Nowadays, having financial flexibility has become a necessity for Filipinos of all walks of life.
Whether you’re a hardworking employee trying to make ends meet, a parent facing unexpected school fees for your child, or an entrepreneur trying to keep your business afloat, there are times when you may need to borrow money.
Luckily, there are legitimate online loan apps in the Philippines that offer low interest rates to help you with your financial needs.
Advantages of Online Loan Apps
Still unsure about using online loan apps? Here are some advantages that might convince you.
Convenience and Accessibility
With online loan apps, you can apply for a loan from the comfort of your own home.
You won’t have to wait in long lines or wait for hours to speak with a loan officer. You can even receive a decision within minutes.
Fast Approval and Disbursement
Once your application is approved, you can receive your loan disbursement in as fast as one minute to 24 hours. This is particularly helpful in emergency situations.
Competitive Interest Rates
Many apps offer competitive interest rates that are lower than those of traditional lenders that don’t have an online presence.
Although it’s not as low as bank loan interest rates, this can still help you save you money in the long run.
Flexible Loan Terms
With loan terms ranging from 6 months to one year (with some even up to 5 years,) you can choose a loan term that fits your financial situation best.
Some loan apps also offer flexible repayment options, allowing you to make early payments without penalty.
How to Identify Legitimate Online Loan Apps
Here’s a quick guide to help you identify legitimate online loan apps.
- Government Registration and Regulation (SEC)
Before applying for a loan, check if the app is registered with the Securities and Exchange Commission (SEC) and if it follows regulations set by the government.
You can easily confirm this by checking the app’s website or app description.
Customer Reviews and Ratings
Reading customer reviews and ratings can give you an idea of other people’s experiences with the loan app.
Pay attention to any complaints about hidden fees or poor customer service. You may also talk to your friends who have used the loan app before to get an honest opinion.
Be wary of apps with low ratings or negative reviews. This is a red flag for potential scams or predatory lending practices.
- Transparency in Terms and Conditions
Read through the fine print and understand all charges before submitting an application.
If anything seems unclear or too good to be true, it’s best to look for another loan app.
- Data Privacy and Security
Legitimate loan apps should have strict data and security policies to protect your information.
Check for measures to secure your data such as encryption and firewalls. If you fail to do this, you will be at risk of having your personal information stolen or misused.
Top Legit Online Loan Apps with Low-Interest Rates in the Philippines
Take a look at these top legitimate online loan apps in the Philippines that offer low-interest rates to help you with your financial needs.
Don’t have time to go through each option? Check out this table below to compare interest rates.
| Loan | Interest rate (per month) |
| Tonik Quick Loan | Starts at 1.7% per month |
| GLoan | 1.59% to 6.57% per month |
| Home Credit | Starts at 1.83% |
| Skyro | Starts at 1.5% to 7% (On the website, interest rates start at 2.9%)
|
| AEON | Starts at 2.25% |
Tonik Quick Loan
Interest rate: 1.7% – 4.26% per month
Loan amount: up to P250,000
If your priority is to get a higher loan amount, Tonik Quick Loan is a standout option. It offers a generous loan limit of up to P250,000, making it ideal for those with bigger financial needs.
What’s truly impressive about this loan is how fast you can get approved. With Tonik Quick Loan, you can enjoy one day approval.
The interest rate is also quite reasonable at just 1.7% per month. Plus, you can choose a loan term of up to 18 months, giving you flexibility in how you repay the loan. This loan also does not have any hidden fees.
To apply for this loan, download the Tonik app and sign up for an account. Then, upload the requirements. After confirming your loan details, accept the offer and wait for the amount to be disbursed to your Tonik account.
Requirements and eligibility:
- 23 to 58 years old
- Minimum monthly income of P15,000
- Filipino nationality
- Philippine resident
- Valid ID
- Tonik Savings Account (free upon signing up)
- Bank Statement of Account (SOA)
- Bank ATM
- Valid Taxpayer Identification Number (TIN)
- Proof of Income
GLoan
Interest rate: 1.59% – 6.57% per month
Loan amount: up to P125,000
If you’re a pre-qualified GCash user, look no further than GLoan. This loan gives you quick and convenient access to funds, offering an impressive loan limit of up to P125,000. What’s even more remarkable is the simplicity of the process since there are no additional documents or requirements to fulfill, as long as you have a high GScore. Approval only takes one minute.
This loan also offers a competitive interest rate, which starts at just 1.59% per month. This low rate ensures that you can borrow the money you need without being burdened by high interest charges. Moreover, GLoan offers a longer loan tenure extending up to 24 months so you can comfortably manage your repayments and plan your finances accordingly.
There are also no hidden charges or surprises lurking in the fine print. What you see is what you get so it will be easier to budget your payment afterwards.
To apply for this loan, open your GCash app and click “borrow” on the main page. Select “GLoan” and input your loan details. After verifying your loan application, enjoy instant disbursement to your GCash account.
For more details about this loan, check out this page.
