According to the 2021 Bangko Sentral ng Pilipinas (BSP) financial inclusion survey, the interest rate is one of the top considerations for Filipino borrowers, [1] which is why many go for low-interest personal loans.
After all, when you take out a personal loan with a low interest rate in the Philippines, you hit two birds with one stone. Not only will it fund whatever you need, but it will also allow you to pay off the loan in affordable monthly payments.
The best personal loans with low interest rates in the Philippines are usually from government agencies and banks. These loans help you save money, as they keep the interest payments low over the loan's duration.
First things first: Let's clarify the differences between the two types of interest rates on personal loans in the Philippines. Lenders typically advertise two types: the monthly add-on and effective interest rates.
The effective interest rate, or the annual percentage rate (APR) , reflects the true interest you're paying on a loan.
On the other hand, the monthly add-on interest rate is calculated by combining the amount of the loan and the annual interest rate, then multiplied by the number of years you hope to repay the loan. This results in a more expensive monthly amortization cost for the borrower.
When checking for different types of personal loans, try searching for a lower monthly add-on interest rate.
Wondering which bank offers the best option for a personal loan? We've listed some of the lowest interest rates for personal loans in the Philippinesβnot just from banks but also from government agencies. Note that ultimately, your interest rate will still depend on the bank's assessment of your application.
Choose the best personal loan that fits your needs and budget:
The SSS Salary Loan is a government loan with a fixed low interest rate of 10% per year, meaning the monthly payments will not fluctuate monthly. Qualified SSS members can borrow one or two months' worth of their monthly salary credit and repay the loan in 24 monthly installments.
Loan repayment is also convenient for employed borrowers, as their monthly amortization is automatically deducted from their salary. No wonder it's the Filipinos' top-of-mind choice for their short-term cash needs.
To apply, members can log in to their My.SSS account or head to the nearest SSS branch.
Another popular low-interest personal loan in the Philippines is the Pag-IBIG Multi-Purpose Loan. Sharing many similarities with the SSS Salary Loan, the Pag-IBIG loan offers a low fixed rate of 10.5% and allows monthly repayment through payroll deduction. The loan is payable in 24 to 36 monthly installments.
Qualified Pag-IBIG members can borrow 80% of their total accumulated value (TAV). The TAV is a sum of all monthly Pag-IBIG contributions, employers' share of contributions, and the total dividends earned.
Pag-IBIG Multi-Purpose Loan applications can be coursed through the member's HR department (if employed) or any Pag-IBIG branch. You can also apply online via the Virtual Pag-IBIG platform.
Wondering which bank has the lowest interest rate on a personal loan? With an attractive rate of 0.65%, HSBC's cash loans with low interest rates are a good option. You can borrow up to β±500,000, which you can use to fund various needs, such as education.
Read our HSBC Personal Loan guide before you apply online or at any HSBC branch.
Looking for a quick loan with low interest? Whether you need to upgrade your home, pay for tuition fees, or buy big-ticket items, the Maya Personal Loan can help you with your financing needs. Get your loan instantly in your Maya Wallet and easily pay monthly installments within the app.
If you're eligible for a Maya Personal Loan, click on the Loans tab in your Maya app and follow the prompts. Review and confirm your loan amount to receive your loan proceeds.
CIMB offers one of the lowest personal loan interest rates in the Philippines. And if you do everything on your phone, you'll be glad to know that CIMB offers an all-digital personal loan application. Launch your CIMB app, then proceed with your application from there.
Supply the required information, upload all your requirements, and finish the verification process. If approved, you'll receive an offer for a legit online loan with low interest.
BPI is also one of the banks with the lowest interest rates. It has an affordable option for Filipinos who need to borrow money through its low-interest personal loan with an annual contractual rate of 25.60%.
The amount for the BPI Personal Loan ranges from β±20,000 to β±2 million, payable in up to 36 months.
Applications are accepted at any BPI branch. To save time, you can submit your application online by filling out the application form on the BPI website.
Borrow up to β±2 million and enjoy rates as low as 1.25% with the Metrobank Personal Loan.
Just prepare a signed promissory note and disclosure statement and a valid government ID, fill out the online application form, and wait for a call regarding your application. Metrobank processes loans in as fast as seven business days.
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The UnionBank Personal Loan also offers low interest rates at 1.29%. It has the longest repayment termβup to five yearsβin the Philippines. You can borrow up to β±2 million and repay it in 12, 24, 36, 48, or 60 months.
