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Loans Apply Online in Philippines

Loans
Our list offers a variety of options, from online loans suitable for those with bad credit to the best personal loans available near you. Compare rates and terms to find the most suitable option for your financial needs. Apply online today and secure the financial assistance you require without the hassle.
Offers: 10
Updated:
10.02.2024
20:27
MoneyCat
Instant cash loans
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
₱20000
Rate
i

Effective interest rate on the product

11,9% per month
Term
i

Loan term for the financial product

6 months
DIGIDO
Instant online loans
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

4
Recommended FinScore™
0
300
650
1000
10500.00 – 25000.00 ₱
Rate
i

Effective interest rate on the product

from 11.90 %
Term
i

Loan term for the financial product

3 days – 6 days
Finbro
Personal Loans
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

5
Recommended FinScore™
0
300
650
1000
to 50000.00 ₱
Term
i

Loan term for the financial product

to 1 years
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Kviku
Online Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
500.00 – 25000.00 ₱
Rate
i

Effective interest rate on the product

to 0.16 %
Term
i

Loan term for the financial product

2 months – 6 months
Mazilla
Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
₱500 - ₱25000
Rate
i

Effective interest rate on the product

30% - 365% APR
Term
i

Loan term for the financial product

91 - 720 days
TALA
Tala Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

2.95
Recommended FinScore™
0
300
650
1000
1000.00 – 15000.00 ₱
Rate
i

Effective interest rate on the product

to 0.50 %
Term
i

Loan term for the financial product

21 days – 1 months
Blend
Personal Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

3.6
Recommended FinScore™
0
300
650
1000
50000.00 – 2000000.00 ₱
Rate
i

Effective interest rate on the product

1.50 – 3.00 %
Term
i

Loan term for the financial product

12 days – 36 days
BillEase
Blissful Shopping. Easy Billing
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

4.13
Recommended FinScore™
0
300
650
1000
to 40000.00 ₱
Rate
i

Effective interest rate on the product

to 3.49 %
Term
i

Loan term for the financial product

1 days – 12 days
CashMart
Personal Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

3.4
Recommended FinScore™
0
300
650
1000
3000.00 – 30000.00 ₱
Rate
i

Effective interest rate on the product

from 0.06 %
Term
i

Loan term for the financial product

7 days – 28 days
AEON
Personal loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
6000.00 – 150000.00 ₱
Rate
i

Effective interest rate on the product

to 2.95 %
Term
i

Loan term for the financial product

6 days – 12 days
Today 22.02.2024 Loans Calculator in Philippines

Your ideal qiuck loan with a free credit check in the Philippines, just a few clicks away.

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Reviews
Savii
1
No comment yet coz im not yet approved in my application
Review
DIGIDO
5
very fast
Review
Kviku
4
Please address my concerns regarding my loan application and its processing...
Review
Kviku
1.6
Warning: This lender is predatory and extremely dangerous. Do not use this app for loans as they will trap you with impossible and maliciously high interest rates...
Review
Kviku
1.4
I was charged an excessive amount by KVIKU. My last loan was approved on November 25th, 2022 for 5000 pesos...
Review
Kviku
1.8
High Interest Rate. They approved my auto loan without discussing repayment options in full. Instead, they sent me a contract with scheduled payments, which is nowhere near the advertised 0...
Review
Loans Apply Online

What are loans in the Philippines?

Loans in the Philippines encompass a diverse range of financial instruments catering to various needs and circumstances. Personal loans, for instance, can be versatile and unsecured, allowing borrowers to utilize funds for purposes such as bill payments, medical emergencies, or educational expenses. In contrast, salary loans, often referred to as payday loans, are linked to a borrower's gross salary, offering smaller amounts tailored to shorter-term financial needs.

Additionally, the country provides specialized loans like calamity loans, designed to assist individuals residing in areas declared under a state of calamity, usually facilitated through government agencies such as SSS and Pag-IBIG. Secured loans, like car and home loans, involve collateral, ensuring the lender's rights to the financed asset until the full repayment of the loan. The lending landscape in the Philippines encompasses an array of loan types, each with distinct features and eligibility criteria, serving the diverse financial requirements of its population.

