How to Compare Online Loan Costs in the Philippines
Quick answer: Compare online loans by the total amount you repay for the same amount and number of days, not by the headline interest rate. Add interest, service fees, sign fees and any other charges, then divide by the number of installments to see what each payment will be.
Rate versus total cost
An interest rate tells you only one part of the price. Two loans can both advertise a modest rate and still cost very different amounts because of fees, term and how interest is calculated. On a short loan, a one-time service fee can be larger than the interest. That is why the most reliable comparison uses a single number: the peso difference between what you receive and what you repay. To see this in action with a published sample, read Cashify interest rate: APR, service fee and total cost.
Reading APR, service fee and other charges
| Term | What it means | What to look for |
|---|---|---|
| Interest rate / APR | The yearly rate used to compute interest | Whether it is applied to the full principal for the whole term |
| Service fee | A fee for making the loan, often a percentage | The peso amount on your offer |
| Sign fee / processing fee | A one-time fee at signing | Whether it is deducted from the amount you receive |
| Late charge | An extra cost if you pay late | The exact amount or rate in the agreement |
| Total repayment | Everything you pay back | The headline figure to compare |
| Net proceeds | The money you actually receive | Whether it is lower than the principal |
Worked comparison of two sample loans
The figures below are illustrations, not offers from any lender. Both loans are ₱10,000 for 91 days, repaid in three equal installments.
| Item | Loan A | Loan B |
|---|---|---|
| Annual interest rate | 12% | 20% |
| Interest for 91 days | about ₱299 | about ₱499 |
| Service fee | 10% (₱1,000) | 4% (₱400) |
| Total repayment | about ₱11,299 | about ₱10,899 |
| Each installment | about ₱3,766 | about ₱3,633 |
Loan B has the higher interest rate but is cheaper overall, because its service fee is much smaller. If you compared only the interest rate, you would choose the more expensive loan. This is the main reason to compare totals. You can try other numbers with the general calculator tool on our homepage, and see Cashify Loan Calculator for the same method.
Questions to ask before you accept
- How much will I actually receive after any deductions?
- What is the total I will repay if I pay every installment on time?
- How many days does the loan last, and when is each payment due?
- What fees apply, and are they added to the loan or deducted from it?
- What happens if I pay late?
- Can I repay early, and does that reduce the cost?
- How is my personal data used, and which permissions are required?
If a lender cannot or will not answer clearly, treat it as a warning sign.
Compare the same things
To make a fair comparison, line up each lender on the same four numbers: the amount you receive, the total you repay, the number of days and the monthly installment. Do not compare a 91-day loan with a 30-day loan without adjusting for time. A longer loan lowers each payment but can raise the total. For a side-by-side view of lenders, use our page to compare fast and safe cash options, and make sure each lender is recorded with the SEC; see How to Check if a Lending App Is SEC-Registered.
Beyond price: other things that matter
Cost is not everything. A cheaper loan from a lender with abusive collection is not a bargain. Before you decide, also consider:
- whether the lender is recorded with the SEC,
- how it treats late payments and your personal data,
- how easy it is to reach support, and
- whether you can afford the installment comfortably.
Borrow responsibly
- Borrow the smallest amount that solves the problem.
- Choose the shortest term you can afford.
- Do not use one loan to pay another without checking the total cost.
- Keep records of every offer and payment.
Common traps when comparing
Several habits lead people to choose the wrong loan. One is comparing only the monthly installment: a low payment can hide a long term and a high total. Another is ignoring deductions: if a lender takes fees out of the amount before sending it, you receive less than you borrowed but still repay the full principal. A third is relying on advertised "from" rates, which describe the best case and may not match your offer. A fourth is forgetting time: a 30-day loan and a 180-day loan cannot be compared by interest rate alone. Finally, some borrowers focus on speed and overlook cost, even though a fast loan is not always a good loan. Write the numbers down for each lender and compare them calmly.
A simple comparison sheet
Use a small table on paper or in your notes with one column per lender and one row for each item: amount received, interest, service fee, sign fee, total repayment, number of installments, amount per installment, and due dates. Add a final row for notes, such as whether the lender is recorded with the SEC and how you can contact support. Filling it in takes a few minutes and makes the best choice much clearer. Keep the sheet with your screenshots of each offer, so that you can show what you were promised if there is ever a disagreement.
FAQ
Compare total repayment for the same amount and the same number of days.
No. Fees can make a loan with a lower rate cost more overall.
It is the yearly rate used to compute interest. Always check what other fees apply.
Yes. If fees are deducted, you receive less than the principal, which raises the real cost.