Online Loans in the Philippines

Short on cash to finance a personal endeavor? Lacking funds to start a business? Need more money to pay for your dream home? Whatever your reason is, you can rely on loans to help you out. Here in the Philippines, acquiring a loan has never been so easy. You can tap multiple lenders and various loans you can choose from to get the extra funds you need.

Moreover, you can apply for most of these loans entirely online, too! This article will give you everything you need to know to secure online loans in the Philippines. We’ll also be dishing out some advice on ensuring you get the loan you need.

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Written by: Piggyy

Verified by: Krisette C.L

Krisette C.L


Krisette has been hustling online media industry since 2011. She's a copywriter, editor, and online media consultant.


Personal Loan

Quick sameday

Quick Loan


Student Loan

Cash loans

Cash Loan


Business Loan

Home equity

Home Loan

Car loan

Car Loan

SME Loan


OFW Loan


Salary Loans

Calamity Loan

Calamity Loan


Installment Loan

Type of Lenders


The first thing you need to know is where you can apply for a loan in the country.


There are three leading lenders in the Philippines whom you can rely on for different loans.


We have banks, loan companies, and peer-to-peer (P2P) lending platforms.


Aside from these, there are also loans that government agencies offer. Still, these are usually specialized (e.g., personal loans from SSS and home loans from PAG-IBIG), meaning they only apply to specific loans.


So, let’s talk about the first three in more detail:






When you think about loans, banks are the first thing that comes to mind.


These financing entities usually offer the most varied set of loans and the most comprehensive range of loan options.


Banks are your best bet if you want to borrow a large sum of money, with amounts approaching millions of pesos. Furthermore, because many financial institutions vie for clients in the Philippines, rest assured that they provide decent and competitive interest rates.


Most of the time, the amount you can loan from banks depends on what kind of loan you’re securing. For instance, consumer loans such as housing loans can reach around ₱10 million depending on the property’s value. In contrast, most personal loans offer around ₱10,000 to ₱50,000 and a maximum amount of up to ₱2 million.


However, a downside of getting loans from banks is that they usually take some time to process applications. They’re also relatively stringent, requiring many documents and evaluating borrowers strictly.



  • Allows borrowing of larger amounts.
  • Lower interest rates.
  • Can be paid over a long period of time, usually around 5 to 20 years.
  • They are more secure and reliable as PDIC and BSP strictly regulate them.


  • Bank loan requirements may be too stringent. 
  • It may take longer for loans to be processed and approved.
  • Requires paperwork and cannot be done entirely online, especially for a large amount of money.

Loan Companies


The easiest way to get easy cash loans in the Philippines? Apply via online financing institutions.


Many loan companies have the Securities and Exchange Commission (SEC) approval. These are legitimate online financing companies, which usually conduct their operations online, making them easily accessible and, at the same time, reliable in times of emergency.


These online lending companies can disburse loans or payments as quickly as a few minutes after application, or at most, a day after you send your application – unlike banks which typically take a few days or weeks to process loans.


Usually, to get your money, you’ll need to fill out an application form online, provide proof of your identity or nationality through a valid government ID, and indicate your bank details or where you’d like to receive the money. Some online lenders who offer higher loan amounts may also ask for a payslip or a recent utility bill you’ve paid (Meralco, Maynilad, internet, etc.).


However, there’s a downside to this convenience.


Since online loan companies don’t have a stringent application process, they usually offer small amounts up to ₱20,000. They also have a shorter loan payment period and a higher interest rate.


Still, applying for the best online loans in the Philippines is a good choice if you’re looking for something easy, fast, and reliable. 



  • Easy, hassle-free application process.
  • Fast approval rate.
  • Less stringent requirements.
  • Convenient and flexible.


  • Higher interest rates.
  • The maximum loan amount possible is relatively low, with the average being ₱20,000.
  • Not as secure as banks, which are regulated strictly by different authorities.
  • Risk of data being compromised online.

