Pesoloan Interest Rate: How Much Does It Cost?
Pesoloan's Google Play listing states a maximum interest of 31% per year, and the company's own loan-process pages state a "maximum 15% per month." The two statements are worded differently, so the exact cost of your loan is the figure in the disclosure statement shown inside the app before you accept. At 31% a year, a ₱10,000 loan costs about ₱1,019 in interest over 120 days.
The cost of a loan is easy to misjudge when it is quoted in different units. A rate "per year," "per month" and "per day" can describe the same price or very different ones. This article puts the figures Pesoloan publishes side by side, shows worked examples and explains the ceilings that SEC rules place on online lenders.
What Pesoloan Publishes About Its Rate
On the Google Play listing, the developer states:
- Loan period: 91 to 180 days
- Maximum loan limit: ₱1,000 to ₱100,000
- Low interest (maximum APR): 31% per year
- Daily rate: 31% divided by 365, about 0.085%
- Monthly rate: 31% divided by 12, about 2.58%
The listing includes an example for a ₱20,000 loan over 120 days: monthly interest of about ₱516, total interest of ₱2,038.36 and a total repayment of ₱22,038.36.
On the company's loan-process pages, the headline terms describe a credit limit of ₱1,000 to ₱100,000, a loan term of 135 or 180 days depending on the page, and an interest rate of "maximum 15% per month."
These two statements are not necessarily in conflict. They may measure different things, for example interest only versus the effective cost including fees, or an absolute ceiling versus the rate that applies to most borrowers. But the public pages do not explain the difference, which is why you should rely on the disclosure statement in the app.
Worked Examples at the 31% Annual Maximum
The table below uses simple interest at the stated maximum of 31% per year and assumes the full principal is outstanding for the entire period, which is how the store listing's own example is calculated.
| Loan amount | 90 days | 120 days | 180 days |
|---|---|---|---|
| ₱5,000 | ₱382.19 | ₱509.59 | ₱764.38 |
| ₱10,000 | ₱764.38 | ₱1,019.18 | ₱1,528.77 |
| ₱20,000 | ₱1,528.77 | ₱2,038.36 | ₱3,057.53 |
The formula is: amount × 0.31 × days ÷ 365. If you repay in installments and the balance falls over time, actual interest can be lower. If a lender calculates interest on the full amount for the full term regardless of installments, it will be closer to the table.
What "Maximum 15% Per Month" Could Mean
A rate of 15% per month would be far higher than 31% per year, so it is worth reading that phrase carefully. One possibility is that it refers to the effective interest rate ceiling set by regulators. Under SEC Memorandum Circular No. 3, Series of 2022, the effective interest rate for covered loans is capped at 15% per month, which includes interest and fees such as processing and service charges but excludes penalties for late payment. If the company's page is describing that ceiling, it does not mean every borrower is charged 15% per month.
We cannot confirm that interpretation from public pages. Treat "maximum 15% per month" as an upper limit stated by the lender and ask for the exact figure for your own loan before accepting.
SEC Ceilings on Online Lending Costs
SEC Memorandum Circular No. 3, Series of 2022 implements Bangko Sentral ng Pilipinas Circular No. 1133 and sets these ceilings for covered loans:
- Nominal interest rate: up to 6% per month (about 0.2% per day).
- Effective interest rate: up to 15% per month, including all fees except late-payment charges.
- Late payment penalty: up to 5% per month on the outstanding scheduled amount due.
- Total cost cap: 100% of the amount borrowed, covering interest, fees and charges regardless of how long the loan stays outstanding.
News reports describe "covered loans" as short-term, small-value unsecured loans, for example up to ₱10,000 with a tenor of up to four months. Whether a particular Pesoloan loan is covered depends on its amount and term. Later reports also describe efforts by the SEC to recalibrate these ceilings, so check the current circular on the SEC website before relying on any single number. Our guide on how to check a lending app with the SEC shows where to find official information.
Interest Is Not the Only Charge
When you compare the cost of any loan, look beyond the headline rate:
- Processing or service fees. Some lenders deduct a fee from the amount disbursed, so you receive less than the approved loan. Compare the approved amount with what lands in your account.
- Late-payment penalties. These are separate from interest. Our article on the Pesoloan overdue payment penalty explains what is published and what the rules say.
- Disbursement and repayment charges. The App Store listing says funds can be sent to any bank or e-wallet account for free. Check whether your own bank or e-wallet charges for incoming or outgoing transfers.
The store listing's example shows interest only. It does not list other fees, so the disclosure statement in the app is where you should look for them.
How to Estimate Your Own Cost
- Write down the amount you will receive, not only the approved amount.
- Note the total you must repay and the number of days or installments.
- Subtract the amount received from the total repayment. That difference is your real cost of borrowing.
- Divide by the amount received and by the number of months to see the monthly percentage.
You can also try a general calculator to estimate repayments for any online loan. Our loan comparison page includes an interest calculator that works for any lender, not only Pesoloan.
Ways to Keep the Cost Down
- Borrow only what you need. Interest grows with the amount.
- Choose the shortest term you can comfortably repay. A longer term lowers each payment but raises total interest.
- Pay on time. Late charges are separate and can quickly add up.
- Ask whether early repayment reduces interest, and get the answer in writing or in the app.
- Compare at least two lenders by total repayment, not by headline rate. See our guide to Pesoloan alternatives.
Next Steps
To estimate repayments for any lender, try the free interest rate calculator on our main page. It is a general tool and does not show Pesoloan's own rate.
FAQs
What is the Pesoloan interest rate?
The Google Play listing states a maximum of 31% per year. The company's loan-process pages state "maximum 15% per month." The rate for your loan is shown in the disclosure statement inside the app before you accept.
How much interest will I pay on ₱10,000?
At the stated maximum of 31% a year, about ₱764 over 90 days, ₱1,019 over 120 days and ₱1,529 over 180 days, assuming the full amount is outstanding for the whole term. Fees and penalties are extra.
Is there a legal limit on interest for online loans?
Yes, for covered loans. SEC Memorandum Circular No. 3, Series of 2022 sets ceilings on nominal interest, effective interest, late-payment penalties and total cost. Whether a specific loan is covered depends on its amount and term.
Does Pesoloan charge a processing fee?
The store listing does not list one. If a fee applies, it should appear in the disclosure statement. Compare the amount approved with the amount received in your account.
Sources We Checked
- Pesoloan on Google Play
- Pesoloan loan-process page
- BusinessWorld: SEC issues rules on interest rate cap
- PTV News: SEC sets cap on interest rates, fees by lending firms
- Daily Tribune: SEC strictly implements interest rate caps
Pesoloan Editorial Team. We research online lending in the Philippines and check company and registration details against public SEC records before publishing. Our articles separate documented facts from user reports and list their sources. Learn more on our author page and in our editorial policy.