Online Loan / Lending App Interest Calculator
See the true cost of borrowing from Tala, Cashalo, JuanHand, GCash GLoan, Robocash, and other Philippine online lending apps — including the eye-opening Effective Annual Rate that the daily-rate quotes hide.
Breakdown
| Principal | ₱ 0 |
| Less: Upfront fees deducted (5%) | ₱ 0 |
| Amount actually received | ₱ 0 |
| Interest over 30 days | ₱ 0 |
| Total to repay at end of term | ₱ 0 |
| Effective cost ratio (total ÷ disbursed) | 0× |
What’s hiding behind “only 0.4% per day”
Online lending apps make money by quoting interest in formats that sound small. “Only 0.4% daily” sounds harmless. But 0.4% × 365 days = 146% per year. And once you add the 5% processing fee that’s deducted upfront, your actual Effective Annual Rate (APR) often crosses 200%+.
This calculator converts daily, monthly, and flat-term rates into a single, comparable APR — so you can see whether an offer is competitive, predatory, or outright illegal under BSP and SEC rules.
Legal interest rate caps in the Philippines (2026)
Following widespread complaints about predatory online lending, the SEC and BSP jointly issued Memorandum Circular No. 3, Series of 2022 capping the cost of unsecured consumer loans from financing and lending companies. The current caps are:
- Nominal interest rate: Maximum 6% per month (0.2% per day) on the unpaid principal
- Effective interest rate (all-in): Maximum 15% per month including all fees and charges
- Processing / service fees: Maximum 5% of the loan amount, one-time, not exceeding ₱1,000 for short-term loans
- Penalty for late payment: Maximum 5% per month on the overdue amount, not compounded
- Total cost ceiling: Total fees, interest, and penalties cannot exceed 100% of the principal, regardless of the period
How online lending apps actually structure their charges
Despite the cap, many apps use creative structures to make their loans look cheaper than they are:
1. Upfront fee deduction
You apply for ₱5,000. The app approves ₱5,000 and says you’ll pay back ₱5,600 in 30 days. But what hits your GCash or bank account is only ₱4,750 — the ₱250 “processing fee” was deducted before disbursement. Your real cost is computed on the ₱4,750 you actually received.
2. Flat-term rates instead of annualized
Quoting “5% interest” for a 14-day loan sounds modest. Annualized, that’s roughly 130% APR. Always check whether a rate is per day, per month, per term, or per year before signing.
3. Renewal/rollover fees
If you can’t pay on time, some apps offer to “renew” or “extend” your loan for an additional fee that’s often 5–10% of the principal — on top of accrued interest. Renewals are how a ₱5,000 loan can balloon to ₱20,000+ in a few months.
4. Hidden insurance or membership add-ons
Some apps automatically enroll you in “credit insurance” or “membership benefits” that add 1–3% to the cost. The SEC requires these to be opt-in, but in practice they’re often pre-checked.
Major online lending apps in the Philippines
Always confirm a lender is registered with the SEC before borrowing. As of 2026, these are the major SEC-registered online lending and digital bank platforms in the Philippines (rates change frequently — verify in-app):
How to convert daily/monthly rates to APR
The Effective Annual Rate (APR) is the standard way to compare loan costs across different terms and structures. Here’s the math:
Simple APR formula (most common)
- Daily rate × 365 = Nominal APR (e.g., 0.4% × 365 = 146%)
- Monthly rate × 12 = Nominal APR (e.g., 6% × 12 = 72%)
- Term rate × (365 / term days) = Nominal APR (e.g., 5% for 14 days = 5% × 26.07 = 130%)
Effective APR (the honest one)
The simple formula ignores upfront fees and the compounding effect. The Effective APR accounts for them:
Effective APR = ((Total repaid ÷ Amount disbursed) − 1) × (365 ÷ term days)
For a ₱5,000 loan with ₱4,750 disbursed and ₱5,600 repaid in 30 days:
- Ratio: 5,600 ÷ 4,750 = 1.179
- Less 1: 0.179
- Annualized: 0.179 × (365 ÷ 30) = 2.18 → ~218% Effective APR
How to avoid getting trapped
- Compute the Effective APR before borrowing. Use this calculator. If APR exceeds 50%, look for alternatives (digital banks, SSS Salary Loan, Pag-IBIG MPL, employer cash advance).
- Borrow only the exact amount you need. Online lenders often pre-approve higher amounts to tempt you. Bigger principal = bigger fees.
- Never roll over a loan. If you can’t pay, talk to the lender about restructuring rather than taking a renewal. Rollovers compound costs aggressively.
- Check the SEC registration. Unregistered lenders use illegal collection tactics (contacting your phonebook, harassment, public shaming).
