Is My Loan’s Interest Legal?
Enter your loan terms. This tool scans them against the Philippine legal caps and tells you exactly which figures — if any — break the law, and the precise rule to cite. It also tells you plainly when the small-loan caps do not apply, so you never file a frivolous claim.
Your loan terms
The small-loan caps only reach lending and financing companies and their online lending apps — not banks. (A bank credit card has a separate BSP cap; a general bank loan has no blanket ceiling.)
Fees charged (one-time, ₱)
Is it legal?
Enter the amount, term, and interest rate to check your loan.
The caps, and when they apply
Covered small loan (all four must be true)
Unsecured · general-purpose · principal ₱10,000 or less · term 4 months or less · from a lending/financing company, its online lending platform, or a BSP-supervised institution.
- Nominal interest ≤ 6% per month
- Effective interest rate (EIR, fees folded in, penalties excluded) ≤ 15% per month
- Late-payment / non-payment penalty ≤ 5% per month of the amount due
- Total cost of the loan ≤ 100% of the principal (all interest + fees + penalties)
Outside that scope
Loans over ₱10,000, longer than 4 months, or from an informal/private lender are not subject to those caps. There is no single statutory interest ceiling (Usury Law ceilings suspended by CB Circular 905, s. 1982), but courts still void unconscionable rates (Civil Code Arts. 1229 & 1306; Medel v. CA, 1998), and RA 3765 always requires written disclosure of the finance charge and EIR before you sign.