Top 10 Best Travel Loans up to ₱3 Million in the Philippines (2024)

Traveling is an exhilarating and transformative experience, allowing individuals to explore new cultures, create lasting memories, and broaden their horizons. However, the financial aspects of traveling can often pose a significant challenge. To overcome these financial barriers and make your travel dreams a reality, personal loans designed specifically for travel purposes are an excellent option.

In the Philippines, numerous banks and lending institutions offer travel loans to assist you in funding your adventures.  CashLoanPH will explore the various facets of travel loans in the Philippines, including what they are, how they differ from travel assistance loans, and the top 10 lenders in the country that provide the best travel loan options.

What is a Travel Loan?

A travel loan, in essence, is a type of personal loan that is tailored to cover the expenses associated with your travels. These expenses can encompass a wide array of costs, such as airfares, accommodations, tour packages, and other travel-related expenditures. It’s important to note that personal loans, including travel loans, are typically unsecured. This means that you do not have to provide any collateral, such as property or assets, to secure the loan. This makes travel loans accessible to a broad spectrum of individuals who may not have valuable assets to use as collateral.

What is the Difference Between a Travel Loan and a Travel Assistance Loan?

It’s not uncommon for travelers to encounter situations where they need to provide proof of their financial capability when applying for visas or fulfilling show money requirements. This specific need gave rise to the concept of travel assistance loans, also known as Bank Certificate or Proof of Funds loans. These loans serve the unique purpose of helping travelers meet these financial requirements. They are distinct from traditional travel loans, which are used to cover general travel expenses.

Where Can I Apply for a Travel Assistance Loan?

Travel assistance loans in the Philippines are typically offered by private lenders. In addition to private lenders, some travel agencies and tour operators also provide travel assistance loan products. If you are in the process of applying for a visa and require such proof of funds, it’s a good idea to check with your local travel agency, as they may offer this service for your convenience.

Top 10 Loans for Travel in the Philippines to Fund Your Next Vacation

When it comes to securing a travel loan in the Philippines, it’s essential to find a reputable lender that offers favorable terms and conditions. Below, we’ve compiled a list of the top 10 lenders in the Philippines that provide some of the best travel loan options:

#1. CIMB Bank

• Loan Amount: ₱30,000 to ₱1 million
• Interest Rate: As low as 0.83% per month (18% annual contractual rate)
• Loan Term: 12 to 60 months

CIMB Bank’s travel loan product is particularly appealing due to its low monthly add-on rates, making it one of the most cost-effective options on the list. Borrowers can access loans of up to ₱1 million, and the funds are promptly disbursed to your CIMB Bank savings account or other bank accounts within one to two banking days. The application process is user-friendly and can be completed through the CIMB app.

#2. Cashalo

• Loan Amount: ₱1,000 to ₱7,000
• Interest Rate: Starts at 3.95% per month
• Loan Term: 90 days

Cashalo is a reputable fintech company in the Philippines, offering financing products that cater to the needs of borrowers. The maximum loan amount available is ₱7,000, making Cashalo’s cash loan ideal for quick, urgent out-of-town trips. Once your loan application is approved, you can expect to receive the disbursed amount in just one to three days. It’s important to note that the maximum loan term is relatively short at just three months.

#3. Metrobank

• Loan Amount: ₱20,000 to ₱1 million
• Interest Rate: 1.25% to 1.75% per month (25.976% annual contractual rate)
• Loan Term: 12 to 36 months

Metrobank offers a personal loan specifically designed for travelers, complete with competitive interest rates. If your travel plans are on the horizon, you’ll appreciate that Metrobank processes loan applications in as little as seven business days. To apply for a Metrobank personal loan, you need to prepare a Signed Promissory Note and Disclosure Statement (PNDS), a valid government ID, and complete the online application form. Once you’ve submitted your application, you’ll receive a call from Metrobank regarding your loan.

#4. SB Finance

• Loan Amount: ₱30,000 to ₱2 million
• Interest Rate: 2% per month
• Loan Term: 12, 18, 24, or 36 months

For those with ambitious travel goals, SB Finance’s Personal Loan offers the possibility of borrowing up to ₱2 million. The loan’s monthly interest rate is a reasonable 2%, and you can spread your repayments over a period of up to 36 months.

#5. BPI

• Loan Amount: ₱15,000 to ₱3 million
• Interest Rate: 25.60% annual contractual rate
• Loan Term: 12 to 36 months

BPI’s Personal Loan is an excellent choice for travelers, offering the flexibility to borrow up to three times your gross monthly income. As a collateral-free loan, you won’t need to pledge any assets as security. Accessing the loan proceeds is straightforward, as they are deposited directly into your BPI account. Repayment is conveniently managed through the bank’s automatic debit facility.

#6. PSBank

• Loan Amount: ₱20,000 to ₱250,000
• Interest Rate: 1.75% per month (for term loan)
• Loan Term: 24 to 36 months

For those seeking a loan with additional perks, PSBank’s Flexi Personal Loan with Prime Rebate is a compelling choice. It stands out as the first and only collateral-free personal loan with a revolving credit line and a fixed-term loan feature. This unique loan structure operates similar to a credit card, albeit with a significantly lower interest rate. Depending on your repayment progress, the amount available for borrowing can either increase or decrease. What makes this loan even more attractive is the rebate program, which allows you to enjoy savings every time you make advanced or excess payments.

