A third of Filipino borrowers use loans to pay for food

Education accounted for 15% of spending purposes.

Around one in three Filipino adults with loans used borrowed money to pay for food and other basic needs, ahead of education and health-related needs.

The Bangko Sentral ng Pilipinas’ 2025 Consumer Finance and Inclusion Survey found that 32% of borrowers used loans for food and other essentials.

Education-related expenses accounted for 15%, followed by healthcare at 14% and agriculture at 10%.

Nine per cent borrowed to start or expand a non-agricultural business, while another 9% used loans to pay household bills.

Home renovation or improvement accounted for 8%. Personal loans were the most common type of borrowing, reported by 24% of adults with loans. 

Salary loans accounted for 13%, while multipurpose loans and business loans each accounted for 12%.

Fast processing and approval were the main consideration when choosing a loan, cited by 31% of borrowers. 

The repayment period followed at 30%, while 26% considered the interest rate and 24% looked at the ease of applying.

Payment convenience was important to 19% of borrowers, while 16% considered the amount of regular payments and amortisation. The total loan amount was cited by 15%.

Most borrowers were paying on time or early. The survey showed that 58% paid on the scheduled due date and 19% paid ahead of schedule. 

Fourteen per cent had no set payment schedule, while 8% were behind on payments.

However, 34% said they often had difficulty paying their loans. This compared with 56% who said they could easily pay them off.

Meanwhile, 8% said they had to apply for a new loan to repay an existing one.