Real APR Loan Philippines 2026 — Why Monthly Rates Are Misleading

Loan apps in the Philippines advertise rates like "2.73% per month" or "0.09% per day" — which sound small. But when you calculate the Annual Percentage Rate (APR), the true cost is much higher. GCash GLoan's "2.73% monthly" is actually 32.8% APR. Cashalo's "3.6% monthly" is 43.2% APR.

How to Calculate Real APR

Simple APR Formula:
APR = Monthly Rate × 12
Example — GCash GLoan:
Monthly Rate = 2.73%
APR = 2.73% × 12 = 32.76% ≈ 32.8% APR
Example — Cashalo:
Monthly Rate = 3.6%
APR = 3.6% × 12 = 43.2% APR

Note: This is the simplified APR. The effective APR (EAR) using compound interest is slightly higher. For comparison purposes, the simple APR is sufficient.

Real APR Examples — Philippine Loan Apps

GCash GLoan
Advertised: 2.73% per monthReal APR: 32.8%

Advertised as "low daily rate" of 0.09%

Cashalo
Advertised: 3.6% per monthReal APR: 43.2%

Advertised as "starting from 1.5% per month"

Digido
Advertised: 3.0% per monthReal APR: 36.0%

First loan advertised as "0% interest" — only for ₱2,000

Tala Philippines
Advertised: 1.25% per monthReal APR: 15.0%

Transparent — one of the few apps that clearly shows APR

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Use our monthly payment calculator to see the true total cost of any loan.

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Loan Interest PhilippinesLoan Cost ExampleMonthly CalculatorBest Loan App PhilippinesScam App Warning