Gadget Loans in the Philippines: Should You Get One?

gadget loans in the philippines

Are you considering a new laptop for work or school? Reality check — gadgets have become essential to our daily lives. However, buying new devices can be a significant financial burden to some.

This is where gadget loans come in as a potential solution. Unsurprisingly, the number of downloads of online lending apps in the Philippines reached 14.2 million by the end of December 2022, indicating that Filipinos do consider other financing options.

In this article, we’ll explore the world of gadget loans in the Philippines and help you decide if it’s a viable option for you.

What is a gadget loan?

A gadget loan is a type of loan that banks, lending institutions, and other financial intermediaries offer, allowing consumers to purchase electronic gadgets, from smartphones and laptops to gaming consoles and other digital devices.

The purpose of a gadget loan is to help people buy gadgets without paying for them upfront so they can use them for work, study, or entertainment. This type of loan usually comes with a low interest rate and flexible payment terms.

Types of gadget loans available in the Philippines

Should you consider availing a gadget loan, here are the most common options:

  • Personal loans for gadgets – This type of loan is offered by banks and other financial institutions. Personal loans provide access to funds that can be used to purchase a gadget of your choice. Borrowers can repay the loan in fixed monthly installments over a period agreed upon by the lender.
  • Credit cards – Consumers can purchase gadgets using their credit cards and repay the amount in installments for up to 36 months, whether zero percent installment or with additional monthly interest.
  • Financing programs by gadget stores – Some gadget stores also offer financing programs in partnership with other companies like TendoPay and Cebuana Lhuillier that allow buyers to purchase a gadget and pay for it over time with affordable monthly payments.

Benefits of gadget loans in the Philippines

If you need a new gadget for work or school but don’t have the funds to pay upfront, then a gadget loan is a good option.

  • Immediate access to the desired gadget – You can pay for the gadget you need without waiting for months.
  • Flexible payment terms and conditions – Unlike other types of loans, gadget loans usually offer more flexibility regarding payment terms. You can pay in installments of 3,6, 12, 24, and 36 months.
  • No need for collateral – Most gadget loans don’t require you to put up collateral, making it a safer option for those who don’t have assets to pledge.
  • Improves credit score – Making timely payments on your gadget loan can help improve your credit score — it means you’ll have better chances of getting approved for other types of loans.

Popular gadget loan providers in the Philippines

Check out these gadget loan providers offering different gadgets and payment terms.

AEON Philippines

AEON Philippines is a financing company that offers a credit line for purchasing consumer products, such as appliances, furniture, and gadgets, as well as personal loans. The gadget loan has an interest rate of 5.75% per month, which you can apply via the mobile app or by visiting any of their merchant partners nationwide.

BPI via S.I.P

BPI offers a 0% Special Installment Plan for up to 36 months on gadget and electronics purchases at partner merchants like Power Mac Center. The available terms and minimum spend requirements vary per merchant, and the minimum single-receipt purchase requirement is ₱3,000 or higher, depending on the merchant’s terms and conditions.


Digido provides unsecured personal loans up to ₱25,000. These loans can be used for purchasing gadgets. New customers are eligible for a 0% interest rate of up to 7 days only, but the typical loan duration is 30 days. The interest rate ranges from 1.2% to 3.5% per month, and the loan period is six to 24 months, depending on the gadget you wish to purchase.

Home Credit Philippines

Home Credit Philippines offers consumer loans, including gadget loans. The computed monthly installment rate is only an estimate and may vary. To get the exact loan amount and terms for the gadget you are interested in, visit Home Credit’s website or partner stores for more information.

Polka PH

Polka.PH is a one-stop online store for your gadget needs. It offers electronics, accessories, furniture, and appliances from well-known brands like Apple, Samsung, Huwaei, and more. Shoppers can purchase gadgets with a low downpayment and settle the remaining balance in monthly installments.

Unfortunately, the brand doesn’t explicitly mention the monthly interest rates, but shoppers can check the prices on the website and compute the total cost of the item they wish to purchase.


TendoPay is a Philippines-based fintech company that offers customers the convenience of buying now and paying later for their online purchases through installment plans. They provide digital installment payment plans without a credit card or bank account.

The gadget loan amount ranges from ₱2,000 to ₱30,000, and the loan term can be between 2 to 24 months. The interest rate starts at 2% monthly, but TendoPay offers 0% interest rate deals with select partner merchants.

What are the eligibility requirements for availing gadget loans in the Philippines?

The eligibility requirements for availing gadget loans in the Philippines vary depending on the lending company. Here are some general requirements based on our research:

  • Age requirement – The borrower must be of legal age, typically between 18 and 68. For some programs, if the borrower is more than 60 years of age, a co-borrower or guarantor may be required.
  • Income requirement – Proof of income may be required, such as pay slips, income tax returns, or employment contracts.
  • Citizenship requirement – The borrower must be a Filipino citizen.
  • Co-borrower or guarantor requirement – In some cases, a co-borrower or guarantor may be required, especially if the borrower is a student.

