19 Personal Loans with Low Interest Rates in the Philippines (2024)

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 it is you need, 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.

Monthly Add-On vs Effective Interest Rate: What is the Difference?

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.

Which Banks Offer the Lowest Interest Rates on Personal Loans?

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 Philippines—not just from banks but also government agencies. Choose the best personal loan that fits your needs and budget.

📌 SSS Salary Loan

• Effective interest rate: 10% per annum (based on diminishing principal balance)
• Loan amounts:
  • One-month salary loan - For member-borrowers who have at least 36 months of total contributions and six months of contributions in the last 12 months
  • Two-month salary loan - For member-borrowers who have at least 72 months of total contributions and six months of contributions in the last 12 months
• Loan terms: Up to 24 months
• Processing time: In as fast as 60 seconds^[2]
• Loan fees:
  • Service fee: 1% of the total loan amount
  • Late payment penalty: 1%

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.

📌 Pag-IBIG Multi-Purpose Loan

• Effective interest rate: 10.5% per annum
• Loan amount: Up to 80% of the borrower's regular Pag-IBIG savings
• Loan terms: 24 to 36 months
• Processing time: As fast as two days

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.

📌 HSBC Personal Loan

• Monthly add-on interest rate: As low as 0.65%
• Effective interest rate: 14.29% for 24 months
• Loan amount: ₱30,000 to ₱500,000
• Loan terms: Six to 36 months
• Processing time: Five to seven working days
• Loan fees:
  • Processing fee: ₱1,500
  • Late payment fee: 36% per annum on overdue payment
  • Documentary Stamp Tax: 0.75% of the drawn loan amount (deducted from loan proceeds; applies to the loan amount of at least ₱250,000 or for business purposes)

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 ₱500,000, which you can use to fund various needs, such as travel or education.

Read our HSBC Personal Loan guide before you apply online or at any HSBC branch.

📌 CIMB Bank Personal Loan

• Monthly add-on interest rate: Starts at 0.83%
• Loan amount: ₱30,000 to ₱1 million
• Loan terms: 12 to 60 months
• Processing time: Loan application in just 10 minutes, approval in 24 hours, instant disbursem*nt to your CIMB account or one to two banking days for other bank accounts
• Loan fees:
  • Documentary Stamp Tax: ₱1.50 per ₱200 of the loan amount
  • Late payment fee: 5% of the unpaid installment due or ₱300, whichever is higher

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, tap I need a personal loan and Apply now.

Supply the required information, upload all your requirements, and finish the Virtual Verification process. If approved, you'll receive an email with the contract of your legit online loan with low interest.

Read more in this CIMB Personal Loan guide.

📌 Maya Personal Loan

• Monthly add-on rate: Starts at 0.83%
• Effective interest rate: 1.40% per month
• Loan amount: ₱15,000 to ₱250,000
• Loan terms: Up to six months
• Processing time: Within minutes

Whether you need to upgrade your home or work equipment, grow your business, or consolidate your debts, Maya Personal Loan can help you with your financing needs. You can 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.

📌 PNB Personal Loan

• Monthly add-on rate: 1% to 2%
• Loan amount: ₱10,000 to ₱2 million
• Loan terms:
  • Three to 36 months for loans below ₱500,000
  • Up to 48 or 60 months for loans above ₱500,000

Any personal expense amounting to up to 2 million can be funded by a PNB Personal Loan. With its low monthly add-on interest rates of 1% to 2%, you can enjoy easy monthly installments and pay your monthly amortization through postdated checks or Auto Debit Arrangement.

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.

📌 BPI Personal Loan

• Monthly add-on interest rate: 1.2%
• Annual contractual rate: 25.60%
• Loan amount: ₱20,000 to ₱3 million
• Loan terms: 12 to 36 months
• Processing time: Five to seven working days
• Loan fees:
  • Processing fee: ₱1,500 (one-time; deducted from loan proceeds)
  • Documentary stamp tax: ₱1.50 per ₱200 of the loan amount (for BPI personal loans above ₱250,000 or for business purposes)

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 ₱20,000 to ₱2 million, payable in 12, 18, 24, 30, or 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.

📌 Metrobank Personal Loan

• Monthly add-on interest rate: 1.25% to 1.75%
• Annual contractual rate: 25.976% to 36.742%
• Loan amount: ₱20,000 to ₱1 million
• Loan terms: 12 to 36 months
• Processing time: Seven working days
• Loan fees:
  • Disbursem*nt fee: ₱1,500
  • Late payment fee: ₱850 per incidence
  • Pre-termination fee: 5% of the outstanding balance or ₱550, whichever is higher

Borrow up to ₱1 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.

