Online Loans: How to Get Fast Personal & Business Loans [Philippines] (2024)

The willingness of Filipinos to try digital and cashless payment methods is proof that we’re slowly recognizing the benefits of online technologies.

Take E-commerce, for example. I’m willing to bet that you already purchased a product or service through popular sites like Lazada or Shopee. This e-commerce boom in the recent years is a clear signal that Pinoys are opening up to other methods of accomplishing financial transactions.

The same is true in the lending category. The rising popularity of online lending services shows there is a need for this type of service. Fast, convenient, and hassle free—things that can’t be said if you try to borrow money from the bank.

The following section aims to show us key advantages and disadvantages of Traditional and Online lending platforms.

Traditional Lending Companies

Online Lending Platforms

Also Read:

1. Quick Cash Loans

A fast cash loan is a loan that you can apply to receive funds into your account directly and quickly. Fast personal loans are one option to pay for emergencies and other short-term borrowing needs.

Typical Requirements:

• Valid IDs (1 must be government-issued)
• Proof of billing
• Must be a regular employee
• Valid contact numbers and email address

Related: How to Get Student Loans in the Philippines

2. Seafarer Loans

Loans created and intended for sea-based Overseas Filipino Workers (OFWs)

Typical Requirements:

• Filipino Citizen
• Valid IDs
• Meets lender’s minimum monthly basic salary requirement
• Contract of employment with POEA validation, Seaman’s Book, Seafarer’s Registration Certificate, Proof of Embarkation or Disembarkation, Allotment Certificate,
• Proof of billing

3. Product Loans

Essentially a personal loan that’s made for the purpose of purchasing a specific product. Things like: gadgets, furniture, appliances, etc.,)

Typical Requirements:

• Valid IDs (1 must be government-issued)
• Proof of billing
• Must be a regular employee
• Valid contact numbers and email address

4. OFW Loans

A type of loan that caters to the specific needs of Overseas Filipino Workers and their families. Some lenders offer it to OFWs who are just about to embark abroad for a work contract (not currently working yet).

Typical Requirements:

• Filipino Citizen
• Valid IDs
• Meets lender’s minimum monthly basic salary requirement
• Latest Contract of Deployment
• Copy of Working Visa
• POEA Overseas Employment Certificate
• Proof of residency/billing

5. Salary Loans

A type of loan (amount is typically based on the pay period gross earnings of the borrower) that’s required to be paid in full or in installments when the borrower receives their next paycheck.

Typical Requirements:

• Filipino Citizen
• Valid IDs
• Latest payslips
• Copy of ITR
• Certificate of Employment
• Meets lender’s minimum monthly basic salary requirement
• Proof of residency/billing

6. Business Loans

A type of loan specifically offered to businesses who need capital for start-up or funding for expansion (growth).

Typical Requirements:

• Valid IDs
• Latest ITR with BIR stamp
• Latest bank statements
• Valid DTI Registration docs
• Valid Business or Mayor’s Permit
• Valid DTI Registration docs

Additional requirements for partnerships/corporations:

• Valid DTI/SEC Registration documents and GIS
• Partnership / Board Resolution documents
• Continuing Suretyship Agreement

7. Franchise Loans

Exclusive loan offering for individuals who plan on operating a franchise business.

• Valid IDs
• Franchise Certificate
• Latest bank statements
• Valid DTI Registration docs
• Valid Business or Mayor’s Permit
• Valid DTI Registration docs

8. Pawn Loans

Loans that are collateral-based – in which the loan is secured by valuable items owned by the lendee (and will be given back when the loan is repaid).

Typical Requirements:

• Government-issued IDs
• Collateral (valuable items such as jewelries, gadgets, etc…)

RFC, established as Radiowealth back in 1935, started as a car and radio manufacturer before fully transitioning into one of the most stable financing institutions in the country in the mid-90s.

This lending platform boasts various products from corporate lending, SME loans, and multi-purpose cash loans – providing access to these services to Filipinos from the countryside.

Requirements:

• 2 valid government IDs (if employed, include company ID)
• Proof of Billing
• Proof of Income (3-month payslip)
• Residential, Business, or Employment Address Map
• Certificate of Employment
• Business Barangay/ Business/ DTI Permit (for business owners)
• Fill out the application formhere

SB Finance is a collaborative venture between Security Bank Corporation and Bank of Ayudhya (Krungsri) from Thailand. The company offers a diverse range of both secured and unsecured loan products in the Philippines.

Requirements:

If Employed:

• One valid government-issued photo ID
• Certificate of Employment and Compensation issued within the last six months
• Latest ITR
• Latest monthly payslip

If Self-Employed:

• One valid government-issued photo ID
• Latest 1-year Audited Financial Statement (AFS) with at least the previous year’s comparative financials
• SEC Registration / DTI Certificate
• Business Permit / Mayor’s Permit
• Latest GIS (if corporation)
• Latest bank statements (three months)
• List of three trade references (at least one supplier and one customer) with contact details

For online application, fill out the form here. For branch application, download the form here.

