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How to Borrow Money Online in the Philippines

Filled under: Borrow 

(Updated March 22, 2017)

Why is almost everything being offered online? Filipino’s used to feel hesitant when we say online, however, over the years we have embraced the fact that it has become a necessity for us in the metro as it proves to bring convenience and instant solutions. 

When we need something such as food, new fashionable clothes, and even personalized gift ideas, we go online and look for a shop that fits our needs and wants.

If needs are offered on the web, of course, loans can also be available online. Around 47% of Filipino adults have experienced borrowing money from various lenders.

Different lenders offer loans that also vary depending on the nature of borrowers they want to cater. Know which lender gives you the best loan solution.


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Filipinos’ Preferred Lenders

  • 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 a reason why most of the Filipinos can still borrow cash from family and friends. Aside from getting an extra cash with no credentials needed, there is a very high chance that you will not be charged with 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?

There are also times when a Pinoy will expect “utang na loob.” This means when a person lends, it is expected for the borrower to also help the lender in case the situation has been reversed. Failurereciprocate the kind deed creates a deep crack in the personal relationship that might never be mended. You might end up still financially unstable with one less friend.

  • Lending/financing companies (12%)

There are Filipinos who would prefer getting a loan from a lending or financing company rather than letting people around them know the financial difficulty they are in especially if the reason they need some cash might not pass up as important to other people. 

  • Cooperatives (10.5%)

A cooperative is a non-government association of people who voluntarily made a group due to same interests. The credit cooperative promotes savings to its members and also offers financial services. However, it only gives loans to their members.

  • Informal lenders (10.1%)

Informal lenders are unregistered lenders who charge interests as high as 20% or more. It is very easy to get your loan approved, such as in “5-6,” though you have to get ready 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 payment dues.

  • Microfinance NGOs (9.9%)

Microfinance NGOs offer financial services for the poor and low-income Filipinos who wants to make a livelihood. Small loans are offered as mandated by Republic Act No. 8425 known as “Social Reform and Poverty Alleviation Act.” Microfinance NGOs must also be registered with Securities and Exchange Commission (SEC). If you don’t fall in the poverty line, then you can’t get a loan from them.

  • Government entities (6.1%)

These include SSS, GSIS, and PAGIBIG. These government entities may give loans to Filipinos who have been members for a couple of years and have been constantly contributing every month. Though these are government institutions, we know that it takes a long time to get approved.

  • Bank (4.4%)

Seven out of 10 Filipinos think that the bank is accessible but only five out of 10 actually had actually experienced transacting with this institution. Most Filipinos believe that banks are very strict when approving loans which are usually secured. This creates a notion that only Filipinos with assets can easily get a loan from banks.

Steps to Apply for an Online Loan

According to the studies of Bangko Sentral ng Pilipinas (BSP), the second most known source of borrowed money are lending companies. What makes getting a loan easier from these companies is that many of them 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 that you really need it. Getting a loan is getting a serious responsibility. Take time to consider how much you really 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 in the web. How will you know which one is a responsible lender and which one is a scum?

  • Check the Website Security
  1. Carefully look at the website’s address. There has to be a small green lock icon and the link address must start with “https” which means it is using an SSL Certificate. For a company to have an SSL Certificate, it has to go through a strict validation process.


  1. Look at the Domain

There are cyber culprits who create fake websites that looks very similar with the real ones. Carefully look at the domain. Check the spelling of the words. If there seem to be some discrepancies, give the company a call or a message through its email to validate the website.

  1. Is the company real?
  • Physical address and phone number

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


  • Privacy statement

The company must have a statement that promises its client to keep all information private and secured.

  • Eligibility and requirements are usually easier to meet and provide compared to banks and other lenders.
  1. Age and citizenship must be clearly stated.
  2. Income must be proven by payslips as the lenders want to make sure that they can get back their money.
  3. Government ID is a must to prove your identity.
  4. Proof of billing is important for the lender to authenticate your home address.
  • Processing Speed

Online lending companies usually approved loans in just a day after you complete your application form and all the listed requirements provided that you pass the eligibility.

  • Legality

Check the website for the lender’s SEC registration number. Through this, you can check if the company is legal or not.

sec registration number

  • Loanable amount

Responsible online lenders approve loans which they think you can pay at ease. Check its online loan calculator to see how much you can borrow, the term you can choose and the interest charge you have to pay.


  • Loan Tenure

Online lenders usually offer quick cash loans which are payable in just a month or so.

  • Existing reviews in social media

Since online lenders use the web to offer services, they naturally have social media accounts to give their clients a platform to give their feedbacks.

  • Meticulous verification

Since online lenders ask for lesser documents and do not require a personal application, they conduct a thorough interview through calls to clients and their character references. This is their way to validate your creditworthiness.

Step 3: Check the eligibility

After shopping around for reliable lenders, check if you can meet the eligibility requirements. Save yourself some time and effort. Lenders automatically reject applications from clients who fail to meet the eligibility.

Step 4: Submit the filled up online application form

Before you submit your online application form, make sure all the details are accurate and complete for quick processing.

Step 5: Upload the needed documents

All lenders, may it be online or not, naturally process loans only if the required documents are complete, accurate, and clear.

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 which are already asked in the application form. They do this to make sure everything you have written is accurate and if it is actually you who have submitted the application. This is to avoid 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 not process your loan unless they will be able to reach your character reference. This is part of their verification process. Tell them that it will only take a few minutes.

Step 8: Ask questions and negotiate

Do not hesitate to ask questions and negotiate for a better offer. Let’s say the online lender offers terms such as weekly term and bi-weekly term. Ask how these could benefit you more.

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

Though you have applied for an online loan, expect that a loan contract will be sent to you. Do not get overly excited, take time to read the whole contract. If there are things you want to clarify, feel free to ask your lender.

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

Once you received your cash in your bank account, do not forget to mark your calendar for your due dates. Settle the right amount on time to avoid late payment charges and keep a good credit report.

Valuable 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 your key to approved housing and car loans from banks.
  • Never fabricate details as online lenders never tolerate lies. You might end up listed as a red flag.
  • Never negotiate with lenders who asks 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.

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