Borrowing safely: Philippines.

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Moraph for Good · Fluent

Borrowing safely: Philippines

Handout · moraph.org/commons/sessions/fluent/borrowing-safely

The cost of a loan is everything you pay back, not the monthly payment. This sheet has the questions to ask before you borrow and where to get free help where you live.

Three questions for any lender

What is the yearly rate including fees?
What is the total I will pay back?
What happens if I pay late or early?

Warning signs

Pressure to sign today
No questions about whether you can afford it
A fee before you get the loan, which is often a scam
A lender that wants to keep your ID or bank card

Cheaper options to ask about

Small loans from credit unions or community lenders
A payment plan with the company you owe
Free, not-for-profit debt advice

If you’re struggling

Contact the lender before you miss a payment
Complain in writing, and keep copies
Use the official routes below if it isn’t resolved

In the Philippines

The Truth in Lending Act. Under the Truth in Lending Act, a lender must give you a clear written statement before the loan is made, showing the total amount financed, the finance charge in pesos and centavos, and the finance charge as a simple annual rate. The finance charge includes interest, fees, service charges and discounts.
Who regulates which lender. The Bangko Sentral ng Pilipinas (BSP) supervises banks and other BSP-supervised institutions. The Securities and Exchange Commission (SEC) regulates financing and lending companies, online lending apps and platforms, and their collection agencies, so complaints about them go to the SEC.
Complain to the institution first. By law, every BSP-supervised institution must have its own complaints process, and that is the first place to go. If you aren’t satisfied, you can escalate it to the BSP’s Consumer Assistance Mechanism through its chatbot, BSP Online Buddy (BOB), or by emailing the complaint form to consumeraffairs@bsp.gov.ph with proof that you complained to the institution first.
Loan scams. If a loan offer turns out to be a scam or fraud, the BSP encourages reporting it to law enforcement: the Philippine National Police, the National Bureau of Investigation or the Cybercrime Investigation and Coordinating Center (CICC), whose hotline is 1326.

Official places to check:

Bangko Sentral ng Pilipinas: www.bsp.gov.ph/Regulations/Banking%20Laws/RA3765.pdf
Bangko Sentral ng Pilipinas: www.bsp.gov.ph/Inclusive%20Finance/How-to-file-a-complaint-with-BSP-CAM-Sep2025.pdf
Bangko Sentral ng Pilipinas: www.bsp.gov.ph/Pages/InclusiveFinance/ConsumerAssistanceChannelsChatbot.aspx?ID=1870

More free official help in the Philippines: moraph.org/commons/help/financial-literacy/ph

General information, not advice about your own situation. Checked 20 October 2026. If an official source says something different, it is right. Free to copy and adapt. moraph.org/commons/sessions/fluent/borrowing-safely