Peer-to-Peer Lending Platforms


A less-known loan financing body, peer-to-peer lending platforms (P2P lending platforms, for short), use the concept of crowdlending to link willing lenders and borrowers to each other.


P2P platforms allow borrowers to apply online, where willing lenders can fund them. These lenders can then get a higher return or interest from their investment. At the same time, borrowers can secure a loan quickly without worrying about getting rejected.


This principle creates a win-win situation for lenders and borrowers benefitting from each other. 


P2P platforms are less stringent, so they’re a good choice for those with a bad credit score but hoping to loan (and pay back) some money.



  • Easy, convenient, and straightforward.
  • Not strict with requirements and credit score.
  • No intermediary is required.
  • No collateral is required.


  • No intermediary means higher risk for lenders and borrowers alike.
  • Chance of not getting enough money if no one will invest in your loan.

Popular Loan Companies in the Philippines


Now, let’s talk about some of the most popular loan companies in the Philippines to give you an idea of what they offer and why you should consider them if you’re planning to apply for a loan.


Home Credit


Arguably the most famous and top online loans company in the Philippines, Home Credit started in October 2013 and became the go-to online lending company. They are part of the Home Credit Group, a global consumer finance expert in 13 countries across the globe.


Here in the Philippines, Home Credit offers cash loans of up to ₱150,000, which consumers can apply online. Often, first-time users can’t immediately borrow this amount, but repeat customers may avail of this loan. You can directly apply through their website or the Home Credit mobile app, one of the best loan apps in the Philippines.


Additionally, Home Credit is known for its consumer loans or in-store financing options. This product functions like a credit card for consumers, who can pay for Home Credit-partner goods via monthly installments. 




CashMart has been around since 1969 and has been a leading licensed moneylender in Singapore for all these years.


CashMart has also brought its mission of providing quick loans to consumers in the Philippines. They provide flexible payment terms for their users at an interest of 2.5 to 3.5% per month.


CashMart provides salary loans of up to ₱30,000, personal loans of up to ₱50,000, and OFW loans of up to 30,000 with a 2.5% interest rate. Applications for these loans can be made entirely online through their website.




Yet another provider of online cash loans in the Philippines, Cashalo is a “fintech platform that delivers digital credit to Filipinos” to help them elevate their financial wellbeing.


There are three loan options with Cashalo: Cashaloan, Lazada Loan, and Paylater.


Cashaloan allows you to loan up to ₱3,000, and you can directly receive the loan proceeds to your Maya account. Meanwhile, their Lazada Loan will enable borrowers to loan up to ₱5,000 for purchases on the online shopping platform Lazada. Lastly, their Paylater loan provides borrowers a flexible credit line for purchases with partner stores.




Asteria, formally known as Asteria Lending Inc., is an SEC-licensed loan provider aiming to provide convenient online services to new and existing clients.


Applying for a loan with Asteria is entirely online, as the company aims to provide flexibility to its borrowers in lending and repaying loans. In addition, Asteria also offers better deals for repeat borrowers, who have the privilege of lending more money and paying lower interest.


Generally, Asteria offers personal loans of up to ₱20,000, although first-time borrowers can only borrow a maximum amount of ₱10,000. They also provide salary loans with the same rates, with payment terms of 91 days, and receivable up to 24 hours after application.


Asteria also hopes to expand its loan offerings to include car loans and business loans.




Robocash is also one of the country’s leading online cash loan platforms. 


Robocash is also licensed by the SEC and provides online and in-office loaning services to cater to every Filipino needing a loan.


Robocash offers loans with a maximum amount of ₱25,000 (for repeat borrowers) and a maximum of ₱10,000 for first-time borrowers. They also offer a flexible repayment schedule of up to three to six months at an interest rate of 11.9% per month.




Tala targets a specific demographic of phone users—specifically Android phones who can loan via the Tala app, one of the best loan apps in the Philippines, available on Google Play Store.


