Are you in dire need of money, but your savings are insufficient to cover your expenses? Whatever the reason for your financial difficulty, there are several online loans with monthly payments in the Philippines that can help you get through this tough time.
You may also want to read our list of the best finance apps in the Philippines.
Despite the high approval rate of these new financial institutions and digital banks, convenience and security are not compromised. This means that you can easily apply for a loan online and get approved within minutes without worrying about the safety of your personal information and funds.
In this article, we’ll look at some of the top online loans with monthly payments in the Philippines that you can consider.
Table of Contents
Top Online Loans with Monthly Payments in the Philippines
Here are the top online loans you should consider:
| Company | Loan Amount | Interest Rates | Loan Terms |
|---|---|---|---|
| 1. Tonik Bank | ₱5,000 to ₱50,000 | 4.26% per month | 6, 9, 12, 18 and 24 months |
| 2. GLoan | up to ₱125,000 | as low as 1.59% per month | up to 24 months |
| 3. Home Credit | ₱3,000 to ₱150,000 | starts at 1.83% per month | 6 months to 5 years |
| 4. SB Finance | ₱10,000 to ₱2,000,000 | as low as 3.5% per month | 12 to 36 months |
| 5. RFC | ₱10,000 to ₱3,000,000 | 1.5% to 4% per month | 3 months to 36 months |
1. Tonik Bank
Tonik Bank is a clear standout when it comes to its various loan offers. This digital bank offers a myriad of loans that not only offer high maximum amounts but also flexible repayment terms.
Another upside of this loan is its easy application. To apply, all you need to do is download the Tonik app and complete the onboarding process. After this, you can select the loan type you want to apply for.
Read our detailed review of Tonik Bank.
Features and Benefits
- Easy application
- High loan amount for Flex and Installment loans
- Minimal requirements
- Fast disbursal
- User-friendly app
Credit Builder Loan
- Loan amount: up to ₱20,000
- Interest rates: 4.84% to 4.91% per month
- Loan terms: 6 months to 12 months
- Application requirements
- Filipino citizen, 23 to 58 years old
- 1 Valid ID
- Tonik Savings account
- Valid Tax Identification Number (TIN)
If you’re a first-time and just starting to build up your credit history, the Credit Builder Loan is for you. The Credit Builder Loan has quick approval and disbursal, and this is the loan that you should go for. The Credit Builder Loan allows you to secure the funds you need ASAP without worrying about collateral.
Tonik Shop Installment Loan
- Loan amount: ₱5,000 to ₱100,000
- Interest rates: 4.5% per month (+10% downpayment)
- Loan terms: 3 months to 12 months
- Application requirements
- 1 Valid ID
- Tonik Savings account
This installment loan is the ultimate solution if you want to make in-store shopping easier. Tonik partnered up with various stores all over the country so you can buy phones, TVs, air conditioning units, ovens, laptops, and whatever you need.
| Aspect | Value |
|---|---|
| Loan Amount | ₱5,000 to ₱100,000 |
| Interest Rates | 4.5% fixed monthly interest |
| Loan Terms | 3, 6, 12, 18 and 24 months |
With one loan, you can purchase up to three items. However, you must provide a minimum of 10% downpayment. Advantages of this loan include minimal documents needed (only one valid ID), and zero processing fees. Unlike other Tonik loans, you can choose a three-month loan term for this option.
2. GLoan
GCash is the premier mobile wallet in the country, so it comes as no surprise that it offers one of the best loan options for Filipinos.
With GLoan, you can get pre-approved access to up to P125,000 worth of cash loans instantly. Eligible GCash users will receive a message from GCash if they are eligible to apply for this loan.
| Aspect | Value |
|---|---|
| Loan Amount | up to ₱125,000 |
| Interest Rates | as low as 1.59% per month |
| Loan Terms | up to 24 months |
Once ready, simply go to your GCash app, tap borrow, select “GLoan,” and input your loan details. This loan is safe and secure and does not have any hidden charges.
Features and Benefits
- High loan amount
- Easy application and approval
- Low interest for those with a high GScore
- 3% processing fee
3. Home Credit
Home Credit is a well-known lending platform for individuals, particularly those without a bank. With its high approval rate of up to 90%, you can easily get the funds that you need in just one minute.
