Regulatory AlertsPhilippines: lending & credit regulation
RegulatedSEC regulates lending companies; BSP governs banks; strict interest rate caps apply
- Lead regulator
- Securities and Exchange Commission (SEC)
- Also involved
- BSP (banks/quasi-banks) · NBI (criminal enforcement of illegal lending)
- Core law
- Republic Act No. 9474 (Lending Company Regulation Act)
- Entry capital
- PhP 50m (Lending Company)
- Approval timeline
- 3-6 months for SEC Certificate of Authority
- Customer assets
- Segregated trust accounts required
- Data protection
- Data Privacy Act of 2012 · NPC
- Sandbox
- No
The Philippines enforces a dual-regime for credit. The SEC licenses and supervises non-bank Financing and Lending Companies (FLCs) and Online Lending Platforms (OLPs) under RA 9474. The Bangko Sentral ng Pilipinas (BSP) regulates banks and quasi-banks. Recent regulatory focus has intensified on consumer protection, specifically through strict interest rate ceilings for micro-loans and enhanced disclosure requirements for digital platforms.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Consumer lending | LicenceCertificate of Authority (Lending Company)[1] Subject to strict interest rate ceilings for loans ≤PhP10,000 | PhP 50m | 3-6 months | SEC |
| SME / commercial lending | LicenceCertificate of Authority (Financing Company)[2] Financing companies may offer secured loans; BSP CRDPh aids risk assessment | PhP 50m | 3-6 months | SEC |
| Microfinance | LicenceCertificate of Authority (Lending Company) NGOs may qualify for accredited status; strict fee caps apply | PhP 50m | 3-6 months | SEC |
| Buy-now-pay-later | LicenceCertificate of Authority (OLP)[3] Must register as Online Lending Platform; disclose fees clearly | PhP 50m | 3-6 months | SEC |
| P2P lending platform | Uncertainverify with regulator P2P lending not explicitly regulated; likely requires SEC registration | — | — | — |
| Credit bureau / scoring | Uncertain[2]verify with regulator BSP CRDPh is for supervised institutions; private scoring unregulated | — | — | — |
| Debt collection | LicenceCertificate of Authority (Lending Company)[3] Must adhere to fair debt collection practices under SEC rules | PhP 50m | 3-6 months | SEC |
New — what changed recently
- 2025-12-10SEC MC No. 14 s. 2025 — Recalibrated interest rate and fee ceilings for unsecured loans ≤PhP10,000 with tenors up to four months.[1]
- 2022-03-01SEC MC No. 03 s. 2022 — Implemented BSP Circular No. 1133, imposing strict nominal interest rate caps on micro-loans.
- 2019-09-18SEC MC No. 19 s. 2019 — Mandated disclosure of SEC registration and Certificate of Authority in all OLP advertisements.[3]
Market-entry checklist
- 1Secure SEC Certificate of AuthorityApply for a Certificate of Authority as a Lending or Financing Company with the SEC.
- 2Meet PhP 50m Capital RequirementDemonstrate paid-up capital of at least PhP 50 million to qualify for licensing.
- 3Register as Online Lending PlatformIf operating digitally, register as an OLP and display SEC credentials in all ads.
- 4Adhere to Interest Rate CeilingsCap interest rates and fees strictly according to SEC MC No. 14 s. 2025 for micro-loans.
- 5Establish Segregated Trust AccountsSet up trust accounts for customer funds to ensure asset segregation and protection.
Sources
- SEC Memorandum Circular No. 14, Series of 2025: Recalibrated Ceilings on Interest Rates and Fees for Financing and Lending Companies · 2025-12-10
- Launch of the Credit Risk Database Philippines Web-based Scoring System (CRDPh System) · 2025-07-29
- SEC Memorandum Circular No. 19 s.2019: Disclosure Requirements for Financing and Lending Company Advertisements and Online Lending Platform Reporting · 2019-09-18