Personal Loans
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Personal Loan Myths Debunked: What Really Matters

Uncover the truth behind common personal loan myths with our detailed guide. Learn which misconceptions to watch out for and how to choose the right loan for your needs.

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Quick Picks

Best overall: BDO Personal Loan.
Best for freelancers: SB Finance Personal Loan.
Best for credit-builders: Tonik Quick Loan.

Myth: Personal Loans Are Only for Those with Perfect Credit

Contrary to popular belief, you don't need a perfect credit score to qualify for a personal loan. Many lenders, like SB Finance, cater specifically to freelancers and self-employed individuals who might not have flawless credit histories.

SB Finance Personal Loan

The draw here is accessibility. SB Finance offers personal loans up to ₱3 million without requiring collateral, making it a viable option for freelancers and OFW beneficiaries. While the 39.43% APR is on the higher side, the flexibility in eligibility criteria sets it apart.

SB Finance Personal Loan

39.43%
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BDO Personal Loan

Worth considering because it offers predictable costs with a narrow ACR range. BDO's personal loan is a solid choice for those seeking stability with the backing of the Philippines' largest bank. Although the maximum amount is lower than competitors, the no prepayment penalty is a nice perk.

Editor's Pick

BDO Personal Loan

25.98%
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Where SB Finance provides flexibility, BDO offers stability. However, if you're working on building credit, the next option might be more up your alley.

Myth: You Need a High Loan Amount to Build Credit

Many believe that larger loans are essential for building credit, but this isn't always true. Tonik Quick Loan is designed for credit-building, offering small loans up to ₱50,000.

Tonik Quick Loan - Fast Digital Personal Loans

What sets this apart is its focus on credit-building. Tonik's fully digital platform allows for quick approval and disbursement, perfect for first-time borrowers who want to start building their credit history without needing a high loan amount.

Tonik Quick Loan - Fast Digital Personal Loans

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If you're looking for larger amounts, the next section explores options that offer significant financial flexibility.

Myth: All Personal Loans are the Same

This couldn't be further from the truth. Personal loans vary widely in terms of rates, amounts, and terms. For instance, RCBC Pasado Loan offers the highest loan ceiling in the market with flexible terms.

RCBC Pasado Loan

You'd pick this if you need a high loan amount with flexible terms. RCBC's Pasado Loan offers up to ₱5 million with terms as long as 60 months, making it ideal for those needing more significant financial support.

Best for Large Amounts

RCBC Pasado Loan

19%
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BPI Personal Loan

The trade-off here is between rate and accessibility. BPI offers competitive rates starting from 1.20% monthly, suitable for existing BPI clients seeking a trusted lender with no collateral requirements. However, the processing fee and stamp tax can add up.

Most Flexible

BPI Personal Loan

25.03%
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Metrobank Personal Loan

Works well when you want the reliability of a major bank. Metrobank's lower add-on rates for longer terms make it attractive for those who can commit to 24-36 months. Just be wary of the fees involved.

Lowest APR

Metrobank Personal Loan

25.98%
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Each of these options debunks the myth that loans offer uniform experiences. Now, let's discuss what truly matters when choosing a personal loan.

What Actually Matters

When selecting a personal loan, it's crucial to consider the overall cost, terms, and your specific needs. Rates and terms shown are representative. Your actual rate depends on your credit profile and circumstances. This is not financial advice — always read the lender's terms before applying. Speaking of budget picks, we went deep on the details in Top Personal Loans: Low Rates and Fast Approvals for June — worth a read if you want the full breakdown.

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25.98–26.76% APR

Filipino citizen or permanent resident · employed or self-employed · income documents required

39.43% APR

Filipino citizen · 21-65 years old · minimum gross monthly income ₱15,000 (Metro Manila) or ₱12,000 (outside)

19.0–34.0% APR

Filipino citizen or resident · employed or self-employed · valid government-issued ID

25.98–36.74% APR

Filipino citizen or resident · employed with minimum gross monthly income · valid government-issued ID

25.03–28.67% APR

Filipino citizen · employed or self-employed · minimum gross monthly income ₱15,000

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