Legit Loan Apps in the Philippines

With the rise of technology, the number of online loan apps in the Philippines also increases, so it is important to check the SEC registered loan app list to protect yourself from financial stress and other underlying issues regarding loans. Learn the importance of legit loan apps, requirements, methods of checking loans app legitimacy, best legit loan apps with low interest in the Philippines, and the role of SEC in regulating lending companies. 

Why loan apps are to be legit

In recent years, the digital lending industry has rapidly grown in the Philippines, driven by the technological advancements and demand for fast and accessible financial solutions. One of the most important factors that must be checked before using a loan app is its legitimacy. Protecting oneself from scammers and other issues, such as data privacy, is important. 

The study conducted by Digido predicts that the digital lending market will surpass USD 1 billion by the second half of 2025. In 2023, the market for non-bank digital loans in the Philippines was valued at USD 693 million, and in 2024, it was projected to reach USD 796 million. The growing shift of Filipinos in digital credit as part of personal finance management was also highlighted in this study. It also shows that by 2025, 55% of the digital lending market, or USD 556.5 million, is expected to come from non-bank digital lenders, while digital banks account for 45% or USD 451 million. In addition, the GEN Z population of the Philippines is more familiar with financial technology innovations. 

To ensure safety, it is important to check if the loan app is registered and regulated by official financial authorities. It also ensures that these legit loan apps adhere to the rules and regulations and protect their consumers.  When evaluating loan apps, it is important to consider its registration and licensing, terms and conditions, privacy policy, and user reviews and ratings to safely navigate the digital lending industry and get the financial assistance you need without compromising your safety. 

Requirements for legit loan apps

In the Philippines, there are requirements that loan apps need to follow to be considered as legitimate. Here are some of the key requirements to be a legit online loan app:

• Registration with the SEC (Securities and Exchange Commission)
  The SEC regulates corporations’ licensing in the Philippines. Companies need to secure a license from the SEC to show the public that they are legal and adhere to the rules. Lending and financing institutions must also obtain a Certificate of Authority to Operate as a Lending Company to prove their legitimacy. Other institutions obtain a Certificate of Authority to Operate as a financing company, depending on their business nature.Lending and financing companies must also meet the minimum paid-up capital requirements set by the SEC to ensure they have enough financial resources to meet their obligations and operate responsibly.

• Business Structure
  The lending entities in the Philippines are required to register as stock corporations and are not allowed to operate as sole proprietorships and partnerships. This is under the Lending Company Regulation Act of 2007 (Republic Act No. 9474).

• Compliance with the Lending Regulations
  Lending companies must comply with Republic Act No. 9474 (Lending Company Regulation Act of 2007). This act governs the operation of Philippine lending companies and sets standards for fair lending practices, transparency in loan terms, interest rates, and collection practices.

• Interest Rate Limits
  The legit online loan apps must adhere to the interest rate cap set by Bangko Sentral ng Pilipinas and other authorities. The interest rates and other associated fees, such as processing fee and penalties, must be transparently disclosed in the app before the loan is approved and must not exceed the maximum limit. As outlined in SEC Memorandum Circular No. 3, Series of 2022, lending apps must comply with these caps.

• Data Privacy Compliance
  The legit loan apps must comply with the Data Privacy Act of 2012 (Republic Act No. 10173) to protect their clients’ data. Loan apps must secure user consent before they collect data and use it only for the purposes of the agreement between parties. It is also important that these apps have security protocols to protect the sensitive financial information of their borrowers.

• Clear Disclosure of Loan Terms
  For transparency, loan terms, including interest rates, processing fees, penalties, loan tenure, and repayment schedules, must be clearly stated and easily accessible on the app or website to be considered as a provider of legit loans in the Philippines. Lending and financing companies must ensure no hidden charges and that users fully understand their obligations before taking the loan.

• Proper Collection Practices
  The collection practices of lending and financing companies and legit online loan apps must comply with the Fair Debt Collection Practices Act to avoid harassment and abuse. They must not engage in unethical or illegal practices, such as threatening borrowers, especially if they do not pay on time. The collection calls and messages must be respectful and they must respect their clients’ time.

• Transparency and Accountability
  Legit loan apps must have clear and accessible contact details, such as email, contact numbers, and company address, so customers can easily contact them for concerns or inquiries. Users must also be given access to their loan history and outstanding balances to manage their finances efficiently.

