When considering personal loans in the Philippines, it’s essential to understand the legal interest rates that apply. The rates vary depending on whether there’s a written agreement between the borrower and the lender:
Top 10 Fast Online Loans in Philippines – A Valid ID is All You Need Updated in November 2024
| Rank | Lender Name & Application Link | Loan Amount | Loan Term | Interest Rate | Repayment | ID Required | Age Range | Special Feature |
|---|---|---|---|---|---|---|---|---|
| #1 |
SOSCREDIT |
₱1,000 – ₱25,000 | 3 – 12 months | 0% for first loan | Monthly or End of term | Only ID Card required | 20 – 70 | Receive money in 15 mins |
| #2 |
CREDIFY |
₱1,000 – ₱25,000 | 3 – 12 months | 0% for first loan | Monthly or End of term | Only National ID required | 20 – 70 | Receive money in 15 mins |
| #3 |
CREZU |
₱1,000 – ₱25,000 | 2 – 4 months | 0% for first loan | Monthly or End of term | Only ID Card required | 18 – 70 | Easy loan approval |
| #4 |
FINBRO |
₱1,000 – ₱50,000 | 1 – 12 months | 0% for first loan | Monthly or End of term | Only ID Card required | 20 – 65 | Receive money in 10 mins |
| #5 | CREDITIFY Apply Now |
₱1,000 – ₱25,000 | 1 – 180 days | 0.1% | Monthly or End of term | Only ID Card required | All accepted | Approve Bad credit |
| #6 | CASHSPACE Apply Now |
₱1,000 – ₱25,000 | 2 – 4 months | 0% for first loan | Monthly or End of term | Only ID Card required | 18 – 70 | Easy loan approval |
| #7 | DIGIDO Apply Now |
₱1,000 – ₱25,000 | 3 – 6 months | 0% for 7 days | Monthly or End of term | Only ID Card required | 21 – 70 | Receive money in 4 mins |
| #8 | KVIKU Apply Now |
₱500 – ₱25,000 | 60 – 180 days | 1.2% per month | Monthly or End of term | Only ID Card required | 18 – 65 | Receive money in 5 mins |
| #9 | CASHEXPRESS Apply Now |
₱1,000 – ₱20,000 | 7 – 30 days | 0% for first loan | End of term | Only ID Card required | 21 – 70 | Receive money in 5 mins |
| #10 | MONEYCAT Apply Now |
₱500 – ₱20,000 | 7 – 180 days | 0% for first loan | End of term | Only ID Card required | 22 – 65 | Easy loan approval |
1. Interest Rate with a Written Agreement:
The Usury Law (Act No. 2655) establishes a maximum legal interest rate of 12% per annum for loans where a written agreement exists. This rate is standard for most personal loans offered by banks, lending companies, and other regulated financial institutions. The written agreement serves as a formal contract, ensuring that both parties are aware of and agree to the terms, including the interest rate. This protection is vital for borrowers, as it prevents lenders from imposing excessively high rates.
2. Interest Rate Without a Written Agreement:
In situations where there is no written agreement specifying the interest rate, the Usury Law sets a default interest rate of 6% per annum. This scenario is less common in the context of personal loans but may still occur in informal lending arrangements. Without a written contract, the lender is limited to this lower rate, providing a safeguard for the borrower against potentially exploitative terms.
Additional Considerations:
Bangko Sentral ng Pilipinas (BSP) Regulations:
The Bangko Sentral ng Pilipinas (BSP) plays a crucial role in regulating interest rates through its issuance of circulars. These circulars set interest rate ceilings for various types of loans and lending institutions. It’s important to note that these rates can change periodically, depending on economic conditions and monetary policy. Therefore, borrowers should always check the latest rates either with their specific lender or directly on the BSP’s official website: BSP Official Website.
Effective Interest Rate (EIR):
When evaluating loan offers, it’s not enough to consider just the nominal interest rate. Borrowers should also take into account the Effective Interest Rate (EIR), which reflects the true cost of borrowing. The EIR includes all associated fees, charges, and the impact of compounding interest. By considering the EIR, borrowers can make more informed decisions, ensuring they fully understand the total cost of the loan over its duration.
Conclusion:
Understanding the legal interest rates for personal loans in the Philippines is essential for making informed borrowing decisions. Whether entering into a loan with a written agreement or navigating a scenario without one, being aware of the applicable rates and the regulations set by the BSP can help protect borrowers from unfair practices and ensure they secure the best possible terms for their financial needs.