Tala allows online loans of up to ₱15,000, and applicants must have an Android phone and submit a picture of a valid ID upon application.


They also offer interest rates of 11.4% for a 21-day loan tenure or 15.2% for 30 days. Additionally, they charge a small fee for applicable tax, depending on your borrowing amount.


Online Loans Pilipinas


OLP, also known as Online Loans Pilipinas, is a fintech platform that offers digital financial solutions to Filipinos who need financing.


First-time borrowers enjoy an interest-free, no processing fee for the initial transaction with a loan amount of up to ₱20,000. Simply apply through their website and submit a valid ID for proof of identity.


However, note that succeeding loans with OLP will charge interest, which will be disclosed during the contract signing.




Crawfort is a money lending institution from Singapore and has recently expanded its presence in the Philippines. Crawfort aims to utilize technology to make financial services more straightforward and more accessible to Filipinos who need them.


To loan with Crawfort, all borrowers must fill out their application form, which usually takes around five minutes. Once their application is approved, borrowers can expect to receive the money within 24 hours.




Loanranger is an emerging online loan platform in the Philippines which allows users to borrow up to ₱10,000.


Loanranger offers a loan tenure of up to three months and shows potential borrowers how much they can expect to pay monthly given the amount and loan tenure they choose.




EasyCash is a loans company that offers its services entirely online.


Easycash has an assortment of loans to choose from seafarer loans, business loans, and personal loans.


Interested borrowers can apply for these loans through their website or mobile app. A borrower can loan up to  ₱10,000 for any loans, payable over 60 days.




Fundko is a P2P lending platform that connects hopeful borrowers with willing lenders. It’s the perfect online platform to loan for Filipinos without a bank account who are trying to secure a loan for their financial needs.


Fundko allows borrowers to enjoy loans at lower interest rates, despite not having a personal bank account. Lenders, meanwhile, get to enjoy higher interest rates for their investments.




Perajet is a fintech company offering micro-finance services to Filipinos. They obtained their SEC registration in 2016 but have only been in the market starting 2018.


Perajet promises its customers a hassle-free and quick loan application and approval experience. They claim to ask for fewer requirements and disburse a qualified applicant’s loan less than 24 hours after approval.


Perajet provides quick loans of up to ₱5,000, payable in 12 months via semi-monthly installments. Unfortunately, as of the time of writing, the operations are on hold due to the pandemic. 


Rykom Financing Corporation


Also known as MoneyMatch Philippines, Rykom Financing Corporation has been in the loaning industry since 1998.


Rykom Financing Corporation offers different services, including business, consumer, and seafarer loans. They also allow direct investments and contract receivable financing.




Kiva is a crowdfunding platform that allows aspiring borrowers to upload their loan details into their system and let lenders support these loans.


Any willing lender can provide borrowers with a minimum of $25, and multiple lenders can pool their money together to support the project.




Advance is a loaning platform that partners with businesses and corporations to allow easier access to employee loans and financial services.


Advance lets companies enroll through their platform and allow pre-approved qualified employees to access their services.


Advance has a salary-on-demand service for partner employees, which allows them to use part of their compensation as a credit line that they can use any time and from anywhere.




Uploan is another online lending platform that partners with multiple companies to offer their loan services to their employees.


Uploan claims to “empower HR leaders with 360-degree salary-linked wellness services,” allowing employees access to loans, salary advances, and insurance products they may need.




Blend is one of the pioneers of peer-to-peer lending in the Philippines. Managed by Inclusive Financial Technologies, BlendPH connects borrowers and lenders through an online platform.


Borrowers can meet their financial needs, while lenders enjoy higher interest rates from their investments.




Gone are the days when you need to head to a pawnshop to pawn off some valuable items you have.


PawnHero is the first online pawnshop in the country, and its goal is to provide Filipinos with a quick, convenient, and reliable way to get fast cash loans.


PawnHero accepts different items for pawning, from jewelry to smartphones, belts, and laptops. They even head into your house to acquire the item and give you your loan.


They also have reasonable interest rates of just 2.99% a month and offer flexible loan terms. is another P2P and crowdsourcing platform that links borrowers to loan vendors from different countries. It has an assortment of vendors with loans for up to $150,000.


Banks with Personal Loans


If you’re trying to borrow a higher amount of money for a reasonable interest rate, you should undoubtedly try applying with any of the Philippines’ leading banks. They offer loans that reach up to ₱2 million or more, payable in a specific number of years.


Although bank loan requirements require some effort to collate and submit, your hard work will be worth it once you secure a loan with one. Let’s check out the top personal loans offered by the Philippines’ most famous banks:


EastWest Bank


EastWest personal loan is a multi-purpose loan that can be used for different reasons—even if you’re a young adult looking for a versatile loan facility or a retiree looking to settle your medical bills, this personal loan can help you out.


EastWest personal loan does not require collateral and offers competitive rates and flexible terms. This loan ranges from ₱25,000 to ₱2 million, subject to the bank’s approval. Depending on your preference, they offer 12, 18, 24, and 36 months payment terms. 


The loan’s interest rates start at 1.49% for a 12-month tenor for credit card holders for at least 12 months. Meanwhile, non-credit cardholders can still enjoy reasonable rates starting at 1.89% for a 12-month loan.


EastWest offers a convenient and fast application, allowing prospective borrowers to apply online. Once loans are approved, one can choose from the following, pick up the check at the head office, deliver it to the borrower’s address, or direct deposit it to the borrower’s account.


Security Bank


Security Bank offers a multi-purpose, low-interest personal loan, which you can use depending on your needs. It’s perfect for those seeking extra cash for emergencies, finance education, or travel.


This personal loan option starts at ₱30,000 and can reach up to ₱2 million. Their payment terms can stretch as long as 36 months, at a monthly add-on rate of 1.89%. Their minimum annual percentage rate (APR) ranges from 29.48% to 37.53%, depending on your loan tenure.


With Security Bank, it usually takes five banking days. However, you must consider additional expenses for loan processing, like a processing fee of ₱2,000. These are all disclosed in our review.




RCBC offers a personal loan with a minimum loan amount of ₱50,000 and a maximum of ₱1 million. This multi-purpose loan also features flexible payment terms from six to 36 months.


Upon application, qualified applicants must be Filipino citizens, and at least 21 years old. Borrowers must also be 65 years old or younger upon loan maturity and have an active mobile number or landline number.


You must have a minimum employment tenure of two years and at least ₱30,000 gross monthly income to apply for the loan. 




UCPB’s personal loan or salary loan is called SalarEasy. This loan ranges from ₱50,000 to ₱300,000 and can be payable throughout 12, 18, 24, or 36 months. For the benefit of applicants, UCPB has made available a table with monthly amortization calculations depending on the borrowed amount and the term of the loan.


Filipinos looking to loan with UCPB must be at least 23 years old upon application and not older than 65 years old by loan maturity. You must also be a permanent employee for at least two years, with a minimum gross monthly income of ₱30,000 to apply.


For self-employed applicants, you can only loan if the business has been operational for at least three years and profitable for the last two years.




The HSBC Personal Installment Loan features a competitive interest rate as low as 0.65% add-on rate per month, payable throughout 6, 12, 18, 24, or 36 months.


The HSBC personal loan can be approved within five working days after document submission.




BPI offers a collateral-free personal loan, ranging from ₱20,000 to ₱2 million. This loan is payable throughout 12, 18, 24, 30, or 36 months and payable via an automatic debit facility.


They also offer one of the lowest rates in the market, claiming that you can loan and pay as low as only ₱796 per month.




BDO offers a multi-purpose personal loan you can use for any of your needs, be it your education, funds for traveling, or money for buying gadgets or furniture.


The BDO personal loan ranges from ₱10,000 to ₱1 million, subject to bank approval. Payment terms are 6, 12, 18, 24, or 36 months through an automatic debit arrangement or over-the-counter payment at any BDO branch.


BDO offers a competitive monthly add-on interest rate of 1.30 percent for a 6-month loan and 1.25% for 12, 18, 24 months, or 36-month loans. You can monitor the status of your loan closely via BDO mobile banking.




Citibank offers collateral and guarantees free personal loans, with flexible repayment terms of one to five years. Interested borrowers can apply for up to ₱2 million worth of loans and expect approval in as quick as 24 hours.


Citibank has a loan calculator on its website for borrowers to quickly see their monthly amortization, depending on their loan amount. They also offer an annual percentage rate of 26.9% for their loans.




Maybank offers personal loans at the tips of your fingers. You can apply for a personal loan of up to ₱1 million with flexible terms of up to 36 months. The best part is that Maybank allows personal loan applications made entirely online, so you can submit the form in the comfort of your home. 


Loan Types


Personal Loan


A personal loan is a kind of loan that can be used for anything you need. As the name implies, these loans are for personal reasons, such as travel, education, medical expenses, etc.


In the Philippines, the best personal loans are with banks because they offer high loan amount up to high as ₱2 million. These are also more secure and have more competitive interest rates. Although banks generally take time to process loan applications, they can usually give you the results within a week, which is reasonable.


If you’re looking for the best personal loan in the Philippines, our recommendation would be to try loaning with CitiBank, which offers a maximum loan amount of Php 2 million, an APR of only 26.8%, and a loan approval period of at least one day.


Cash Loan


Cash loans are availed to finance an urgent need, usually of a personal nature. However, most cash loans in the Philippines differ from traditional personal loans. They typically have a lower loan amount, higher interest rate, and shorter loan tenure than personal loans.


Online lending companies typically offer these cash loans, which can approve and disburse loans of ₱1,000 up to ₱50,000 within the day.


There are many fast cash loan providers in the Philippines, and Home Credit is one known for providing cash loans and other financial services. Their cash loan amount is up to ₱150,000, and interested borrowers can apply online. 


Car Loan


A car loan is a loan to finance car-related matters, usually purchasing a new car. The amount you get may vary, depending on the kind and price of the car you’re eyeing, your desired loan tenure, and how much you can pay each month.


Though many banks provide a car loan in the Philippines, you may want to check Metrobank’s Car Loan if you’re looking for a cost-effective and sulit loan for brand new cars.


Metrobank offers a minimum loan of up to 80 percent of your chosen car SRP. They also offer decent interest rates, with a standard rate as low as 4.7700%  for a 12-month tenure, up to 28.0200% for 60 months. If you have a one-month advance, your interest rates can go from as low as 4.1000% to 26.9900%.


Student Loan


Student loans are loans used to pay off education fees, usually for college students. Besides paying tuition fees, student loans are often used to pay for school-related expenses such as purchasing books or paying for dorms or accommodations. Student loans must be repaid through monthly installments, as with all loans, and most student loans require payment after graduation.


Regarding student loans in the Philippines, LandBank’s I-STUDY (Interim Students’ Loan for Tuitions towards Upliftment of Education for the Development of Youth) program is undoubtedly one of the best.


This lending program allows loans equivalent to a student’s tuition for one whole year. Alternatively, you can lend up to ₱150,000 per student, but not more than ₱300,000 per eligible borrower, in case you are lending for multiple students to finance.


The maximum loanable amount of ₱300,000 already includes ₱50,000 for purchasing students’ gadgets for school.


Home Equity Loan


A home equity loan is a kind of housing loan which uses a real property as a mortgage to obtain a sum of money. Usually, those applying for a home equity loan borrow an amount equivalent to the mortgaged property’s current market value and then pay off this loan over a specific period.


Home equity loans are offered under housing loans in the Philippines, of which the BPI equity property loan is the best pick.


