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Can Bank Loans Meet your Quick Cash Needs?

Bank Loans to Meet Your Quick Cash Needs Updated on February 2024 

By 2019, Bangko Sentral ng Pilipinas reported that 71% of Filipinos do not have bank accounts, or even if some do, they share them with another person.

But interestingly, the number of accounts climbed from 23% in 2017 to 29% in 2019. The significant information came from the latest BSP Financial Inclusion survey conducted from February to March 2020.

Although there’s an increase, if you look at the numbers carefully, you can see that many Filipinos still have little interest in dealing with banks.

Some individuals view dealing with banks as a reluctant necessity. Most Pinoys are required to open bank accounts primarily due to employment policies rather than intrinsic financial interest. However, those bank account holders may know there are benefits to having a bank account, such as having access to bank loans. 

Bank loans vary depending on how you use them. You can find personal loans, housing loans, auto loans, and business loans. All of these can help you if you choose the one that aligns with your financial goal. 

Despite bank loans’ benefits, many Pinoys commonly perceive it as a burdensome and quite intimidating task. It would be if you have no sufficient knowledge of it. But if you research and compare various bank offers, you can identify the type of loan that aligns with your needs. 

Furthermore, you must understand that every bank loan follows specific eligibility criteria. Banks consider your income, credit score, and employment status. If you fall into the right places, you can unlock the benefits of having a bank account in the Philippines.

Getting a bank loan is usually thought of as a tedious job. But no worries. We’re here to guide you with applying for bank loans.

Bank Loans in Philippines

Table of Content

Bank Loans in the Philippines

Advantages Of Bank Loans Philippines

Disadvantages Of Bank Loans Philippines

Preparation to Apply for Bank Loans

  • Understand your financial needs
  • Check your credit report.
  • Have a stable job for at least 6 months.
  • Assess Financial Health
  • Keep your documents.
  • Use an online loan calculator.
  • Research the kinds of bank loans.

Finding your Lender for Bank Loans

Top Lending Banks for Bank Loan Philippines

Applying for a Loan

Repayments of Bank Loans

Other Lenders with More Flexible Quick Cash Loans

  • Pawnshops
  • Informal Lenders
  • Online Money Lenders

Conclusion: Bank Loans for Your Quick Cash Needs

Bank Loans in the Philippines

Bank loans are term loans offered by banks to meet your financial goals. Interests are charged to your outstanding balance. Plus, you must settle your repayments based on the fixed schedule. 

When applying for a bank loan, it is customary to have a collateral. It serves as a form of security for the bank. In the unfortunate event of a default, the bank can seize and sell these assets to recover losses. Thus, it provides reassurance in the case of non-repayment.

You must thoroughly understand the terms and conditions of the bank loan agreement before proceeding with the application.

Advantages Of Bank Loans Philippines

A bank loan is one of the perks of having a bank account. But taking out a loan from a bank has more benefits than you realize. 

bank loans philippines

Clear bank loan terms

A bank loan has a concept of fixed interest rates and predetermined repayment amounts in a loan agreement. It provides a stable and predictable financial framework for borrowers. These established terms at the beginning of the loan offer a clear understanding of the financial commitment throughout the loan tenure.

No equity dilution

Bank lenders do not acquire ownership stakes in your loan purpose. If you opt for a business loan, the bank is not part of the business ownership structure, regardless of the amount you borrowed.

Relatively low interest rates

Bank loans often come with the advantage of relatively competitive interest rates. It reduces the overall cost of borrowing so you can manage your finances better and budget your paycheck wisely. Also, it saves you from suffering and neverending trouble with a lack of money. 

Financial Flexibility

Bank loans provide access to substantial capital. It allows you to address various financial needs. For example, you can proceed with your business expansion or home purchase. Or you can be more prepared for education expenses.

Credit Building

If you diligently repay a bank loan, you can positively impact your credit history and score. It can benefit your future financial transactions and lead to better loan terms.

Bank loans Philippines are highly advantageous, especially if you carefully review the terms and conditions. In addition, it is best to consider your ability to meet repayment obligations. Additionally, exploring different banks and loan products to find the most suitable terms for specific needs is advisable.

