6 Best Ways to Borrow Money for Different Needs

Rouselle Isla

Rouselle Isla

Last updated April 12, 2024

Even the most financially responsible people will need to borrow money at some point. When that time comes, it's good to know the best way to borrow money so you can get the amount you need and pay the most competitive rates. 

Keep reading to learn legit options, including their pros and cons, so you can assess the risks and enjoy the best rates possible. 

6 Best Ways to Borrow Money in the Philippines

Not all loan products are the same. Whatever your reason for getting a loan, there’s a suitable product for it. Check out some of your best options if you need to borrow money: 

💸 Personal Loans from Banks

best way to borrow money - personal loans

For those who need to borrow money in the Philippines, the first thing that often comes to mind is a personal loan from a bank. 

Banks offer personal, car, and home loans. If you need to inquire about a loan, bank personnel can assist you with the application process.

Moreover, banks usually offer high loan amounts, low annual percentage rates,[1] flexible payment options, and long payment terms. You also have the option to refinance an existing loan with better and more competitive rates, especially if you have a good banking relationship.  

Looking for options? Apply for a personal loan directly via Moneymax:

Provider
Loan Amount

Monthly Add-on Rate

Minimum Annual Income

Approval Time

UnionBank Personal Loan
unionbank-logo-300x92
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Up to ₱2 million
1.29% 
₱250,000
As fast as 5 minutes
UNO Digital Bank Personal Loan
uno digital bank
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₱10,000 to ₱500,000
2%
₱420,000
7 banking days
Metrobank Personal Loan
metrobank
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₱20,000 to ₱2 million
1.25% to 1.75%
₱350,000
7 banking days
BPI Personal Loan
bpi logo
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20,000 to  ₱3 million
1.2%
180,000
5 to 7 banking days
Tonik Credit Builder
tonik
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Up to ₱20,000
Up to 4.84%
Inquire with Tonik
2 banking days
Tala Loan
tala

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₱1,000 to ₱25,000
0.43% to 0.5% daily
None
24 hours
HSBC Personal Loan
2560px-HSBC_logo_(2018).svg
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30,000 to ₱500,000
0.65%
168,000
5 to 7 banking days
CIMB Personal Loan
CIMB-Logo-1
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30,000 to ₱1 million
As low as 0.83%
180,000
2 banking days
Maybank Personal Loan
Maybank logo 2011-1
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50,000 to ₱1 million
1.3%
300,000
5 to 10 banking days
RCBC Bank Personal Loan
rcbc-logo-2
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Up to ₱2 million
0.90%
360,000
5 to 7 banking days
SB Finance Personal Loan
SB-Finance-e1631324202933

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₱30,000 to ₱2 million
2%
₱180,000
5 banking days
CTBC Bank Personal Loan
ctbc-Mar-28-2022-12-20-39-62-PM
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₱500,000 to ₱2 million
1.39% to 1.79%
180,000
1 to 5 banking days
PSBank Personal Loan
PSBank-300x207-1
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₱20,000 to ₱250,000
1.75% or 2.5% 
₱180,000
5 to 9 banking days

Pros of Bank Personal Loans: 

  • Well-established financial institutions offer this type of loan.
  • You can get pre-qualified and approved for various loan products if you have a good credit score and an existing relationship with the bank.

Cons of Bank Personal Loans: 

  • Expect higher application or servicing fees. 
  • Bad credit makes it harder to qualify and get approved for a personal loan from a bank. 

Read more:


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💸 Government Loans

If you’re looking for lower interest rates, longer payment terms, and almost guaranteed approval, look into government loans. Government agencies like the SSS, GSIS, and Pag-IBIG offer various loan programs for different purposes, including education, small business, emergencies, and home purchase, just to name a few. 

You can qualify for a government loan if you consistently and regularly pay your contributions and meet the required number of contributions. 

Applications can also be submitted online. Disbursement only takes a few days. 

Pros of Government Loans 

  • They’re one of the easiest ways to borrow money because government loans don’t require a credit history or a credit check. 
  • They offer interest rates lower than those of banks and private lending institutions. 

Cons of Government Loans

  • If you get a loan from a government agency, you can only borrow an amount that matches your contributions. You won’t be eligible for a loan if you don’t meet the minimum number of contributions. 
  • A government loan may not be the best option during an emergency as it takes several days to process. 

Related: SSS Salary Loan vs Pag-IBIG Multi-Purpose Loan: Which is Better?

💸 Salary Loan

best way to borrow money - salary loan

If you’re employed, you can borrow money through your employer with a salary loan. Salary loans are an employee benefit that helps employees access cash quickly at affordable rates and convenient terms. 

Use a salary loan to fund a variety of needs. Choose from short or long-term loans with amounts and interest rates suited to various monthly salaries. Loan repayment is made via salary deduction. 

Pros of Salary Loans 

  • There’s no minimum income requirement. As long as you’re employed as a regular or permanent employee, you can avail of a salary loan from your employer and pay your loan dues every payday.  
  • You can apply by submitting a few requirements to your HR department, who will then process the loan. Once approved, you can receive the loan ASAP via your preferred disbursement method. 

