10+ Best Online Personal Loans in the Philippines with the Lowest Interest Rate (2024)

The world of personal loans in the Philippines offers a multitude of options to meet various financial needs and emergencies. Whether you need funds for unexpected medical expenses, a long-awaited vacation, home improvements, or even debt consolidation, personal loans can be a lifeline during times of financial stress.

However, navigating the landscape of personal loans can be overwhelming, with numerous banks and financial institutions vying for your attention. To make an informed decision, it’s crucial to understand the key aspects of personal loans, including interest rates, eligibility criteria, application processes, and repayment terms.

In this guide, we’ll provide a comprehensive overview of personal loans in the Philippines in 2024. We’ll explore the essential elements that make up a personal loan, compare some of the best options available, and equip you with the knowledge needed to choose the right loan that suits your specific financial circumstances.

What is a Personal Loan in the Philippines?

A personal loan is a type of unsecured loan provided by banks, credit unions, or online lenders. Unlike secured loans, such as auto loans or mortgages, personal loans do not require collateral, which means you don’t need to pledge your assets to secure the loan. Instead, personal loans are granted based on your creditworthiness and your ability to repay the borrowed amount.

Personal loans can serve a variety of purposes, making them highly versatile financial tools. Some common uses for personal loans in the Philippines include:

• Medical expenses: Covering unexpected healthcare costs.
• Debt consolidation: Combining multiple high-interest debts into a single, more manageable loan.
• Home improvements: Renovating your home to enhance its value or comfort.
• Education expenses: Paying for tuition fees or educational materials.
• Travel expenses: Funding your dream vacation or travel plans.
• Emergency situations: Dealing with unforeseen financial emergencies.

Pros and Benefits of Bank Personal Loans in the Philippines

Personal loans offer several advantages that make them a popular choice among borrowers:

• Flexibility: Personal loans provide borrowers with the flexibility to use the funds for various personal purposes. Whether you need to cover medical bills, finance a home improvement project, or consolidate debt, you have the freedom to decide how to use the loan proceeds.
• No Collateral Required: Personal loans are unsecured, meaning they don’t require collateral. This is particularly beneficial for individuals who don’t own valuable assets or are reluctant to put their property on the line to secure a loan.
• Simple Application Process: Compared to specialized loans like mortgages or auto loans, personal loans typically have a more straightforward and streamlined application process. This can save you time and effort during the loan application.
• Fast Approval: Many banks and online lenders in the Philippines offer fast approval for personal loans. Depending on the lender, you may receive approval within hours or even minutes, allowing you to access the funds quickly when you need them most.
• Information Security: Reputable financial institutions prioritize the security of their customers’ personal and financial information. This ensures that your data remains confidential and protected throughout the loan application and approval process.
• Acceptance of Various Borrower Profiles: Personal loans in the Philippines are not limited to traditional salaried employees. They are also available to self-employed individuals, freelancers, and even foreigners (such as Overseas Filipino Workers or OFWs) who meet the eligibility criteria.

Cons and Drawbacks of Bank Personal Loans with Low Interest Rates in the Philippines

While personal loans offer numerous advantages, it’s essential to consider their potential drawbacks:

• Loan Amount Limits: Personal loans typically come with limits on how much you can borrow. The loan amount you qualify for depends on factors such as your income, creditworthiness, and the specific policies of the lending institution. If you require a substantial amount of money, a personal loan may not suffice.
• Shorter Repayment Terms: Personal loans often have shorter repayment terms compared to other types of loans. While this can be advantageous in some cases, it also results in higher monthly payments. Be prepared to manage the shorter loan tenure effectively.
• Higher Interest Rates: While personal loan interest rates in the Philippines can be competitive, they are generally higher than the interest rates for secured loans, such as home loans or auto loans. The interest rate you receive on a personal loan depends on factors such as your credit score, income, and the lender’s policies.
• Impact on Credit Score: Failing to make timely payments or having a poor repayment history can negatively affect your credit score. A lower credit score can make it more challenging to secure future loans and credit at favorable terms.
• Prepayment Penalties: Some personal loans may come with prepayment penalties, which means you’ll incur extra fees if you choose to pay off your loan before the end of the loan term. It’s essential to check the terms and conditions of your loan agreement to understand any potential penalties.