Disadvantages Of Bank Loans Philippines

While bank loans in the Philippines offer various benefits, they also come with certain disadvantages you should be aware of. 

disadvantage of bank loans

Strict Eligibility Criteria

Banks often have stringent requirements for loan eligibility. It includes a good credit history, stable income, and collateral. That’s why, it is challenging for some Filipinos or business owners to qualify for a loan.

Lengthy Application Process

The bank loan application and approval process can be time-consuming. The extensive paperwork, credit checks, and due diligence may result in delays. That’s why it is less suitable for urgent financial needs.

Risk of Collateral Loss

Secured bank loans require collateral. Your bank can seize and sell the collateral to recover the outstanding amount. You risk losing valuable assets if you are unable to meet repayment obligations.

Potential for High Penalties

Missing or delaying bank loan payments may lead to penalties and increased interest rates. As a result, it adds to the overall cost of your bank loan. You must adhere to the agreed-upon repayment schedule to avoid such a dilemma. 

Prepayment Penalties

Some bank loans have prepayment penalties. You will be charged extra fees if you repay the loan before the agreed-upon term. It limits the flexibility of borrowers to settle their debts early. You must endure the long loan tenure or repay with a prepayment fee. 

Despite being a popular and viable financing option for many Filipinos, bank loans still have disadvantages. You can overcome them if you carefully assess your financial situation and obligations. 

Preparation to Apply for Bank Loans

If you decide to take out one of the loan products and services from a bank, you must always be prepared. Consider doing the list below to improve the crucial stage of your loan approval. 

Understand your financial needs.

Filipinos search for quick cash for various reasons. Some need it for unexpected hospital bills, while others need it for a planned investment like brand-new car purchases. 

Whatever your financial reason for applying for a bank loan is, make sure it aligns with your needs. 

To ensure a successful loan application, it is essential to clearly define the purpose behind seeking financing. Before you visit an online bank website or bank near you, clearly define if it is for your home refurbishing, your child’s education, or your out-of-country vacation. 

Afterward, figure out how much it will cost you to meet the purpose of the loan. If it is for your business, estimate how much capital you require to start. But if it is for your kid’s school enrollment, inquire about the tuition fees and miscellaneous expenses. 

Check your credit report.

Many Filipinos may not know about credit reports as we are used to informal lenders such as 5-6 or Bombays

When you get a loan from a bank, the bank will look for your credit history or past debts to know your character as a borrower. We all know that lending is a risky business. Banks have set up a filtering system that greatly depends on the credit report to lessen the risk of losing money. 

Of course, if you put yourself in a lender’s shoes, you won’t lend to someone who has run away from previous debts. There is a high chance that the person will do the same to you. 

Lending is about trust, and a tarnished debt history could significantly affect your impression of the borrower. 

Your credit report is your borrowing history, and your credit score is the grade banks give you according to the information they review. Banks have various guidelines when giving scores; a passing score for one bank can fail another. If you apply for a bank loan, check your credit report first to know if you have a fair chance of approval. But if it is a bit shaky, you must first nurse it in good shape to ensure a better chance for approval.

Have a stable job for at least 6 months.

Most Filipinos get regular job positions after being on probation for six months. If you borrow quick cash from banks, you must present a document about it. 

Having a stable job proves that you have money to pay your loan. 

You need to prove that you are employed and earning the minimum net income. For example, you may be asked to submit your latest payslips and Certificate of Employment

While some authorized money lenders require at least 6 months of employment, most banks will need at least a year or two consecutive years working in your current company. 

In addition, banks lend to self-employed individuals. However, you must prove that you generate regular income for a year or two by submitting your bank statements. 

Also, an allottee who gets financial support from OFW relatives can apply for a bank loan. However, you have to show regular remittances. Unfortunately, not all banks have an allottee or OFW loans.

assess your financial health

Assess Financial Health

Pinoys must evaluate their overall financial status before applying for a loan. 

Checking your financial health is crucial to prepare for your bank loan application. A comprehensive examination of various aspects of your financial situation provides you and the lending institution with a clear understanding of your financial standing.