Additional requirements may include having a good credit rating and proof of permanent residence.

Check with the lending company for their eligibility requirements and application process.

Factors to consider before getting a gadget loan in the Philippines

Before rushing into a gadget loan, take a moment to consider a few factors. We get it. The allure of a shiny new gadget is undeniable, but let’s dive into the details and make sure you won’t be swimming in debt.

1. Assessing your financial situation and repayment capacity

First and foremost, assess your financial situation and repayment capacity.

Do you have a stable source of income that can cover your monthly payments, including interest rates and other fees?

Consider your other financial obligations, such as bills, rent, and other debts.

Remember, taking out a loan means taking on more financial responsibility, so ensure you’re ready for it.

2. Comparing interest rates and payment terms among different gadget loan providers

Next, compare interest rates and payment terms among different providers. Don’t just go for the first lender you come across. Shop around and compare other options. A 5% monthly interest rate compared to a 0% interest rate does make a difference in your monthly payment.

Check out the annual percentage rate (APR) of the loan and see if there are any hidden fees or charges.

Before committing to a gadget loan, read and understand all the terms and conditions.

3. Considering the purpose and necessity of the gadget

Finally, Think about the purpose and need of the gadget.

Do you need the latest smartphone or laptop? Or can you settle for a cheaper alternative?

Remember, a gadget loan is still a loan, meaning you’ll be paying interest on top of the amount you borrowed.

If you can hold off on buying the latest gadget, it might be a smarter financial move in the long run.

What are the risks of gadget loans in the Philippines?

Gadget loans are always available, and some lenders don’t even require a credit card. But don’t forget to watch out for the risks and drawbacks.

  • High interest rates – Gadget loans often come with high interest rates that can add up quickly over time. Some lenders may even charge interest rates as high as 5%. For example, if you take out a loan for a gadget that costs ₱30,000, you could end up paying ₱39,000 or more in total for six months, which may or may not include processing fees.
  • Hidden fees and charges – In addition to high interest rates, some lenders may also tack on hidden fees and charges that can make the loan even more expensive. These can include processing fees, late payment fees, and prepayment penalties, to name a few.
  • Risk of default – If you’re not careful, taking out a gadget loan could put you at risk of defaulting on your payments. This can result in serious consequences, including damage to your credit score. Make sure to budget carefully and only take out a loan if you’re confident that you can make the payments on time and in full.
  • Depreciation of value – Unlike other types of loans, gadget loans can be risky because the gadget’s value may depreciate quickly over time. For example, a smartphone that’s brand new and worth ₱20,000 today may only be worth ₱10,000 or less in a year or two. If you’re still paying off the loan at that point, you may owe more than the gadget is worth.

While gadget loans may seem convenient, they have drawbacks you should consider carefully.

What are the alternatives to gadget loans?

We understand how tempting it is to get the latest gadget, especially with the rise of online learning and work-from-home setups.

But before you jump into a gadget loan, consider these alternatives:

1. Saving up for the gadget

If you want to own that gadget, why not save up for it? Set a budget and allocate a portion of your income towards it. You may have to wait a little longer, but at least you won’t have the burden of debt and interest.

2. Exploring Buy Now, Pay Later Options

Some stores offer Buy Now, Pay Later schemes with zero interest through Atome app or low down payment options. This may be a good alternative if you can pay the balance in full and on time. Just ensure you read and understand the terms and conditions before signing up.

3. Refurbished or second-hand gadgets

Consider buying a refurbished or second-hand gadget. These gadgets are often cheaper and can still be in great condition. For deals, you can check online marketplaces on Facebook, Carousell, or physical stores.

4. Trading in or selling old gadgets

Do you have an old phone or laptop that you no longer use? Consider trading it in or selling it to get some extra cash that you can put towards your gadget fund.

5. Delaying the purchase

Sometimes, the best option is to delay the purchase. Take time to assess if the gadget is necessary and fits your budget. You may find other alternatives or realize you don’t need them.

Remember, getting into debt for a gadget may seem like a quick fix, but it can lead to long-term financial stress. Consider these alternatives before signing the dotted line.

Final thoughts

Gadget loans can be advantageous and disadvantageous, depending on your situation and needs. If you absolutely need a new gadget for work or school but don’t have the funds upfront, a gadget loan may be a reasonable option.

Check the interest rates, monthly payments, and hidden charges before committing to a loan.

You don’t want to end up saddled with debt because of a quick fix for a gadget purchase.

Remember, a new gadget might bring you temporary joy, but a mountain of debt can bring you long-term stress. So, be wise with your financial choices and always prioritize your well-being.

What do you think of gadget loans in the Philippines? Have you tried applying for one?

Share your thoughts in the comments below.