,000,000.00||1 year – 4 Years||NA|
|Citibank Personal Loan||2.40%||P30,000||P20,000.00-P1,000,000.00||0.5 year-5 years||Upto 72 hours|
|East West Bank Personal Loan||1.49% - 1.69||P15,000||P25,000.00-P2,000,000.00||1 year – 3 Years||3-5 Bankig days|
|Equicom Savings Bank Personal Loan||2.71%-2.9%||P20,000||P15,000.00-P1,000,000.00||1 year – 3 Years||No Info|
|HSBC Personal Loan||2.17%-3.0%||P14,000||P35,000.00-P5,000,000.00||0.5 year-3 years||5-7 Working Days|
|Maybank Personal Loan||1.10%||P18,000||P50,000.00-P1,000,000.00||1 year – 3 Years||5-7 Working Days|
|PBCOM Personal Loan||28.4% - 37.4%||P30,000||P40,000.00-P1,000,000.00||1 year – 4 Years||NA|
|RCBC Personal Loan||NA||P20,000||P50,000.00-P1,000,000.00||0.5 year-3 years||NA|
|Robinsons Bank Personal Loan||NA||P20,000||P5,000.00-P2,50,000.00||0.5 year-3 years||NA|
|Security Bank Personal Loan||1.39% - 1.69%||P15,000||P30,000.00-P1,000,000.00||1 year – 3 Years||Upto 48 hours|
|Standard Chartered Personal Loan||1.10%||P24,160||P20,000.00-P2,000,000.00||1 year – 4 Years||Upto 48 hours|
|Sterling Bank of Asia Personal Loan||1.45%||P30,000||P50,000.00-P1,000,000.00||1 year – 3 Years||Upto 48 hours|
|UCPB Personal Loan||NA||P30,000||P10,000.00-P300,000.00||1 year – 3 Years||NA|
Features and Benefits of a Personal Loan
- Revolving Credit: Certain institutions extend the option of revolving credit for your personal loan so that you can access cash anytime, anywhere.
- Flexi Pay: Monthly payment needn't be of a fixed amount. This feature empowers you to pay as you like. If you have disposable cash and would like to utilise it to pay extra money into the personal loan account, you can do so and limit the interest burden.
- Top Up Loan: A benefit extended to customers in good credit standing. You can top up the loan account with additional money with the same rates and features. If you have a monetary requirement, this option is helps more than availing a new loan.
- Secured Loan: Personal Loans are mostly unsecured. However, customers with a poor credit history can avail a loan by pledging their existing bank instruments such as Time Deposit accounts.
Key Highlights of Personal Loan
- Quantum of Loan Amount: Key events of life which require monetary support do not have always have a defined limit. A personal loan syncs with this facet by offering you a loan anywhere between P10,000 to P3,00,000. A few banks in Philippines even offer a loan of up to P5,00,000. Provided you meet the eligibility conditions with good credit history, it may not be an uphill task to get a loan amount of your choice.
- Interest Rates: Depending on the bank you apply with, interest rates can hover between 1% to 2%, fixed until full repayment of the principal amount. Plus, a processing fee(small percentage of the loan amount) is also charged towards handling of documentation and paperwork.
- Payment in EMI Mode: Paying back the loan is made easy with the Equated Monthly Installment option. Tenor ranging from 3 months to 5 years are offered by banks in the country. The borrower is largely free to choose a loan tenor of their choice depending on the personal commitments and monthly budget.
- Loan Monitoring: With a slew of online and offline options to monitor the loan account, you never run out of resources to manage your loan. Online & Mobile banking are offered free of cost to help you access statement and other details.
A Personal Loan is one of the most accessible debt instruments in the market today which gives you quick access to funds. As stated earlier, the purpose of availing a loan can be to meet the financial obligations of a wide range of needs, be it casual or emergency. The most appealing feature of this loan is that it does not burn a hole in your wallet and lets you payback without hassles. Therefore, whatever the need be, a personal loan can be the ideal answer.
