How to Get a Personal Loan in the Philippines

Fri, 12/02/2022 - 17:20

Everything comes with a price. That’s something we’re reminded of every day. This fact hurts even more if you have big dreams. Many people have out-of-the-box business ideas and cool home renovation goals, but only some have enough funds saved up to turn them into reality.


Fortunately, you don’t have to rely solely on your savings to live the life you want. You can borrow the money you need, then pay it back later in manageable monthly installments. No, we’re not talking about loans from pawnshops, luv – we’re talking about personal loans!


Before you start applying, read up and learn everything you need to know about personal loans in the Philippines!

What are personal loans?

Personal loans are funds borrowed from a bank or online lender that can be used for a wide range of personal needs.


Under personal loans are two other types of loans that you should know about. First are secured loans, which are loans that require collateral, or assets like your house or car. In some cases, you can even use the assets that you plan to purchase as collateral.


On the other hand, there are unsecured loans. Don’t worry about its name, luv – it just means that it doesn’t require any collateral for you to borrow!


Now that we’ve got the basics out of the way, let’s get into the nitty gritty.

Am I qualified for a personal loan?

Each institution has a unique set of eligibility criteria, so before you apply, make sure you check that either on their website or with your loan officer. It would also be a good idea to check your credit score first before applying.


However, there are a few common requirements that many personal loan providers look for, such as:


  • Age requirement: 21 to 64 years old
  • Should be a Filipino citizen or local resident foreigner with an existing Philippine billing address
  • A minimum gross annual income
  • Should be employed or owner of a profitable business (self-employed individuals)
  • Should have a mobile number, landline number, and/or email address

What are the requirements for a personal loan in the Philippines?

If you’re qualified for a personal loan, you’re ready for the next step. Just like the qualifications, the requirements for a personal loan vary from institution to institution. But even before you start looking for the best personal loan for you, we highly recommend that you at least prepare the following:


  • A valid government ID with a recent photo and signature
  • Your latest full pay slip
  • Your BIR Form 2316
  • For self-employed applicants: the latest ITR or BIR Form 1701, audited financial statements with independent auditor’s report, and balance sheets and tax receipt
  • For non-Filipino applicants: an Alien Certificate of Registration (ACR), a valid passport, and any valid proof of residency



The Pros and Cons of a Personal Loan

Getting a personal loan is not a decision you can just make on the fly. Even if you’re qualified and you already have the requirements, you still need to consider a few factors before you can make that commitment. To help you decide, here are a few pros and cons.

The Pros of a Personal Loan

  1. Fast and Flexible – Personal loans can be used for a variety of needs. That’s how they differ from home loans and car loans, which can only be used by what they’re named after. Plus, personal loans typically offer fast approval, sometimes as quick as a few minutes, like our Quick Loan.

  3. Lower Interest Rates with Higher Loan Amounts – Personal loan interest rates can go as low as 2.99%, like our Flex Loan. Maximum loan amounts can also go as high as Php 2,500,000, like our Big Loan!

  5. No Collateral Needed (For Unsecured Loans) – Remember the difference between secured and unsecured loans, luv? If you go for an unsecured loan, you won’t have to get it with collateral such as a property or a vehicle.

  7. You Decide When to Pay Paying for a loan can be a real hassle, if we’re being honest, but at least it’s easier with personal loans because you can choose your repayment dates. Here’s a little tip: schedule them on your pay days, and you’ll always have enough cash to pay them back!

The Cons of a Personal Loan

  1. Loan Fees – Banks may charge you whenever you miss a repayment date. If you choose to pay back the entire amount of your loan earlier than expected, you may also be charged a pre-termination fee.

  3. Additional Debt – Some may take out a loan to pay off credit card debt. That’s not always a bad thing, but it can be a problem when you miss your repayment dates and your late payment fees start to stack up. If you’re not ready to take on more debt and be a responsible borrower, maybe pass on personal loans for now.

  5. Possibly Higher Interest Rates – Since you’re not required to give any collateral, most banks will charge higher interest rates for unsecured loans. Just keep that in mind when choosing your loan.

How Can I Get a Personal Loan in the Philippines?

Not to sound like a broken record, luv, but just like the eligibility and requirements, the “hows” of personal loans isn’t a one-size-fits-all sort of thing. But, commonly, the process goes like this:


  1. Choose your lender – Let’s start with the fun part. Do your research and pick the best lender for you! Major factors to consider are the interest rates, repayment terms, and overall flexibility.

  3. Start your application – Once you’ve chosen your bank or lender, you can either apply in person at one of their branches or do it all online.

  5. Prepare your requirements – Aside from the requirements we’ve already mentioned above, you’ll be asked to fill up an application form where you will have to provide personal information such as your full name, address, and contact information.

  7. Review the offer and accept the loan – Don’t forget to read the contracts before you sign. Now that everything’s all set, you can finally accept the loan! You may have to wait anywhere from a few minutes to a few days to learn the status of your application. When you do get accepted, be responsible and pay it back on time, okay luv?

Borrow Easily with Our Fully Digitalized Loans!

Don’t want to go through the application process of traditional banks? Neither do we, hun. That’s why we have the quick and convenient Flex Loan! This fully digitalized personal loan in the Philippines lets you borrow up to 250K with a monthly interest rate of 2.99%. On top of that, it can be approved in just 1 day!


It’s our best priced unsecured loan yet, and all you need to apply is your latest bank statement and proof of income. Get a Flex Loan and check out our other loan products when you download the Tonik App today!



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