Home Credit
Interest rate: Starts at 1.83%
Loan amount: P3,000 to P150,000
When time is of the essence, Home Credit cash loan delivers thanks to its fast approval process, with funds disbursed in just one minute. You can credit your cash loan to your bank account or claim it at any of Home Credit’s partner stores for free.
A remarkable 90% of the loan process is completed digitally, ensuring a seamless and secure borrowing experience. Because of this, you can say goodbye to the hassles of traditional lending and embrace the ease of managing your finances from the comfort of your own device.
For borrowers seeking flexibility in repayment, Home Credit Cash Loan offers a loan tenure ranging from 6 months to an extended 60 months – the longest on this list.
Home Credit cash loan is also considerate of borrowers’ diverse financial needs. For those who prefer not to overextend themselves, the loan comes with a reasonable minimum amount of P3,000. On the other hand, if you require a more substantial sum, Home Credit Cash Loan caters to those needs as well, with a maximum loan amount of P150,000.
Requirements and eligibility:
- Must be a Filipino citizen
- 18 – 68 years old
- Valid ID
Apply for this loan here.
Skyro
Interest rate: Starts at 1.5% to 7% (on the website, interest rates start at 2.9%)
Loan amount: P5,000 to P250,000
Want to purchase something from Tecno, Emcor, Rasmoto, or Cyberzone? Skyro may be the perfect choice for you.
This loan provider also has an impressive approval probability, which stands at up to 80% so even though the application process may take a bit longer (approximately 30 minutes), your chances of securing the loan you need are significantly higher.
To apply for this loan, visit any of Skyro’s partner merchants and choose what you want to purchase. After this, meet a Skyro agent and fill out the digital application. Finally, you can sign your loan agreement and enjoy your purchase.
Keep in mind that this loan requires you to have a minimum down payment starting at 20% of the purchase price.
Eligibility and requirements:
- Filipino citizen aged 23 to 65 years old
- Valid ID with your current address
- Proper proof of your income
- Smartphone with a valid mobile number
AEON
Interest rate: Starts at 2.25%
Loan amount: Subject to credit evaluation
The AEON Personal Loan has interest rates starting at just 2.25%. Additionally, it has a fast approval process. In just one day, you can go from applying for the loan to having the funds you need. Loan terms range from 6 months up to a year.
AEON takes pride in being accessible across the Philippines, with offices in key locations like Cebu, Davao, Pampanga, and Legazpi. This widespread presence means that you can easily reach out to their representatives and explore your financial options with them.
Requirements:
- 2 valid IDs (can be one as long as it is UMID, SSS, Passport, Driver’s License of GSIS ID)
- Proof of Billing
- Proof of Income
Know more about this loan here. https://www.aeonphilippines.com.ph/personal-loan/
Eligibility Criteria and Required Documents
When it comes to applying for online loans, meeting the eligibility criteria and submitting the required documents is key.
General Eligibility Criteria for Online Loans
Many lenders only cater to Filipino citizens who are at least 18 years old (age requirement varies depending on the lender).
You should also have a steady source of income and a good credit score to increase your chances of approval.
List of Documents Required
Get at least one valid government-issued ID such as a passport, driver’s license or SSS ID.
You may also be required to provide recent payslips or proof of income, as well as any other documents that may be required for credit evaluation.
Tips for Successful Loan Application
These tips will help you increase your chances of getting approved for a loan.
- Ensure Complete and Accurate Documentation
Double-check all the required documents before submitting, including your IDs, proof of income, and any other supporting documents that may be requested by the lender.
Any missing or outdated information may delay the approval process or even lead to your loan application being denied.
Understand the Terms and Conditions
The terms and conditions will help you understand the interest rates, repayment terms, and any other fees or charges that may be associated with the loan.
Assess Your Repayment Capacity
Evaluate your monthly expenses and income to ensure that you will be able to make timely repayments without straining your finances.
This will prevent any missed payments or defaults
Loan Repayment
Each loan provider has unique repayment policies, so it is essential to research and choose a lender with the most flexible policies that suit your unique needs.
Different Options for Loan Repayment
Most online loans offer monthly installments which means that you will have to pay a fixed amount every month until the loan is fully repaid.
Some lenders (particularly for appliance and furniture loans) may also require you to pay a minimum downpayment fee which amounts to around 20% of the purchase price.
When it comes to the loan repayment, check first if there are penalty fees for early repayment, as well as late payment fees.
Tips for Managing Your Loan and Ensuring Timely Repayment
First, create a budget to ensure that you can make your monthly payments on time without overspending.
Second, set up automatic payments if possible to ensure that you don’t miss any payments accidentally. If not, set up multiple reminders on your phone.
Finally, keep track of your repayment schedule to ensure that you’re on track to pay off your loan as quickly as possible.
If you run into financial difficulties and are unable to make your payments on time, contact your lender as soon as possible. Many lenders offer flexible payment options and may be willing to work with you to find a mutually-beneficial solution.
Author Bio:
MJ de Castro is the lead personal finance columnist at Grit PH. MJ started her career as a writer for her local government’s City Information Office. Later on, she became a news anchor on PTV Davao del Norte. Now, she juggles writing professionally, her business centering on women’s menstrual health, and surfing.