BPI offers a minimum of ₱300,000, an interest rate of 7.00%, and a monthly repayment amount starting at ₱25,959 as per sample computation as of the date.


Salary Loan


A salary loan is similar to a personal loan or a fast cash loan, but the amount varies depending on the borrower’s salary.


Usually, salary loans are used to finance urgent or essential expenses which the borrower cannot pay at the moment. As with other loans, salary loans are paid off over a certain amount of time.


The most famous salary loan in the Philippines is the SSS salary loan, a Social Security System loan program that provides financial services to its members.


The SSS salary loan allows members to borrow up to two months’ worth of their salary, which they can pay over 24 months via monthly installments. The SSS salary loan has an annual interest rate of 10%, which is relatively lower than the usual rate for personal loans.


Application for the SSS salary loan typically gets approved after three working days or more.


OFW Loan


An OFW loan is a personal loan designed specifically for overseas Filipino workers (OFWs). Because they work outside the Philippines, OFW loans are intended to acquire and pay off the loan, even while working from abroad.


BDO offers the best OFW loan in the country, allowing OFWs to loan anywhere from ₱10,000 to ₱500,000. This comes at an interest rate of 1.25% per month, payable for up to 36 months.


Seafarer Loan


Like OFW loans, Seafarer loans refer to a loan product specifically made for Filipino seamen or seafarers, who are often out of the country.


BPI Seafarer Loan is a top option as a versatile, non-collateral, and multi-purpose loan.


This loan starts at ₱20,000, but borrowers can loan up to ₱300,000. Interest rates are also pretty good, at only a 1.5% monthly add-on interest rate.


Loan repayment can be from five months up to nine months.


Fast Loan


Quick loans or instant loans are a type of loan that, as the name suggests, can be obtained almost immediately due to their swift approval period.


These loans are typically done online and don’t have stringent requirements for application. Usually, a valid government ID is enough, and sometimes a copy of your payslip or most recently-paid utility bill.


Fast loans usually offer a smaller amount than usual loans, with a maximum of ₱50,000 or less, due to flexible documentary requirements. You can also apply online by simply filling in an application form. In addition, they don’t require collateral, and the application can be completed in under 20 minutes.


In the country, many online loan lending platforms exist. A good pick is Asteria, which offers the best online loan in the Philippines.


Asteria allows for a loan of up to ₱20,000, although first-time borrowers can only borrow a maximum amount of ₱10,000. They have a repayment period of 91 days, and you can receive the money in less than 24 hours after application.


Product Loan


A product loan combines a personal loan and a credit card. Product loans allow borrowers to purchase specific products, like gadgets, appliances, or furniture.


You can simply pay via a product loan if you don’t have a credit card. The lenders will pay off the total purchase amount for you, and you will have to pay a monthly installment to the loan provider for the product you bought.


The most famous product loan provider is Home Credit. This top-rated lending platform has helped many Filipinos purchase items without applying for a credit card.


Home Credit offers multiple product loans, which differ in the maximum amount you can borrow. 


They have the Home Credit Hulog-Gaan, which allows you to use up to ₱20,000 of credit to purchase grocery items.


Meanwhile, Hulugang 0% Interest allows for a maximum loanable amount of ₱50,000 for electronic gadgets or ₱100,000 for appliances and furniture.


Lastly, Free Installment is another option that allows you to pay for your purchases via installments.


Business Loan


As the name implies, business loans are funds acquired from a financing institution – usually a government agency, commercial bank, or private lender – geared towards starting or expanding a business. There are different kinds of business loans with different terms and conditions. 


Term loans, for instance, allow borrowers to have extra funding without spending any of their existing financial resources. This will enable you to pay for your business needs without tapping into your own money. On the other hand, a credit line is a short-term loan that grants you access to a specific amount of money but gives you a sense of control over your finances. 


Credit lines only charge you interest for the money you used from your overall credit line. So, if you have a credit line of up to ₱1 million but only used ₱200,000, you will only pay the interest of ₱200,000 you spent.


