Online lending itself is legal in the Philippines, but there are regulations in place to protect borrowers and ensure the legitimacy of lenders. Here’s a breakdown:
Legal Online Lending:
- Online lending platforms can operate legally as long as they are registered with the Securities and Exchange Commission (SEC) Philippines.
- This registration process helps ensure they follow specific guidelines regarding fair lending practices and transparency in interest rates and fees.
Illegal Online Lending:
- Lending money online without SEC registration is illegal.
- This includes loan sharks who offer exorbitant interest rates and aggressive collection tactics.
Read more: Is Lending Money Illegal In The Philippines?
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