Personal loans can be both secured and unsecured loan but in most cases they are unsecured and so the applicants do not have to pledge any collateral security with their loan application. In case of secured personal loans, the applicants need to pledge any valuable financial asset as collateral security for the loan. In Philippines, most of the lenders offer unsecured personal loans.
- BPI Personal Loan - Founded in 1851, Bank of Philippine Island is the oldest banking institution in the country. It offers loans up to 3 times of gross monthly income at an interest rate of just 1.20%. The loan amount ranges from P20,000 to P1,000,000 with a repayment tenure of 12 to 36 months. Features such as online loan monitoring facility and easy payment options help you to manage the loan in an efficient manner.
- BDO Personal Loan - A leading full service bank in the country, BDO provides personal loans to meet a wide range of financial needs in life. The quantum of financing starts at P10,000 and can go up to a maximum of P3,00,000. Tenor options starts at 3 months that can be stretched up to 36 months with interest rates starting at just 1.25% pm. Loans are available in both secured and unsecured form with top up option for loans with good standing.
- Security Bank Personal Loan - The 8th largest bank in Philippines by assets size, Security bank provides loans for a wide range of casual and emergency needs. Loan amount starts from P30,000 and can go up to P1 million. Repayment terms are available in 12, 18, 24 and 36 months and the current rate of interest is 1.39%.
- East West Bank Personal Loan - A leading banking institution in the country, East West extends personal loan at interest rate starting at just 1.49% for a 12 months tenure. You can get a loan amount of up to P2 million with a lower cap of P25,000. Tenor options are available in 12, 18, 24 and 36 months.
- RCBC Bank Personal Loan - A new age full service bank in Philippines, RCBC provides personal loan with a minimum loan amount of P50,000 and a maximum of P1 million. The term of loan starts at 6 months with an upper cap of 36 months. No restrictions on the usage of loan amount and easy documentation are some of the key features of this personal loan.
- CTBC Personal Loan - This Taiwan-based bank offers a range of products and services in Philippines, including personal loans. You should be aged 23 and above but not more than 60 years to be eligible for a personal loan from CTBC. It comes with flexible tenures and a variety of other beneficial features.
- UCPB Personal Loan - UCPB offers salary loans that come with attractive interest rates and a loan amount as high as P300,000. You will not need to provide any guarantor security to avail this loan. You will get up to 3 years to pay off the loan amount.
- Citibank Personal Loan - A personal loan from Citibank can help you to meet your urgent financial needs. The loan amount can be as high as P2 million and the loan application can be processed within a day. You will not need to pledge any collateral security to apply for this loan.
- China Bank Savings Personal Loan - This thrift bank offers a variety of financial products to Filipinos, which include personal loans. An Easi-Funds Personal loan from China Bank Savings can help you to take care of your financial needs. This loan is available to both self-employed and salaried individuals.
- Standard Chartered Personal Loan - With a personal loan from Standard Chartered Bank, you can get access to cash in no time. You will not need to provide any collateral security to apply for this loan. You can avail up to P2 million as a loan and the minimum amount offered is P20,000.
Here are 5 tips that will help you to apply for the best personal loan in Philippines:
- Explore all the available options – Do not just approach a particular bank or financial institution and apply for a loan with them. Instead, explore all the available options in the country so that you can make the right choice. You can compare their features and benefits and then opt for the one that suits your needs the most. There are many private financial websites where you can compare the features, rates and benefits offered with different loan products in the island. You can access any of these sites to access the required information.
- Look for promotional interest rates - In order to make sure that the interest rate charged with your personal loan is very attractive and that you do not have to pay a lot of money as interest for the loan, you should look for promotional rates offered by various banks with their personal loans products. These promotions are offered by the banks on a regular basis and during the holiday seasons and festivals the banks offer very lucrative rates to get more business. You can look out for such promotions so that you can take maximum advantage of them and then opt for a loan that comes with comparatively low interest rates.
