Personal loans are popular because they are flexible. They can be used for major purchases such as a house or a car, as funds for business, or during times of emergency. In the Philippines, there are two types of personal loans: secured and unsecured loans.

Before you apply for a personal loan, it is best to consider which of these personal loans is best for you. GoBear compares unsecured loans in the Philippines so you can make the best decision when it comes to your personal loan application.






What are unsecured loans?


Unsecured loans is a type of personal loan offered by banks and lending institutions where borrowers are not required to present a collateral or security in order to apply. All you have to do is meet the bank’s eligibility criteria and requirements. Unsecured personal loans are convenient during times of emergency or if you are planning to start your first business.


Advantages of unsecured loans


Applying for unsecured loans is fuss-free because you do not need to present a valuable asset in order to apply. This is good if you do not want to risk your collateral. Unlike in secured loans, banks won’t be able to take your asset and use it as payment in case you are unable to re-pay the loan. Millenials who have not yet accumulated enough assets to provide a collateral for a loan can take advantage of the no-collateral benefit of unsecured loans.


Disadvantages of unsecured loans


Because unsecured loans do not require a form of security, banks are more cautious in approving this type of personal loan. Unsecured personal loans take longer processing time than secured loans. In addition, banks may charge a higher interest rate on unsecured loans compared to secured loans. The loanable amount for unsecured loans may also be lower than those of secured loans.


Loan companies in the Philippines offering unsecured loans


Most personal loans in the Philippines are unsecured loans. Below are the unsecured personal loans available from banks and financial institutions all over the country.

Note: To compare unsecured loans, we used the loan comparison tool from GoBear. We set the loan amount to ₱100,000 which is enough to start a business. We also set the personal loan tenure to 24 months, and the salary to ₱30,000.


Sterling Bank of Asia Personal Loan




Sterling Bank of Asia has the lowest monthly payment and interest rate for a ₱100,000 personal loan. On the other hand, while it has the lowest interest rate for unsecured personal loans, Sterling Bank has a higher processing fee compared with other banks offering unsecured loans.

Sterling Bank also has a higher income requirement (₱30,000) compared to other banks.


Chinatrust Salary Stretch Loan

Chinatrust is another personal loan provider that offers lower interest rate than others. For a ₱100,000 personal loan, you will only have to pay ₱5,657 per month which already includes the interest rate. You can loan up to ₱1,000,000 using the Chinatrust Salary Strech Loan.


Bank of Makati Personal Loan


Bank of Makati also offers a low monthly payment and interest rate. If your salary is ₱20,000 and above, you can apply for unsecured loans from the Bank of Makati. The Bank of Makati Personal Loan also has a low processing fee of ₱1,500.


EastWest Personal Loan

EastWest offers unsecured loans from ₱50,000 to ₱2,000,000. The bank has low interest rates and processing fee. It also has a lower income requirement of ₱20,000.


Equicom Personal Loan


You do not need to own a credit card to apply for a personal loan from Equicom. The Equicom Personal Loan also has lower income requirements, low interest fees, and reasonable monthly payment. Loanable amount ranges from ₱50,000 to ₱2,000,000.


Security Bank Personal Loan


The Security Bank Personal Loan is among the unsecured loans included in the list of personal loans for people with a ₱30,000 income bracket. Compared to other personal loans, Security Bank offers a higher loan processing fee; however, it has a lower interest rate compared to Equicom.

To gain an overview of the available personal loans for the given scenario, check out the table below. You can also use the loan comparison tool at GoBear to compare all unsecured loans, interest rates, fees, and requirements.