The best choice for a business loan is the Development Bank of the Philippines’ (DBP) Micro, Small, Medium Enterprise Loan. This is perfect if you don’t have to loan too much to finance your business needs. It offers a low-interest rate of 9% for a loan tenure of one year or 10% for two years.


Why Apply for a Loan?


Filipinos apply for loans for a multitude of reasons. The simplest explanation is the need for extra funding to afford what they have to purchase or pay.


Loans are used to buy a house, fund their business, or pay for their medical expenses. It’s easier to have the financial resources you need and then simply pay them off with flexible loan tenure.


What loans you avail of would speak volumes regarding your reason for getting a loan. For instance, Filipinos who applied for home loans are likely looking to buy a new house, lot, condominium unit, or construct the house of their dreams. Meanwhile, Filipinos who seek business loans may consider expanding their business ventures, buying new equipment or office space, etc.


Among the different loans in the Philippines, personal loans and quick cash loans are the most flexible. You can apply for quick or personal loans for any reason, as long as you need the money. So whether it be for financing your child’s tuition fee or simply for you to have extra cash for a quick getaway, you can undoubtedly apply for personal loans.


Generally, most people apply for personal loans for the following reasons:

  • Sudden hospitalization for oneself or a family member
  • Lack of money to buy expensive medication for unforeseen illnesses or emergencies
  • Sudden problems with appliances, equipment, or facilities at home that require repair or renovation
  • Delayed salary or other expected source of income 
  • Payment for rent or other bills exceeding budget or cost estimates
  • Deadline for payment for tuition or other school-related expenses
  • Other emergencies or unexpected situations


However, though anything goes in terms of applying for personal loans, unless there are loans that cover what you want to purchase (e.g., home loans or car loans), that doesn’t mean you should apply for them whatever chance you get.


People usually apply for loans because of an urgent need. After all, loans still require commitment—you must pay them off over an extended period and with interest. Therefore, it’s crucial to discern if you have to apply for a loan or not.


Credit Score: An Essential Loan Criterion


Are you thinking about securing a loan with a financing institution? You should know a few things, starting with building your credit report.


What Is a Credit Score?


A credit score is used to determine your ability to pay off debt. This is generally determined by checking multiple factors, such as your credit payment history, history of loans, and repayment history.


Outside the Philippines, credit scores usually are determined using a scale from 350 to 800. However, you can count on the Credit Information Corporation to collate your information and assess your credit score. Financing institutions usually use credit scores to determine your creditworthiness: your chances of paying your dues on time or defaulting on your loan.


How Do You Build a Good Credit Score?


Having a good credit score is the first step toward making sure you secure a loan or credit card application, so it’s best to know how to maintain a good credit score. Here are a few tips to keep in mind:


Pay Your Bills on Time


This is very straightforward, but it’s one of the most important things to keep in mind in maintaining a good credit score. Delaying your payments sets a bad precedent for your capacity to pay, especially for loans with high amounts. On the other hand, paying your bills early shows you can handle your finances responsibly, which speaks about your ability to pay other loans or credit cards you may apply for in the future.


Don’t Go Past Your Credit Limit


Having an outstanding balance higher than your credit limit won’t improve your credit score. First, it’s a huge flag for overspending; it can signify spending more than you should, which isn’t a good idea if you’re hoping to apply for an extra loan or credit card.


Second, it can also mean that you’re not paying all of your balance on time. Finally, reaching an amount higher than your credit limit can mean you’re spending way more than you can pay off at once, making your existing balance balloon past your credit limit.


Build Good Credit Early


Try having good credit as early as possible—apply for a credit card, pay it on time, and use it responsibly. This way, banks and other financing institutions can see that, early on, you’re already able to manage your finances quite well.


Is It Possible to Borrow Loans With Bad Credit?


Bad credit can significantly reduce your chances of securing a loan, especially with banks. But, that doesn’t mean you won’t be able to borrow loans if you have bad credit.