- Select the product that suits your needs – Most banks offer multiple personal loan products and so you will need to analyze the features and benefits offered with each of these products so that you can select the one that suits your needs the most. Some of these products will offer you with instant cash, while others will offer you with better rates and flexible tenures. You can compare their features and then select one that will be best suited to your financial needs.
- Look for flexible tenures – It is important that you can avail flexible repayment tenures with the personal loan so that you will not have any difficulty in paying off the amount that you borrow. Hence, it is very important that you opt for a loan from a bank that offers you with very flexible tenures of up to 5 years. When the tenure of the loan is flexible and longer, you will not have to worry about paying off the loan as you will get enough time to manage your finances and make sure that you are able to pay the monthly instalments on time.
- Do not be in a hurry – You should not be in a hurry to apply for a personal loan in Philippines and instead you should take your time to do the necessary research so that you can make the right choice. Do remember that applying for a personal loan is a very important financial decision and so you will not be in a hurry while opting for a personal loan from any bank or financial institution in Philippines.
- To be eligible for a Personal Loan, the applicant should be a Filipino citizen between the age bracket of 21 to 70 years depending on the bank.
- Foreigners with certain citizenship status are also eligible for the loan.
- Depending on the amount, you will have to meet various requirements related to employment and income.
- Along with the elementary criteria, the applicant should also be able to produce residence and identity proofs issued by government authorities.
Check out All Banks Personal Loan Eligibility in Philippines
- Duly filled-out and original signed application form
- Copy of your ID proof (Driver’s License, Passport, SSS, PRC, etc.)
Documentation for salaried applicants:
- Original Certificate of Employment or salary slip for the last 2 months
- Copy of Latest Income Tax Return
Documentation for self Employed applicants:
- Audited Financial Statements for the last 3 years
- Photocopy of DTI registration or SEC
*Please note that the documentation requirement will differ from one lender to another.
Here are 3 important things that you should know before applying for a personal loan:
- It can affect your credit score – The loan can affect your credit score and so you need to make the installment payments on time and pay off the borrowed amount as per the terms and conditions laid down by the lender.
- A long tenure can increase your cost of borrowing – If you opt for a long tenure, you will end up paying more money as interest and so your cost of borrowing will increase. Hence, it is advisable to opt for a short tenure with the loan.
- Check for hidden fees – Before signing the agreement, read about all hidden fees and charges so that you will have a clear idea of your total cost of borrowing money. You should look for charges related to late payment, prepayment of the loan and so on.
The process of applying for a personal loan in Philippines is quite simple. These days, most banks and financial institutions allow online applications of personal loan. You will only need to access their website and then click on the button that says ‘Apply Now’. After that, you will only need to follow the given procedure and apply for a personal loan within no time. You can also visit any of the branches of the bank and talk to the loan specialist to apply for a loan.
If you have a lot of debts on multiple credit cards, you can apply for a personal loan and then pay off your credit cards. This will help you to consolidate your debts as you will only need to make a single installment payments every month instead of making multiple payments for your credit cards. You will be able to save a decent amount of money as personal loans come with a lower interest rate than credit cards in general.
Most of the lenders in Philippines accept loan application from Overseas Filipino Workers (OFWs). They can visit the website of the lender or visit their overseas office to apply for a personal loan. Bank of Philippine Islands (BPI), BDO Unibank and Standard Chartered Bank are some of the top lenders that offer personal loans for OFWs.
Click Here to know about the Eligibility and Documentation Required to apply for Personal Loan for OFW
As a part of your homework before availing a Personal Loan, ascertaining the EMI amount is important as it has a direct impact on your monthly budget. It also helps in freezing key terms of the loan such as the tenure and gives you confidence to negotiate rates and terms with the bank.
The most convenient way to calculate Personal Loan EMI would be to use an online calculator that helps you in achieving the objectives. Before using the calculator, you must know the loan amount (principal), rate of interest and processing fee percentage. Once you have the numbers handy, simply fill the relevant fields to know the EMI amount. Some calculators go an extra mile by providing a detailed breakup in the form of amortization table which gives a wider view of the loan prospects.