Criteria to Consider When Choosing a Personal Loan in the Philippines

Selecting the right personal loan is crucial to ensure a positive borrowing experience. To help you make an informed decision, consider the following criteria when evaluating personal loan options:

• Compare Interest Rates: Interest rates can vary significantly among different financial institutions. It’s essential to compare interest rates to find the most competitive option. Keep in mind that lower interest rates can result in lower overall borrowing costs.
• Check for Other Fees: In addition to interest rates, personal loans may come with various fees, including processing fees, early repayment fees, late payment fees, and more. Carefully review the loan terms and conditions to understand all associated fees.
• Consider Repayment Period: Personal loans offer various repayment terms, ranging from several months to several years. Choose a loan term that aligns with your financial capabilities and goals. Longer loan terms may result in lower monthly payments but higher overall interest costs.
• Master Requirements: Each lender sets specific eligibility criteria for borrowers. Ensure that you meet these requirements before applying for a loan. Common eligibility criteria include age, income, employment status, and creditworthiness.
• Read Customer Reviews: Customer reviews and testimonials can provide valuable insights into the loan service quality and customer experiences with a particular lender. Reading reviews from other borrowers can help you gauge the reliability and reputation of the lender.

Interest Rates for Banks in the Philippines Offering Personal Loans

Interest rates for personal loans in the Philippines can vary based on several factors, including:

• Market Conditions: Interest rates are influenced by economic conditions, including inflation rates, central bank policies, and prevailing market rates. Lenders may adjust their interest rates in response to changes in these conditions.
• Borrower Risk Assessment: Lenders assess the creditworthiness of borrowers to determine the interest rates they offer. Borrowers with higher credit scores and lower perceived risk may receive lower interest rates.
• Loan Term: The length of the loan term can impact the interest rate. Shorter-term loans may have slightly lower interest rates compared to longer-term loans.
• Interest Rate Type: Personal loans in the Philippines can have fixed or variable interest rates. Fixed-rate loans maintain the same interest rate throughout the loan term, providing predictable monthly payments. Variable-rate loans, on the other hand, may have interest rates that change over time in response to market conditions.

It’s important to note that the interest rate you receive on a personal loan will depend on your individual circumstances and the policies of the lender you choose. To secure the best interest rate, work on improving your credit score, compare offers from different lenders, and consider seeking pre-approval to assess your eligibility and potential interest rates.

Top 10 Banks and Lending Institutions Offering Personal Loans with Low Interest Rates in the Philippines

To help you get started on your search for the best personal loans in the Philippines, we’ve compiled a list of some of the top banks and lending institutions offering competitive interest rates in 2023:

BDO Personal Loan

• Interest Rate: BDO offers competitive interest rates for personal loans, which vary based on factors such as the loan amount and repayment term. Interest rates are fixed for the entire loan term.
• Loan Amount: BDO provides personal loans ranging from ₱10,000 to ₱1,000,000, making it suitable for a wide range of financial needs.
• Repayment Terms: Borrowers can choose from various loan terms, with options ranging from 6 to 36 months.
• Eligibility Criteria: BDO’s eligibility criteria include being a Filipino citizen or foreign resident, aged 21 to 70 years old, with a minimum monthly income requirement.
• Application Process: Interested applicants can apply for a BDO personal loan through the bank’s website or by visiting a BDO branch. The application process is straightforward and typically results in a quick approval decision.

Metrobank Personal Loan

• Interest Rate: Metrobank offers competitive interest rates for personal loans, with fixed rates for the entire loan term.
• Loan Amount: Borrowers can access personal loans starting from ₱20,000 up to ₱1,000,000, making it suitable for various financial needs.
• Repayment Terms: Metrobank provides flexible repayment terms, with options ranging from 12 to 36 months, allowing borrowers to choose a term that aligns with their budget.
• Eligibility Criteria: To be eligible for a Metrobank personal loan, applicants must be Filipino citizens or foreigners residing in the Philippines, aged 21 to 65 years old, with a minimum monthly income requirement.
• Application Process: Applicants can apply for a Metrobank personal loan online through the bank’s website or visit a Metrobank branch for assistance. The bank’s efficient application process typically results in a quick approval decision.

BPI Personal Loan

• Interest Rate: BPI offers competitive interest rates for personal loans, with fixed rates for the entire loan term.
• Loan Amount: BPI provides personal loans starting from ₱20,000 up to ₱1,000,000, catering to various financial needs.
• Repayment Terms: Borrowers can choose from a range of repayment terms, with options extending from 6 to 36 months, allowing for flexibility in loan management.
• Eligibility Criteria: BPI’s eligibility criteria include being a Filipino citizen or foreign resident, aged 21 to 60 years old, with a minimum monthly income requirement.
• Application Process: Applicants can conveniently apply for a BPI personal loan online through the bank’s website or by visiting a BPI branch. The bank’s streamlined process ensures a quick approval decision.

