Different Types of Lenders in the Philippines

Today there are many options when it comes to acquiring credit, especially a personal loan. Filipinos do not only acquire credit for emergencies, but also use it to pursue further education, fund investments, make home improvements, and more. With the many lenders to choose from, it is important to opt for the one that best suits your lifestyle, financial situation, and goals. Learn about the common types of lenders found in the Philippines to help you make the best financial decisions for yourself. 

Unlicensed Firms or Individuals  

Be careful when choosing where to acquire credit, especially when it comes to unauthorized lenders. In the Philippines, the most common unauthorized lenders are loan sharks. They provide fast cash, but in exchange, borrowers suffer from excessively high interest rates of up to 20% or more and in many cases would have to surrender their ATM card linked to their payroll account as collateral. More often than not, loan sharks do not provide a formal contract or any records of the borrowers’ loan arrangement, which can lead to more debt. Loan sharks are also known to use intimidating methods to collect debt, including violence.


Acquiring a loan from loan sharks is definitely a risk and comes with many strings attached. Remember to consider your safety and protection and your ability to pay when choosing a lender. 

Traditional Bank Loans

Traditional banks provide a wide range of loans, from business loans to personal loans, and can also offer a higher loan amount compared to the amount loan sharks can give. While borrowers can trust that acquiring credit from traditional banks is safe and secure, they would also have to be ready with a number of requirements and documents to present to the bank, including income verification. At the same time, borrowing from traditional banks would mean having to queue and transact in the bank itself, which could lengthen the loan application process. Depending on the type of loan, traditional banks may also ask for collateral such as real estate properties or cars. 

Digital Banking Loans 

Banks that offer digital banking services and products often include personal loans, which can be accessed all through a mobile app. In order to protect yourself and get fair interest rates, it is best to transact with a bank that is authorized and regulated by the Bangko Sentral ng Pilipinas. Unlike traditional banks, you can easily apply for a loan digitally anytime and anywhere, as long as you have the requirements ready. This saves you a lot of time from going back and forth to a bank as you can easily monitor your loan application on your app, providing you with a seamless online application process. 

Applying for a Personal Loan is easy with CIMB Bank! 

At CIMB Bank Philippines, you can loan as much as PHP 1 million with ZERO PROCESSING FEE and interest rates ranging from 1.18% to 1.25%. Apply in as fast as 10 minutes on the CIMB Bank PH app.


Get rewarded for responsible payment habits! You can also get interest rebates up to 30% on your CIMB Personal Loan when you pay your monthly dues on time. Take a step towards your goals!

Download the app to apply for our Personal Loan today!