Cashalo is a mobile-app (Android and iOS) that provides a fast, affordable, and secure access to quick funds.

Requirements and application process:

Gov’t issued ID, payslip, company ID, bank account details. Download and install the app, register your account.

This Singapore-based company was established in 1969 and have extended their reach here in the Philippines. They have a variety of loan products that range from Personal loan, Salary Loan, Car Loan, and OFW Loan.

Requirements and Application process:

• Two proof of billings (Meralco, water bill, cable, internet, or PLDT bills)
• and at least one valid government ID/Company ID with one-month payslip

They are a peer-to-peer (P2P) lending platform which aims to provide a safe and accessible place connecting lenders and borrowers.

Requirements:

• Complete the online registration
• Valid IDs

Types of Loans being offered:

EasyCash is a local financial services company that use scalable infrastructure and technology to build an online platform for lending and borrowing for Filipinos.

Requirements and application process:

• Create an account via their website
• Wait for approval confirmation

Asteria is based on Makati and received full license from the SEC. Their goal is to, “provide online, hassle-free service to our new and existing clients.”

Requirements and application process:

• Register for an account. Confirm enrollment via email.
• Note that you’ll be asked to submit requirements (IDs) before you can complete the loan request.

UPFinance is an online lending platform that aggregates the best offers from various lending institutions in the Philippines.

The platform provides detailed information (including loan calculators) for the different loan products available from the banks, lending companies, and cooperatives they promote.

PawnHero is the first online pawnshop in the country. Leading the modernization of one of the oldest industries in the world (started in ancient China over 3,000 years ago).

Their technology allows their users to appraise their items online and offers the convenience of doing all the necessary steps at home. PawnHero accepts valuable items (for collateral) that range from cameras, smartphones, designer bags, jewelry, gaming consoles, laptops, TVs, watches, tablets, sunglasses, to speakers.

Requirements:

• 2 government valid IDs
• Collateral item

Vidalia Lending Corp. effectively combines conventional credit practices with the latest technology, resulting in a constantly improving credit evaluation system that learns and optimizes using monthly loan repayment and delinquency data.

Borrowers can avail themselves of loans ranging from ₱5,000 up to ₱500,000. Vidalia is supported by a team of experienced private investors with extensive knowledge of the local Financial Industry.

Requirements:

• 2 valid IDs
• Proof of billing

Finbro, an online lending platform in the Philippines, specializes in providing quick cash loans to manage unexpected financial needs.

Requirements:

• 1 valid ID
• Completed loan application form
• Selfie
• Stable monthly income

With its user-friendly registration and quick fund transfers, MoneyCat simplifies the entire borrowing experience.

What’s unique about this loan provider is that your first loan with MoneyCat is interest-free. To apply for a loan, you just need to fill out a short online registration form. This will just take 5 minutes of your time. There’s no need for complex paperwork or time-consuming bank visits.

Requirements:

• Must be 22 years old or older
• A Filipino and currently residing in the Philippines
• Currently working or have a stable source of income
• Have a personal (active) mobile phone number
• Have a bank account
• Have any of the following IDs – SSS, UMID, TIN, driver’s license, passport, or voter ID.

PesoLoan is the go-to choice for people looking for inclusive and accessible digital financial services. With PesoLoan, borrowers can access loans of up to P50,000, provided they maintain a good credit record with the company.

One of the standout features of PesoLoan is its flexibility in loan repayment. The company offers a variety of payment channels, including options such as GCash, 7-Eleven, MLhuillier, RDPawnshop, QR Code, and Bank Transfer.

Additionally, PesoLoan takes pride in its quick and straightforward loan application process, which takes just three minutes to complete. Borrowers can expect their loan applications to be assessed within 24 hours.

Requirements:

• Must be at least 18 years old
• Filipino citizen

Online Loans Pilipinas specializes in online micro and consumer financing. Its mission is to improve the financial well-being of its customers.

Their application process is very simple. It only requires just one valid ID. There’s no need for collateral, payslips, or proofs of billing.

For returning customers, Online Loans Pilipinas offers an attractive incentive. By repaying your loan on time, you can qualify for an increased loan amount of up to P20,000 on your subsequent loans. Borrowers can also request a 30-day extension for their repayment period.

Requirements:

• Must be 22 – 70 years old
• Located in the Philippines (nationwide)
• Employed individuals or selected professionals
• Have a valid bank or e-wallet account

Research and select a reputable online lender that operates in the Philippines. We have listed some well-known platforms above. Make sure the lender is registered and operates legally.