📌 UnionBank Personal Loan

• Monthly add-on interest rate: 1.29%
• Annual contractual rate: 26.9%
• Loan amount: Up to ₱2 million
• Loan terms: 12 to 60 months
• Processing time: As fast as 24 hours
• Loan fees:
  • Disbursem*nt fee: ₱1,750 including stamp duty
  • Closure handling fee: 4% of the unbilled principal component of the loan that is prepaid
  • Late payment fee: ₱500 or 6% of the overdue amount, whichever is higher

The UnionBank Personal Loan also offers low interest rates at 1.29%. It has the longest repayment term—up to five years—in the Philippines. You can borrow up to ₱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 via the UnionBank website.

📌 Maybank Personal Loan

• Monthly add-on interest rate: 1.3%
• Loan amount: ₱50,000 to ₱1 million
• Loan terms: 12 to 36 months
• Processing time: Five to 10 working days
• Loan fees:
  • Processing fee: ₱2,000 to ₱3,000
  • Documentary stamp of ₱1.50 for every ₱200 if the loan amount is over ₱250,000
  • Credit Life Insurance (amount depends on age and loan maturity)

One of the best low interest personal loans in the Philippines is the Maybank Personal Loan, which offers a 1.3% fixed interest rate. Need to fund a big expense? With this loan, you can borrow up to ₱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.

📌 RCBC Personal Loan

• Monthly add-on interest rate: 1.3%
• Loan amount: ₱50,000 to ₱1 million
• Loan terms: Six to 36 months
• Processing time: Up to seven days

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 ₱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.

📌 CTBC Bank Personal Loan

• Monthly add-on interest rate: 1.39% to 1.79% across all loan terms
• Loan amount: ₱20,000 to ₱1 million
• Loan terms: 12 to 36 months

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, education, balance transfer, business, travel, and more.

Its interest rates are also among the lowest in the market, starting at only 1.39% for the monthly add-on rate.

Once you have completed the loan application form and gathered all the required documents, email your loan application to salarystretch@ctbcbank.com.ph.

📌 Welcome Bank Personal Loan

• Monthly add-on rate: 1.39% to 1.8%
• Loan amount: ₱50,000 to ₱1 million
• Loan terms: 12 to 36 months
  • Processing fee: 3% of approved loan amount
  • Notarial fee: ₱400
  • Late payment: ₱1,500 or 15% of amortization, whichever is higher

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 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.

📌 Tonik Quick Loan

• Monthly add-on interest rate: 1.71% to 4.39%
• Loan amount: ₱20,000 to ₱250,000
• Loan terms: Six to 18 months
• Processing time: Within two days

Looking for a quick loan with low interest? Check out the Tonik Quick Loan. Aside from being one of the lowest in the market at 1.71%, you can apply for a Tonik Quick Loan right from the Tonik app if you have a Tonik account.

You just need to upload the requirements and wait for the approval. Once approved, accept the offer and receive your loan proceeds in your Tonik account.

📌 PSBank Flexi Personal Loan

• Monthly add-on interest rate: 1.75% for Term Loan; 2.5% monthly interest rate for Revolving Loan
• Effective interest rate:
  • 42.88% for 24 months (Term Loan)
  • 41.29% for 36 months (Term Loan)
  • 34.49% for 12 months (Revolving Loan)
• Loan amount: ₱20,000 to ₱250,000
• Loan terms: 24 or 36 months (for fixed-term loans)
• Processing time: Five to nine working days
• Loan fees:
  • Handling fee: ₱1,500 or 1% of the approved credit line, whichever is higher
  • Credit line renewal fee: ₱1,500
  • Collection fee: 15% to 35% of the total outstanding amount in case of default (depending on delinquency age)

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.

📌 EastWest Bank Personal Loan

• Monthly add-on interest rate: 1.79%
• Loan amount: ₱25,000 to ₱2 million
• Loan terms: 12 to 36 months
• Processing time: Within five to seven banking days
• Loan fees:
  • Processing fee: ₱1,900
  • Pre-termination processing fee: ₱500 or 8% of the outstanding principal balance, whichever is higher
  • Late payment fee: ₱500 or 8% of unpaid amortization, whichever is higher

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.

📌 UNO Digital Bank Personal Loan

• Monthly add-on rate: 2%
• Loan amount: ₱10,000 to ₱200,000
• Loan terms: Six to 36 months
• Processing time: Up to seven banking days
• Loan fees:
  • Processing fee: 3% of the loan amount of ₱500, whichever is higher
  • Late payment: 5% of unpaid loan amount or ₱500, whichever is higher
  • Pre-termination fee: 3% of unbilled amount or ₱300, whichever is higher

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!

