Low-Interest Personal Loans Philippines

What is a Personal Loan with Low Interest?

A Personal Loan with the lowest rate refers to a loan that is considered to be the least expensive hence, the easiest to repay. When a borrower tends to avail of a Personal Loan with a low-interest rate, the interest payments remain low over the loan’s duration which, as a result, helps the borrower to further save money. 

Before applying for a loan, borrowers will be most concerned about the interest rate that will be charged. The financial institution that would offer the lowest interest rate on Personal Loans will, of course, be much preferred by any borrower. In fact, based on the financial inclusion survey recently conducted by Bangko Sentral ng Pilipinas (BSP), 47% of Filipino borrowers primarily take low-interest rates into account when availing of a personal loan.

Types of Interest Rates

Loan providers typically offer two types of interest rates, namely: effective interest rate and the monthly add-on interest rate.

The effective interest rate pertains to the actual interest a borrower needs to pay on a loan. It is also commonly known as the Annual Percentage Rate (APR).

Meanwhile, the monthly add-on interest rate refers to the total sum of the loan amount and the annual interest rate, multiplied by the number of years (loan tenure) you opted to repay your loan. Thus, the higher the monthly add-on interest rate is, the more expensive the monthly amortization would cost for the borrower. 

Each time a borrower applies for a loan, these are the two things that they must check before agreeing to anything. 

List of Loan Providers in the Philippines offering Personal Loans with Low Interest 

Eastwest Bank Personal Loan

Loan Features

Loan Amount: Php 25,000 up to Php 2,000,000 

Loan Tenure: 1 to 3 years

Approval Period: 5 to 7 working days

Interest Rate: Starts at 31.51% annual contractual interest rate for 12 months and 1.49% to 1.89% monthly add-on interest rate

Citibank Personal Loan

Loan Features

Loan Amount: Php 100,000 up to Php 2,000,000 

Loan Tenure: 1 to 5 years

Approval Period: Within 24 hours

Interest Rate: 1.26% monthly add-on interest rate and 26.9% annual contractual rate

Security Bank Personal Loan 

Loan Features

Loan Amount: Php 30,000 up to Php 2,000,000 

Loan Tenure: 1 to 3 years

Approval Period: Within 5 working days

Interest Rate: 1.39% to 1.89% monthly add-on interest rate 

BPI Personal Loan

Loan Features

Loan Amount: Php 20,000 up to Php 1,000,000 

Loan Tenure: 1 to 3 years 

Approval Period: Within 8 to 13 working days

Interest Rate: Starts at 25.03% APR and 1.20% monthly add-on interest rate

HSBC Personal Loan

Loan Features

Loan Amount: Php 30,000 up to Php 500,000

Loan Tenure: 6 to 36 months 

Approval Period: Within 5 working days

Interest Rate: 14.29% APR for 24 months and 0.65% monthly add-on for 24 months

Conclusion

Low-Interest Personal Loans Philippines are rampant, especially nowadays that Filipinos are in need of quick cash with affordable interest rates and minimal additional charges. When a borrower is deciding whether or not to proceed with a loan application, the decision always starts with determining whether the repayment is affordable, and the interest rate greatly affects the affordability of loan repayments. To be able to not feel the heavy toll on your finances, always choose the personal loan that offers low interest rates in the Philippines.