• Public Disclosure of Fees
  Regarding fees, there must be no hidden charges that will mislead borrowers. The fees, interest rates, and penalties must be displayed to give customers an overview of all the fees associated with taking a legit loan in the Philippines.

• Advertising Regulations
  The advertisement of companies and legit loan apps must adhere to the Advertising Code of the Philippines to ensure that it is truthful and does not mislead borrowers. The marketing campaigns must always be truthful. 
• Consumer Protection
  Financing and lending companies must offer a grievance mechanism where users can report issues related to their loans. The Department of Trade and Industry ensures that consumers’ rights are protected. 

The Securities and Exchange Commission, Bangko Sentral ng Pilipinas, and other government institutions actively monitor and enforce these regulations. By fulfilling these requirements, loan apps can operate legitimately, offering consumers trustworthy financial services while contributing to the overall integrity of the Philippine financial system.

How to check a legit online loan app

There are many loan apps in the Philippines, so it is important to check if the one you are considering is trustworthy and legitimate. Many lending platforms offer fast, easy, and convenient access to credit, but not all operate ethically, as some engage in fraudulent activities. Here are some methods to check if an online loan app is legit. 

1. Check for SEC Registration. Visit the company’s official website to see if a loan app is on the list of SEC registered online lending apps or financing companies. To ensure legitimacy, the app must have a license and certificate from the SEC, which should be displayed on the loan app or website. The company registration can be checked using SEC Checker or the SEC list of companies. 
2. Verify the Company’s Legal Name and Address. A legit online loan app must have a full company name, address, and contact information that clients can access. Be careful of apps that lack transparency or only provide limited, generic, or irrelevant information. 
3. Review App Permissions and Data Requests. Check the documents that the loan apps are asking. Legitimate online loan apps only ask for essential information, such as full name, contact details, a Valid ID, income source, and other relevant financial data. They should not require the customer’s phone contacts and social media accounts. Also, check their privacy policy to ensure they comply with the Data Privacy Act of 2012. 
4. Check and read the loan terms carefully. The terms and conditions must be clear, and borrowers must read them carefully before proceeding to ensure they are aligned with regulations and know their rights. The interest rates, processing fees, payment schedules, and penalties must be transparent and in accordance with laws. 
5. Look for Reviews, Ratings, and Latest News. Before downloading an app, check the app store user ratings and reviews. Research the app’s legitimacy and reputation by looking at online forums and social media platforms, and review websites to see what others are saying about the app. Check also if there is related news about the online app to learn more about its operations, as some loan apps do not consistently comply with the rules.  
6. Investigate the Lending Practices. The loan applications on the list of legit online lending apps are upfront about all the fees involved, from processing fees to penalties. Do not easily trust those apps that do not disclose these fees. These loan apps must also have ethical collection practices. Check if there are any complaints about threats or harassment.
7. Check for Affiliation with Banks or Financial Institutions. Not all loan apps are affiliated with banks or other financial institutions, but those affiliated with these institutions provide an extra layer of credibility. Their partner institutions must be reputable and reliable. 
8. Look for Contact Information and Customer Support. Legit loan apps must have accessible contact information and reliable customer support. Before you borrow, you can test them by contacting them with inquiries to determine their response rate. 
9. Check Compliance with Regulatory Agencies. In addition to the SEC, loan apps must comply with Bangko Sentral ng Pilipinas (BSP) rules and regulations, the Department of Trade and Industry (DTI), and other government institutions. They must also comply with the Lending Company Regulation Act (Republic Act No. 9474) and Consumer Protection Guidelines. 
10. Website Security. If the legit online loan app has a website, check if it is secure and uses HTTPS to protect your data during transmission. It is important to protect your data to avoid scammers. 
11. Evaluation of financial capacity. Check if the lending company or loan app promises a quick or easy loan without evaluating your financial standing or credit score. Loan apps assess their clients’ capability to pay before they approve the application and release the funds.
12. Check Repayment Terms and Other Practices. Beware if the loan is too good to be true, especially if the terms are not transparent. Legit loan apps must not also pressure the borrowers to decide to take a loan immediately. 

