Yes. In the Philippines, a creditor can sue a debtor for an unpaid loan even if there is no written contract, as long as the loan can be proven through admissible evidence. Philippine law generally does not require loans to be in writing to be valid. The hard part is not legality—it’s proof.

This article explains the legal basis, how to prove an oral loan, what cases you can file, what evidence matters, defenses debtors commonly raise, prescription periods, and practical steps.

1. Legal Basis: Loans Are Consensual, Not Formal

1.1 Contract of Loan (Mutuum)

A simple loan of money is called mutuum under the Civil Code. It is a consensual contract—meaning it is perfected by agreement, not by a written document. Once money is delivered and accepted with an obligation to repay, a loan exists.

1.2 No Writing Required for Validity

The Civil Code does not require a written contract for a loan to be valid. Even an oral agreement can create an enforceable obligation.

Key idea:

Validity of a loan ≠ ease of proving a loan.

A written contract is mainly for evidence, not for validity.

2. Oral Loans Are Enforceable—but Must Be Proven

2.1 Burden of Proof

If you file a case, you (the lender) must prove:

The loan was given (delivery of money), and
The debtor promised to repay (obligation), and
The debtor failed to pay (default).

2.2 Standard of Proof

Civil cases require preponderance of evidence (more likely than not).

3. Evidence You Can Use Without a Written Contract

Under the Rules of Court, you can prove an oral loan through testimonial and documentary evidence, including:

3.1 Proof of Delivery of Money

Bank transfer records
Remittance slips (Palawan, Cebuana, Western Union, etc.)
GCash/Maya transaction histories
Check encashment records
Deposit slips
Screenshots showing transfer + recipient details
Any written acknowledgment, even informal

3.2 Proof of the Loan Agreement / Promise to Pay

Text messages / chat logs (Messenger, Viber, WhatsApp, Telegram)
Emails
Voice messages (if authenticated)
Any “IOU” note or handwritten acknowledgment
“Payment plan” messages
Apologies or admissions like “babayan ko na next week”

Even if there is no formal contract, admissions by the debtor are powerful.

3.3 Witness Testimony

A person who saw the agreement, the delivery, or later demands
Someone present during negotiations
A witness who heard the debtor acknowledge the debt

3.4 Demand Letters

A written demand isn’t required to prove existence, but it helps show default and good faith.

Registered mail receipts
Courier confirmation
Email demand with delivery/read receipts

4. What Kind of Case Can You File?

4.1 Civil Case for Collection of Sum of Money

This is the standard remedy. You ask the court to order the debtor to pay the principal plus interest/damages if proper.

4.2 Small Claims Case (Most Common for Personal Loans)

If the amount is within the Small Claims limit (it has increased over time), you can file:

Without a lawyer
Faster and cheaper
Based on affidavits and evidence

Small claims courts allow informal proof like chats and receipts, as long as authenticated.

4.3 Estafa (Criminal) — Only in Special Situations

You cannot automatically file estafa just because a loan wasn’t paid.

In general, nonpayment of a loan is a civil matter. Estafa applies only if there was fraud at the start, like:

Borrower used false pretenses to obtain money, or
Borrower promised something they never intended to do, and you can prove deceit, or
The money was received “in trust” and misappropriated (not a simple loan).

Courts are cautious with estafa for loans to avoid criminalizing ordinary debt.

5. Interest Without a Written Contract

5.1 Interest Must Be in Writing

Under the Civil Code, interest is not demandable unless expressly stipulated in writing.

So if your loan was oral:

You can still claim the principal, but
You generally cannot claim agreed interest unless there’s written proof of that interest agreement.

5.2 Legal Interest

Even without a written interest agreement, courts may award legal interest (as damages) from the time of demand or filing, depending on circumstances.

6. The Statute of Frauds Does NOT Usually Block Loan Claims

The Statute of Frauds requires certain agreements to be in writing to be enforceable, but simple loans generally aren’t among them, unless:

The loan agreement cannot be performed within one year, or
The agreement is not a simple loan but tied to another covered transaction.

Also important: The Statute of Frauds is a defense, and it applies only to executory contracts. A loan is usually partly executed once money is delivered, so the defense typically fails.

7. Prescription (Deadline to Sue)

You must file within the legal time limit—otherwise the claim dies.

7.1 Written Contracts

If there’s a written contract, the action generally prescribes in 10 years.

7.2 Oral Contracts

If purely oral, the action generally prescribes in 6 years from when the obligation became due.

7.3 When Does the Clock Start?

Usually from:

The due date, or
If no due date, from the time you demanded payment, because demand fixes default.

If the debtor keeps promising to pay, those acknowledgments may interrupt prescription.

8. Common Debtor Defenses—and How to Counter Them

8.1 “It was a gift / tulong / donasyon.”

Counter with:

Proof the debtor agreed to repay
Admissions in chats
Any partial payments (great evidence of a loan)

8.2 “I already paid.”

Counter with:

Ask for proof of payment
Show lack of receipts
Point to messages still acknowledging debt

8.3 “No written contract, so no loan.”

Counter with:

Show delivery evidence
Show admissions
Explain loans need not be written

8.4 “The amount is wrong.”

Counter with:

Transaction records
Consistent chat references
Witness who knows amount

8.5 “Prescription already ran.”

Counter with:

Show demand was recent
Show written or verbal acknowledgments interrupting the period
Show partial payments

9. Authentication of Digital Evidence (Texts/Chats)

Courts accept electronic evidence if authenticated. Practical tips:

Preserve original chat threads
Take screenshots showing:
- Names/usernames
- Dates/times
- Full conversation context
Print them and attach to affidavits
If needed, be ready to show the device/account where they came from

The judge needs to believe they are genuine and unaltered.

10. Practical Step-by-Step Approach

Organize evidence
- Transfers, receipts, chats, witness names
Send a formal demand
- Clear amount, due date, deadline to pay
Wait the stated period
- Usually 5–15 days depending on your demand
Choose your forum
- Small claims if amount qualifies
- Regular civil case if larger/complex
File
- Attach evidence, sworn statements
Be consistent
- Your complaint, affidavits, and documents must match

11. What If You Have Zero Documentation?

You can still sue, but success depends heavily on:

Credible witness testimony
Debtor admissions (even verbal, if witnessed)
Circumstantial evidence (e.g., sudden transfer + repayment promises)

Courts can decide based on the totality of evidence. Still, cases with no paper trail are harder.

12. Key Takeaways

You can sue even without a written contract.
Loans don’t need writing to be valid; they need proof to be collectible.
Digital trails (GCash, bank transfers, chats) are often enough.
Interest requires a written stipulation, but legal interest may still be awarded.
File within 6 years for oral loans.
Small claims is usually the fastest route for personal loans.
Nonpayment alone is not estafa unless fraud or trust misappropriation is provable.

13. A short, real-world rule of thumb

If you can show (1) money went out of you, and (2) the person acknowledged it was a loan, you have a strong case—even with no formal contract.

If you want, tell me the basic facts (amount, how it was sent, any messages, when it was due). I can lay out what evidence you already have, what claim fits best, and how strong it looks—purely for general informational guidance.