Each lending platform will have its own set of eligibility criteria and requirements.

Common requirements often include being a Filipino citizen, being of legal age (at least 18 years old), having a valid government-issued ID, having a stable source of income, and possessing a bank account or e-wallet (like GCash) for fund transfer.

Once you’ve chosen a lender and made sure you meet the requirements, you can apply for the loan through the lender’s website or mobile app.

You will typically need to fill out an application form with your personal details, loan amount, and loan duration.

You may be asked to upload or email copies of certain documents, such as government-issued IDs, proof of income (like payslips or bank statements), or proof of address.

After you’ve submitted your application, the lender will review it. Many online lenders use automated systems that can approve loans within minutes or hours. However, some applications might take longer.

Once approved, the loan will be disbursed to your specified bank account or e-wallet. The time this takes can vary between lenders.

Ensure that you repay your loan on time to avoid late fees or penalties, and to maintain a good credit history.

Most platforms will have several repayment options, including bank transfer, payment at a physical location, or through an e-wallet.

The first step is deciding what you will be using the money for. Decide on the amount and choose if you want to go for a secured or unsecured loan.

Secured means you have to put up something as collateral for your loan. Unsecured loans are more lenient in terms of requirements but have generally lower ceilings for the max amount you can request.

Types of Personal Loans in the Philippines

Personal Loans takes the biggest share in the loan market because of the simplicity and ease of access in funding a myriad of financial reasons and obligations. For the financially savvy out there, it is an open-ended loan where the principal is paid over a fixed term along with applicable charges.

Personal loans can be categorized into 4 types:

1. Secured Loan – Approved on the basis of collateral. For example, a time deposit account held by the borrower from the same bank. In general, the interest rate is lower compared to unsecured loans due to the security factor. Application and paperwork is simpler as well because the bank already has your information through the account you have with them. Suitable for borrowers with no/low credit history.
2. Unsecured Loan – No collateral is required. Banks and lenders rely on the information and credit history they will get from you. Interest rates are slightly higher due to the higher risk involved. Strict screening process is required in order to determine the terms that will be granted to the borrower.
3. Personal loan for OFWs – Tailor made loans for Overseas Filipino Workers. Available in both secured and unsecured packages.
4. Top Up Loan – Does exactly how it sounds like—top up your existing loan. Gives borrowers an option to borrow more money and add it on top of their existing loans.

Secured and Unsecured Loans

Since almost all current loans fall under these two types, it’s a good idea to get a quick view of each strengths and weaknesses.

Secured Loans

Unsecured Loans

In the Philippines, we don’t have a centralized credit reporting like first world countries. This means banks and creditors rely on other means to determine if you have a good credit history.

TransUnion, one of the biggest credit reporting agencies, have reports they show to Metrobank, BPI, HSBC, and Citibank showing who have good credit histories.

Non-partner banks go to Consolidated Cancelled Credit Cards (CCAP 4) or Bankers Association of the Philippines Credit Bureau to obtain the same info. Bottomline is, strive to pay your dues on time and keep overall dept low.

What is Credit Report?

You might have seen this article mention “Credit Report” or Credit history several times. What is it, exactly? In a nutshell, it’s a detailed report of your credit history. Lenders rely on these reports to determine if you are eligible to take a loan. They also use this to determine the terms if you get approved.

Here’s what you need to remember: A good credit report means a higher chance of getting your loan approved and getting better interest rates.

Can you still borrow with bad credit history?

Here’s the good news: Yes, you can still borrow money even with bad credit history.

The process will just be more difficult and may require you to complete a ton of paperwork, more background checks, and possibly longer wait times.

Here are tips you can follow to get better success in getting your loan approved even with bad or negative credit history:

• Be super thorough with the completion of required documents
• Submit the requirements as early as you can
• Don’t request for several loans at the same time
• Spend time looking and reviewing the best possible lenders
• Patience is a virtue

Related:10 Best Credit Cards in the Philippines

Each bank or online lending platform have its own strengths and weaknesses. The key is to find the one with the best features that match your preferences.

How to Identify Legit Online Loans in the Philippines?