These methods will protect you from scammers and reduce the risk of falling victim to fraudulent or predatory loan apps. Always prioritize financial security and personal data privacy. Before applying for a loan, check the loan terms and do not hesitate to report suspicious apps to regulatory authorities like SEC, BSP, and DTI. Also, check updates on the list of SEC registered online lending apps to know if your chosen or preferred loan app is legit. 

Best legit loan apps with low interest in the Philippines

In this digital age, accessing reliable and quick financial assistance is easier. Whether you need immediate cash for personal expenses, life upgrades, shopping, and emergency expenses, loan apps can give necessary financial support, as they are fast, easy, and convenient. In the Philippines, many loan apps offer easy and quick loans. However, not all of these loan apps are trustworthy. 

Here are some of the best legit loan apps with low interest, provide fast financial solutions, and are in the SEC registered loan app list: 

GLoan

GCash is one of the most used e-wallets in the Philippines. GLoan is one of the features of GCash, making it a trusted option. The application process is easy, the interest rate is relatively low, and it is convenient for the borrowers. The minimum requirements are that the borrower must be 21-65 years old, a Filipino Citizen, a fully verified GCash user, and using GCash services. However, loan approval is still subject to evaluation even if these requirements are met. 

It offers legit loans in the Philippines and allows users to borrow up to Php 125,000. GLoan’s interest fee is between 1.59% and 6.99% per month. This rate depends on the loan amount and the applicant’s eligibility. Aside from interest fee, there is also one-time processing fee of 3% from the total amount of your loan, 1% late payment fee for each unpaid installment, and 0.15% of total outstanding balance every day until the loan is paid off. 

Home Credit 

Home Credit is one of the go-to online lending apps for most Filipinos and a provider of legit loans in the Philippines. It offers various loans, such as cash, quick, credit, and installment loans. It has a seamless application process, exclusive online deals, and flexible payment terms, making applying and paying the loan easy. Borrowers can take out loans up to Php 150,000 with repayment terms of 6 months to 2 years (48 months). 

It has a minimum interest rate of 2.49% and a maximum of 8.49% per month. Its minimum annual percentage rate is 30%, and the maximum is 102%. There is also a processing fee of 3% or a maximum of Php 1,000, which is automatically deducted from the loan that will be disbursed to the borrowers. The applicant must be 18-68 years old and have a valid ID. It may ask for additional information about your financial standing for assessment and approval. 

Digido 

Digido is an excellent choice for first-time borrowers who want to build their credit profile. This is one of the legit loan apps with low interest that offers a 0% interest fee for the first seven days of your loan, and you can borrow from Php 1,000 to Php 4,000. First-time borrowers can take out a loan for up to Php 10,000 while repeat borrowers can take out a loan for up to Php 25,000. Filipino citizens aged 21 – 70 can take a loan and must present a Valid ID. Submitting additional documents that show proof of income can also increase the chance of getting approved. 

It has a minimum APR of 0% for the first online peso loan only and a maximum of 36%. The minimum period is 90 days, and the maximum is 180 days. All loan applications are subject to approval, depending on the borrower’s financial standing. It is fast, quick, and convenient, making the loan process seamless from application to payment. Using Digido also has a lot of advantages, such as being available around the clock, offering loans for any purpose, having multiple modes of application, and more. 

Billease 

Billease is one of the legit loan apps with low interest and is known for its Buy Now, Pay Later features. It makes online shopping more convenient and affordable by offering installment plans to its users. Flexible monthly payments and loan terms make it easier to manage your finances. Billease has many merchant partners, giving clients many options. It also has a fast and easy credit approval process, and they give a decision immediately about your application, so you can immediately get credit and enjoy shopping from your favorite brands. 

Its monthly interest rates range from 0% – 3.49% and has an annual percentage rate of 0% to 41.88% on its installment plans. There is also a service range that can range from 0% – 10%. Aside from low interest, it offers flexible credit lines for online shopping without a credit card, a personal loan, and other exclusive features, such as e-wallet top-ups, bill payments, mobile load, and more. 

Atome

Atome is a financing company that offers financial solutions. It is also one of Southeast Asia’s leading digital consumer financing platforms. It offers flexible credit and installment plans to meet your daily needs. This loan app has a buy now, pay later feature, making shopping more convenient, as it offers the Atome Card that can be used for cashless payments using the QR Code. 

