What is an online loan?
As the name suggests, an online loan is a loan that you can apply for through the internet, from a lender’s website or a loan app. Everything is done digitally from the loan application, to getting approved, and receiving the money straight to your bank account or e-wallet.
It’s fast, convenient, and you can do it anytime, anywhere in the Philippines.
Who can apply for a loan online?
Requirements can vary between online lenders. Here are the most common ones that you need to meet. Depending on the loan amount and the approval process of the lenders, optional documents may be requested.
Basic Eligibility and Required Documents
Citizenship: Must be a Philipino citizen or a foreigner, currently residing in the Philippines with a valid billing address.
Age: At least 18 years old (some lenders require 21+) when applying for the loan and at most 70 years old upon the loan’s last instalment.
Required Documents: Government-issued ID (e.g., Passport, Driver's License, UMID, SSS ID, or PRC ID).
Valid phone number and email address: The lender should be able to contact you for updates and verification.
Optional Documents
Valid bank account or e-wallet: If the loan is paid out online, make sure the account number and name are correct.
Proof of income for employed candidates - An employment contract and/ or a payslip.
Proof of income for self-employed candidates - Proof of business profitability and/ or credit history.
Proof of Billing - Utility bill (e.g., electricity, water, phone) or credit card bill may be required as proof of your address.
Selfie with Valid ID - This can be requested for identity verification, to ensure that you are the one who is really applying for the online loan.
What is the online loan application process?
Applying for an online loan in the Philippines is quick and easy. Once you have prepared the documents the lender requires, simply fill out the form on their website or loan app.
Once you send your loan application, wait for the lender's response. Many lenders use digital tools to verify your information. Therefore, it usually only takes a few minutes to receive an answer.
If you are approved for the loan, you will receive a loan agreement from the lender. Take the time to read through it and be sure to understand exactly how much the loan will cost you and when you need to repay it.
Once you have signed the agreement, and the online loan is approved, funds are transferred directly to your bank account or e-wallet. Some companies also offer payout over the counter, through payment partners nationwide in the Philippines.
Tips on getting an easy loan approval
In order to quicky and easily get a loan, perspective borrowers need to have a good credit history and demonstrate that they can repay the loan in time.
Keep a good credit score – Paying your bills and loans on time is a quick way to build a good credit score. Missed payments affect your credit score negatively.
Show a steady income – Regular salary or business income prove that you have the means to make your monthly instalments. For larger loans, lenders will require a certain income threshold.
Borrow only what you need – Smaller loan amounts have higher approval rates because they are less risky for the lenders.
Prepare the documents you need – Having all the required documents at hand when you apply for the loan and sending them all at once will save you time and speed up the lender’s response time.
Is it possible to qualify for a fast loan online if you have debt or a poor credit score?
Many lenders in the Philippines offer online loans even though you have existing debts or a low credit score. However, a poor credit score often results in smaller loan amounts, higher interest rates, and stricter loan terms.
To improve your credit score, consistently pay your bills and loans on time and reduce outstanding debts. If needed contact the lenders you have loans with and discuss possible repayment plans, and settle overdue balances.
How to repay your online loans with monthly payments in the Philippines?
Here are the most common ways to repay your online loan. Always check on the lender's webpage which repayment methods do they use.
E-Wallets and Online Banking: Most lenders offer repayment via E-wallets (Gcash and Maya) or via your bank account. On the lender's website, you can see a step-by-step guide with screenshots of how to make your repayment successful.
Payment centres: On the lender’s website you can see which payment centres they partner with. You can also see a guide on how to make payments and what information you need to complete the payment, e.g. company name, account name & number, contact number, amount.
Be sure to check the exact due date of the loan and the amount. Paying the monthly payments of your online loan on time helps you avoid penalty fees and builds a good credit score.
Legit lending companies in the Philippines
When applying for an online loan, it’s important to choose legit lending companies that are properly registered with the Securities and Exchange Commission (SEC). These companies follow government regulations, offer fair loan terms, and protect your personal information.
Before borrowing money online, always check if the lender is on the SEC’s list of authorized lending companies to avoid scams and illegal operators. Most legit lending companies state their SEC registration number directly on their website, usually at the bottom of the page.
Moneezy is an online loan comparison platform that only works with legit lending companies in the Philippines, registered in SEC.
Common mistakes to avoid with online loans
Online loans offer speed, convenience and accessibility, but rushing into one without consideration or reading your loan terms can lead to costly consequences.
Always prioritize transparency and safety, use trustworthy platforms, and read your loan agreement before signing. Here are some common mistakes and how to avoid them when taking online loans in the Pilipinas.
Be aware of scams
Legit lenders in the Philippines are SEC-registered. They do not have hidden fees and do not require any upfront fees.
Falling for “too good to be true” promises
Scammers will often use fake loan offers with very low, if any interest rates and guaranteed approval. They may require an upfront fee or ask for money under some other context. Legit lenders never ask for advance payments, too much personal information or access to your contacts, messages or media files when using a loan app.
Ignoring the fine print
Always read the full terms and conditions of the loan agreement. Especially when the loan has low interest rates. A loan that is advertised for its low interest rate may include extra fees, short repayment periods and higher penalties rates.
Overlooking the repayment schedule
Choose a loan term that fits your budget and income cycle. Some loans require repayment in just 7 or 30 days. To avoid late payment penalties, make sure to check the repayment dates and amounts in your loan agreement and write them down in your calendar.
Not comparing loan offers
There are many online lenders in the Pilipinas. They all have different rates, fees, and approval terms. Use free comparison platforms, like Moneezy, to compare and find the loan offer that best fits your needs and budget.