What are the major types of loans?

  1. Unsecured Loans. Unsecured loans in the Philippines don't require collateral, making them accessible to borrowers without the need to pledge assets. A prime example is the personal loan, which individuals can use for various purposes like travel, home renovations, or debt consolidation. The borrower's creditworthiness and income play a significant role in securing approval for unsecured loans.

  2. Secured Loans. Secured loans, on the other hand, involve collateral to mitigate the lender's risk. One prominent example is the car loan, where the vehicle itself serves as collateral. Failure to repay the loan may result in the lender repossessing the car. Similarly, a home loan is secured by the property being financed. These loans typically offer lower interest rates due to the reduced risk for the lender.

  3. Fixed-Rate Loans. Fixed-rate loans maintain a consistent interest rate throughout the loan tenure, providing stability for borrowers. An illustration is the housing loan, where borrowers pay a predetermined interest rate for the entire loan duration. This allows individuals to budget effectively, knowing that their monthly payments won't fluctuate.

  4. Variable-Rate Loans. Variable-rate loans, such as the business loan, feature interest rates that can change based on market conditions. The rates are often tied to benchmark indices. While variable-rate loans can offer lower initial rates, they introduce the element of interest rate risk. Entrepreneurs seeking capital for business expansion might opt for this type of loan, balancing potential cost savings with the possibility of rate increases.

Features

  1. Purpose Diversity. Loans cater to a broad spectrum of financial needs, ranging from personal expenses and home purchases to business expansion and emergency situations.

  2. Variable Loan Terms. Loans offer varied terms, including short-term payday loans, medium-term personal loans, and long-term mortgages, accommodating different repayment timelines based on the borrower's needs.

  3. Interest Rate Variation. Loans can have fixed or variable interest rates. Fixed-rate loans maintain a constant interest rate for the entire term, providing predictability. Variable-rate loans, on the other hand, fluctuate based on market conditions.

  4. Credit Evaluation. Borrowers' creditworthiness plays a crucial role in loan approval and interest rate determination. A good credit history enhances eligibility and may secure more favorable terms.

  5. Collateral Requirements. Secured loans necessitate collateral, which can be a property, vehicle, or other valuable assets. Unsecured loans, lacking collateral, rely more on the borrower's creditworthiness.

  6. Repayment Structures. Loan repayment structures vary, including monthly installments, lump-sum payments, or flexible repayment plans, allowing borrowers to choose options aligned with their financial capabilities.

  7. Loan Amount Flexibility. The amount that can be borrowed varies widely, from small payday loans to substantial amounts for home or business financing, accommodating diverse financial requirements.

  8. Application and Approval Processes. The loan application and approval processes differ among lenders, involving documentation, credit checks, and, in some cases, face-to-face interviews.

  9. Risk and Responsibility. Borrowers assume responsibility for repaying the loan amount along with interest, and failure to do so may result in consequences such as asset repossession or damage to credit scores.

  10. Lender Diversity. Loans are offered by a variety of institutions, including traditional banks, online lenders, credit unions, and government agencies, providing borrowers with a range of options based on their preferences and circumstances.

Pros and Cons

Pros

Financial Flexibility. Loans provide individuals and businesses with the financial flexibility to address various needs, whether it's purchasing a home, starting a business, or handling unexpected expenses.

Immediate Access to Funds. Loans offer quick access to funds, allowing borrowers to meet urgent financial requirements without having to wait for extended periods.

Asset Acquisition. Secured loans enable individuals to acquire assets such as homes or vehicles by providing a financing option with manageable repayment terms.

Cons

Interest Costs. Borrowers pay interest on the borrowed amount, adding to the overall cost of the loan. High-interest rates can significantly increase the financial burden.

Debt Accumulation. Taking multiple loans without proper financial management can lead to debt accumulation, making it challenging to meet repayment obligations.

Risk of Default. Failure to repay loans on time can result in default, leading to negative consequences such as damaged credit scores and potential asset repossession.