#7. UNO Digital Bank

• Loan Amount: ₱10,000 to ₱200,000
• Interest Rate: 1.79% per month
• Loan Term: Six to 36 months

Despite being a newcomer in the financial industry, UNO Digital Bank is a legitimate entity that holds a license from the Bangko Sentral ng Pilipinas (BSP). With their #UNOnow loan, you can borrow anywhere from ₱10,000 to ₱200,000, depending on the duration and destination of your trip. What sets UNO Digital Bank apart is that there is no requirement to declare collateral or possess an existing credit card or bank account. To apply for a travel loan, simply download the UNO Digital Bank app, submit your application, and, once approved, await the disbursement of funds to your UNOBank account.

#8. RCBC

• Loan Amount: ₱50,000 to ₱1 million
• Interest Rate: 1.3% per month
• Loan Term: Six to 36 months

RCBC’s Personal Loan is well-suited for travelers with the desire to borrow up to ₱1 million. With an attractive interest rate of 1.3% per month, you can embark on your journeys without accumulating excessive debt. Additionally, if you’re prepared to repay the loan early, you have the option to do so in just six months.

#9. Maybank

• Loan Amount: ₱50,000 to ₱1 million
• Interest Rate: 1.3% per month
• Loan Term: Up to 36 months

Maybank’s Personal Loan caters to a diverse range of travelers, allowing loans starting from ₱50,000 and extending up to ₱1 million. The competitive interest rate of 1.3% per month makes it an enticing choice. You can conveniently apply for this loan online or request further information and assistance through Maybank’s hotline or in-branch services.

#10. Digido

• Loan Amount: ₱1,000 to ₱25,000
• Interest Rate: 0% to 11.9% per month
• Loan Term: Three, four, five, or six months

Digido is a licensed online lender in the Philippines that offers travel loans. The loan amounts vary, ranging from ₱1,000 to ₱10,000 for first-time borrowers, and increasing to ₱25,000 for repeat borrowers. While the loan amounts may seem smaller compared to those offered by traditional banks, Digido’s loans are ideal for domestic travel. First-time borrowers can take advantage of a 0% interest rate, providing an attractive incentive. However, repeat borrowers will need to pay back loans at a monthly rate of 11.9%.

What to Consider When Applying for a Loan for Travel

Securing a travel loan is a significant financial commitment, and it’s essential to approach it with care and responsibility. Before initiating the loan application process, take the time to consider the following questions:

How Much Does My Trip Cost?

To begin, determine the total cost of your trip. This should encompass all essential travel expenses, including airfare, accommodations, tours, and shopping. It’s advisable to minimize costs where possible, such as opting for budget-friendly accommodations over luxury hotels. Your travel budget should align with your financial means, ensuring that it is an amount you can comfortably afford based on your income.

To calculate the amount you need to borrow, subtract your available travel fund from your budget. This will help prevent the unnecessary accumulation of debt. If the shortfall between your budget and available funds is something you can save up for in the weeks or months leading up to your departure, saving may be a more sensible alternative. This way, you can avoid paying additional interest on top of the principal loan amount.

Can I Afford to Repay a Travel Loan?

Assess your monthly budget, taking into account your income and expenses, including any existing loans or credit card balances. It’s crucial to ensure that your monthly loan repayment remains within a manageable range, ideally not exceeding 30% of your monthly income. Additionally, take a close look at your savings. It is generally impractical to utilize your emergency fund for your trip. Traveling for leisure is not considered an emergency, unless you have urgent reasons, such as visiting a sick family member abroad. In such cases, it’s best to avoid tapping into your savings for a vacation loan. If repaying a travel loan won’t leave you living paycheck to paycheck after your trip and you have a well-structured plan in place, there may be no need to rely on a lender for financial assistance.

Is My Travel Purpose Worth Borrowing Money For?

Traveling, unlike endeavors such as starting a business, purchasing a vehicle, or investing in real estate, does not inherently promise a direct return on investment (ROI). Most individuals do not generate additional income from their travels, in contrast to business endeavors, vehicle ownership, or rental property. However, traveling offers unique, intangible benefits that can be highly valuable. For example, aspiring immigrants may reunite with loved ones living abroad, entrepreneurs may gain insights by observing industry best practices in other countries, and professionals may enhance their skills and career growth through international study. Tourists can immerse themselves in diverse cultures, creating cherished memories with their families.

In any of these cases, a travel loan can be seen as a means to acquire good debt, as it enables you to obtain something profoundly valuable in return. What’s critical is to assess whether your reason for traveling justifies the long-term costs associated with personal loan fees and interest payments.

Which is Better: a Travel Loan or a Travel Credit Card?

When it comes to financing your travels, a travel loan is just one of the available options. It’s important to consider whether a personal loan or a travel credit card better suits your specific needs. Both options come with distinct advantages and disadvantages, so it’s advisable to carefully evaluate each based on your travel requirements.

Travel loans typically offer lower interest rates than credit cards. Additionally, loans come with fixed monthly amortization and repayment schedules. This predictability can be advantageous, as it helps you budget and manage your finances more effectively.

On the other hand, travel credit cards offer a range of money-saving benefits, such as air miles, cash rebates, travel insurance, purchase protection, and other perks that travel loans may not provide. Credit cards also offer a higher level of security compared to carrying large amounts of cash. Furthermore, credit cards allow you to repay only the amount you have actually utilized, making them a flexible option.

Conclusion

In the pursuit of fulfilling your travel dreams, it’s crucial to make informed and responsible decisions when considering a travel loan. Thoroughly researching your options and comprehensively comparing the terms and conditions of various lenders is essential to ensure that your travels are enriching and enjoyable, rather than leading to long-term financial hardships. Travel loans can be an invaluable tool to achieve your travel aspirations, provided they are used wisely and align with your financial capacity. With careful planning and a well-thought-out approach, you can explore new destinations, create lifelong memories, and broaden your horizons, all without the burden of excessive debt.