📌 SB Finance Personal Loan

• Monthly add-on interest rate: 2% to 5%
• Annual percentage rate: 39.43% for 36 months
• Loan amount: ₱30,000 to ₱2 million
• Loan terms: 12 to 36 months
• Processing time: Within five banking days
• Loan fees:
  • Processing fee: ₱5,000
  • Notarial fee: ₱300 (for ₱100,000 loan amount and up)
  • Pre-termination processing fee: ₱2,500
  • Late payment fee: 3% of unpaid amortization or ₱500, whichever is higher

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 ₱30,000 to ₱2 million, payable in 12, 18, 24, or 36 months.

Easily apply online through its website and get your loan approved within a week.

📌 CBS Easi-Funds Personal Loan

• Monthly interest rate: 2.73% to 2.92% (will be confirmed upon loan approval)
• Loan amount: ₱30,000 to ₱1 million
• Loan terms: 12 to 36 months
• Processing time: Three to five working days

Depending on your loan term, the CBS Easi-Funds Personal Loan interest rates vary, ranging from 2.73% to 2.92%. Use this cash loan, which can range up to ₱1 million, to fund emergency expenses, home renovations, debt consolidation, and more.

To get your loan application started, visit the CBS website.

At a Glance: 19 Personal Loans with Low Interest Rates in the Philippines

For your easy and quick reference, here's a summary table of low-interest personal loans:

How to Choose a Personal Loan with a Low Interest Rate in the Philippines

A personal loan with a low interest rate helps fund any emergency expenses or projects. It can also help you consolidate debt or fund your child’s education. However, research and thoroughly evaluate your finances before getting one.

Here are a few steps to consider when getting a personal loan at a low interest rate:

Step 1: Crunch the Numbers

The last thing you or any lender want is to take out a loan you can’t afford. It's just a disaster in the making. However, you can avoid this by determining how much cash you need after loan charges are deducted.

Then, figure out how much you need to pay monthly. Make sure you can afford this amount and that it won’t strain your budget.

Step 2: Compare Loan Products

If you want to get the lowest loan interest rate in the Philippines, don’t settle for the first offer you see. Check every nook and cranny of the internet to find the best deals.

You can get the lowest-interest personal loan through banks, government agencies, and other lending institutions. The choice is up to you.

Consider the following factors when choosing where to loan money:

• Loan amount
• Loan term
• Monthly interest rate
• Loan fees
• Requirements

Step 3: Prepare the Requirements

Once you’ve narrowed down your choices, check the bank or financial institution’s loan requirements. Some lenders require a minimum annual income to qualify for a personal loan.

You may also have to fulfill document requirements proving your identity and source of income.

Then, get your documents in order. This will fast-track your loan application and save you from the stress and hassle of going back and forth to the lender’s office just to submit all your documents.

Step 4: Read the Fine Print

Make sure to read the terms and conditions of the personal loan. This piece of paper will give you important information about your personal loan, which can save you thousands of pesos in the long run. If you have any other concerns, ask your lender.

Step 5: Apply for the Loan and Get Ready for Repayments

After choosing the best deal for your needs, it’s time to apply for a personal loan. Again, get your documents in order and make sure you're eligible for the loan.

Don't forget to set up a payment scheme for your loan. Adjust your budget to accommodate your monthly payment and ensure you’re not spending more than 30% of your monthly income just to cover debts. This 30% rule is considered a good debt-to-income ratio.^[3]

How Do I Get Approved for a Low-Interest Loan?

So you've found a personal loan with the lowest interest rate in the Philippines. But will your application get approved?

Just because a lender offers a personal loan with a low interest rate doesn't mean everyone can qualify for it. This is especially true for banks, which conduct credit checks to evaluate borrowers' ability to repay loans. They look specifically at a loan applicant's credit score.

You have a great chance of getting a low-interest personal loan if your credit score is high. But if it's low, you might get a high interest rate or get rejected.

That's why it's essential to check your credit score. You can negotiate with the bank for a lower interest rate if you know yours is good. If your score is bad, make sure to improve it before you apply for a personal loan.

Final Thoughts

While banks and government agencies are known for their strict requirements, these lenders still cater to everyone's financial needs by offering personal loans with low interest rates in the Philippines.

As long as you practice financial discipline and maintain a good credit history, you can easily qualify for low-interest rates and eventually save money on interest payments.

Sources:

• ^[1] 2021 BSP Financial Inclusion Survey
• ^[2] SSS promises salary loan approval in ’60 seconds + 5 clicks’ (Manila Bulletin, 2022)
• ^[3] What Constitutes a Good Debt-to-Income (DTI) Ratio? (Investopedia, 2023)