When it comes to borrowing money, one of the things you need to check is the lender’s interest rates. You need to make sure that your total repayment won't be exorbitantly higher than what you’ve borrowed. Thankfully, there are many banks and financial organizations in the Philippines that offer loans with low interest.
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.
Read on to learn more about personal loans with low interest and see your options:
Where Can You Use a Personal Loan with Low Interest?
You can use a low-interest loan for a variety of purpose, such as the following:
- Funding your or your kid’s education – Whether you’re planning to go back to school or you need to fund your kid’s education, a personal loan can help you cover relevant expenses.
- Buying an appliance or gadget – Planning to upgrade to a better laptop? Need additional funds to buy new appliances for your home? You can always turn to a low-interest personal loan in the Philippines.
- Paying for home repairs or renovation – If you’re planning to expand your kitchen or add a new bedroom to your house, a personal loan will provide you with the money you need.
- Funding your business – Starting a business needs capital. If you’re starting from scratch with meager savings, a loan with low interest can give you a boost.
- Funding a wedding – Make your dream wedding come true with funds from a low-interest loan in the Philippines.
- Funding a trip – Whether you’re visiting a loved one somewhere in the Philippines or traveling abroad for leisure, you can beef up your vacay budget with a personal loan.
- Paying for hospitalization – Medical bills can bore a hole in your pocket. Deal with expenses like surgery and medicines with the help of a personal loan.
- Paying for emergencies – Car breakdowns, unemployment, accidents, and the like can catch you off guard financially. A personal loan with low interest can tide you over.
- Covering other debts – If you’re paying a high-interest debt, consider applying for a loan with low interest and use the proceeds to pay the existing loan. That way, you’re only dealing with a low interest rate.
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 or Financial Institutions 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 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:
📌 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: Three to five days
- 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[1] 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%
- 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 (deducted from loan proceeds)
- Late payment fee: 36% per annum on overdue payment
- Documentary Stamp Tax: 0.75% of the drawn loan amount (deducted from loan proceeds)
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 education.
Read our HSBC Personal Loan guide before you apply online or at any HSBC branch.
📌 Maya Personal Loan
- Monthly add-on rate: As low as 0.77%
- Loan amount: ₱15,000 to ₱250,000
- Loan terms: Up to 24 months (with 36-month and 48-month terms coming soon)
- Processing time: Within minutes
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 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: One to two banking days
- 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, 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.
Read more in this CIMB Personal Loan guide.
📌 BPI Personal Loan
- Annual contractual rate: 28.67%
- 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 28.67%.
The amount for the BPI Personal Loan ranges from ₱20,000 to ₱2 million, payable in up to 36 months. For the bank’s Seafarer Loan, you can apply for as much as ₱300,000. However, note that this is subject to BPI’s approval.
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 ₱2 million
- Loan terms: 12 to 36 months
- Processing time: Seven working days
- Loan fees:
- Disbursement 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 ₱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.
The Metrobank Personal Loan is also flexible, allowing you to use it for purposes like travel, wedding, and purchases of big-ticket items.
- Closure handling fee: 4% of the unbilled principal component of the loan that is prepaid
📌 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 five minutes
- Loan fees:
- Disbursement fee: ₱1,750 for each disbursement
- 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. This is the ideal option if you’re buying an item with a hefty price tag and you need more time to return the borrowed amount.
Just like the other loans on this list, the UnionBank Personal Loan is an unsecured loan, meaning you don’t need to pledge collateral to get cash. Get the lowest personal loan rates with UnionBank and have it approved in as fast as five minutes when you apply online.
📌 Maybank Personal Loan
- Monthly add-on interest rate: 1.3%
- Loan amount: Up to ₱1 million
- Loan terms: Up to 36 months
- 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% 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: As low as 0.90% (depending on the borrower)
- Loan amount: ₱50,000 to ₱1 million
- Loan terms: Six to 36 months
- Processing time: Five to seven days
Another loan with the lowest interest rate is from RCBC. The monthly add-on interest rate is as low as 0.90%, but do note that this rate may vary per borrower. The RCBC Personal Loan 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: Starts at 1.39%
- Loan amount: Up to ₱2 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 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 Personal Loan
- Monthly add-on rate: 1.39% to 1.99%
- 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
- Documentary Stamp Tax: ₱1.50 per ₱200 of the loan amount
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 post-dated checks.