How to Get a Loan in the Philippines?

Apply for a loan

  1. Determine Your Loan Purpose. Clearly define the purpose of the loan, whether it's for a home purchase, starting a business, or covering personal expenses. Different loans cater to specific needs, so understanding your purpose helps in choosing the right type of loan.

  2. Check Your Credit Score. Obtain a copy of your credit report and check your credit score. A good credit score enhances your eligibility for loans and may secure more favorable interest rates. Address any discrepancies on your credit report before applying for a loan.

  3. Research Loan Options. Explore various lenders, including banks, credit unions, online lenders, and government agencies. Compare interest rates, terms, and eligibility criteria to identify the loan that best suits your needs and which lender may offer you affordable payment terms.

  4. Understand Loan Terms. Thoroughly review the terms and conditions of the loan, including interest rates, repayment schedules, fees, and any penalties for early repayment. Understanding the terms ensures you are aware of the financial commitment.

  5. Gather Necessary Documentation. Lenders typically require documentation such as proof of income, employment verification, credit history, and details about the purpose of the loan. Prepare these documents in advance to expedite the application process.

  6. Complete the Loan Application. Submit a comprehensive loan application to the chosen lender. Online applications are common, but some loans may require in-person visits. Provide accurate and truthful information on the application form.

  7. Wait for Loan Approval. Lenders evaluate your application, considering factors such as creditworthiness, income, and the purpose of the loan. The approval process duration varies among lenders, and some may offer pre-approval to indicate the likelihood of success.

  8. Review Loan Offer. If approved, carefully review the loan offer, including interest rates, repayment terms, and any associated fees. Ensure you understand all aspects of the agreement before accepting the loan.

  9. Submit Additional Documents if Required. Some lenders may request additional documents or information during the approval process. Promptly provide any requested documentation to avoid delays.

  10. Accept the Loan and Fulfill Conditions. Once satisfied with the terms, formally accept the loan offer. Fulfill any conditions outlined by the lender, such as providing collateral or additional information.

  11. Receive Loan Disbursement. After completing all necessary steps, the lender disburses the loan proceeds. In some cases, funds may be transferred directly to your bank account or issued in the form of a check.

Requirements and Conditions

Conditions

  1. Interest Rate Type. Borrowers may choose between fixed or variable interest rates. Fixed rates remain constant, while variable rates may fluctuate based on market conditions.

  2. Loan Type. Borrowers may take out different types of loans, mainly falling into two categories: unsecured loan products and secured loan options. Unsecured loans, such as payday loans, do not require collateral to back up the ability to repay the loan. Secured loans do require some type of collateral - home equity loan options and auto loans serve as common examples.

  3. Repayment Schedule. The terms of the repayment schedule, including the frequency and amount of payments, are outlined in the loan agreement. For example, the borrower may have a monthly payment as their monthly installment or a bi-weekly one.

  4. Prepayment Penalties. Some loans may include penalties or fees for repaying the loan before the agreed-upon term. This protects the lender's expected interest income.

  5. Late Payment Fees. Borrowers may incur fees or penalties for late payments, encouraging timely repayment.

  6. Grace Period. Some lenders may offer a grace period before payments are due, providing flexibility to borrowers facing temporary financial challenges.

  7. Minimum Loan Amount. Lenders may set a minimum loan amount to ensure that the cost of processing the loan is justified.

  8. Maximum Loan Amount. Similarly, lenders may impose a cap on the maximum loan amount to manage risk and align with the borrower's financial capacity.

  9. Loan Approval Conditions. Pre-approval conditions may be specified, such as providing additional documentation or meeting specific criteria before final approval.

  10. Regulatory Compliance. Compliance with applicable laws and regulations governing lending practices is a fundamental condition for both lenders and borrowers.

Requirements

  1. General Eligibility. When applying for loans in the Philippines, the specific requirements may vary based on the type of loan you are seeking. Generally, individuals must meet certain criteria to be eligible. Applicants are typically required to be within the age range of 21 to 65 years old and must be Filipino residents. A working landline number is often necessary for communication purposes.

