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How to Borrow Money Online in the Philippines

Tips to Borrow Money Online in the Philippines Updated on March 2024

Why is almost everything being offered online? 

One factor that greatly affects Pinoys’ take on online commodities is the pandemic. With the worldwide quarantine experience, people buy and sell products and services online. 

Before, Filipinos used to feel hesitant when we say online. Often, they prefer to touch or test items before buying things. However, over the years, we have embraced the idea that it has become necessary in the metro as it brings convenience and instant solutions.

Today, when we need food, new fashionable clothes, or even personalized gift ideas, we look online for a shop that fits our needs and wants. We check all necessary credibility before clicking the “Place Order” button. Online shops and services offer reviews from recent clients that ease Pinoy’s hesitancy in buying online.  

One of the best new things we can do is borrow money online. Of course, loans are also available online. If you need instant cash, you can find some of these online. 

Around 47.1% of Filipino adults have experienced borrowing money from various lenders. It continuously grows as many see the benefits of taking out a loan online. In addition, different lenders offer loans that vary depending on the type of borrower they want to serve. 

Learn more about how and why many Pinoys borrow money online today. Also, know which lender offers the best loan solution today. 


Filipinos’ Preferred Lenders to Borrow Money

Before online money lending existed, Filipinos were exposed to borrowing money. Various options are available, and today, more are ready to assist you with any financial struggle you experience. We listed the most preferred financial assistance Pinoys love. 


Family, relatives, or friends (61.9%)

We love to think that our culture is family-oriented and we can create close ties with friends. This is also why most Filipinos can borrow cash from family and friends. Aside from getting extra money with no credentials needed, there is a very high chance that you will not be charged any interest rate. However, there is a very high risk that it comes with—trust.

Yes, all loans involve trust, but the trust of a dear friend or relative is something you want to keep for a lifetime. 

How many friendships have been wrecked by money?

In addition, there are times when a Pinoy will expect “utang na loob.” It means that when a person lends, the borrower is expected to help the lender if the situation has been reversed. Failure to reciprocate the kind deed creates a deep crack in the personal relationship that might never be mended. You might still be financially unstable with one less friend.

Lending/financing companies (12%)

Some Filipinos would prefer getting a loan from a licensed lending or financing company. It is more practical for them rather than letting people around them know about their financial difficulties. Also, it is highly preferred if the reason they need some cash is not essential to other people.

If you borrow money from a lending company, you have the privilege of privacy. Our culture values maintaining face and avoiding embarrassment. Financial struggles can be seen as a personal matter. In addition, your financial challenges are private. Seeking a loan from a lending company allows them to address their financial needs discreetly without disclosing their situation to friends or family.

Cooperatives (10.5%)

A cooperative is a non-government association of people who voluntarily form a group due to their common interests. Members join voluntarily based on their profession, community, or shared financial goals. 

The credit cooperative promotes savings among its members and also offers financial services. One distinctive feature of credit cooperatives is that they provide loans exclusively to their members. It creates a closed financial system where members support each other’s financial needs. Loans can be for various purposes, such as education, housing, or entrepreneurial ventures. As a co-op member, you can maximize its programs, which often include loans tailored to your financial needs. 

Informal lenders (10.1%)

Informal lenders are unregistered lenders who charge interest as high as 20% or more. It is easy to get your loan approved, such as in “5-6,” though you must prepare for astronomical interest charges. If you get a loan from a loan shark, expect to pay about 100% more on top of your capital loan if you miss a couple of paying dues.

Since the loans offered are outside the formal banking and financial system, you can borrow money quickly and easily. These lenders are not registered with government authorities, so they are not subject to the same legal and ethical standards as formal lenders. That’s why borrowers should exercise caution due to the significant risks involved. 

Microfinance NGOs (9.9%)

Microfinance NGOs offer financial services to poor and low-income Filipinos who want to earn a livelihood. They must also register with the Securities and Exchange Commission (SEC). Microfinance NGOs offer small loans as mandated by Republic Act No. 8425, known as the “Social Reform and Poverty Alleviation Act.” 

The mandated provision is only for eligible individuals—Filipinos who fall below the poverty line. It enables them to engage in income-generating activities and improve their economic well-being despite their financial status. It is an excellent program for those really in need of assistance. However, you can’t get a loan if you don’t fall in the poverty line.


Government entities (6.1%)

Government agencies include SSS, GSIS, and PAGIBIG. These government entities may give loans to Filipinos who have been members for a couple of years and have constantly contributed every month. 

SSS, GSIS, and Pag-IBIG Fund provide various loan programs. Examples are salary loans, calamity loans, emergency loans, housing loans, and multi-purpose loans. Though these government institutions offer benefits and financial support, it is widely recognized that the loan approval process may take some time. Often, they receive a high volume of loan applications during economic crises. The number of applications can result in longer processing times as officials work through the backlog.

Bank (4.4%)

Seven out of 10 Filipinos think that the bank is accessible, but only five out of 10 have transacted with this institution. Most Filipinos believe banks are very strict when approving loans, which are usually secured. It suggests that only Filipinos with assets can quickly get a loan from banks.

