Personal Loan Options for Filipinos

Filipinos are known to be a hard working bunch. They would earn money not only for themselves, but for their families as well. If they believe that what they are earning is not enough, some would look for ways to get the needed cash. For instance, they would take on additional part time jobs.

Unfortunately, even these may prove to be insufficient particularly during dire times, such as a family emergency or even when they are planning something big for their future that they can’t afford at the moment.

It’s a good thing that there are personal loan options available to them. Admittedly, venturing into this world can be daunting particularly when you have little to no idea about it.

In this article, we’re going to discuss the 2 main types of personal loan: Secured and Unsecured.

Secured Personal Loans

A secured loan is essentially a loan where you will be asked to present a collateral. This collateral will, then, be used by the bank or the lender as payment in case you are unable to pay the agreed amount.


  • You will be able to borrow a higher amount because the lender will receive a collateral ensuring that they will be given some form of payment.
  • Secured personal loans are often accompanied by flexible loan tenure which could stretch from 3 months to 36 months.

  • They have a lower interest rate compared to unsecured personal loans.
  • Your application will be processed faster.


  • The lender could immediately take your collateral if you fail to pay.
  • The bank or the loan provider will expect you to pay an agreed amount every month.

Unsecured Personal Loans

Unsecured personal loans are the type of loan wherein you will not be asked to provide a collateral. In order to have your application approved, you will just need to meet the criteria given by the bank or the loan provider. You will also be required to submit all the necessary documentation to process your request. This loan option is handy when you are planning a business venture or when you are experiencing an emergency.


  • There is no need for you to present a collateral to secure the payment of your loan.
  • You don’t have to risk losing any property (house, cars, business equipment, etc.).
  • If you do not have enough assets, you can take advantage of this loan’s no-collateral benefit.


  • Banks and other loan providers are more cautious in approving an unsecured personal loan.
  • They take a longer time to process; there’s also no guarantee you will get an approval even after waiting for a long time.
  • You may be charged with a higher interest rate.
  • The amount you can loan is comparably smaller than the ones you can take with a secured loan.


If you are in need of a personal loan, remember that you have the option to either get a secured loan or an unsecured one. The decision falls on you. Just be sure to weigh both of their advantages and disadvantages before finalizing your choice. If you could, try to consider which loan has the lowest interest rate.