  2. Income Requirements. For employed individuals, a valid government ID, such as a passport, is required. Additionally, documentation proving income, such as the latest income tax return (ITR), Certificate of Employment, or the latest one-month pay slip, is essential. Self-employed applicants face additional requirements, including the presentation of an Audited Financial Statement (AFS), Business Permit, DTI Certificate or SEC Registration, a list of references, the latest bank statements from the last three months, and the latest GIS if operating as a corporation.

  3. Additional Documents for Foreigners. Foreign applicants may need to provide additional documentation such as the Alien Certificate of Registration (ACR), valid passport, and any valid proof of residency.

  4. Special Documents for Seamen. OFW loans necessitate a set of documents, including a duly filled-out Lenderly Application, copy of Passport, Working Visa, Overseas Employment Certificate, Employment Contract, copy of the last two electric bills, valid government-issued ID, copy of the airline ticket, Seaman's Book, and Seafarer's Registration (SRC).

Best Places to Get Loans Today

EastWest Personal Loan

Apply for a loan

EastWest Personal Loan offers a versatile non-collateral loan option, allowing individuals to borrow up to ₱2 Million for various purposes. The interest rate is set at 37.54%, providing financial flexibility to borrowers seeking substantial funding without the need for collateral.

Eastwest Bank Loans

Tonik Bank

Apply for a loan

Tonik Bank stands out with its competitive offering, featuring a low monthly add-on interest rate of 1.7% for a maximum term of 24 months. This lending option caters to those looking for a reliable financial solution with a favorable interest rate of 20.52%.

Uno Digital

Apply for a loan

Uno Digital provides a convenient borrowing experience, allowing individuals to secure loans up to ₱200,000 without the requirement of collateral or guarantors. The loan offers various monthly installment payment plans, offering flexibility to borrowers. The interest rate is at 37.54%.

Esquire Financing

Apply for a loan

Esquire Financing Business Loan is designed to meet the financial needs of businesses, offering a non-collateral business loan with a substantial limit of up to ₱10 Million. While providing significant funding, the interest rate is set at 42.00%, making it suitable for businesses looking for accessible financing solutions.

Ways to Receive the Money

  1. Direct Deposit to Bank Account. The most common method is a direct deposit to the borrower's bank account. Once the loan is approved, the funds are electronically transferred to the specified bank account.

  2. Cash Disbursement. In certain cases, particularly for smaller loan amounts, lenders may provide the funds in cash. Borrowers can visit a physical branch or designated location to collect the cash.

  3. Digital Wallet Transfer. With the rise of digital banking, some lenders may offer transfers to digital wallets. The borrower receives the funds in their digital wallet, which they can use for online purchases or transfer to their bank account.

  4. Wire Transfer. For international transactions or urgent fund transfers, lenders may opt for a wire transfer. The funds are sent electronically, and the borrower may need to provide specific details for the transfer.

  5. ACH Transfer. Automated Clearing House (ACH) transfers are electronic transfers between banks. Lenders can use ACH to deposit funds directly into the borrower's bank account.

Things to Pay Attention To

  1. Interest Rates. Understand whether the loan has a fixed or variable interest rate. Fixed rates remain constant, while variable rates may fluctuate, impacting the overall cost of the loan.

  2. Fees and Charges. Be aware of any upfront fees, processing fees, or hidden charges associated with the loan. This includes application fees, origination fees, and prepayment penalties.

  3. Repayment Terms. Review the repayment schedule, including the frequency of payments and the total duration of the loan. Ensure the terms align with your financial capability and preferences.

  4. Late Payment Policies. Familiarize yourself with the lender's policies on late payments, including any fees or penalties. Timely payments are crucial to maintaining a positive credit history.

  5. Prepayment Options. Check if the loan allows for early repayment without incurring substantial penalties. Some loans may have prepayment penalties that could affect your decision to pay off the loan ahead of schedule.

  6. Loan Security (for Secured Loans). If the loan is secured, understand the implications for the collateral. Know the potential consequences if you default on payments and how it may impact the secured asset.