Banks will scrutinize your financial stability to assess your ability to repay the loan.

Assessing your financial health is critical in preparing for a bank loan application. Often, it includes your income, expenses, and existing debts. 

If you can demonstrate stability, responsible financial management, and meet your current financial commitments, you can enhance your credibility as a borrower. Also, proactively addressing any financial weaknesses can increase your chances of a successful loan application and favorable loan terms.

Keep your documents.

Filipinos know that requirements always go hand in hand with any application. The same thing goes for you when you apply for bank loans. 

Banks require a long list of documents you have to provide. However, more requirements will be added if you apply for a secured loan with your house or another asset as collateral. 

Typically, banks require various documents. It includes proof of identity, proof of income, billing statements, tax returns, bank statements, and collateral documents. But it depends on the loan you are applying for.

Keep the documents at hand and pass them all once you are asked.

Loan applications will only be processed if you have at least 2 valid IDs and complete documents. If you have this paperwork prepared in advance, you can enjoy the streamlined bank loan application process.

Use an online loan calculator.

Not all Filipinos know how to use a loan calculator. But this little tool is a great help when taking out bank loans in the Philippines. 


An online loan calculator lets you easily see the loan terms, loanable amount, interest rate, and total repayment needed. Once you see the repayment amount, you will know how much you must pay monthly. Therefore, you can see how it can affect your financial status. 

With these details, you can easily reflect on whether you can pay the monthly repayment without sacrificing your daily needs. 

Making a well-informed decision can be your ticket to a better future. 

Banks have various calculators especially created for certain loans. Make sure that you use the appropriate calculator to get the most accurate estimate. Also, you can access an online calculator today. If you visit your preferred bank website and loan type, you can compute the possible loan amount you can bring home. 

Research the kinds of bank loans.

Filipinos opt for a bank loan in whatever financial struggle they face or plan to purchase. 

Banks offer various loan products and services depending on your needs. Understand these loan offerings from different banks. Typically, you can choose from the following:

Banks can offer more variations of loans other than those mentioned above. 

Choose the best fit for your financial needs, eligibility, and payment capacity. Get a secured loan if you need a high loan amount and have assets you can use as collateral. Personal loans, on the other hand, are usually unsecured loans.

On top of the various bank loan offers, compare interest rates, fees, and terms. These loan products might sound all the same, but they differ in this aspect. Always choose the most suitable option and the finest details before finalizing your loan application.

Being thoroughly prepared for a bank loan application can increase the likelihood of approval. Also, it demonstrates to the bank that you are a responsible and informed borrower.  

Finding your Lender for Bank Loans

Now you know the perks and drawbacks of bank loans and how to be prepared for it. Your next adventure is finding a reputable and legit money lender in the Philippines. You must apply for trusted banks as it can impact the success of your loan application and the terms you secure. Consider the following considerations. 


You will know if you are qualified to apply for a bank loan with eligibility requirements. Eligibility usually includes your age, residency status, and monthly income. 

Some banks are particular about the area where the applicant lives and the landline’s availability. Others depend on your credit score and debt-to-income ratio. 

Find a bank where your status fits.

Also, since banks have a couple of loans, the eligibility could vary from one loan to another. For instance, the criteria for a personal loan may differ from those for a home or business loan. In addition, secured loans require collateral that meets the bank’s requirements.

Required Documents

Most banks require two valid government IDs. These identifications must belong to the primary valid IDs in the Philippines. Often, banks prefer a driver’s license. 

Also, you must provide proof of billing. You can use your Meralco bill or Maynilad bills. If you have a postpaid plan, you may use it as well. 

Your payslips play a vital role in your bank loan application. It indicates your proof of income and how you can repay your loan diligently. If you are self-employed, you may produce bank statements to showcase your financial transactions and stability. 

Can you provide all the requirements? 

The list goes longer if you apply for a secured loan. You need documents for your collateral, which include ownership, legitimacy, and more. Examples are property titles or vehicle registration. 

Interest Rate

Most Filipinos know that we have to pay interest when we get loans. 

