The guide about personal loan in the Philippines

The guide about personal loan … image

Each client wants to take a loan on favorable terms: with low fees and interest rates and preferably on transparent terms. Finding the right solution can take hours, not to mention the fact that similar offers are easy to get confused with. Therefore, we want to help you find the best deal from official organizations. Here is a detailed review of personal loans from various Philippine banks.

Briefly about personal loans: how does it work?

First of all, let's see how a personal loan differs from other types of funding. Based on the title "personal loan", we can conclude that these are the funds that the client receives for individual purposes: apartment renovation, payment of courses, purchase of equipment, etc. Other loans, such as mortgages or car loans, business or farm loans are issued for any specific purpose. That’s why they are divided into relevant categories.

Personal loans can be offered by banks and credit agencies. Banks typically have more stringent but more reliable conditions. Depending on the type of loan for personal purposes, the conditions may be more loyal or more demanding:

  • Secured loan. The client receives money, usually, a large amount, secured by property: apartment, car, land, equipment, etc. The pledge ensures the bank against possible losses, therefore such a loan is provided with reduced interest rates and payments.
  • Unsecured: here the client is not obliged to provide any material guarantees but agrees to pay higher rates.

Descriptions of the loaners’ offers

Today, more than 10 of the best banks ready to provide a loan on transparent conditions.A loan for personal purposes is a rather popular option. In fact, it has a very high demand. Therefore, banks offer a variety of options for customers. Most often, these are long-term solutions that can be returned within half of a year with the possibility of monthly payments.

Product name Description
Bank of Philippine Islands or BPI personal loan The client can take this unsecured loan in size of up to 3 times of his/her monthly salary, that is – from 20,000 PHP to 1 million PHP. The client can choose one from 5 schemes to pay: 12, 18, 24, 30 and 36 months. Payment will be debited from the client’s bank account automatically.The bank makes a decision within 5-8 business days.
BDO personal loan Offers by BDO are similar in one thing: a client can take from 10,000 to 1 million PHP. You can choose the term from 6 to 36 months. Waiting for approval can take up to 10 business days.
EastWest personal loan This bank can lend from 25,000 PHP to 2,000,000 PHP, for you. The payment plan can be from 1 to 3 years. The loan is unsecured, so there’s no need to provide collateral.  Average waiting time for a solution: from 5 to 7 banking days.
Metrobank personal loan This bank offers mainly business solutions and does not provide information on personal loans.
Citibank personal loan Citibank offers loans ranging from 50,000 PHP to 3,000,000 PHP. The terms here are quite long from 12 months to 5 years. There are also quite a few payment methods: cash, online payments, ATM transfers, etc. Approval time can take up to 48 hours.
PSBank personal loan PSBank Flexi Personal Loan is a product that involves a loan from 20,000 to 250,000 PHP with the ability to receive discounts when fulfilling payment obligations. This is an unsecured product for which only two possible payment durations are offered: 26 and 36 months.
PCBC personal loan RCBC loan MyCash Personal Loan, ranging from 50,000 PHP to 1,000,000 PHP. Approval time takes only a day. Suggested payment terms from 6 months to 36. It’s one of the most loyal programs for customers.
Security Bank personal loan An unsecured loan, ranging from 30,000 PHP to 2,000,000 PHP for any purpose. Available loan term from 1 to 3 years. Approval occurs within 5 banking days.
China Bank personal loan The product provides loanable money from 20,000 PHP to 1,000,000 PHP. The client can choose a payment period from 2 to 48 months. Decision-making takes no more than 5 working days.
Maybank personal loan Unsecured loans with available funding options of from 50,000 PHP to 1,000,000 PHP. The available loan term is varying fron1 to 3 years and the decision to accept or reject the application occurs within 5-10 business days.
Punjab National Bank or PNB personal loan There are no programs, regarding personal loans, but this bunk offers House and Car loans.
UCPB personal loan Among the choice of credit solutions, the bank offers an unsecured loan UCPB SalarEasy. Available amount from 50,000 to 300,000 for the term of 12 to 36 months. Decision time is 5-7 banking days.
HSBC personal loan Secured loans ranging from 30,000 PHP to 500,000 PHP. The client can take a loan for a period of 6 months to 3 years. The decision on approval takes 5 to 7 business days.
Robinsons Bank personal loan Here, customers are offered to apply for the Salary Loan Program, with the available amount of from 5,000 to 250,000. You can choose a program for a period of 6-36 months, with the auto-repay function.
Landbank personal loan This bank offers the following categories of loans: farmer loan, loan for fishers,business loan and a housing loan. As for personal loans, in the form that we are considering in this article, there are no such products.

As you can see, only three of the reviewed banks do not offer unsaved personal loans, namely Landbank, PNB, and Metrobank. HSBC can give only a secured loan on personal goals.

What requirements need you meet to get a loan?

Now let's look at what is required to get a loan.