  7. Credit Score Impact. Determine how the loan may affect your credit score. Timely payments contribute positively to your credit history, while defaults or late payments may have adverse effects.

  8. Loan Purpose Restrictions. Some loans may have specific restrictions on how the funds can be used. Ensure that the loan aligns with your intended purpose, whether it's for education, home improvement, or debt consolidation.

  9. Hidden Terms in the Agreement. Thoroughly read the loan agreement and be cautious of any hidden terms or clauses. Seek clarification on any points that are unclear before signing.

  10. Customer Reviews and Reputation. Research the lender's reputation and read customer reviews. Understanding other borrowers' experiences can provide insights into the lender's practices and customer service.

  11. Loan Insurance Requirements. Determine whether the lender requires you to purchase insurance for the loan. Understand the types of insurance and their costs, if applicable.

  12. Flexibility in Repayment. Check if the lender offers flexibility in repayment, such as grace periods or the option to adjust the repayment schedule in case of financial challenges.

  13. Accessibility of Customer Support. Assess the accessibility and responsiveness of the lender's customer support. Reliable customer service is crucial for addressing queries or concerns throughout the loan term.

  14. Comparison with Other Options. Compare the terms, interest rates, and fees with other lenders to ensure you are getting the most favorable loan terms available to you.

  15. Legal Compliance. Confirm that the lender operates legally and complies with relevant regulations. This ensures consumer protection and fair lending practices.

How to Repay a Loan?

  1. Review Loan Agreement. Thoroughly review the loan agreement to understand the repayment terms, including the monthly installment amount, interest rate, due dates, and any additional fees.

  2. Set Up Payment Method. Choose a convenient and reliable payment method. Many lenders offer various options such as automatic bank transfers, online payments, checks, or in-person payments.

  3. Automatic Payments. Consider setting up automatic payments, if available. This ensures that payments are made on time each month, reducing the risk of late fees or missed payments.

  4. Calendar Reminders. Set up calendar reminders or alerts to notify you of upcoming payment due dates. This helps you stay organized and ensures timely payments.

  5. Budgeting. Incorporate loan payments into your monthly budget. Prioritize loan payments to avoid financial strain and ensure that you have sufficient funds available on due dates.

  6. Emergency Fund. Maintain an emergency fund to cover unexpected expenses. This can prevent financial stress and help you meet your loan obligations without defaulting.

  7. Extra Payments. If possible, consider making extra payments to pay off the loan faster and reduce overall interest costs. Check with the lender to ensure there are no prepayment penalties.

  8. Communication with Lender. If you encounter financial difficulties, communicate with your lender promptly. Some lenders may offer temporary solutions or restructuring options to help you manage repayments.

  9. Grace Period. Be aware of any grace periods provided by the lender. A grace period allows for a delay in payment without incurring late fees, but interest may still accrue.

  10. Keep Records. Maintain records of all loan-related documents, including payment receipts, statements, and correspondence with the lender. This documentation can be useful for reference and dispute resolution.

  11. Monitor Statements. Regularly review loan statements to verify that payments are correctly credited and there are no discrepancies. Report any issues to the lender promptly.

  12. Loan Payoff Calculation. If planning to pay off the loan before the scheduled term, request a payoff amount from the lender. This ensures that you satisfy the entire loan obligation and may include any outstanding interest.

  13. Credit Monitoring. Monitor your credit report regularly to ensure that loan payments are accurately reported. Timely payments positively contribute to your credit history.

  14. Loan Completion Confirmation. Upon completing the loan repayment, request confirmation from the lender that the loan is fully paid. This may include a paid-in-full statement or a release of lien for secured loans.

Alternatives

  1. Salary Advances. Some employers or companies offer salary advances to their employees. This allows individuals to receive a portion of their salary in advance, which can be helpful in addressing immediate financial needs.

  2. Government Social Programs. Government agencies in the Philippines may have social programs that provide financial assistance to eligible individuals during specific circumstances, such as calamities or emergencies.

  3. Credit Card Advances. Credit cardholders can explore the option of cash advances from their credit cards. However, it's essential to be cautious due to potentially higher interest rates and fees associated with cash advances.