As for bank loans, the interest depends on various factors. The purpose of the loan you are applying to, the kind of loan (secured or unsecured), loan tenure, and the appraised value of the collateral can affect it. 

Find a lender who offers an affordable interest rate for you. When you compare loans, use the Effective Interest Rate (EIR) per annum as this is the most accurate. It encompasses the nominal interest rate and other associated fees and charges.

You should actively inquire about the terms and conditions related to interest rates. 

Ask your bank if the interest rate is fixed or variable. A fixed interest rate remains constant throughout the loan tenure. As a result, you have stability in monthly repayments. On the other hand, a variable interest rate may fluctuate based on market conditions. It potentially impacts the overall cost of the bank loan.

Loanable Amount

When exploring bank loans in the Philippines, consider the loanable amount. Different banks may offer varying minimum and maximum loan amounts. It all depends on the type of loan applied for. 

Since we discussed bank loans, you have to expect that some banks have a high loanable amount. The loanable amount depends on the loan type you applied for. 

Some banks offer a minimum loan amount of Php 10,000. Meanwhile, others can loan you at least Php 50,000. On the other hand, the loanable amount will depend on the collateral’s appraised value for secured loans. 

You can look for other alternative lenders if you do not need such a high loan amount. 

Other money lending options provide more flexibility in securing smaller loan amounts. Regardless of the loan amount, assessing your ability to repay is essential. Most importantly, choose a bank that offers terms conducive to your financial circumstances.

Loan Purpose

There are various types of loans, and most depend on the purpose. Before you go on searching for a bank, answer these questions. 

  • Are you borrowing for your children’s tuition fees? 
  • Is your loan application for a once-in-a-lifetime grand vacation? 
  • Will you use it to purchase a house and lot? 
  • Are you buying a brand-new car? 
  • Is it for expanding your business? 
  • Do you plan to use your property as collateral to apply for bigger loans? 

When applying for a bank loan, your lender might ask for your purpose. It does not intend to intimidate or be nosy. Bank representatives need these details to guide you on which loan can be appropriate for you.

bank loans purpose

Loan Term

The loan term or loan tenure refers to the duration the borrower agrees to repay the loan. Choose a bank that offers a loan tenure that fits your needs and financial status. 

If you choose the longest tenure, it may mean low monthly dues. It seems more affordable in the short term. However, longer tenures often become more expensive in the long run. While paying smaller amortization each month would seem more affordable. As a result, it leads to a higher total cost of borrowing over the entire loan period.

Be realistic and compute how much you must pay for the loan term.

Although longer tenures offer lower monthly payments, assess whether you can comfortably manage these payments throughout the entire loan term. Make sure you can endure the entire term without compromising your financial stability.

Early Settlement Charges

Early settlement charges are also known as prepayment penalties. Some banks impose these fees when borrowers repay their loans before the scheduled due date. 

Borrowers must be aware of prepayment charges. 

While some banks charge a penalty for late repayment, others charge a penalty if you settle your loan earlier than your due date. This fee can significantly impact the overall cost of the loan. 

If some banks impose penalties, some lenders encourage early settlements or offer more flexibility.

Consider early settlement charges when choosing a bank loan. Clear communication with the bank and a thorough understanding of the loan terms help. As a result, you can make informed decisions about the loan tenure and potential early repayments.

Processing Fee

Processing fees are charges imposed by banks to cover the administrative costs associated with processing a bank loan application. 

Transparent communication with the bank about processing fees is essential. Banks are generally obligated to disclose all fees associated with the loan. You must understand how these fees are calculated.

Banks charge processing fees and deduct it from the capital loan. 

Here’s a scenario. You borrow Php 5,000 from your preferred bank. According to their policy, their processing fee is 10%. Your bank loan gets processed and approved. Then, you will only receive Php 4,500 in your bank account.

Knowing the processing fee allows you to budget effectively. It ensures that you are requesting a loan amount that accommodates the deduction.

Payment Method

The availability of payment methods ensures timely repayments. When searching for a responsible bank loan lender, consider the common payment methods offered. 

Banks usually have these three payment options. 