- Can you please list the various types of miscellaneous fees and charges involved in a Personal Loan during the processing stage?
- I am thinking of getting a personal loan to fund my foreign holiday. What is the best way to make monthly payments?
- Is there an option to pre-terminate a personal loan?
- Is there a collateral required to secure the loan?
- Is there a restriction on how I can use the amount disbursed by the Personal loan?
Depending on the bank, local regulations and the loan amount, fees and charges such as processing fee, documentary stamps, and notarial fees are involved. Breakup of other charges will be provided by the bank representative at the time of application. You can also proactively inquire about these fees and charges when you submit your loan application.
The most recommended way to make monthly payments is to set up an auto debit from your bank account where EMIs are automatically debited by the bank around the due date. Thus, you can ensure that the payments are made on time and that you do not have to pay any late payment fee.
Yes, you can. Most of the banks let you pre-terminate the loan account if you decide to pay off the outstanding balance in full before the end of the tenure. In order to do so, you will need to pay a certain amount as a prepayment fee. Details of the fee will be available on the bank’s website.
Generally, no security is required as personal loan is an unsecured loan. However, in certain cases you may be required to furnish collateral such as loan against existing Time Deposit account. Such a situation may arise if you do not meet the income criteria to apply for the loan.
There are no restrictions on how you would like to use the loan amount as long it is not illegal. It can be used for a wide range of casual and emergency needs.
How Can Bankbazaar.ph help you with Personal Loans?
An exclusive web portal dedicated to all your banking and finance needs, you can get a break up of personal loan offers from various banks & compare loan products which aids your quest to get the best personal loan deal that suits your requirements. Bankbazaar.ph provides real time interest rates and maintains the most up to date information, equipping you with up to date information to make important financial decisions.
- Personal Loan With Bad Credit
- Personal Loan For Self Employed in Philippines
- Loan Against Time Deposit
- When To Take a Personal Loan?
- Types of Personal Loan in Philippines
- Personal Loan for OFW
- Tips for Getting Your Personal Loan Approved
- Salary Loan vs Personal Loan
- Secured Vs Unsecured Personal Loan
- Personal Loan Against Credit Card
- How to Find Private Personal Loan Lenders
- Consolidate Debts With Personal Loans
News About Personal Loan Philippines
Budget Deficit in 2015 widest in two years
The widest deficit in budget for the past two years was posted by The Aquino administration amounting to P121.7 billion as compared to last year’s P73.1 billion, according to the Bureau of the Treasury. The term deficit refers to more spending as compared to earning by the government.
0.9 percent of the gross deficit product was accounted for which is higher than the previous year’s 0.6 percent. The government has been hit by critics for consistently falling behind on its plans for spending despite revenue growth in double digits.
According to data from the Treasury, the fastest growth was recorded by Disbursements partly due to the uptick in spending in December. Expenditures have increased by 9 percent whereas revenue reduced by 6 percent. The Bureau of Internal Revenue’s collections have increased by 7 percent as compared to 2014. The Treasury has also taken in P110 billion. Debt interest payment has reduced by 14 percent last year.
17th March 2016
Philippines, Malaysia Sign Banking Agreement For Enhanced Cooperation
Bangko Sentral ng Pilipinas (BSP) and the Bank Negara Malaysia have signed an agreement aimed at regulating the entry among qualified ASEAN (Association of Southeast Asian Nations) banks under the ABIF (ASEAN Banking Integration Framework). The agreement issues guidelines and creates a visible framework between both the countries to strengthen the economic development among member countries.
Inked on 14th March, 2016 in Kuala Lumpur, the respective governors of the central bank signed the HOA (Heads of Agreement). This deal happens to be one of first few pacts signed between countries under the latest guidelines of ABIF. The agreement grants certain leverage and flexibility to banks doing business in the respective countries and permits up to three banks to set up operations in the other country.
The banks will be required to comply with the local banking laws in the respective countries. Since July last year, six foreign banks have opened branches in the Philippines after relaxation of entry of foreign banks.
15th March 2016