EastWest Bank Personal Loan

• Interest Rate: EastWest Bank offers competitive interest rates for personal loans, with fixed rates for the entire loan term.
• Loan Amount: Borrowers can access personal loans starting from ₱25,000 up to ₱2,000,000, accommodating various financial needs.
• Repayment Terms: EastWest Bank provides flexible repayment terms, with options ranging from 12 to 36 months, allowing borrowers to select a term that suits their financial situation.
• Eligibility Criteria: To be eligible for an EastWest Bank personal loan, applicants must be Filipino citizens or foreigners residing in the Philippines, aged 21 to 65 years old, with a minimum monthly income requirement.
• Application Process: Interested applicants can apply for an EastWest Bank personal loan online through the bank’s website or by visiting a branch. The bank’s efficient application process typically results in a quick approval decision.

UnionBank Personal Loan

• Interest Rate: UnionBank offers competitive interest rates for personal loans, with fixed rates for the entire loan term.
• Loan Amount: UnionBank provides personal loans starting from ₱30,000 up to ₱1,000,000, catering to various financial needs.
• Repayment Terms: Borrowers can choose from a range of repayment terms, with options extending from 12 to 36 months, allowing for flexibility in loan management.
• Eligibility Criteria: UnionBank’s eligibility criteria include being a Filipino citizen or foreign resident, aged 23 to 65 years old, with a minimum monthly income requirement.
• Application Process: Applicants can conveniently apply for a UnionBank personal loan online through the bank’s website or by visiting a UnionBank branch. The bank’s streamlined process ensures a quick approval decision.

SB Finance Personal Loan

• Interest Rate: SB Finance offers competitive interest rates for personal loans, with fixed rates for the entire loan term.
• Loan Amount: Borrowers can access personal loans starting from ₱30,000 up to ₱1,000,000, making it suitable for various financial needs.
• Repayment Terms: SB Finance provides flexible repayment terms, with options ranging from 6 to 36 months, allowing borrowers to select a term that aligns with their budget.
• Eligibility Criteria: To be eligible for an SB Finance personal loan, applicants must be Filipino citizens, aged 21 to 65 years old, with a minimum monthly income requirement.
• Application Process: Interested applicants can apply for an SB Finance personal loan online through the bank’s website or by visiting an SB Finance branch. The bank’s efficient application process typically results in a quick approval decision.

HSBC Personal Loan

• Interest Rate: HSBC offers competitive interest rates for personal loans, with fixed rates for the entire loan term.
• Loan Amount: Borrowers can access personal loans starting from ₱30,000 up to ₱500,000, catering to various financial needs.
• Repayment Terms: HSBC provides flexible repayment terms, with options extending from 6 to 36 months, allowing borrowers to choose a term that aligns with their financial situation.
• Eligibility Criteria: To be eligible for an HSBC personal loan, applicants must be Filipino citizens, aged 21 to 60 years old, with a minimum monthly income requirement.
• Application Process: Applicants can apply for an HSBC personal loan online through the bank’s website or by visiting an HSBC branch. The bank’s efficient application process typically results in a quick approval decision.

Security Bank Personal Loan

• Interest Rate: Security Bank offers competitive interest rates for personal loans, with fixed rates for the entire loan term.
• Loan Amount: Borrowers can access personal loans starting from ₱30,000 up to ₱2,000,000, accommodating various financial needs.
• Repayment Terms: Security Bank provides flexible repayment terms, with options ranging from 12 to 36 months, allowing borrowers to select a term that suits their financial situation.
• Eligibility Criteria: To be eligible for a Security Bank personal loan, applicants must be Filipino citizens or foreigners residing in the Philippines, aged 21 to 65 years old, with a minimum monthly income requirement.
• Application Process: Interested applicants can apply for a Security Bank personal loan online through the bank’s website or by visiting a Security Bank branch. The bank’s streamlined process ensures a quick approval decision.

RCBC Personal Loan

• Interest Rate: RCBC offers competitive interest rates for personal loans, with fixed rates for the entire loan term.
• Loan Amount: Borrowers can access personal loans starting from ₱50,000 up to ₱1,000,000, making it suitable for various financial needs.
• Repayment Terms: RCBC provides flexible repayment terms, with options ranging from 6 to 36 months, allowing borrowers to choose a term that aligns with their budget.
• Eligibility Criteria: To be eligible for an RCBC personal loan, applicants must be Filipino citizens or foreigners residing in the Philippines, aged 21 to 60 years old, with a minimum monthly income requirement.
• Application Process: Applicants can apply for an RCBC personal loan online through the bank’s website or by visiting an RCBC branch. The bank’s efficient application process typically results in a quick approval decision.