Automatic Debit Arrangement  (ADA) is setting up an automatic deduction from your bank account to cover your loan payments. It is convenient as it ensures that payments are on time without manual intervention. However, it requires maintaining sufficient funds in the bank account.

Over-the-counter (OTC) payments involve physically visiting a bank branch or authorized payment centers to make payments. It is a more hands-on approach since you must make payments in person. You have to consider the bank’s working hours and any potential fees associated with over-the-counter transactions.

Post-dated checks (PDCs) are required by banks for the entire loan duration at the time of loan approval. Each check corresponds to a specific installment. It provides a predetermined payment schedule. However, the account must have sufficient funds on the check’s due date.

Ensure that your bank account has sufficient funds to pay off your dues to avoid incurring late payment charges. 

If you can’t make it, do not hesitate to call your bank. Some banks might give you some repayment adjustments. Do not avoid your bank. Ignoring them may only lead you to the worst scenario.

Loan Monitoring

Loan monitoring is a crucial aspect when looking for a responsible lender. It ensures you stay informed about your loan status and repayment progress. 

Loan monitoring helps you plan your finances better. 

You can monitor your loan repayments online. Many banks provide online platforms or mobile apps that allow borrowers to monitor their loan status. It enables you to access real-time information at your convenience.

Some banks offer automatic reminders for upcoming payment dues. These reminders may be sent via email, SMS, or the bank’s mobile app. Automatic notifications help borrowers stay organized and avoid late payments.

Meanwhile, others will require you to submit a request to receive payment reminders. Check with the bank’s customer service or review the available online services to understand how to set up reminders.

Loan Process

Banks provide a secure and regulated lending environment, but the process can be time-consuming. 

Allocate time and effort for bank loan applications. 

Since banks require a long list of requirements, verifying your financial status and creditworthiness will take a few days. Usually, banks take five to 14 days or more to approve your loan. And then, it will take a few more days to disburse your cash. 

Bank loans do not fit your quick cash needs. Applying for other trusted money lending facilities is best if you need urgent money for emergencies. These entities may offer faster approval and disbursement processes, catering to your instant cash need.

Monthly Installments

Banks usually offer repayment loans in monthly installments, and the amount will depend on the terms and interest rate.

bank loans and monthly installment

Monthly installments are the required payments every month over the agreed-upon loan tenure. Frequency is a standard practice for many types of loans, including personal, home, and auto loans.

The installment amount is the breakdown between principal and interest and the repayment timeline. Banks use this information to calculate a fixed monthly payment consistent throughout the repayment period.

Monthly repayment helps you plan your finances accordingly. 

Understanding the repayment structure of monthly installments is crucial for borrowers. If you are aware of these numbers, you can manage your loans effectively and make informed financial decisions.

If you carefully consider these factors, you can identify a lender that meets your financial needs and provides a positive and reliable borrowing experience. Take time to research and choose the right lender for your bank loans. It enhances a successful loan application and a favorable money-lending relationship.

Top Lending Banks for Bank Loan Philippines

We listed some of the well-known and reputable banks in the Philippines that offer a variety of loan products that might suit your needs. 

Bank of the Philippine Islands (BPI) is one of the oldest and largest banks in the Philippines.

BDO Unibank, Inc. (BDO) is one of the largest banks in the Philippines.

Security Bank is a universal bank that offers a diverse range of banking products.

EastWest Bank provides various financial services, including personal loans, auto loans, housing loans, and credit cards.

RCBC (Rizal Commercial Banking Corporation) is a major bank in the Philippines. 

UnionBank is known for embracing digital banking innovations in the country. 

China Bank (China Banking Corporation) is one of the leading universal banks in the Philippines.

China Bank Savings is a subsidiary of China Banking Corporation, focusing on retail banking services, including savings accounts and loans.

PSBank (Philippine Savings Bank) is a subsidiary of Metrobank and offers a range of banking products.

Metrobank (Metropolitan Bank & Trust Company) is one of the largest and most prominent banks in the Philippines.

PNB (Philippine National Bank) is one of the oldest banks in the Philippines. 