  4. FinTech Apps for On-Demand Wages. Some FinTech applications provide on-demand wage access, allowing users to receive a portion of their earned wages before the regular payday.

Editorial Opinion

In examining the landscape of loans in the Philippines, it is evident that individuals have a diverse array of borrowing options catering to different needs and circumstances. From traditional bank loans to emerging online lending platforms, the financial ecosystem offers a range of choices. While these alternatives provide flexibility and accessibility, it is essential for borrowers to approach each option with a discerning eye, considering factors such as interest rates, terms, and repayment conditions. The dynamic nature of the lending sector reflects the evolving demands of borrowers and the integration of technology. As individuals navigate through these choices, maintaining financial literacy and exercising prudence in loan decisions remain pivotal for a well-informed and responsible approach to borrowing.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 50 lenders in Philippines, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Additional resources

To learn more about Loans and best practices in Philippines, check out some of the following resources:

Sources

FAQ

What are the legal regulations of the loan market in the Philippines?

In the Philippines, the Securities and Exchange Commission (SEC) oversees and regulates both Lending Companies and Financing Companies. However, it's important to note that entities affiliated with banks or non-bank financial institutions with quasi-banking licenses fall under the supervision of the Bangko Sentral Ng Pilipinas (BSP). These companies engage in similar business activities, providing loans or credit and charging interest to customers, but distinctions in compliance and regulation exist between them. Operating without the necessary authority is met with legal consequences, and several laws, such as the Lending Company Regulation Act, Truth in Lending Act, Data Privacy Act, and considerations from the Usury Law, provide a regulatory framework for the lending sector, safeguarding consumers and ensuring fair practices.

How to apply for a loan in the Philippines?

Applying for a loan in the Philippines involves a systematic process to ensure a smooth and efficient transaction. To initiate the application, individuals typically begin by choosing a reputable lending institution or platform that aligns with their financial needs. Whether opting for traditional banks, online lending platforms, or specialized financial entities, it is crucial to review the eligibility criteria, interest rates, and terms offered by the prospective lenders. Once a suitable option is identified, applicants can proceed to gather the necessary documentation, which commonly includes proof of identity, proof of income, and other relevant financial records.

The next step involves completing the application form, either through online platforms or in-person visits to the lender's office. The accuracy and completeness of the information provided are critical, as it directly influences the approval process. After submitting the application, applicants may need to undergo a verification process, during which the lender assesses their creditworthiness and financial stability. Upon successful verification, the lender communicates the loan approval, and the borrower is informed of the terms and conditions, including the loan amount, interest rate, and repayment schedule. Finally, borrowers are required to sign a loan agreement, formalizing the terms, and the approved funds are disbursed, providing financial assistance to meet the intended purpose. Throughout the application process, clear communication with the lender and adherence to the provided guidelines contribute to a successful and transparent loan application experience.

What is the real cost of a loan in the Philippines?

The Effective Interest Rate (EIR) of personal loans in the Philippines, which typically ranges from 12% to 30%, encompasses various fees and charges. These include a monthly interest charge, processing fee, documentary stamp tax, disbursement fee, and notarial fee. The monthly interest charge, ranging from 1.2% to 2%, is applied to the outstanding balance and any unpaid fees, compounded monthly until the loan is fully repaid. Lenders also impose a processing fee (₱1,500 to ₱3,000) to cover application costs, deducted from the loan amount. A Documentary Stamp Tax (₱1.50 for every ₱200) is required for loans over ₱250,000. Disbursement fees (₱1,500 to ₱2,500) may apply when funds are released. Additionally, a notarial fee (₱125 to ₱150) covers collection and litigation costs in case of default and unpaid balance.

For instance, if a borrower takes a ₱200,000 personal loan, they might incur a processing fee of ₱3,000, a documentary stamp tax of ₱1,500, and a notarial fee of ₱125. These fees, along with the monthly interest charges, contribute to the overall cost of the loan, influencing the EIR and impacting the total amount repayable by the borrower.