Filipinos believe banks usually require secured loans, and only individuals with assets can easily obtain loans. Secured loans involve collateral, such as property or assets, which the bank can seize in the event of default. You must meet the requirement limit first before you can access its financing.

Filipinos preferred lenders change over time. You might think you will stick your financial relationship with the cooperatives or steer away from them for various reasons. Your hesitancy in trusting lending institutions might be your top priority the following year. Whichever financial facility you wish to borrow money from, always be vigilant with the fine print. Fortunately, you can read through those tiny details conveniently when you take out online loans. 

What are Online Loans?

Online loans are non-traditional loans from private lenders or digital banks. It operates over the Internet, including the loan application process through mobile apps and official websites. 


The online money lending companies in the Philippines are digital and user-friendly, making them more approachable to Filipinos. Also, online short-term loans are distinct from the loan offerings of traditional brick-and-mortar banks.

In the latter, credit checks are not required between traditional banks and online lenders. Instead, online lending companies rely on your valid ID or proof of income. If you have these two, you can borrow money online. 

According to statistics, around 14.2 million combined downloads of iOS and Google Play applications indicate a substantial user base and growing interest in online loans. One or two of your family and friends might belong to this population.

However, acknowledge the online loan application procedure and requirements may vary among online lenders. As a potential borrower, carefully review the terms and conditions of each online lender to make informed decisions.

Why Borrow Money Online?

Online loans in the Philippines are well-known due to their well-structured system, which assists Pinoys in their financial dilemma. Here are the top reasons why there is a continuous increase in the number of people who borrow money online. 


24/7 Online Application

Online loans offer the flexibility of applying anytime, providing a convenient solution, especially for those facing emergencies. The accessibility through mobile apps or websites ensures that you can initiate the loan application process whenever needed.

Minimal Requirements

The eligibility criteria are simple, requiring only a valid government-issued ID. This makes online loans accessible to a broader range of aspiring borrowers. Submitting documentation, including taking a photo or scanning an ID, streamlines the application process.

Convenient Online Loan Process

You can complete the loan application process using a smartphone or computer. It eliminates the time-consuming need for physical visits to moneylending branches. This convenience is particularly advantageous if you prefer or need to avoid the hassle of travel.

Fast Online Loan Approval

Fewer document requirements make the quick application process possible. It is practical and beneficial for borrowers seeking immediate financial assistance. If you need instant cash the next day, borrow money online. 

No Need for a Bank Account 

Some lenders may request nominated bank accounts. Meanwhile, online moneylenders do not mandate a bank deposit account for online loans, which broadens their accessibility. You can disburse loan proceeds through partner remittance centers.

These advantages collectively illustrate the convenience, accessibility, and efficiency that online loans offer in the Philippines. The minimal requirements, quick approval, and alternative disbursement options align with your needs for immediate financial solutions.

10 Steps to Apply for an Online Loan

According to Bangko Sentral ng Pilipinas (BSP) studies, lending companies are the second most known source of borrowed money. What makes getting a loan easier from these companies is that many have started utilizing the web to reach more clients and make their services readily available.


Step 1: Know the amount you need and its urgency

When applying for an online loan, you must be sure you need it. Borrowing money online is like getting a serious responsibility. Take time to consider how much you need and the urgency of your situation. You can actually get cash from an online lender in one to two days.

Step 2: Shop around for a reliable lender

Chances are, you will stumble upon a couple of online lenders on the web. How will you know which is a responsible lender and which is a scam?

Check the Website Security

Since we are dealing with an online service, assess the website security of the lender every time you borrow money online. Here’s how to do it. 

Carefully look at the website’s address

There must be a small green lock icon, and the link address must start with “https.” It indicates that the webpage uses an SSL Certificate (Secure Sockets Layer). Before a company can obtain an SSL certificate, it must go through a strict validation process.


Look at the Domain

Some cyber culprits create fake websites that look very similar to the real ones. Carefully look at the domain. Check the spelling of the words. If there are any discrepancies, give the company a call or a message through its email. It is essential to validate the website beforehand for your safety. 

Is the company real?

Various online lending companies are available, but some are fraudulent. Check if the lender truly exists and if it has the following features: 

1. Physical address and phone number

A real online lending company has a physical address. They may not require their clients to go to their office to finalize the loan process, except that they operate in an office. Also, you can get an actual phone number. Try calling it to confirm if it actually works.


2. Privacy statement

The company must have a statement that promises its clients to keep all information private and secure. It must be written in the Note of Contract as well. 

Assess Eligibility and Requirements 

Compared to banks, online lenders request the following information to confirm your credibility. 

  • Age and citizenship must be clearly stated.
  • Payslips must prove income, as lenders want to ensure that they can get back their money.
  • Government ID is a must to prove your identity.
  • Proof of billing is important for the lender to authenticate your home address.

Processing Speed

Online lending companies usually approve loans just a day after you complete your application form and meet all the listed requirements. But before that, you must pass the eligibility test.


