Best Personal Loans in the Philippines


Frequently asked questions

Q: What is a personal loan?

A personal loan is a line of credit provided by banks and lending companies in the Philippines to help the borrower ease into investments, consolidate debt, pay for car repair, home renovation and more.

Q: Where can I get a loan?

There are a lot of banks where you can get loans. You can check out the list of banks that are in close partnership with GoBear to see the wide range of loans they offer.

Q: What are the types of personal loans?

There are two main types of personal loan:

Secured Loans
You can only get a secured loan if you put up for collateral a piece of property that is as valuable as the cash you are borrowing. If you are unable to pay, your property will be taken by the bank to settle your account.

Unsecured Loans
You can easily apply for this type of loan because it does not require a collateral. This is the loan type preferred by many although it has more stringent requirements.

Q: What documents are required for a personal loan application?

Below are the most common documents required when applying for a personal loan. You can use the GoBear search tool to learn about the necessary documents needed per loan offer. Requirements differ for each bank.

  1. Proof of Identification: Valid government ID's with a photo and signature
  2. Proof of Income
    • Employee: latest BIR Form 2316 or W2 signed by employer's authorized representative, Certificate of Employment and Income, and last full month's pay slip
    • Self-employed: latest ITR with BIR stamp, latest two years Audited Financial Statements, SEC Registration or DTI Certificate, Business Permit or Mayor’s Permit, latest six months bank statements, list of 3 suppliers and 3 customers with contact details, and latest GIS (if corporation)
  3. Additional documents for Permanent Resident (PR): Employment Contract or Certificate of Employment, Letter from the Embassy (if Embassy Official), valid passport with resident visa or work permit, valid Visa or Special Investor's Resident Visa, and Visas Philippine Economic Authority or Visa with EO226, ACR, ICR, or ACR1
  4. Other documents: Latest utility billing statement with residence address and latest credit card billing statement

Q: What is Loan Tenure or Term of Loan?

The "Loan Tenure" or "Term of Loan" for personal loans can range from 1 to 5 years. Renovation loans are limited to five years and education loans can be up to 10 years. The length of the loan, or tenure, is an important determinant. The longer the tenure, the more interest you will pay.

Q: What is the lowest personal loan interest rate?

Banks revise their personal loan rates from time to time. The lowest personal loan add-on rate is 13.2% (without collateral) and 9.48% (with collateral) per year. This is the flat interest rate. More important, is the effective interest rate, which shows the actual cost of borrowing. Add-on is the flat rate, which is placed on top of the principal amount you borrowed.

Q: What can I use Personal Loan for?

A personal loan is an unsecured installment loan that you can use for pretty much whatever you want. You can use it to finance a medical emergency, a family holiday, or even that new laptop you’ve been eyeing. There are more specialized loan products available if you need to finance your home renovation, business, or education.

Q: How much can I borrow with a personal loan?

The amount you want to borrow will depend on your ability to pay for the personal loan, your proof of employment, and the other documents you presented upon application for the loan.

Q: Why does GoBear not include the Effective Interest Rate?

The Effective Interest rate is introduced by moneysense to provide a clearer overview of the cost of borrowing. However, banks have some liberty in definition of effective interest rate and include or exclude certain factors to lower these rates. It is mandated by law for banks to notify you on the Effective Interest Rate.

When comparing loans of the same tenure, it is easier to look at the total payment you will be making on a loan. At GoBear we include all costs associated with the loan and break it down for you in easy categories so you can see what you are paying at a glance.

Q: How does GoBear break down the costs on loans?

When getting a loan, transparency about costs and repayments is often lacking. To provide you with a better overview, we have broken down all the costs that are associated with your loan:

Monthly payment: your monthly payment for the total duration of the loan (this includes interest payments and principal repayment.

Total Payment: Includes all interest paid, all principal repaid and loan servicing costs.

Interest Payments: All interest that you will pay during the duration of the loan

Servicing costs: All non-interest payments such as processing fee, servicing costs or annual fees.

The total payment includes all costs that you will pay when taking the loan plus the repayment of the loan.