Home Credit allows you to split your loan payments for up to 60 months or five years, which is a huge plus for those who are working with a limited budget.
| Aspect | Value |
|---|---|
| Loan Amount | ₱3,000 to ₱150,000 |
| Interest Rates | starts at 1.83% per month |
| Loan Terms | 6 months to 5 years |
Because of its low minimum loan amount, you can say goodbye to your fear of overextending yourself by applying for a loan you can’t afford to pay. As an added convenience, you can also pay your Home Credit loan via GCash.
Features and Benefits
- Low minimum amount
- High approval rate
- Easy application
- Up to 50 months repayment period (the best on this list)
4. SB Finance
SB Finance’s Hooloogan Loan makes it possible for you to purchase your dream gadgets and appliances and pay through easy monthly installments. This loan can only be used when you purchase at any of this lender’s partner merchants.
With just one application, you will be given a credit line with no expiry as long as you pay on time.
| Aspect | Value |
|---|---|
| Loan Amount | ₱10,000 to ₱2,000,000 |
| Interest Rates | as low as 3.5% per month |
| Loan Terms | 12 to 36 months |
Features and Benefits
- High loan amount
- Easy installments
- Credit line has no expiry as long as you pay on time
- Wide array of partner merchants
5. RFC
Whether you need help with your personal or business expenses, the RFC cash loan is for you. This loan is perfect for those who need help in paying their immediate financing needs.
With its high loan amount of Php 3 million, you can even use this to expand your business operations.
| Aspect | Value |
|---|---|
| Loan Amount | ₱10,000 to ₱3,000,000 |
| Interest Rates | 1.5% to 4% per month |
| Loan Terms | 3 months to 36 months |
Features and Benefits
- High loan amount
- Long repayment terms
- High chance of approval
- Wide array of accepted collateral
Factors to Consider When Choosing an Online Loan with Monthly Payments
Before deciding on which online loan to choose, it is important to consider a few key factors.
1. Interest Rates
It’s essential to pick an online loan with a reasonable interest rate since this drastically affects the total amount you will pay back over time.
2. Loan term
Loan term refers to the length of time you have to repay the loan. It’s best to choose a loan term that aligns with your financial capabilities.
3. Loan amount
How much you can borrow is solely dependent on your lender of choice.
Choose an online loan provider that offers a maximum and minimum loan amount that fits your financial needs.
4. Eligibility criteria
some lenders have minimum income, age, and collateral requirements. Make sure that you meet the requirements before applying to avoid any rejections.
5. Transparency and Charges
Read the terms and conditions carefully to understand any fees, charges, or penalties that you may incur during the loan repayment period.
Types of Online Loans with Monthly Payments
There are 4 types of online loans.
- Buy Now Pay Later: Also called BNPL, Buy Now Pay Later loans are a popular option for those who need to buy something urgently but do not have the funds to do so upfront. This type of loan allows you to buy the item now and pay for it in monthly installments.
- Quick Loans: As the name suggests, these loans are designed for those who need fast cash to cover emergency expenses such as medical bills or car repairs.
- Personal Loans: This versatile loan can be used for various purposes such as debt consolidation, home renovation, medical emergencies, travel, education, wedding expenses, and more.
- Business Loans: These loans are specifically designed to help businesses grow by providing funding for a variety of needs such as inventory, equipment, marketing, and expansion, among many others.
Advantages of Monthly Payment Options
Still not convinced that monthly payment options are the way to go? Here are some advantages that might change your mind.
1. Budget-friendly
Monthly payment options allow you to spread the cost of your loan over a longer period.
By breaking down the loan into smaller, more manageable payments, borrowers can easily incorporate their repayments into their monthly budget without straining their finances.
This is especially helpful for those who have fixed incomes and cannot afford to pay a lump sum amount upfront.
2. Flexibility in repayment
When it comes to these loans, borrowers are free to choose a repayment term that fits their financial capabilities.
This means that you can choose a shorter or longer loan term depending on what works best for you.
3. Potentially lower interest rates compared to shorter-term loans
With monthly payment options, individuals have the advantage to potentially secure lower interest rates compared to shorter-term loans.
