Approved Personal Loans in the Philippines: 5 Recommended Banks

Approved Personal Loans in the Philippines: 5 Recommended Banks

Need some additional funds to pay for a vacation? A gift? An unforeseen expense? Then a personal loan might be the best option. Before seeking a personal loan, however, it is always best to understand how they work. For anyone interested in a personal loan in the Philippines, here is some information to get started! 

What is a Personal Loan

Personal loans are loans that are not secured against any assets such as property. These unsecured loans are offered by lending institutions and banks. You can borrow money and pay it back in fixed monthly instalments with some interest. 

The rate of taking personal loans in Philippine is increasing at a fast pace. People are taking personal loans to meet their urgent expenses including education, healthcare, vacations, weddings, home renovations, debt consolidation and much more. 

There are some important things to consider before getting a personal loan, such as loan repayment terms, collateral or guarantor requirements, approval time, income requirements, and credit history. Besides these factors, you may also take into account and search for banks with the lowest interest rates. The lower the interest rate, the less you’ll pay on top of your loaned amount.

Eligibility 

If you want to apply for a loan, you have to be at least 21 years old and have a permanent residence in the Philippines. You must also meet a minimum income requirement, which you can verify with the bank by presenting a proof of income.

An applicant must fulfill the lender’s eligibility criteria for a loan:

  • Filipino Citizen or Dual Citizen
  • Identity documents 
  • Employment certificate 
  • At least 21 years old upon loan application
  • Residential proof
  • A minimum employment tenure of 2 years

The borrower needs a good credit history and a stable source of income to be approved for a personal loan. When taking out a loan, consider the following personal loan charges that may add up to the cost of borrowing money: interest rate, late payment fee, early payment charges, returned check fee, and amendment fee.

Here are four banks that offer the lowest interest rates in the Philippines for personal loans. We will get into more details about their terms and conditions to give you a better estimate of how much you’ll be paying each month. 

1) CIMB Bank: 

CIMB is one of the banks in the Philippines which provide loans with a minimum interest rate of 13.47%. If one applied for ₱ 200000 over a year then monthly repayment would be ₱ 18,911. They claim to have a quick loan approval, about 10 minutes. Applicants must have a minimum gross monthly income of ₱15,000.[1]

2) Security Bank:

Security Bank was established on June 18, 1951, and was the first private and Filipino-controlled bank of the post-World War II period. The bank deals in retail, commercial and corporate banking. Security bank offers financing, leasing, foreign exchange and investment banking.

Security Bank is another option for landing a personal loan in the Philippines. Their minimum interest rate for the loan is 16.68%. [2] You can put in a request for a minimum loan ₱ 2,000,000 with monthly payment ₱ 19,446. Your Loan request can take up to five working days. Their monthly interest rates change accordingly but applicants should be citizens of philippine.

3) Maybank Philippines: 

Maybank is a well-known bank in the Philippines. It is ranked 72nd in the world for most valuable bank brands. 

Maybank ensures some terms for personal loan borrowers. One must be at least 23 years old while applying for a personal loan and 55 years old upon loan maturity. Loan applicants should have at least 5 years in the same profession. Businesses must have been in operation for the past 5 years and profitable for the past 2 years. On an average monthly income of ₱200,000, they have an interest rate of 15.60% and monthly payments are ₱ 19,266.

With Maybank, you can get up to a 1 million loanable amount. The bank offers flexible payment terms of up to 36 months. You can enjoy the lowest interest rates of 1.3% with Maybank. [3]

4) Rizal Commercial Banking Corporation RCBC:

RCBC is one of the largest universal banks in the Philippines for both commercial and investment banking. RCBC personal loan lets you borrow from a minimum loan amount of PHP50,000 up to PHP1,000,000. They offer easy payment terms of 6 to 36 months, and competitive interest rates at 1.30% per month. This multi-purpose loan allows you to settle your financial obligations and meet your personal needs. [4]

Conclusion 

Don’t accept the first offer offered by your bank or lender while getting a personal loan. Always shop around to see and compare interest rates and annual percentage rates from different banks and lenders. Consider your personal needs before choosing a lender. Do your research online for the best deals! 

References 

  1. “Personal Loan.” Personal Loans | All Digital Application | CIMB Bank PH. https://www.cimbbank.com.ph/en/digital-banking/savings-accounts-and-loans/personal-loans.html. 
  2. “Low-interest and No Collateral.” Security Bank Philippines. https://www.securitybank.com/personal/loans/personal-loan/.
  3. Malaysia, Agenda. “Personal Loan: Maybank Philippines.” Maybank Malaysia. https://www.maybank.com.ph/en/personal/loans/personal-loan.page. 
  4. Personal Loans. https://www.rcbc.com/personal-loans. 
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