Get the lowest personal loan rates with UnionBank and have it approved in as fast as five minutes when you apply online.
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Promo period: Until October 31, 2024
Need funds? Avail of a UnionBank Personal Loan via Moneymaxβand, if you apply until October 31, 2024, get a welcome gift worth up to β±7,499!
If your disbursed amount is below β±250,000, you get Giftaway cash credits worth β±1,000. If it's β±250,000 and above, choose between a JBL Flip 6 Portable Waterproof Speaker worth β±7,499 or Giftaway cash credits worth β±5,000.
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This Moneymax UnionBank Personal Loan promo runs until October 31, 2024. Per DTI Fair Trade Permit No. FTEB 199222 Series of 2024. Terms and conditions apply.
One of the best low interest personal loans in the Philippines is the Maybank Personal Loan, which offers a 1.3% interest rate. Need to fund a big expense? With this loan, you can borrow up to β±1 million, depending on your salary and bank approval.
To apply for this low-interest rate personal loan, visit any Maybank branch or call its customer service line at (02) 8588-3888.
Another loan with the lowest interest rate is from RCBC. The monthly add-on interest rate is 1.3%. It allows you to borrow up to β±1 million with flexible terms of up to 36 months. Approval may take up to seven days.
You can avail of this personal loan by going to any RCBC branch, completing the personal loan application form, and submitting your income documents.
Also called Salary Stretch Loan (for individuals), CTBC Bank's Personal Loan is a multi-purpose loan that salaried employees and self-employed people can avail of for home improvement and other goals.
Its interest rates are also among the lowest in the market, starting at only 1.39% for the monthly add-on rate.
Contact CTBC at 8840-1234 or 1-800-10-8401234 to inquire.
Welcome Bank also offers a non-collateral personal loan with higher loan amounts and low interest rates. Don't worry if you don't have a Welcome Bank branch nearby since you can apply for this personal loan online.
Just fill out the online application form on the website and wait for a call from Welcome Bank regarding your loan requirements. Your application will undergo verification and approval, after which you'll receive the proceeds of your approved loan.
Loan repayments are made through postdated checks.
If you're shopping for lower interest loans, consider the PSBank Flexi Personal Loan. This collateral-free product is the only personal loan with a revolving credit line and fixed term. You get an ATM card as well.
On top of that, you also receive rebates under their loan rebate program when you make advance or excess loan payments. Check out this article about the PSBank Flexi Personal Loan for more details.
Proceed with applying online or at your nearest PSBank branch.
Another low-interest loan option that offers high loan amounts and competitive terms is the EastWest Personal Loan. Since it's a multi-purpose loan, you can use it to fund any emergency or milestone. You don't need a collateral or co-maker, and you can pay for up to 36 months at affordable interest rates.
To apply, fill out the online EastWest Personal Loan application form. Upload your scanned supporting documents and submit your application.
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Want to explore loan products from digital banks? Check out UNO Digital Bank. The #UNONow Loan offers a relatively low monthly add-on rate of 2% across loan terms of six to 36 months.
You can easily apply for this loan with only a valid ID and the UNO app. You can also get approved within seven days!
Need to fund emergency expenses, tuition fees, or perhaps even a car purchase? Consider the Security Bank Personal Loan. Avail of up to β±2 million with a monthly add-on rate of 2%.
Easily apply online via the Security Bank website. You can get approved within five banking days.
Any personal expense amounting to up to 2 million can be funded by a PNB Personal Loan. With its low monthly add-on interest rate, you can enjoy easy monthly installments.
Application is also easy. Download and complete the PNB Personal Loan application form, prepare your loan requirements, and submit them to any PNB branch. You may also email the scanned documents to PNB-CFS-PLRetail@pnb.com.ph.
One of the best low-interest personal loans in the Philippines is this one from SB Finance, a subsidiary of Security Bank. The monthly interest starts at 2%. Meanwhile, loan amounts range from β±30,000 to β±2 million, payable in 12, 18, 24, or 36 months.
Easily apply online through its website.
Depending on your loan term, the CBS Easi-Funds Personal Loan interest rates vary. Use this cash loan, which can range up to β±1 million, to fund home renovations and other big expenses.
To get your loan application started, visit the CBS website.
For your easy and quick reference, here's a summary table of low-interest personal loans:
