The Department of Finance (DOF) is moving to impose stricter rules on online lending platforms to protect Filipinos from abusive practices and high interest rates that trap borrowers in debt.
Finance Secretary Ralph Recto emphasized the need for stronger safeguards as the number of digital lenders continues to rise.
The Securities and Exchange Commission (SEC), under DOF guidance, has drafted a memorandum circular setting limits on interest rates and fees for unsecured loans of up to P20,000 with repayment terms of six months or less, while capping penalties for late payments at five percent per month.
Violating lending firms could face fines ranging from P25,000 to P100,000, with the possibility of suspension or revocation of business permits for repeat offenses.
The SEC has opened the draft regulations for public review and feedback until November 14, allowing stakeholders to comment before finalization.
Source: PhilNews24 | November 7, 2025
