Filipinos taking smaller, more frequent loans–study

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Spurred by the rise of digital lending apps, Filipinos are increasingly relying on smaller but more frequent loans to cover day-to-day expenses, with the typical borrower taking out just P5,468 per loan.

This was according to data released by the credit data platform LenderLink, which showed that total digital loan disbursements in the Philippines reached P867 billion as of the fourth quarter of 2025, across 619,000 unique borrowers.

According to mobile analytics firm Adjust, this trend reflects the digitalization of financial services in the Philippines, which has made borrowing a routine financial tool rather than an occasional source of emergency funding.

“Mobile apps and online platforms are now central to the borrowing journey, with users often interacting across multiple touchpoints before completing an application,” it said.

“Borrowing is becoming a more regular financial activity for many Filipino consumers, which means lenders need to look beyond top-of-funnel metrics and focus on what happens after acquisition,” added Leo Vu, senior growth lead at Adjust.

Citing LenderLink data, Adjust said 41 percent of borrowers were aged 25 to 34, while the median borrower age stood at 36. Metro Manila accounted for the largest share of loan records at 20 percent.

LenderLink also found that, across loan sizes, the P5,000 to P10,000 bracket had the highest delinquency rate at 42 percent.

For lenders, Adjust said the changing borrowing pattern means traditional metrics such as app downloads and loan applications no longer provide a complete picture of business performance.

“As competition in digital lending increases in the Philippines, measuring installs alone is not enough. Lenders need visibility into which channels drive completed applications, approved loans, and repeat engagement,” Vu said.

As such, Adjust said the challenge for lenders now was understanding and adapting to these behavioral shifts rather than scaling alone.

“For the industry, the next stage of growth will not be defined solely by reaching more borrowers, but by building stronger relationships with the right borrowers and delivering financial services that meet their changing needs,” it said.