These banks offer various loan products, and interest rates and terms may vary. If you pick one from them, you should check with the respective banks for the most up-to-date information. 

Applying for a Loan

By now, you have a better knowledge of bank loans. You can properly decide which bank to approach. Here is a quick guide on your loan application with your chosen bank. 

how to apply for bank loans in the Philippines
  1. Fill up the application form with accurate information to avoid confusion during verification. Every information you provide is the basis for the bank’s assessment of your eligibility and creditworthiness.
  2. Pass the complete requirements to start the loan process. Banks will not process your loan unless you have given your required IDs and documents. A complete set of requirements expedites the verification process.
  3. Wait for a bank call to learn the next step in your loan process. Be patient during this stage and await a call from the bank for updates on your bank loan application status.
  4. Sign the loan contract after reading it carefully. If you don’t understand, ask the bank representative to explain it. There might be fine prints that can cause you to pay more than you should.

If you follow these steps and understand the loan terms, you can navigate the bank loan application process more effectively. Therefore, you can decide wisely about your financial commitments.

Repayments of Bank Loans

Your credit points emphasize responsible and proactive approaches to loan repayments. You must maintain a positive financial standing for every bank loan. Follow these tips.

  1. Pay on time to avoid incurring late charges. Late payments result in additional fees and can negatively impact your credit score. 
  2. If you have a hard time, get in touch with your lender. Lenders are willing to give their borrowers options having a hard time repaying. Also, there can be a chance that your lender will consider your valid reason.
  3. If you can’t repay it, you may have the option to refinance your loan. Refinancing is restructuring the existing loan to modified terms such as a longer repayment period or adjusted interest rates. 

Proactive communication with your bank is the key when facing challenges in repaying your loan. Most banks prefer working with borrowers to find mutually beneficial solutions rather than dealing with default situations. Always explore your options and seek professional financial advice. 

Other Lenders with More Flexible Quick Cash Loans

If you’re looking for more flexible options for quick cash, there are alternative lenders and financial institutions beyond traditional banks. Here are some alternatives:


Pawnshops are financial institutions that provide short-term loans in exchange for collateral. It offers a quick way to access cash without a lengthy application process, but it puts your assets at risk if you can’t repay. 

Before, pawnshops do not offer installment methods for repayments. You have to pay the whole capital loan plus interest simultaneously. Now, pawnshops have installments but beware of the interest rates that come with them. 

Informal Lenders

Informal lenders are private moneylenders that provide flexible loans. However, they come with their own set of risks and considerations. 

Typically, these lenders require fewer documents and ask for higher interest rates. The most common examples are Bombays and their 5-6, which have a 20% interest charge. Most loan sharks will also pretend to be good lenders and ensure you will be buried deep in debt. 

Ensure the lender is legal by checking its registration with the Securities and Exchange Commission.

bank loans approved

Online Money Lenders

Some online moneylenders process loans in a day, making it fit for emergency or fast cash needs. Also, these lenders require fewer documents for quick but reliable verification. This way, you can receive your cash through your bank account or remittance service providers within 24 hours of loan application. 

In addition, online moneylenders have various loans with flexible terms from which you can choose. You can take out one whichever financial struggle you are facing. 

Moreover, get to know your online money lender by checking its SEC registration number, reading reviews of its previous clients on social media, and browsing its website. Also, a long history of reputable lending experience counts since it has a long list of satisfied clientele. 

Before choosing an alternative lender, carefully review the terms and conditions, interest rates, and repayment terms. Most importantly, ensure that the lender is reputable and complies with relevant regulations. 

Conclusion: Bank Loans for Your Quick Cash Needs

Bank loans are a viable option for securing financial assistance. Their effectiveness in meeting quick cash needs may be limited by a structured application process, stringent eligibility criteria, and the time required for approval and disbursement. Although it offers stability and regulated lending practices, it is not fit for borrowers seeking immediate funds. 

If you need a quick cash loan now, you can get it from Cash Mart. 

Cash Mart is a reliable online money lending company with more than 45 years of experience, and it is rooted in Singapore. Now, it offers flexible loans to Filipinos. Visit and learn more about its products and services.