- Read the data permissions. Legitimate apps don’t need access to your contacts, photos, or location. If an app demands those, decline.
- Set up auto-debit only if you trust the lender. Otherwise pay manually so you control the timing.
Better alternatives to high-rate online loans
| Source | Typical rate | Best for |
|---|---|---|
| SSS Salary Loan | 10% per year | SSS members with 36+ posted contributions |
| Pag-IBIG MPL | 10.5% per year | Pag-IBIG members with 24+ contributions |
| GSIS Loan (govt employees) | 10–12% per year | Active GSIS members |
| Employer cash advance | 0% (deducted from salary) | Permanent employees in good standing |
| Digital bank personal loan | 1.2–3% per month | Borrowers with bank history |
| Credit card cash advance | 3–4% per month | Existing cardholders (short-term only) |
| Online lending app | 5–15% per month (capped) | Last resort, small amounts, short terms |
Frequently asked questions
What’s the legal maximum interest rate for online lending in the Philippines?
Under SEC Memorandum Circular No. 3, Series of 2022, the caps are: 6% per month nominal interest (0.2% per day), 15% per month effective rate including all fees, and 5% processing fees capped at a one-time charge. Late penalties are capped at 5% per month on the overdue amount, and total cost cannot exceed 100% of the principal. These limits apply to all SEC-registered financing and lending companies in the Philippines.
Are online lending apps BSP- or SEC-regulated?
Both, depending on the entity type. Digital banks like GCash GLoan, Tonik, Maya Bank, and SeaBank are licensed and regulated by the Bangko Sentral ng Pilipinas (BSP). Financing and lending companies like Tala, Cashalo, JuanHand, and Robocash are registered with and regulated by the Securities and Exchange Commission (SEC). Both regulators enforce interest rate caps and consumer protection rules. Before borrowing, check that the lender is on the SEC’s official list at sec.gov.ph or BSP’s directory of licensed digital banks.
What’s the difference between nominal rate and Effective APR?
The nominal rate is the headline interest figure the lender quotes — for example, “0.4% per day” or “5% per month.” The Effective APR annualizes that rate and includes upfront fees and the impact of receiving less cash than the loan amount. A 0.4% daily nominal rate is 146% nominal APR but often 200%+ effective APR after a 5% upfront fee is added. Always compare effective APRs when choosing between lenders.
Can I refuse to pay if the rate is illegal?
You’re still obligated to pay back the principal you borrowed. But interest, fees, and penalties charged above the SEC caps are void and unenforceable under Philippine law. If a lender exceeds the cap, you can file a complaint with the SEC Enforcement and Investor Protection Department or the BSP Consumer Assistance Mechanism. Courts have ruled in favor of borrowers when interest was found unconscionable. Don’t take this advice as a license to default — work with the lender first, then escalate if they refuse to comply with the law.
What happens if I default on an online loan?
Legitimate SEC-registered lenders may charge late penalties (up to 5% per month on overdue amount), report you to credit bureaus (CIC), and pursue collection through legal means — small claims court or formal demand letters. They are not allowed to harass you, contact your phonebook, threaten you, or publicly shame you. Those are illegal collection practices banned by SEC MC 18 (2019). Unregistered lenders often use those illegal tactics; you can report them anonymously to the SEC. Defaulting damages your credit standing for 3–5 years after settlement.
Why is my disbursed amount less than the loan amount I applied for?
Most online lenders deduct the processing/service fee upfront from the disbursement. If you applied for ₱5,000 with a 5% processing fee, you receive ₱4,750 in your GCash or bank — but you’re still obligated to repay the full ₱5,000 principal plus interest. This is legal as long as the deduction is disclosed in the loan agreement and the fee doesn’t exceed 5% of the principal. The catch: this practice significantly raises your Effective APR because you’re paying interest on money you never received.
Are digital bank loans (GCash, Tonik, Maya) better than lending apps?
Usually yes, for two reasons. First, BSP-regulated digital banks face stricter consumer protection rules than SEC-registered lending companies. Second, digital banks fund loans from deposits and have lower cost of capital, so their rates are typically 1.2–3% per month versus 5–15% for short-term lending apps. The trade-off is that digital banks have stricter approval criteria — they look at bank account history, salary inflows, and existing credit. Lending apps approve faster but at significantly higher cost.
Can I be jailed for not paying an online loan?
No. Under Article III, Section 20 of the 1987 Philippine Constitution, “no person shall be imprisoned for debt.” Unpaid loans are civil matters, not criminal ones. Lenders can sue you for the money in civil court, garnish wages with a court order, or report you to credit bureaus — but they cannot have you arrested or jailed for default. Threats of jail from collectors are illegal scare tactics; report them to the SEC.