Loan cost, and whether it breaches the cap

Lenders advertise a daily or monthly rate. What governs the legal limit is the effective rate, which includes processing and service fees. Put in what you were quoted and this works out both — then checks them against the ceilings that took effect on 1 April 2026.

Pale columns of different heights beneath a dark wooden beam acting as an upper limit. The tallest permitted column just reaches the beam and is edged in green; a further column pushes through the beam and is edged in red where it breaks the line.

Loan amountThe principal the lender releases.Nominal interest, % per monthThe headline rate the lender quotes.Term, monthsUpfront feesProcessing, service, notarial, handling.Monthly feesAny recurring charge on top of the payment.

This is a bank loan. The SEC ceilings do not apply to banks.

Monthly payment

₱2,885.91

Total you repay

₱11,543.66

Total cost of credit

₱2,043.66

Effective rate, monthly

8.28%

Inside the ceiling. The effective rate is 8.28% a month, against a limit of 12%. That is 3.72% of headroom — a lender could add fees up to that point and still comply.

Where these figures come from

SEC Memorandum Circular No. 14, s. 2025 — in force from 2026-04-01

Background on what changed and who it covers: the 2026 interest rate cap, explained.