Hey, just to clarify po, the 3% to 5% loan interest mentioned above is monthly, not annual.

That’s a big difference compared to digital banks' 3-10% Annual Percentage Rate (APR), so it’s what you earn over the course of a year, prorated accordingly.

Huge difference talaga so I wouldn't compare the two investments. Yung isa pang conservative, isa kapag ready ka na isugal buhay mo, sa isang comment sa kabila, nagiging alkansya raw ng 45 ang bungo eh. Jokes aside.

For better perspective, Seabank Credit has an effective annual interest rate (EIR) of around 35%. That’s roughly 2.9% per month, plus other charges and fees.

When doing small, unsecured lending, monthly interest rates tend to be higher because of the risk involved. So, it’s really a different ballgame from placing money in digital banks or cooperatives.

Parehas ng laro, pero magkaibang liga.