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When caught in a dire situation, one of the choices that you have to face is whether or not to get a personal loan and if you do, which one. Are you going to apply for unsecured or secured loans? How are they different from each other?

In times like this, you need to make a well-informed and smart decision in your personal loan application. Bear in mind that getting a personal loan in the Philippines is not a walk in the park. You have to consider whether you have the capacity to pay the loaned amount with interest, and whether you can present a collateral to the bank. GoBear helps you compare unsecured and secured loans and their requirements so that you can make the best decision in your loan application.

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What are secured loans?

Secured personal loans are salary loans that require you, as a borrower, to present a collateral as a payment security to the bank or lending institution. In case you were unable to pay for the loan amount, there is a possibility that the bank will take the asset and use it as payment for the unpaid amount.

What are advantages of secured loans?

Because secured loans require a form of collateral, you could borrow a higher amount compared to unsecured loans. Secured personal loans also come with a flexible loan tenure - as short as 3 months, thus having a lower interest, or as long as 36 months, if you need more time. Another thing that’s good about secured loans is that they have faster processing time than unsecured loans. Banks tend to approve secured loans quicker because they are already given a collateral as a guarantee.

What are the disadvantages of secured loans?

Even though secured personal loans come with a higher loanable amount and faster processing time, you might risk losing your collateral if you miss a payment. Apply for secured loans only if you are sure that you can sufficiently pay for the loan each month. If not, you might want to consider unsecured loans.

Loan companies in the Philippines offering secured loans

One of the companies that offer secured loans in the Philippines is BDO. The Asenso Kabayan Personal Loan Secured by BDO is offered for OFWs who want to apply for a personal loan as capital for business, downpayment for a car or a house, or for other major purchases.

Asenso Kabayan Personal Loan Secured features

As a secured loan, the Asenso Kabayan Personal Loan Secured requires the borrower to have a joint or individual account opened at BDO with a minimum of ₱15,000 deposit as collateral. Accounts can either be a savings account or time deposit account in pesos or dollars. The deposit can be in pesos or dollars, although proceeds from the loan will be in pesos. The amount that you can borrow depends on your account balance. If you opened a peso account, you can borrow a maximum of 90% of the account balance. On the other hand, you can borrow 80% of the deposit account balance if you have a dollar account. If you have a good standing for your existing personal loan, you may also qualify for a re-availment. Personal loan tenure is 3 to 36 months.

CTA-Personal-Loans.pngAsenso Kabayan Personal Loan Secured eligibility

In order for you to take a secured personal loan from BDO you must be a salaried employee with a minimum gross annual income of P120,000 and an income of P400,00 if you are self-employed. Salaried employees must be working in the same company for at least a year before they can apply for a secured personal loan from BDO.

BDO secured personal loan requirements

Kabayans who are working abroad can easily apply for a secured personal loan from BDO. You need to download and submit the following forms: application form, deed of assignment form, special power of attorney form, beneficiary information form, and auto debit arrangement form. Proofs of income for salaried employees include a copy of the latest BIR Form 2316 or a signed W2 as well as a copy of the latest payslip or the original certificate of employment and income. Self-employed individuals must secure a copy of their business name registration, and other important papers from DTI and SEC.


Make the smart decision when it comes to getting a personal loan. Compare unsecured and secured loans at GoBear before you apply.

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