If you truly want to secure a loan quickly, you can tap other platforms. For instance, quick loan providers online don’t usually check your credit history to provide you with a loan. Instead, some usually only require proof of identity and evidence that you’re earning monthly. Additionally, peer-to-peer lending platforms are another avenue to tap if you can’t apply with conventional banks.


You can also check out loans requiring collateral if you’re thinking of securing a loan with a bank despite having bad credit. This way, the bank has a guarantee that you won’t default on your loan—and, if you do, they’ll have your collateral to pay off your dues.


Secured vs. Unsecured Loans


Another important topic to cover includes secured and unsecured loans when talking about loans. These two are different and have pros and cons, so let’s discuss them more in detail.


Secured Loan


Because loans involve money, some financing institutions require borrowers to provide collateral for their loan to be approved. Loans of this nature are called secured loans.


Collateral refers to an item or property of high value used to guarantee that the borrower will pay off the loan. If the borrower defaults on the loan or fails to pay it off, the lending institution can claim ownership of the collateral legally.


Collaterals are required to significantly reduce the risk of lenders who are in the position to lose a considerable sum of money if a borrower defaults. However, the good thing about having collateral is that the financing institution can offer the loan at a lower interest rate. Not all borrowers, after all, are willing to provide collateral when borrowing money.


Unsecured Loan


Unsecured loans are the opposite of secured loans. Therefore, these loans do not require collateral from the borrower. However, unsecured loans pose a significant risk to lenders if borrowers cannot repay the loan, and the risk is compensated elsewhere. Banks and other financial institutions have higher standards than those offering secured loans.


Most financiers that offer unsecured loans won’t approve loans to clients with bad credit scores or history, and those they find cannot pay off the loan in the long run. In addition, unsecured loans also tend to charge a higher interest rate and offer loans at a lower amount to minimize the risk of losing too much money when a borrower defaults.


How to Get Your Online Loan Approved?


A good credit score is certainly a step towards getting your online loan approved, but that’s not all. Here are a few other tips you can try to ensure you get your online loan approved:


Choose the Right Kind of Loan for Your Needs


This may sound very intuitive, but this needs to be underscored. If you’re applying for the wrong loan, don’t even assume to get it approved.


Check out available home loans if you’re applying for a loan to repair your house. You can also try applying for a personal or salary loan. However, don’t expect a business loan to work out for you.


Choose the Right Lender


Just as you should apply for the right loan, you should choose the best lender available. You can take many considerations in selecting the best lender—first, check the maximum loan amount you want to avail.


If you’re looking to buy a house and lot in the heart of Metro Manila, a housing loan of up to ₱1 million may not be enough for you. So, ensure you go for a lending institution willing to offer you at least 80% of the amount you need.


Next, check out loan tenure and interest rates available to you. Can you pay for a loan that costs millions of pesos in only 24 months? How long a bank allows you to pay your loan back means you pay less per month—but for a longer time.


If you can only spare ₱10,000 per month for the monthly amortization, look for a lender that offers a long enough tenure that allows you to pay ₱10,000 or less per month for your loan. Of course, don’t just check the loan tenure. Always consider the lender’s interest rates because a higher interest rate equates to a higher mortgage payment. 


And generally, choose a reliable lender. Do you feel your data and money are safe in the lender’s hands? Is the location accessible to you? Does the lender provide you with convenient payment options? These are just a few things to consider to ensure you’re with the right lender.


Borrow for the Right Reasons


Just because a loan is available to you doesn’t mean you’ll have to avail of one. Remember: loans are debts.


You must adhere to these financial commitments and avoid making decisions in the heat of the moment. 


Always carefully assess if you need a loan or borrowing for the right reasons.


If you’re getting a loan just because you can, consider that you’ll be shelling off a higher amount of money in the long run since you’ll also be paying for interest.


״The secret of happiness, is not found in seeking more, but in developing the capacity to enjoy less״ - Socrates

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