It also offers Atome Cash loan. It has a monthly interest rate of 1.75% and an annual percentage rate of not more than 36%. Borrowers can take out loans up to Php 50,000. The installment plans for this cash loan are up to 12 months. This all-in-one app is a great choice as it offers flexible and convenient installment plans and cash loans. 

Please note that the loan amount, interest rates, fees, and terms associated with loan apps may vary and are subject to change based on the lender’s policies, market conditions, the borrower’s credit profile, and other factors. Review and read the terms and conditions carefully before applying for a loan and stay updated with announcements. 

Role of SEC in regulating registered loan apps

The Securities and Exchange Commission (SEC) is one of the primary institutions responsible for regulating and supervising companies in the Philippines. It ensures that companies operate within the legal framework, follow all the guidelines that they have set, and offer a legit loan in the Philippines. Lending and financing companies must consistently adhere to the laws and regulations and promote fair practices in the financial sector. 

The roles of the SEC in regulating companies that are on the list of legal online lending apps are:

1. Registration and Licensing. Lending and financing companies should register their business in the SEC. Before a company operates, it must secure all the necessary documents in the SEC to prove they are registered. The registration number and license of the SEC-registered loan app list in 2024 can be accessed on the SEC website. 
2. Monitoring Compliance. SEC also monitors lending and financing companies to ensure they comply with the laws, regulations, and guidelines, including fees, interest rates, processes, and practices. Companies’ licenses can be revoked if they do not follow the guidelines. 
3. Issuance of Advisories and Warnings. SEC issues advisories and warnings about companies that engaged in unauthorized, unethical, and illegal activities. 

Financing and Lending Companies registered in the SEC

Before you apply for a loan, check if the company operating the loan app is registered with the SEC. You can check the name of the loan app or the lending or financing company at SEC Checker. In this SEC Checker, you can check the company’s status and other important details, such as its SEC number, date of registration, and business address. Transact only with the SEC registered online app for safety. 

Here are some of the lists of SEC registered loan apps: 

• GLoan (Fuse Lending, Inc. & Globe Fintech Innovations, Inc.)
• Home Credit (HC Consumer Finance Philippines, Inc.)
• Digido (Digido Finance Corp.)
• Billease (First Digital Finance Corporation)
• Atome (Neuroncredit Financing Company Inc.)
• Peso Loan (Masaganang Buhay Finance Philippines Corporation)
• JuanHand (WeFund Lending Corp)
• Cashalo (Paloo Financing, Inc.)
• Tala (Tala Financing Philippines Inc)
• OLP (Online Loans Pilipinas Financing Inc)
• Moneycat.ph (Moneycat Financing, Inc.)
• Moca Moca (Copperstone Lending Inc.) 
• Peramoo (Magician of Money Lending Corp)
• MabilisCash (Mali Lending Corp)
• Pesoredee (Peso Redee Financing Co. Inc)
• Maypera (Lucky Shell Fintech Lending, Inc.)

For more information about the lists of online lending companies registered in the SEC and financing institutions, check the Securities and Exchange Commission website. The list of SEC-registered online lending companies in 2024 can be accessed at the SEC website’s list of recorded online lending platforms, lending companies, and financing companies. 

Communication of Updates:

The Securities and Exchange Commission informs the public about the changes to registered lending companies. The changes can be checked through various channels. 

• Official Website. The lending and financing company’s name can be checked on the SEC Checker on its website. It shows the official business name, registration status, the SEC number, registration date, and company business address. 
• Advisories and Notices. SEC issues advisories and notices about revocations, suspensions, and other updates regarding companies. These advisories can be accessed on SEC’s social media channels, other government and trusted websites, and news agencies. 
• Press Releases. SEC can also disseminate important information through press releases, detailing changes and other details. This can also be accessed through different news agencies or channels. 

For the latest updates about lending companies, financing institutions, and SEC registered lending apps, you can visit the SEC’s official website or message them for inquiries. 

Conclusion

There are many online apps in the Philippines, but not all are trustworthy, so it is important to stay vigilant to protect yourself from scammers and other issues. Before applying for a specific loan app, check important things such as its legitimacy on the SEC website to know if it is registered and the reviews of other people who have already used it. And most importantly, read the terms and conditions and data privacy, ensure that you understand the loan terms, and think before you click. Only use legit online loan apps on the list of online lending companies registered in the SEC.