Are online lending apps legal in the Philippines?
Last updated: 2026-07-11 · Educational content; not legal advice.
Short answer
Yes — but only if the company behind the app is registered with the SEC as a lending or financing company AND holds a Certificate of Authority to operate, and the specific app is recorded on the SEC's list of Online Lending Platforms. Lending to the public without SEC registration and a Certificate of Authority is prohibited under RA 9474 (Lending Company Regulation Act of 2007) and RA 8556 (Financing Company Act of 1998); the SEC also imposed a moratorium on brand-new OLPs under Memorandum Circular 10, s. 2021. An app run by an unregistered operator is operating illegally, and its collection tactics are usually illegal too.
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Frequently asked
Is a legitimate loan app allowed to lend at all?
Yes. Apps such as those operated by SEC-registered lending or financing companies with a valid Certificate of Authority may lend legally, provided they follow disclosure rules (RA 3765, Truth in Lending Act), the interest ceilings for covered small loans (SEC MC 3, s. 2022), and the collection rules (SEC MC 18, s. 2019).
Does being a registered company mean the app is legal?
Not by itself. A firm can be an SEC-registered corporation yet still lack the separate Certificate of Authority required to lend, and its individual app must be recorded on the SEC's OLP list. Check both — see /answer/how-do-i-know-if-an-online-lending-app-is-registered.
What makes an app illegal?
Operating without SEC registration or without a Certificate of Authority, running an unregistered OLP, or launching a new OLP in breach of the MC 10 (2021) moratorium. Illegal operators are typically also the ones that scrape contacts and harass — practices banned by SEC MC 18.
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