The rapid rise of online lending platforms in the Philippines has provided millions of Filipinos with quick access to credit, particularly the unbanked and underbanked. However, this convenience has also spawned a parallel industry of illegal, predatory, and fraudulent lending apps that employ harassment, public shaming, exorbitant interest rates, and unauthorized access to personal data. Many borrowers have suffered severe emotional, financial, and reputational harm from these illegitimate operators.

This article comprehensively explains the legal framework governing lending companies in the Philippines and provides a definitive, step-by-step guide to verifying whether an online lending company is legitimate.

I. The Governing Laws and Regulatory Bodies

Republic Act No. 9474 (Lending Company Regulation Act of 2007) and its Implementing Rules and Regulations (IRR)
This is the primary law governing all lending companies, including those operating online. It mandates that any entity engaged in lending money as its principal business must register with the Securities and Exchange Commission (SEC) and obtain a Certificate of Authority (CA) to operate as a lending or financing company.
Republic Act No. 8556 (Financing Company Act of 1998)
Applies to financing companies (those granting loans secured by collateral or for specific purposes such as vehicle or appliance financing). They are also under SEC supervision.
SEC Memorandum Circular No. 18, Series of 2019
Specific guidelines for online lending platforms. It requires, among others:
- Clear disclosure of interest rates, fees, and penalties
- Registration of the platform/app with the SEC
- Prohibition on abusive collection practices
- Mandatory registration with the National Privacy Commission (NPC)
Republic Act No. 10175 (Cybercrime Prevention Act of 2012) and Republic Act No. 10173 (Data Privacy Act of 2012)
Illegal lenders frequently violate these laws by accessing contacts without consent, sending threatening messages, or publicly shaming borrowers.
Bangko Sentral ng Pilipinas (BSP)
The BSP does not regulate ordinary lending companies. It only supervises banks, quasi-banks, and their subsidiary financial institutions. If an app claims to be “BSP-licensed” but is not a bank, it is lying.

II. Step-by-Step Verification Process (2025 Updated Procedure)

Follow these steps in order. If the company fails even one step, do not borrow from it.

Step 1: Check the SEC List of Registered Lending and Financing Companies with Certificate of Authority

The SEC maintains the only authoritative and updated list of legitimate lending and financing companies.

Go to the official SEC website: https://www.sec.gov.ph
Hover over “Lending Companies” or “Financing Companies” in the menu
Click “List of Registered Lending Companies” or “List of Registered Financing Companies” (both lists are published separately)
Download the latest PDF list (updated monthly or quarterly)

As of December 2025, the SEC publishes two primary lists:

Registered Lending Companies (RLCs) with Certificate of Authority
Registered Financing Companies (RFCs) with Certificate of Authority

Additionally, the SEC publishes a specific list titled “Online Lending Platforms Operated by Registered Lending/Financing Companies” that names the actual apps (e.g., JuanHand, UnaCash, Cashalo, etc.).

If the app or company name is not on any of these lists, it is operating illegally.

Step 2: Verify Company Registration at SEC Company Registration System (CRS)

Even if the company appears on the lending list, confirm its corporate registration:

Visit https://crs.sec.gov.ph/
Search by exact company name
Check if status is “Registered” and if the primary purpose includes lending/financing

A company may be registered as a corporation but still lack the required Certificate of Authority to lend. Both are required.

Step 3: Check the SEC’s List of Entities with Complaints or Cease and Desist Orders (CDOs)

The SEC regularly issues advisories against illegal lending apps.

Go to https://www.sec.gov.ph/advisories-2023/ or /advisories-2024/ or /advisories-2025/
Search for the app name or company name
Common illegal apps repeatedly warned against include: QuickPeso, FastCash, Lucky Loan, CashJeep, Lentimo, Quickla, PesoQ, etc.

If the SEC has issued a Cease and Desist Order, the entity is prohibited from operating.

Step 4: Verify Data Privacy Compliance with the National Privacy Commission (NPC)

Legitimate lenders must be registered with the NPC.

Visit https://www.privacy.gov.ph/list-of-registered-pics-and-pips/
Search for the company name

Absence from this list is a major red flag, especially if the app asks for access to contacts, gallery, or SMS.

Step 5: Check Interest Rates and Fees Against Legal Limits

While the usury law is suspended for unsecured loans, the SEC imposes reasonableness standards.

Legitimate lenders typically charge:

Monthly interest: 1%–6% (most registered platforms charge 0.8%–4% per month)
Processing/service fees: 5%–10% of loan amount

Red flags:

Daily interest rates (e.g., 1% per day = 365% per year)
Total charges exceeding 100% in six months
“Membership fees,” “verification fees,” or “credit investigation fees” charged upfront

Step 6: Examine Collection Practices (Even Before Borrowing)

Under SEC MC No. 18, s. 2019 and SEC MC No. 3, s. 2023, the following are strictly prohibited:

Contacting borrowers’ contacts or employers
Public shaming (posting photos or names on social media)
Threatening criminal charges for non-payment of civil debt
Using obscene or profane language
Calling outside 8:00 AM to 8:00 PM

If reviews on Google Play, App Store, or Facebook mention any of these practices, avoid the app completely.

III. Common Misrepresentations Used by Illegal Lenders

Claiming to be “BSP-registered” or “BSP-supervised”
Displaying fake SEC or BSP logos
Using names similar to legitimate companies (e.g., “JuanHand Pro,” “UnaCash Plus”)
Showing fake Certificates of Authority with forged SEC signatures
Claiming to be “Singapore-based” or “international” to evade Philippine law (they are still subject to Philippine law if they lend to Filipinos)

IV. What to Do If You Have Already Borrowed from an Illegal Lender

Stop paying immediately if they harass you (the debt is unenforceable under RA 9474).
File complaints simultaneously with:
- SEC (via https://www.sec.gov.ph/online-complaint-form/)
- NPC (for data privacy violations)
- PNP Anti-Cybercrime Group (for online libel, unjust vexation, grave threats)
- NBI Cybercrime Division
Preserve evidence: screenshots of threats, messages, loan agreements.
Report the app on Google Play and Apple App Store (many illegal apps are eventually removed).

V. List of Consistently Legitimate Online Lending Platforms (as of December 2025, based on latest SEC list)

The following platforms are operated by SEC-registered lending/financing companies with valid Certificates of Authority (this is not exhaustive; always verify the latest SEC list):

JuanHand (WeFund Lending Corp.)
UnaCash (Digido Finance Corp.)
Cashalo / Finaswide (Paloo Financing Inc.)
Tala Philippines (Tala Financing Philippines Inc.)
OLP (Online Loans Pilipinas Financing Inc.)
Madaloan (Alianza Finance Inc.)
MoneyCat (MoneyCat Financing Inc.)
Kviku (Kviku Lending Co. Inc.)
Finbro (Finbro Payments Inc.)
Pesopop (formerly Billease) – for financing only
Atome Credit (NeuronCredit Financing Company Inc.)

Conclusion

Borrowing from an unregistered online lending company is not only financially dangerous but legally equivalent to dealing with a criminal enterprise. The verification process takes less than ten minutes and can save you from years of harassment and financial ruin.

Always remember: If it is not on the official SEC list of lending companies with Certificate of Authority, it is illegal. Full stop.

Protect yourself by verifying first, borrowing second. The only safe online loan is one from a duly authorized lending company under Philippine law.