📌 Welcome Bank Salary Loan
- Monthly add-on rate: Starts at 1.39%
- Loan amount: ₱50,000 to ₱500,000
- Loan terms: 12 to 36 months
Welcome Bank also offers a salary loan, something you can apply for if you have minimum qualifications. You must be at least 21 years of age and are employed for at least two years. The income requirement is ₱20,000 per month.
This loan with low interest can be used for a variety of purposes, whether it’s covering this week’s groceries or paying for your child’s tuition. Just like Welcome Bank’s Personal Loan’s repayment terms, this loan requires you to pay via post-dated checks.
📌 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.
The revolving credit line, as per PSBank, is a type of credit that doesn’t have a fixed number of payments. This means that the amount you can borrow increases or decreases depending on the repayment amount. In principle, the PSBank Flexi Personal Loan’s Revolving Credit option works like a credit card, but with a considerably lower interest rate.
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: Starts at 1.79%
- Loan amount: ₱25,000 to ₱3 million
- Loan terms: 12 to 60 months
- Processing time: Within five to seven banking days
- Loan fees:
- Processing fee: ₱1,900
- Documentary Stamp Tax: ₱1.50 per ₱200 of the loan amount
- Late payment fee: ₱500 or 8% per month, 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 60 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: As low as 1.79%
- Loan amount: ₱10,000 to ₱500,000
- 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; to be deducted from the loan proceeds
- 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 1.79% 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!
📌 Security Bank Personal Loan
- Monthly add-on interest rate: 2%
- Loan amount: ₱30,000 to ₱2 million
- Loan terms: 12 to 36 months
- Processing time: Within five banking days
- Loan fees:
- Processing fee: ₱2,000
- Notarial fee: ₱100
- Documentary Stamp Tax (for loans ₱250,000 and above): ₱1.50 per ₱200 of the loan amount
- Late payment fee: 3% of unpaid amortization or ₱500, whichever is higher
Need to fund emergency expenses, tuition fees, or perhaps even a car purchase? Consider the Security Bank Personal Loan. Avail of up to ₱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.
📌 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
- Loan fees:
- Processing fee: ₱1,500 (to be deducted from loan proceeds)
- Documentary Stamp Tax (for loans ₱250,000 and above): ₱1.50 per ₱200 of the loan amount (to be deducted from loan proceeds)
- Late payment fee: ₱500 or 5% of the overdue balance, whichever is higher
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.
📌 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 ₱3 million
- Loan terms: 12 to 36 months
- Loan fees:
- Processing fee: ₱5,000
- Notarial fee: ₱300 (for ₱100,000 loan amount and up)
- 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 ₱3 million, payable in 12, 18, 24, or 36 months.
You can conveniently apply for this personal loan with low interest by using the zuki app by SB Finance. This app is available for download at the App Store and Google Play.[2]
📌 CBS Easi-Funds Personal Loan
- Monthly interest rate: Starts at 2.73% (will be confirmed upon loan approval)
- Loan amount: ₱30,000 to ₱1 million
- Loan terms: 12 to 36 months
Depending on your loan term, the CBS Easi-Funds Personal Loan interest rates vary. Use this cash loan, which can range up to ₱1 million, to fund home renovations and other big expenses.
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 can help 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. 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]
Loan with Low Interest: FAQs
Got some questions regarding loans with low interest? You may find the answers here:
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.
Here’s how you can get a high credit score:
- Pay your debts, such as loans and credit card bills, on time.
- Never max out your credit card. Make sure that your usage is within 30% of your credit limit.
- Limit the number of credit cards you own.
- If possible, ask for a credit limit increase. That way, your credit utilization rate will become lower.
2. Can you get a loan with 0% interest rates?
Technically, you can–but with the help of a credit card. This comes in the form of 0% interest installments. The catch is this scheme is only available at the card’s partner shops and is usually offered as a promo.
3. How can I lower the interest rates of my personal loan?
One of the best ways to lower interest rates of your personal loan is to have a higher credit score. That’s because your credit score represents your trustworthiness as a borrower.
You can also negotiate your way through a lower interest. Show your lender the rates of their competitors, and they may have a change of heart.
If you already have an existing loan and you find a similar loan with lower interest rates, you can refinance your existing loan. That way, the lower interest rate prevails, making repayments easy. You may also go for debt consolidation or balance transfer schemes of credit card companies to manage your debt and take advantage of low interest rates.
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] My.SSS Homepage
[2] zuki app on Google Play | zuki app on the App Store - [3] What Constitutes a Good Debt-to-Income (DTI) Ratio? (Investopedia, 2023)