Here’s a complete, practice-oriented legal explainer—Philippine context—on Small Claims Case for Unpaid Personal Loan. It covers when small claims applies, how much you can sue for, venue, documents, fees, timelines, hearing flow (no lawyers!), defenses you’ll meet, how interest is computed, and how to collect after you win. No web sources used.

1) What a “small claims” case is (and when to use it)

A small claims case is a fast, streamlined civil action to recover a sum of money. You use it for pure money claims like:

Unpaid personal loans (with or without written promissory notes)
Money due from sale of goods/services, rent, deposit, advances, loans evidenced by checks/IOUs, online lending between individuals
The civil claim on bounced checks (BP 22) for the amount of the check, not the criminal BP 22 case

It is not for tort damages (e.g., injury), ejectment, or to ask for injunctions—money only.

Jurisdictional cap: You can file small claims if your principal claim is ₱1,000,000.00 or less.

The cap is measured exclusive of interest, penalties, attorney’s fees, litigation costs, and moral/exemplary damages (those latter damages aren’t allowed in small claims anyway).
Liquidated damages (a fixed amount agreed in the contract) count as part of the principal claim.

If your principal exceeds ₱1M, either waive the excess to fit small claims, or file a regular civil case.

2) Do you need a lawyer? (Short answer: No)

Lawyers are not allowed to appear for parties (unless the lawyer is the party).
The court provides standard forms; the judge conducts a one-day, face-to-face hearing and decides on the spot or very soon after.
Because there are no lawyers, your documents do the heavy lifting—see Section 6.

3) Venue and where to file

File in the first-level court (MTC/MTCC/MeTC/MCTC):

As a personal action, venue is where you or the defendant resides, at the plaintiff’s option.
If the loan contract has a valid venue stipulation, you may use it if it’s not oppressive.
If parties live in the same city/municipality and are natural persons, you generally need barangay conciliation first (Section 5).

4) Prescriptive periods (file on time!)

Written loan (promissory note/chat/email clearly showing a loan): 10 years from default.
Oral loan or loan implied by conduct: 6 years from default.
If the debt is by check used as payment for a loan, your civil action on the loan is within the written/oral period above; the criminal BP 22 case has its own 4-year prescriptive period.

“Default” is the due date in the note; if none, when you demanded and the borrower refused.

5) Barangay conciliation (often required before court)

Under the Katarungang Pambarangay law, if both borrower and lender are natural persons living in the same city/municipality, you must first file at the barangay where the defendant lives (or where the cause arose). Outcomes:

Amicable settlement → enforceable like a judgment; you’re done.
No settlement → get a Certificate to File Action (CFA); attach it to your small claims filing.

Exceptions (no barangay step): parties live in different cities/municipalities, one party is a juridical person (corp/partnership), or the case falls under recognized exceptions (urgent legal relief, etc.).

6) Evidence you should have (make it one-look obvious)

Proof of the loan and amount due
- Promissory note/IOU, GCash/bank transfer slips, deposit slips, chat/email admissions, spreadsheet of advances with receipts, signed acknowledgment, checks issued by the borrower, etc.
- If the loan was cash, show withdrawal slips, chat logs (“I received ₱50k”), or witness affidavit. Electronic evidence is admissible if authenticated (printouts + you explain source/device).
Due date & demand
- Due date in the note, or your demand letter (email/Viber counts).
- Proof of sending/receipt (registered mail card, courier proof, email/Viber screenshots).
Interest/penalties, if any
- Put the agreed rate (if written). Courts cut unconscionable rates; if none agreed, legal interest applies (see Section 12).
Borrower’s identity and address
- ID copy, business card, HR cert, lease, barangay cert, anything to help serve summons and collect later.
Barangay CFA if required (Section 5).

Tip: Label exhibits A, B, C… and annotate what each proves (loan, payment, demand, computation). Bring two sets.

7) How to file (forms & fees)

Fill out the Statement of Claim (Small Claims) form: state parties’ details, amount of claim, basis (loan), facts (date, amount, due date, demand), relief (principal + interest + costs).
Attach a Verification/Certification of Non-Forum Shopping (usually part of the form).
Attach all evidence and the CFA (if applicable).
Pay filing fees at the OCC (Office of the Clerk of Court).
- Indigent litigants may apply for fee exemption (submit affidavit of indigency + proof of income/assets).

The court will docket your case, calendar a hearing, and serve summons (or direct you to assist service).

8) After filing: what the court does and your deadlines

The court issues summons and a Notice of Hearing.
The defendant gets 10 calendar days from receipt to file a Response (standard form) with evidence and any counterclaim (must also qualify as small claim).
Prohibited pleadings: motion to dismiss (except for lack of subject-matter jurisdiction), motion for bill of particulars, motion for new trial/reconsideration, petition for relief, etc. No cross-claims or third-party complaints.

If the defendant doesn’t respond or appear, the court may render judgment based on your evidence.

9) The one-day hearing (what actually happens)

No lawyers. You and the borrower talk directly to the judge.
The judge first explores settlement. If you agree, the court issues a Compromise Judgment—immediately final.
If no settlement, the judge proceeds to summary hearing:
- You present your documents and explain briefly; the borrower responds.
- The rules of evidence are relaxed; affidavits and printouts are allowed; the judge may ask clarifying questions.
- The court aims to decide the same day or shortly after. Written Decision follows.

Attendance matters:

Plaintiff absent → case dismissed without prejudice (you can refile).
Defendant absent → court decides ex parte on your evidence.