Check the lender’s website for its SEC registration number. This will help you determine whether the company is legal. Also, you can visit the SEC website‘s list of recorded online lending platforms. 

sec registration number

Loanable amount

Responsible online lenders approve loans that they think you can easily pay back. Check their online loan calculator to see how much you can borrow, the terms you choose, and the interest charge you must pay.


Loan Tenure

Online lenders usually offer quick cash loans payable in just a month or so. You can borrow money online for short terms without incurring too much interest.

Existing reviews on social media

Since online lenders use the web to offer services, they naturally have social media accounts. It is their method of giving their clients a platform for feedback. Check on these SNSs first to get an idea of their customer service. 

Meticulous verification

Online lenders ask for fewer documents and do not require a personal application. Instead, they conduct a thorough interview through calls to clients and their character references. It is their way of validating your creditworthiness.

Step 3: Check the eligibility

After shopping around for reliable lenders, review each lender’s eligibility criteria. Often, these include age requirements, income levels, and other factors. Check if you can meet the eligibility requirements. Then, choose a lender whose criteria match your financial situation. Save yourself some time and effort. Lenders automatically reject applications from clients who fail to meet the eligibility requirements.

Step 4: Submit the filled-up online application form.

An online lender now has a loan application form on its website. Before submitting the form, ensure all the details are accurate and complete for quick processing. Be honest about your personal and financial information. Online lenders can verify your details even through the Internet. 

Step 5: Upload the needed documents.

All online or offline lenders process loan applications only if the required documents are complete, accurate, and precise. Upload your requirements through the secured online platform. It may include scanned copies of your ID, proof of income or paycheck, and other essential documents as instructed by the lending representative.

answer calls

Step 6: Anticipate and answer the call from the lender.

Online lenders will give you a call to validate your information and evaluate your credibility as a borrower. Expect questions that are already asked in the application form. They do this to make sure everything you have written is accurate and if it is you who has applied. It prevents identity thieves from getting a loan in your name.

Step 7: Tell your contact reference to expect and answer the call from your lender.

Online lenders will only proceed with your loan application if they reach your character reference. A reliable reference is essential during the verification process. Inform them beforehand and explain that the call will only take a few minutes.

Step 8: Ask questions and negotiate

Do not hesitate to ask questions and negotiate for a better offer. For example, the online lender offers terms such as weekly and bi-weekly. Ask how these could benefit you more. Also, carefully review the loan terms, interest rates, repayment schedule, and associated fees. Make sure you understand all the terms before accepting the loan.

Step 9: If approved, expect to sign a loan contract

Though you have applied for an online loan, do not get overly excited when you receive the contract. Take time to read the whole contract. If there are things you want to clarify, feel free to ask your lender. Accept the loan agreement if you have no other questions about the terms. The lender’s website guides you on how to sign the agreement digitally.

Step 10: Receive the disbursed cash and pay your dues on time.

Once approved, wait to receive the quick cash loan. The time it takes for the funds to reach your account can vary. After receiving your cash in your bank account, remember to mark your calendar for your due dates. Adhere to the agreed-upon repayment schedule. Also, you can schedule automatic repayments. Always settle the right amount on time to avoid incurring late payment charges. This way, you can maintain a good credit report

Valuable Tips for Safe and Legit Borrow Money Online

Enhance your online borrowing experience by using these practical and safe tips.

  • Educate yourself about your options, rights, and responsibilities to benefit more from your loan. As a responsible borrower, you can use your personal loans from registered lenders to build up your credit report. A good credit report is vital to approved housing and car loans from banks.
  • Never fabricate details, as online lenders never tolerate lies. You might be listed as a red flag.
  • Never negotiate with lenders who ask for advance fees, as this is a sign that the lender is a loan shark. Legitimate lenders only charge fees after the loan process has been finalized with a contract.
  • Spend the cash loan strictly for its purpose. While using the borrowed money for other necessities might be tempting, doing so will make it harder for you to repay the principal and interest. 
  • Always pay on time. It helps you maintain a good credit history. Also, loan apps might even give you a higher loan limit. 
  • Document all loan transactions and communications. It is a wise practice to protect yourself from fake online loan companies. Also, it helps you provide clarity in case of disputes.
  • Budget your loan repayment to avoid incurring deadly penalties. Before you apply for your loan, identify how you will pay for it. Most online loans offer a short repayment period. If your next paycheck is for another month, choose a scheme that can cater to it.

Remember to be cautious and only borrow from reputable lenders when you borrow money. Avoid scams or predatory lending practices. Always read the terms and conditions carefully before accepting any loan offer. If you have any doubts, seek advice from a financial specialist. Your quick cash loan must save you from impending debtfall, not vice versa. 

CashMart: Your Trusted Partner to Borrow Money Online

If you want to borrow money online in the Philippines, use a strategic and informed approach. Maximize the availability of information 24/7 for your convenience and flexibility. 

Empower yourself by harnessing the benefits of online borrowing while mitigating potential risks. Also, prioritize responsible borrowing practices by searching for licensed online moneylending institutions.  

Ready to get an online loan from a reputable online moneylender? 

Visit today.