Maybank Personal Loan

• Interest Rate: Maybank offers competitive interest rates for personal loans, with fixed rates for the entire loan term.
• Loan Amount: Borrowers can access personal loans starting from ₱50,000 up to ₱1,000,000, catering to various financial needs.
• Repayment Terms: Maybank provides flexible repayment terms, with options ranging from 12 to 36 months, allowing borrowers to select a term that suits their financial situation.
• Eligibility Criteria: To be eligible for a Maybank personal loan, applicants must be Filipino citizens or foreigners residing in the Philippines, aged 23 to 65 years old, with a minimum monthly income requirement.
• Application Process: Interested applicants can apply for a Maybank personal loan online through the bank’s website or by visiting a Maybank branch. The bank’s streamlined process ensures a quick approval decision.

Additional Considerations When Applying for a Personal Loan

When applying for a personal loan in the Philippines, there are several additional factors to keep in mind:

• Credit Score: Your credit score plays a significant role in determining your eligibility for a personal loan and the interest rate you receive. Maintaining a good credit score by paying bills on time and managing your existing debt responsibly can increase your chances of approval and help secure a lower interest rate.
• Loan Purpose: Be clear about the purpose of your loan. Different lenders may have specific loan products tailored to certain needs, such as medical loans, travel loans, or debt consolidation loans. Choosing the right loan type can help you access funds more suitable for your requirements.
• Loan Repayment Capacity: Before applying for a personal loan, assess your financial situation and determine your ability to repay the loan. Ensure that the monthly loan payments fit comfortably within your budget to avoid financial stress.
• Loan Insurance: Some lenders may offer loan insurance options, providing coverage in case of unexpected events such as disability, illness, or job loss. While this can provide added peace of mind, carefully evaluate the cost and terms of loan insurance before adding it to your loan.
• Prepayment and Penalty Clauses: Review the loan agreement for any prepayment penalties or clauses that may affect your ability to repay the loan early. Some borrowers prefer the flexibility of repaying their loans ahead of schedule to save on interest costs.
• Hidden Fees: Carefully read the terms and conditions of the loan agreement to identify any hidden fees or charges. Common fees may include processing fees, late payment fees, and early repayment fees.

How to Apply for a Personal Loan in the Philippines

Applying for a personal loan in the Philippines typically involves the following steps:

1. Research and Compare: Start by researching different banks and lending institutions to find the one that offers the best terms and interest rates for your needs. Use online comparison tools and read customer reviews to gather information.
2. Check Eligibility: Review the eligibility criteria of the selected lender to ensure you meet the requirements, such as age, income, and credit score.
3. Prepare Required Documents: Gather the necessary documents, which may include proof of identity, proof of income (such as payslips or tax returns), and proof of residence. Different lenders may have specific document requirements.
4. Complete the Application: Submit your loan application through the lender’s chosen channel, either online or in person. Provide accurate information and double-check all details before submission.
5. Wait for Approval: The lender will review your application and assess your eligibility. This process may take anywhere from a few hours to a few days, depending on the lender.
6. Receive Approval: Once your application is approved, the lender will send you an approval notification. Review the terms and conditions of the loan agreement carefully.
7. Sign the Agreement: If you agree with the terms, sign the loan agreement as instructed by the lender. Ensure you understand all the terms, including the interest rate, repayment schedule, and any fees involved.
8. Disbursement of Funds: After signing the agreement, the lender will disburse the loan amount to your designated bank account. The time it takes to receive the funds may vary, but many lenders offer fast disbursal.
9. Loan Repayment: Make timely monthly payments according to the agreed-upon schedule. Set up automatic payments if available to avoid late fees.

Conclusion: Choosing the Best Personal Loan for Your Needs

In conclusion, personal loans in the Philippines provide a versatile financial solution for various needs, from medical expenses and home improvements to travel and debt consolidation. To select the best personal loan for your specific circumstances, follow these key steps:

• Understand Your Needs: Clearly define your financial needs and objectives for taking out a personal loan. This will help you choose a loan product that aligns with your goals.
• Research Lenders: Explore different banks and lending institutions, comparing their interest rates, loan terms, and eligibility criteria. Look for reputable lenders with a history of providing excellent customer service.
• Check Your Credit Score: Review your credit score and take steps to improve it if necessary. A higher credit score can lead to better loan offers.
• Read the Fine Print: Carefully read and understand the terms and conditions of the loan agreement, including interest rates, fees, and repayment terms. Clarify any questions you may have with the lender.
• Budget Wisely: Assess your ability to repay the loan and ensure that monthly payments fit comfortably within your budget. Avoid overextending your finances.
• Apply Responsibly: Submit your loan application accurately and honestly. Provide all required documents promptly to expedite the approval process.

By following these steps and considering the information provided in this comprehensive guide, you can make an informed decision when choosing a personal loan in the Philippines. Remember that responsible borrowing and timely repayments are key to maintaining your financial health and building a positive credit history.