Identifying legitimate online loans can sometimes be a challenge, especially with the rise of online scams. However, the following tips can help you determine the legitimacy of an online lender:

1. Check Registration and Licenses: A legitimate lender should be registered and licensed by the appropriate financial regulatory bodies. In the Philippines, for instance, online lending platforms should be registered with the Securities and Exchange Commission (SEC).
2. Investigate Online Presence: Legitimate companies will likely have a professional website and possibly social media presence. Be wary if the lender only operates via a mobile app and doesn’t provide any other business information.
3. Look for Contact Information: A legitimate lender will provide contact information such as a physical address, email, or phone number. You can try reaching out to confirm their legitimacy.
4. Read the Fine Print: Be sure to read all the terms and conditions before accepting a loan. Legitimate lenders will clearly state the loan’s interest rate, fees, repayment terms, and any penalties for late or missed payments.
5. Check for Secure Website: If you’re applying for a loan online, make sure the lender’s website is secure. The URL should start with “https://” (the ‘s’ stands for secure), and there should be a padlock icon next to the URL.
6. Read Customer Reviews and Complaints: Look at reviews or complaints about the lender from other customers. Sites like the Better Business Bureau or your local SEC can be good resources.
7. Trust your instincts: If something seems too good to be true, it probably is. High-pressure sales tactics, urgent communications, or pushy requests for personal information are all red flags.

It’s important to do your due diligence and understand the terms of any loan before you agree to it. Don’t hesitate to ask questions or seek advice if you’re unsure about anything.

How to Avoid Online Loan Scams

Here are some general tips on how to avoid such scams:

• Don’t Rush: Avoid lenders that pressure you to sign on the dotted line. Legitimate lenders will not rush you into a loan and will ensure you understand the terms and conditions before signing.
• Beware of Upfront Fees: Be wary of lenders asking for fees upfront before you’ve received the loan. While some legitimate loans may require certain fees, these are typically deducted from the loan amount or paid along with the repayments.
• Avoid Guaranteed Approval Offers: Be skeptical of lenders who offer guaranteed approval regardless of credit score. Reputable lenders usually check your creditworthiness before granting a loan.
• Protect Personal Information: Never share your personal information online unless you’re sure the company is legitimate and the website is secure.

Remember, if something seems too good to be true, it probably is.

Borrowing money is a great tool for busting you out in dire financial situations as well as funding personal endeavors.

Just make sure that you are borrowing because you need it for something important. A lot of people go into debt because “they had to” buy a new TV or smartphone but not responsible enough to pay their monthly bills.

Important: Build an Emergency Fund.

When to take Business & Personal Loans

At the surface, the answer to this one is quite obvious. For funding any business venture, go for a Business loan. For (almost) anything else, take a Personal loan.

However, there are underlying principles that you need to ask yourself before borrowing a huge sum. Aside from doing your due diligence researching all terms and conditions for each bank, following these 3 basic rules in borrowing money will help keep things in perspective.

1. Don’t request for a loan for funding your personal consumption, like products or travel expenses.
2. Personal loans are typically best in times of emergency
3. Loans should be used as a tool to advance your asset value. For example, if you take a loan to buy a multicab-van to make your business deliveries faster, it will pay for itself over time due to the time savings it brings your business. It also allows you to reach and serve more potential customers which results to more profit.

Another question you should ask is, “Is taking a personal loan the best solution to my problem?”

And to help you find some answers, here’s a quick rundown of the pros and cons of requesting a personal loan:

Explore alternative borrowing options such as personal loans from traditional banks, credit unions, or borrowing from friends and family, which may offer better terms or lower interest rates.

Carefully read and understand the terms and conditions of the loan, including interest rates, repayment schedule, and any associated fees to avoid surprises later on.

Create a repayment plan and budget to ensure you can make timely payments and avoid late fees or penalties, prioritizing loan repayment to maintain financial stability.

Online loans are financial products that allow individuals to borrow money over the internet without the need for physical paperwork or visits to a bank branch.

These loans are typically processed and disbursed quickly, often within 24 hours.

Loan amounts vary depending on the lender and the borrower’s creditworthiness. Some lenders offer small loans starting from a PHP 15,000, while others may provide larger amounts up to PHP 500,000.

Interest rates vary among lenders and may be fixed or variable, which typically range from 1% – 7% per month.

Rates are often influenced by factors such as the borrower’s credit history, loan amount, and repayment term. It’s important to carefully review the interest rates and terms before applying for a loan.

Approval times can vary but are generally faster than traditional bank loans. Many online lenders offer instant or same-day approval, with funds disbursed within 24 hours of approval.

While there are reputable online lenders, borrowers should be cautious and research lenders thoroughly to avoid scams or predatory lending practices. It’s essential to verify the legitimacy of the lender (registered with the SEC), read reviews, and ensure the website is secure before applying for a loan online.

Missing a payment on an online loan can result in late fees, additional interest charges, and damage to your credit score. It’s crucial to communicate with the lender if you’re experiencing financial difficulties to explore options such as payment extensions or restructuring.

Many online lenders allow borrowers to repay their loans early without incurring prepayment penalties. Early repayment can help save on interest costs and improve your credit score by reducing your overall debt burden.

Below is the full list of online lending platforms operating in the Philippines (based on the records of the Security and Exchange Commission as of November 29, 2021).