MyCredy - loans online

Homepage / Interesting articles / Can you be jailed for debt in the Philippines?

Can you be jailed for debt in the Philippines

The prison fence, which loan debtors are afraid of because they don’t know if they can be jailed for debt in the Philippines

Being able to borrow money from financial institutions has made our lives easier. Today, every Filipino can freely buy goods and pay for services by using a loan. Now there is no need to save money for months or borrow from friends. The other side of the coin is responsibility. Not every borrower can return the borrowed amount on time. Let's see what the penalty is for non-payment of the loan.

Can you be jailed for debt in the Philippines?

Having applied for a loan, a person is obliged to repay it. And any obligations, in case of non-fulfillment, are punishable. Credit relations are no exception. The amount and procedure of payments are fixed in the agreement of the parties.

Failure to make a payment on time or in insufficient amount, the following conditions may be applied to the borrower for non-payment of the loan:

  • Financial responsibility. Includes the payment of a penalty, interest or the return of the entire loan in a lump sum;
  • Property liability. It is expressed in the confiscation of property (real estate, cars, bank accounts) and their sale;
  • Civil liability. It implies fines and trial.

Thus, a person cannot be jailed for debt in the Philippines.

If you missed your EMI

You must make a contribution to repay the loan before the end of the payment period. Often, borrowers violate the schedule, forgetting about obligations, or do not pay on purpose. This does not entail any particular danger, except for additional costs. From the first day of delay, the bank charges a penalty or a fine in the amount specified in the terms of the loan. The value of the penalty varies greatly from bank to bank.

If the loan payments have not been made

It is believed that two calendar months is a sufficient period for which a responsible borrower will cope with the debt. The debt will continue to be recorded on the client’s case, and the overpayment will grow exponentially. The best strategy here is to contact the bank and try to resolve the issue peacefully, without waiting for serious consequences of non-payment of the loan.

As a compromise, institutions delay payments or reschedule payments. For example, the lending period can be extended for a year, leaving the interest rate the same. As a result, the borrower will overpay the total loan amount, but will retain his reputation in the eyes of the banking environment. In some cases, the consequences of non-payment of the loan are more severe, and the debtor is obliged to repay the entire sum at a time.

What happens if the bank sues for non-payment of the loan?

Faced with systematic non-payments and desperate to influence the debtor on their own, banks go to court. From this moment on, the borrower's case passes into the hands of bailiffs who have the right to:

  • Make regular phone calls;
  • Seize other bank accounts of the borrower;
  • Send a request to the tax office;
  • Seize property belonging to the debtor;

The described measures can be used both preventively and following the results of the proceedings. If a person is found guilty by a court decision, an obligation is imposed on him or her is to fully repay the debt. Without paying the bank, the borrower may be prosecuted for non-payment of the loan.


Do you need a loan?

You can see the most advantageous and popular offers we have prepared below.

Without fees 0%
  • 0% up to 25 000 ₱ First loan
  • 1 000 ₱ - 25 000 ₱ Amount
  • 18 - 70 Age
  • 61 day - 4 months Term
The first loan for free
  • 0% up to 20 000 ₱ First loan
  • 500 ₱ - 20 000 ₱ Amount
  • 22 - 75 Age
  • 90 days - 6 months Term
Advantageous conditions
  • 0% up to 10 000 ₱ First loan
  • 1 000 ₱ - 25 000 ₱ Amount
  • 20 - 70 Age
  • 90 days - 1 year Term
Fast and Easy
  • 0% up to 10 000 ₱ First loan
  • 1 000 ₱ - 25 000 ₱ Amount
  • 20 - 70 Age
  • 90 days - 1 year Term
0% for your 1st Loan
  • 0% up to 15 000 ₱ First loan
  • 1 000 ₱ - 50 000 ₱ Amount
  • 20 - 70 Age
  • 30 days - 1 year Term