By stretching out the repayment term, the total interest paid may decrease which allows borrowers to save money in the long run.
Tips for Borrowers
We’ve gathered some tips for borrowers to make the most out of their online loans with monthly payments.
1. Ensure you understand all terms before borrowing
Before taking out an online loan with monthly payments, carefully read and understand all the terms and conditions of the loan agreement.
This includes the interest rate, repayment period, fees, and any penalties for late or early payments.
Make sure to read the fine print and ask questions if there’s anything you don’t understand. After all, you don’t want to be caught off guard by hidden fees or charges.
2. Compare loan options
One of the best tips when it comes to taking out a loan is to not go for the first loan option you come across.
Instead, take the time to compare different loan options and their terms to find the best fit for your financial situation and needs.
Look for loans with lower interest rates and flexible repayment terms that work for you.
3. Always research the eligibility criteria before applying for a loan
Ensure you meet all the requirements before submitting your application to avoid rejection and wasting your time.
You don’t want to spend a couple of days waiting for a loan you’ll never get approved for. Aside from the requirements, submit complete and updated documents.
4. Set up automated payments
To avoid missing payments, accumulating additional fees and charges, and stress, set up automated payments if possible.
This will help you ensure that your monthly payments are made on time.
Just make sure that you have enough funds in your account to cover the payments. You can even set up reminders to top-up your account.
5. Avoid overspending
Only take out a loan for the amount you need and can realistically afford to repay.
Remember that a loan is still a debt that you will have to pay back with interest, so it’s important to be responsible with the funds and use them wisely.
6. Plan for emergencies
Even with monthly payment options, unexpected expenses can still arise.
Have a plan in place for emergencies, such as setting aside some savings or having a backup source of funds.
This will help you avoid falling behind on payments or accumulating debt.
Being prepared can greatly help alleviate financial stress and ensure that you can continue to meet your loan repayments on time.
7. Make a list of all your bills
To ensure that you can budget your monthly expenses and make your loan payments on time, it’s important to make a list of all your bills.
This includes rent, utilities, phone bills, and any other regular expenses you may have.
By having a clear idea of your monthly expenses, you can plan your loan repayments better.
Potential Pitfalls and How to Avoid Them
Here’s what you need to watch out for when taking out loans.
1. Hidden fees or charges
One of the potential pitfalls of taking out loans is hidden fees or charges that may not be immediately apparent to borrowers.
These can include application fees, processing fees, and prepayment penalties, which add up and significantly increase the overall cost of the loan.
To avoid hidden fees or charges, thoroughly read and understand the loan agreement before signing it.
It also helps to talk to someone who applied for the same loan you’re eyeing to guide you through the process and tell you about the things you may have missed during your research.
2. Scams or fraudulent lending platform
You’ll be surprised how many people still fall prey to scams or fraudulent lending platforms.
These scams may come in the form of phishing emails or texts, fake websites, or even phone calls from someone posing as a lender.
Fake loans promise quick and easy loans with low interest rates, but in reality, they are only after your personal and financial information. They may also require upfront fees or deposits, which are clear red flags.
Before applying for any type of loan, do your research and verify the legitimacy of the lender before applying for a loan.
Check their website and read reviews from other borrowers.
Never share personal or financial information unless you are sure that the platform is safe and secure.
3. Know the consequences of defaulting on monthly payments
When you default on your monthly loan payments, you could face serious consequences.
This could include late fees, increased interest rates, and damage to your credit score.
In the worst-case scenario, your lender may take legal action against you or even repossess any collateral you put up for the loan.
To avoid defaulting on your loan, have a solid plan in place for repaying it. This includes budgeting your monthly expenses and ensuring that you have enough funds to cover your loan payments.
If you struggle to make payments, contact your lender as soon as possible to discuss your options.
They may be willing to work with you to develop a more manageable repayment plan or offer other solutions to help you avoid defaulting on your loan.
Remember that it’s always better to be proactive and address any potential issues before they become bigger problems.
Final Thoughts
With the advent of technology, applying for loans can be done in a breeze. With this list of top online loans with monthly payments, anyone who desires access to it anytime, anywhere.
Written by: MJ De Castro
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.