10) Judgment: final, executory, no appeal

The Decision in small claims is final, executory, and unappealable.
No motion for reconsideration or new trial.
If the case is dismissed without prejudice (e.g., you were absent), you can refile.

11) Common defenses (and how to counter)

“It was a gift / tulong lang.” → Show the note, chats using “utang,” due dates, part payments.
“No demand was made.” → Produce the demand; if the note fixes a due date, demand is not a condition to sue.
“Different amount.” → Show bank slips and borrower’s acknowledgment; present a running balance table.
“Usurious interest.” → Agree to reduce to a reasonable rate; still press for principal + legal interest (see Section 12).
“Paid already.” → Require proof of payment (receipts, transfers). If there were partial payments, deduct and recompute.
Prescription. → Count from default; written = 10 years, oral = 6 years.

12) Interest, penalties, and attorney’s fees (how courts actually compute)

If a written rate exists and is reasonable, courts enforce it until default. After default, courts often apply 6% per annum on the amount due (simple interest), unless the contract clearly stipulates another post-maturity rate that isn’t unconscionable.
If the rate is excessive (e.g., 4–10% per month), courts reduce it. Many judges cut to 1% per month or 6% per annum, depending on facts.
If no rate was agreed, courts grant 6% per annum from default (demand or due date) until fully paid.
Penalty/late charges may be allowed if in the contract, but a judge can moderate them.
Attorney’s fees: In small claims you can’t claim professional fees for counsel’s court appearance (since counsel can’t appear), but liquidated attorney’s fees stipulated in the loan (e.g., 10%) are sometimes awarded in reduced form when reasonable.

Practical move: Submit a clean computation sheet: principal, less payments, contractual interest to date (or proposed 6% p.a.), total.

13) Counterclaims and joinder

Defendant’s counterclaim must also be a small claim (≤ ₱1M) and arise from the same transaction; otherwise, the judge may dismiss it without prejudice to a separate case.
You can join multiple small money claims against the same borrower in one case if the aggregate principal is ≤ ₱1M and they arise from related dealings. If unrelated, better file separately.

14) If the borrower still won’t pay: how to collect

Ask for execution immediately after judgment:

Motion for Issuance of Writ of Execution (form/letter to the clerk often suffices).
Sheriff serves demand for immediate payment on the debtor. If unpaid, sheriff may:
- Garnish bank accounts (you help by giving bank names/branches/account hints),
- Garnish receivables/salaries (serve employer or clients),
- Levy on personal property (appliances, vehicle) and real property (lots/condo) → auction.
You can request a Judgment Debtor’s Examination (Rule 39): debtor appears in court, discloses assets/income under oath.
Renew execution steps if partially satisfied.

Costs of execution (sheriff’s fees, publication, etc.) are added to the judgment bill.

15) Strategy tips that win small claims for personal loans

Demand early and in writing; start interest from default.
Keep payment breadcrumbs (every transfer/GCash/receipt).
Put all key facts in three short paragraphs in the claim: Loan → Default → Amount due.
Bring two copies of all exhibits; tab them.
If you expect a no-show defendant, make your paper trail self-sufficient (note, proof of transfer, demand, computation).
If you expect the defense will be “gift/ayuda”, include chats where they acknowledge utang or promise to pay.
If interest is high, pre-offer a moderated rate in your computation; it signals fairness and speeds judgment.

16) Quick timelines (typical)

Barangay: 15–30 days to completion (if required).
Filing to hearing: often 30–60 days, depending on court calendar.
Hearing: one setting, about an hour.
Decision: same day or within a couple of weeks.
Execution: can start as soon as judgment is issued.

17) Templates (adapt the captions your court provides)

A. Statement of Claim (gist)

Parties & addresses
Cause: “On [date], I lent defendant ₱[amount] payable on [due date]. Despite demand dated [date], defendant failed to pay. ₱[principal balance] remains due plus interest at [rate]/or 6% p.a. from [date of default] and costs.”
Prayer: “Order defendant to pay ₱[principal], interest from [date], and costs.”
Attach: note/IOU, transfers, demand, computation, CFA, IDs.

B. Computation Sheet

Principal: ₱___
Less payments: (₱___)
Balance: ₱___
Interest: % p.a. from [date] to [date] = ₱_
Total as of filing: ₱___ (interest to continue at __% p.a. until full payment)

18) FAQs

Can I sue on screenshots of chats only? Yes, if they clearly show the loan and acknowledgment. Explain whose accounts/devices and print the thread with dates.

What if the borrower paid some amounts in cash? Record them and deduct; partial payment is admission of the debt.

What if the borrower lives abroad? Small claims needs service of summons; if the defendant is abroad, service is harder and may take you out of the small-claims speed lane. Consider alternatives (collect from local assets/co-borrowers).

Can I add moral damages for stress? Not in small claims. If you want moral/exemplary damages, file a regular civil case.

Bottom line

If your personal loan remains unpaid and your principal is ₱1,000,000 or less, small claims gives you a fast, lawyer-free path to a final, unappealable money judgment. Nail the basics: clear proof of the loan, default, demand, and a clean computation. Do barangay conciliation if required. At hearing, keep it short and document-driven. If you win and they still won’t pay, use execution—garnish, levy, and, if needed, put the debtor on the witness stand for asset disclosure.

If you want, tell me (1) the amount, (2) due date, (3) what documents you have, and (4) the cities you and the borrower live in—I’ll draft a filled-out claim, demand letter, and computation sheet tailored to your case.