Where to Loan? The Most Popular Ways to Borrow Money in the Philippines

With our finances getting tighter everyday, it is inevitable to explore every possible way in order to “makamura” or shop in lighter payments in order to make ends meet. It also becomes more inevitable to borrow money from various sources to help with our monthly spending.

One most common way to borrow money nowadays is to apply for loans. But with so many choices, how do you make sure that you’re choosing the right one?

Ways to borrow money

There are different reasons and ways to borrow money in the Philippines. The two most common types of lending institutions are the formal and informal lending institutions; formal lending institutions are regulated and licensed by the Securities and Exchange Commission of the Philippines while informal lending such as 5-6 usually operate without licenses and are considered illegal.

There are also different types of loans, depending on the amount of your loan.

Secured Loan: Lenders will ask for a collateral as a guarantee in case you fail to pay your loan on time. In most cases, it is easier to get approved for secured loans because of this kind of arrangement. Common examples of collateral are cars, houses, and savings accounts.

Unsecured Loan: Collaterals are not required and are commonly more flexible in terms of payment and where you can use the amount. The amount for unsecured loans are usually lower than secured loans.

Where to borrow money in the Philippines

There are lots of loan providers out there. While banks and government agencies are still reliable lenders, financing companies have sprouted left and right, offering fast and convenient service to those who need quick loans.

Let’s explore these popular ways to loan money and see which one is right for you!

1. Banks

People have long been relying and trusting banks when it comes to loans. This is because banks offer numerous loan products such as mortgages, personal loans, auto loans, housing loans and others. You just go to your preferred branch, submit your application form and supporting documents, wait for the loan processing, and you’re good to go!

However, getting a loan from banks can be quite tedious. Banks require a lot of documents and the waiting time can be long. Fortunately, digital advances have helped simplify the whole process to some extent.

2. Government Agencies

Similar to banks, borrowing money from government agencies is pretty straightforward, sometimes with more flexible terms. Whether you’re a government employee or working in the private sector, agencies who offer loans that can be used for whatever purpose.

On the other hand, agencies also require a lot of documents and can take a long time to process loans. In the Philippines, loan applicants would also be required to fulfill a minimum amount of contributions before they can be eligible for loans. And the maximum amount of loan is dependent on the total number of the loan applicant's contribution.

Not to mention that some agencies require you to submit documents physically, which can be burdensome in this time of the pandemic.

3. Financing Companies

Digitization has paved the way for financing companies to flourish, especially during this pandemic. These companies offer quick loans through an app or a website, without the need for physical documents or a long wait time.

They offer flexible rates and terms depending on the borrower’s salary or paying capacity, and can process loans faster than banks or government agencies.

We know that flexibility and convenience matters most when it comes to cash loans. You can never go wrong with UnaCash! You get loans with reasonable rates and flexible terms, plus there’s no need for physical documents or a long processing time!

Where to borrow money online?

ways to borrow money

If there was any good thing that came out of being on lockdown for more or less 2 years, it was that the majority of private and government services became available online.

1. Borrow money from banks online

These days, most banks with online banking have also started offering loans online as a means for their clients to borrow money without the hassle of physically going to the bank, filling out paperwork, then coming back again to claim their loans.

It has become easier to borrow money from banks, especially through their websites and mobile applications. However, you will still have to wait the same amount of time to receive your loan and submit the same amount of documentary requirements.

2. Borrow money online from government agencies

Government agencies such as SSS and Pag-ibig also migrated their loan application online to reduce the amount of people lining up physically at their offices.

With SSS, you only have to activate your MySSS Online account and apply for a loan through their web platform depending on the type of loan you wish to avail such as Calamity or Salary Loans.

Pag-ibig also offers various ways to borrow money online, but some loans are specific to areas devastated by earthquakes or floods. If you don’t fall under any of these categories, you may apply for a multi-purpose loan. Just visit their website, enter your loan type and Member ID number and submit the required documents.

However, always remember that the total amount of your loan will still depend on how these agencies assess your profile and the number of total contributions you have from that particular agency.

3. Borrow money online through lending apps

Tons of online lending apps (OLAs) like UnaCash are now readily available on your mobile devices. This is one of the most common ways to borrow money recently.

One reason is because they offer short-term loans where you can borrow ₱2,000 to ₱50,000 with loan terms ranging from 1 day to 6 months. Another reason is that the processing time is shorter.

Where to Apply for Loans: Requirements for borrowing money online

Regardless of where you are applying, the requirements for each agency will be the same; only everything is in digital format when done online. You are still required to fill out an application form, submit proof of identity like IDs, proof of income, and proof of address (for some). Additional requirements may be asked like ID photos, but that really depends on where you’re applying.

If you’re borrowing money from banks, the common requirements are 2 valid IDs (e.g. company and government ID), proof of income (e.g. latest 3 months payslip, remittance slips, bank statements), and an accomplished application form. Submit the form to the bank or online via their website or mobile application and wait for their confirmation.

They usually send an email or conduct verification calls so keep your lines open for any additional requirement they may ask. If your application is declined, it usually takes about 3 months to 6 months for you to be able to apply again.

Government agencies also encourage online applications for their members and their requirements vary from one agency to another. So make sure to check the list of their requirements before submitting in their application portals online. Unfortunately, despite having mobile applications, government agencies still require either online application through their websites or through personal appearance at their agencies. So make sure you check that out as well.

Requirements for online lending applications like UnaCash are more simple than banks and government agencies. You would only need 1 ID, proof of income, and an accomplished application form. Submit the forms within the mobile application and wait for the approval of your application.

ways to borrow money

If your application is declined, OLAs usually have a shorter waiting period compared to banks. Waiting period ranges from 3 weeks to 30 days.

READ MORE: Things to Consider when Applying for a Loan


1. Where to loan money in the Philippines?

Depending on the amount of your loan and your preferred loan terms, you can borrow money from banks, online lending applications, and government agencies.

2. Where can I borrow money?

There are various institutions where you can borrow money but always remember that formal lending institutions like banks and OLAs are safer than informal lenders.

3. Where to loan 50k?

Banks and some OLAs like UnaCash offer loans from ₱2,000 to ₱50,000 up to millions of pesos (e.g. house and car loans), but the final loan amount would still depend on your credit score and credibility.

4. How to borrow money from the bank?

Prepare the required documents and submit the application. Some find it easier to borrow money from banks where they are also savings account holders.

5. How do loans work?

Loans are specified amounts which you can borrow from a bank or lending institution that you can repay after a period of time. Loan terms can range from 1 day to up to 2 years, with the total amount of your loan divided by the number of months of your loan terms; plus the interest rate of the loan which can range from 1% to 16% of the total amount of your loan. Interest rates depend on the lending institution, so make sure you check those out before you apply for a loan.

6. How to borrow money from UnaCash?

Download the UnaCash app and apply for credits from ₱2,000 to ₱50,000. Accomplish the forms and submit with 1 valid government ID and 1 proof of income. Wait for the approval within 24 hours to 48 hours.

Download the app now and start your application!

Written by: Alyssa Divina | Edited by: Karla Maolen Visbal

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