While traditional Filipino culture often suggests the opposite, borrowing money isn’t inherently bad. As long as you know the risks and what’s involved, loans do not have to send you into an uncontrollable debt spiral. Indeed, how and where you borrow makes the difference, not the mere presence of debt itself.

Still, the idea that debt was bad did not come out of nowhere. Not too long ago, many Filipinos had limited access to high-quality loans, with most making do with risky options. Knowing that, it’s easy to see why wider Filipino culture still frowns on taking on debt.

Fortunately, things have significantly changed for the better. Digital banks like Maya Bank are changing the landscape by offering regulated, transparent, and instant solutions for everyday Filipinos in need of emergency funds. While Maya’s credit and loan products are the perfect choice for many Filipinos, it’s still a good idea to know what your options are. In this article, we’ll take a closer look at the most common sources of emergency funds available to Filipinos today, discussing their pros and cons in the process.

1. Personal Loans

For larger expenses like hospital bills, school tuition payments, or costly home repairs, a personal loan from a bank can provide substantial funding compared to the other options on this list. These loans are also predictable in terms of the interest payments involved, and they are generally reliable. However, the typically lengthy application process and strict documentation process often mean they aren’t for everyone.

If you’re a regular Maya App user, however, you might already have access to an easy personal loan that can cover your major cash needs. Maya Personal Loan provides up to PHP 250,000 in extra funds, payable in manageable installments up to 24 months. Application and disbursement can be facilitated over the Maya app, which means you’re likely to get the amount you need immediately (subject to credit evaluation). Maya is also fully regulated by the Bangko Sentral ng Pilipinas, giving you peace of mind that you’re getting funds from a legitimate financial institution.

2. Borrowing from Family and Friends

For many Filipinos, this option is the most straightforward but often the most costly in non-financial terms. While you can often get these loans without interest, you do risk constant meddling and strained relationships if repayment takes longer than expected. There’s also the chance that the lender will be inclined to call in personal favors long after the debt is paid, creating a lifetime’s worth of awkward situations.

In any case, these loans can be reliable in the sense that they’re almost always available. However, they’re not always sustainable or dignified if you find yourself needing help repeatedly.

3. Government Loans

Various programs from agencies like the Social Security System and the Pag-IBIG Fund, as well as from your local government units, may provide structured loan facilities with regulated rates. Generally speaking, these loans are safe, but they often require significant lead times for approval. These delays make them less ideal when there are urgent emergencies, but they are a good source of funding for other less-pressing needs.

4. Credit Cards

If you already have one, using your credit card can be one of the most convenient ways to cover sudden costs. The catch is that not all Filipinos can qualify for a credit card. Even if they do, there’s no guarantee that the credit limit will be high enough to make sense for the emergency at hand.

5. Virtual Credit Lines

If you don’t qualify for a credit card just yet, don’t worry. You can still access a virtual credit line with more flexibility than a traditional loan.

If you have a Maya account, you can apply for Maya Easy Credit, an option that gives you access to up to PHP 30,000 for a small service fee of as low as 3.99%, payable up to 30 days. You can either transfer the money to your Maya Wallet or use it directly to check out online, buy from the Maya Shop, or scan to pay with QR in participating merchants.

The great thing is you only pay the service when you use the credit available to you, which makes Maya Easy Credit perfect for bridging small gaps in your regular cash flow.

6. Employer Cash Advances (Bale)

Many companies allow employees to borrow against their next paycheck, a practice locally known as bale. In practice, these loans are safe, quick, and transparent, but they’re ultimately limited by your monthly salary. Worse, repeated borrowings can create a cycle of dependency while also making it difficult to leave one’s job for a higher-paying position if you need to.

7. Paluwagan (Community-Based Lending)

Under this traditional Filipino system, people in businesses or community groups contribute a fixed amount of money at regular intervals, with each participant taking turns receiving the total pooled funds. When done right, it can build community trust and even strengthen the organization as a whole. Unfortunately, these systems depend heavily on each member being a responsible contributor, making it less ideal in many situations.

8. Pawnshops (Sanglaan)

These establishments offer fast cash in exchange for collateral like jewelry or gadgets. Most pawnshops are regulated and are often present even in remote communities, making them a convenient option for many Filipinos. However, the loan amounts offered are often extremely limited, usually to just a small portion of the value of the items being pawned.

10. Loan Sharks

Unlicensed lenders (typically colloquially known as “5-6”) provide cash fast but usually at punishing interest rates. Unfortunately, many of these providers may resort to harassment or criminal activity if you can’t pay on time. Given that there are now far better options, these loans should be avoided at all costs.

11. Shady Lending Apps

These are essentially the digital version of the 5-6 lenders. These digital loan sharks offer misleading claims to hook borrowers in, then they may impose hidden charges, misuse personal data, and employ abusive collection practices.

Stay as far away from these lenders as possible and never download their apps or explore their websites. Instead, stick with Bangko Sentral ng Pilipinas-regulated financial institutions like Maya. These modern financial institutions give you transparency and legal safeguards while still providing you with all the speed and convenience you need.

Turn Life’s Surprises into Effortless Situations

Emergencies are by their very nature unpredictable. Still, that doesn’t mean you can’t prepare for them. At the very least, knowing the relative safety and convenience of each of your borrowing options gives you a good idea of which paths can help and which ones you should completely avoid.

Reliable, digital-first solutions like Maya’s can give you the peace of mind you need to respond to emergencies calmly so that you can move forward without compromising your financial future.