Bank name The main requirements
BI  Age: 21-60. Minimum salary requirement: 25,000 PHP. The availability of a bank account in this organization.
BDO  Age: 21-70.The minimal average annual income of from 120,000 PHP. Self-Employees and professionals should earn 400,000 PHP annually. Employees must have at least a year of work experience.
EastWest Bank  The main conditions are to have a bank account here and Philippines citizenship. Or you can be a foreigner who lives in this country permanently, aged from 21 to 65 years. The income or salary must be at least 15,000 PHP per month.
Citibank  Unlike the other cases, it’s not necessary to have a bank account when lending from Citibank. The program is available for any Filipino from 21 to 65 years old that receives 21,000 PHP as income per month.
PSBank The offer is available to citizens of the Philippines, aged from 22 to 54 years inclusive. The client’s minimum income has to be 15,000 PHP or higher, and from 30,000 PHP for self-employees. Please note that preference will be given to those who use a card.
PCBC  The loan is available to citizens of the Philippines, aged from 21 to 65 years, with a minimum work experience of 2 years.
Security Bank Any Filipino aged from 21 to 65 years can get a loan. The minimum income must be between 15,000 PHP for residents of Manila and 12,000 PHP for provincials. A bank account is required.
China Bank  The client must be Filipino aged from 21 to 55 years, that works for at least 3 years. The average annual income starts at 360,000 PHP. The presence of a credit card of this bank is a fundamental condition.
Maybank  Maybank’s enAble Personal Loan is available for Filipino citizens aged 23-55 years who have an account with this bank. A borrower must also work or reside in any of the settlements where the branch of this bank works and have any landline number.
UCPB  Every Filipino citizen can take this loan if he is between the ages of 23 and 65. The required monthly income starts from 30,000 PHP. The customers should work on the company permanently as an employee for at least  2 years. The presence of a bank account is necessary.
HSBC  The program is offered for citizens, aged from 21 to 60 years. The required monthly income starts from 15,000 PHP. Also, you need to create a bank account. This loan also requires collateral.
Robinsons bank  The citizens from 21 to 60 years old can apply to this loan but the requirement is to have the minimum monthly income of 20,000 PHP.

As you see, an unprotected personal loan is a popular product and the banks offer it quite willingly. The most important conditions are the citizenship of the Philippines, the age from 21 to 65 or younger, with an average income of 15,000-20,000 PHP per month.

See also: Borrow Money in the Philippines. The Best Ways

What about interest rates?

The interest rate is something similar to the amount in percentage terms for which the bank sells a loan. It is calculated according to the loan amount, term, inflation, tax and loan demand. The interest rate can be annual or monthly.

The processing fee is a fee for drawing up a loan, including consideration of an application, execution of a document, verification of rating and solvency, consultation.

Bank name Interest rate Processing fee Late payment charges
BPI  1.20% add on. 1,500 PHP 5% of any balance outstanding.
BDO 1.25% to 1.30% for unsecured loans. 0.78% to 0.84% for secured program. 1,300 PHP 300 PHP or 3% of the outstanding balance.
EastWest  1.89% per month 1,900 PHP  500 PHP monthly or 8% of the amount.
Citibank  The bank sets an effective interest rate, which is calculated individually. As a rule, it ranges from 17.0% to 30.9% per annum. None 500 PHP monthly or 6% of the amount.
PSBank  1.75% to 2.5% monthly 1,500 PHP Varies, depending on the amounts received.
PCBC  1.40% per month or a fixed rate of 16,08% per annum. from 1,500 PHP 5% of any balance.
Security Bank  1.39% monthly 2,000 PHP from the amount of the loan 500 PHP or 3% of the amount.
China Bank  1.55%-1.99% per month 1,500 PHP 500 PHP or 3% for past 
Maybank  Starting from 1.30% per month for employees. 2,000 PHP 5% of any balance outstanding.
UCPB  1.50% per month or 18.00% per annum. 1,500 PHP 300 PHP or 5% any balance outstanding.
HSBC  1.25% per month 1,500 PHP 36% per annum on overdue amounts.
Robinsons bank  1.40% monthly 2,000 PHP 5% from the balance

As a rule, the higher the requirements of the bank, the lower the interest rates and first payment. Loyal conditions require high-interest rates to ensure against possible risks.

See also: Online Cash Loans in the Philippines

The article is dedicated to particular issues — how online loans work in the Philippines and how to get them.

Reviews about the product

Almost all the mentioned banks have Facebook pages where users leave comments and ask questions. Services work quickly, on average, the answer to the question comes no later than within 1 day. Particularly responsive in terms of feedbacks are:

  • BDO 
  • BPI 
  • PSBank
  • Robinsons bank
  • Maybank personal loan
  • UCPB 
  • China Bank 

Also, reviews of banks and their loans can be found in agencies where ratings are compiled, such as in the case of Citibank personal loan. 

See also: Can a Housewife Actually Apply for a Loan?

Final verdict

So, the most trusted banks in the Philippines are ready to provide unsecured loans to citizens of the country under fairly favorable conditions. The most important thing is to meet the requirements, make payments on time and carefully study the conditions. We hope that this article will help you deal with loan offers and choose the best one for yourself. Good luck!