Cons of Salary Loans 

  • Not all companies offer a salary loan facility. 
  • Salary loans are automatically deducted from your salary. This can strain your finances, especially if your monthly pay is already budgeted for different expenses. 
  • If you miss a payment, it may cause problems with your monthly salary. 
Apply for an UNO Loan via Moneymax today

💸 Online Lenders/Lending Apps

Need money ASAP? For a hassle-free application and fast loan disbursement,  get a loan via online lenders and lending apps.

Online lenders in the Philippines provide a quick and convenient funding process, minus the many application requirements and bank visits. Get the loan proceeds in as fast as 24 hours.

Online lenders make it possible for Filipinos with bad credit scores to borrow cash. This means that even if you can’t get approved for a bank loan, you have a high chance of getting approved by online lenders.  

Pros of Online Lenders/Lending Apps 

  • The process is easier and simpler since you can apply online, which is advantageous for borrowers with busy schedules. 
  • They offer faster approvals and loan processing than traditional banks. You can receive the loan proceeds quickly and fund an urgent need. 
  • Online lenders consider a wider range of credit histories. Even with bad credit, you’ll likely get approved by an online lender.  

Cons of Online Lenders/Lending Apps 

  • While fast and convenient, online lenders charge higher interest rates than traditional banks. Some also have shorter repayment periods.  
  • Not every online lender or app you see is trustworthy. While some are backed by trusted and recognizable financial institutions, others are relatively new and require a more thorough background check. 

Read more:

💸 Credit Card Cash Advance

best way to borrow money - credit card cash advance

You can also get cash from your credit card when you’re in a bind. With a cash advance, you can withdraw money instantly from your available credit card limit online or through an ATM. There’s no need to fill out an application form and wait for it to be approved and processed. 

A cash advance is suitable for minor cash flow problems. You can easily repay what you borrowed on your next credit card due date. 

Pros of Cash Advance 

  • It’s a fast and easy way to get instant cash. 
  • You don’t need to pay interest on a cash advance if you fully pay your credit card bill. 
  • Unlike personal loans, there are no application fees. Still, you will be charged a cash advance fee. 

Cons of Cash Advance 

  • You might end up paying too much in interest if you allow your credit card balance to compound. 
  • Your cash advance will reduce your credit limit. This is tricky if you need to make a major purchase. 

💸 Pawnshops

best way to borrow money - pawnshops

Another quick and easy way to borrow money in the Philippines is through a pawnshop loan. Just put up a collateral, like a gadget, a piece of jewelry, or a designer purse. The pawnshop will assess your collateral’s condition, resale potential, and value, then make a cash offer. 

You can collect your pawned item when you pay the loan on or before the due date. If you fail to repay, the pawnshop gets to keep your item. 

Pros of Pawnshop Loans 

  • You don’t need to worry about your credit score. There’s no credit check or loan approval process involved—just your collateral. 
  • Need cash fast? You can have it in minutes if you go to the nearest pawnshop. Bring collateral with a value similar to the amount you need to borrow. 

Cons of Pawnshop Loans 

  • Although there are no hefty fees, you may also get charged with appraisal, storage, and insurance fees. 
  • If your collateral isn’t deemed valuable enough, a pawnshop loan may not be enough to cover your cash needs. You might need to take out more loans.

A Quick Comparison of Best Ways to Borrow Money

To help you narrow down the best option for your needs and capabilities, check out this table:

Type  Ideal For Pros  Cons
Personal loans from banks Borrowers who need to borrow a considerable amount 
  • Backed by established financial institutions
  • Possible to get pre-qualified / approved with good credit score and banking relationship
  • Higher application fees 
  • Harder to get approved if you have bad credit 
Government loans Borrowers looking for longer repayment periods and lower interest rates

  • Guaranteed approval for active members who meet the minimum contribution requirement 
  • Lower interest rates
  • Limited loan amount
  • Not ideal for emergencies, as loan processing takes several days
Salary loans Employed borrowers working for companies with a salary loan facility
  • No credit checks or minimum income requirements
  • Easily available to regular or permanent employees
  • Not available in all companies
  • Payments deducted from salary
Online lenders/lending apps Borrowers who need to fund urgent needs
  • Easier, faster, simpler online application 
  • Approvals even for borrowers with bad credit 
  • Smaller loan amounts
  • Higher interest rates
  • Shorter repayment periods
  • Not all online lenders/apps are trustworthy
Credit card cash advance Credit cardholders with urgent cash needs
  • Instant and fast cash 
  • Conveniently withdrawable via ATM
  • Cash advance fees
  • Reduced credit card limit
Pawnshop loans Borrowers with urgent cash needs and valuable collateral 
  • No credit score and credit checks
  • Fast and easy cash 
  • Must have valuable collateral for a higher offer 
  • Collateral won’t be returned if you fail to pay

Final Thoughts

The best way to borrow money varies for every individual. You need to consider why you need to borrow money and how much you need to borrow. 

All the options discussed in this article are excellent sources of funds. However, consider what each funding option is suited for so you can maximize the interest rates, loan terms, and other fees. 

Apply for a personal loan through Moneymax

Source: [1] Annual Percentage Rate (APR): What It Means and How It Works (Investopedia, 2024)

Rouselle has over eight years of writing experience in the personal finance niche. She has written feature stories, articles, and how-to guides on various personal finance and trending lifestyle topics. Before that, she briefly worked in banking and was a licensed life insurance advisor. When not writing, Rouselle likes to read books and binge-watch films and series. Follow Rouselle on Linkedin.

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