UNSECURED LOANS — type of financing that doesn’t

require you to pledge any collateral, such as a house or

car, to secure the loan. This means the lender relies
solely on your creditworthiness and ability to repay the
debt when making a decision.

**Examples:**

* **Personal loan:** Used for various purposes like debt

consolidation, home improvement, or medical
expenses. No collateral required, but interest rates can
be higher depending on your creditworthiness.
* **Credit card:** Offers revolving credit line with
monthly payments. Convenient for everyday
purchases, but interest rates are high and carrying a
balance can be expensive.
* **Student loan:** Used to finance higher education.
Can be federal or private, with varying interest rates
and repayment terms. Usually no collateral required,
but can lead to large debt burdens.
* **Payday loan:** Short-term, high-interest loan meant
to be repaid on your next payday. Often considered
predatory due to extremely high fees and interest rates.
Use with caution and only as a last resort.

SECURED LOANS — offer you access to funds while using an asset of

yours as collateral (something valuable to you). This means the lender has the right to
seize and sell your collateral if you fail to repay the loan as agreed (i.e., house, car (auto
loan), saving account. While this may seem risky, it also comes with some benefits like
potentially lower interest rates and larger loan amounts compared to unsecured loans.

**Examples:**

* **Mortgage:** Used to purchase or refinance a home.

The house itself serves as collateral, offering lower
interest rates compared to most unsecured loans.
* **Auto loan:** Used to purchase a car. The car itself
serves as collateral, with interest rates varying
depending on creditworthiness and vehicle type.
* **Home equity loan:** Allows you to borrow against
the equity you’ve built up in your home. Your home
serves as collateral, offering lower interest rates than
unsecured loans but putting your home at risk if you
default.
* **Title loan:** Secured by your car title, offering quick
access to cash but with high interest rates and the risk
of losing your car if you can’t repay.

* Secured loans offer lower interest rates but put

your collateral at risk if you default.
* Unsecured loans are quicker to obtain but come
with higher interest rates.

DEPOSITORY INSTITUTIONS — Companies that

accepts deposits, make loans, transfer funds, obtain
needed currency supplies, and manage investments.

Commercial Banks — take all types of deposits in the

form of savings checking and time deposit accounts.
 **BDO Unibank:** The largest bank in the
Philippines by assets, offering a wide range of
 financial products and services for individuals and
businesses.
 **Metropolitan Bank and Trust Company
(Metrobank):** Another major player, providing
personal and corporate banking solutions across
the country.
 **Bank of the Philippine Islands (BPI):** One of the
oldest banks in Southeast Asia, known for its
strong presence in retail and corporate banking.

• Unit Banking: A unit bank is a single,

independent bank that operates in only one
location. It is not affiliated with any other banks
and does not have any branches. Rural Bank
of Zamboanga City (RBZC):** Established in
1970, RBZC operates solely in Zamboanga
City, focusing on microfinance and community-
based lending. It caters primarily to small
businesses and individuals, fostering financial
inclusion.

• Branch Banking: A branch bank is a bank that

has multiple locations, or branches. All of the
branches are owned by the same bank and
offer the same financial services. Bank of the
 Philippine Islands (BPI):** Founded in 1851,
BPI has a vast network of over 800 branches
nationwide, making it one of the most
accessible banks in the Philippines. This
allows them to offer diverse financial services
to a broader population across the country.

• Bank Holding Companies: A bank holding

company is a company that owns one or more
banks. The holding company itself does not
provide any banking services, but it controls
the banks that it owns. SM Investments
Corporation:** This holding company owns
BDO Unibank, the largest bank in the
Philippines by assets. Aside from BDO, SM
Investments also holds shares in other
financial institutions like China Bank and
Philippine National Bank (PNB) through
subsidiaries, demonstrating its diverse
involvement in the banking sector.

• Chain Banking: Chain banking is a system in

which multiple banks are owned by the same
individual or group of individuals. However, the
banks are not affiliated with each other and
 operate independently. RCBC Savings Bank
(RCBC Savings):** While technically operating
under its own charter, RCBC Savings shares
significant ownership and management ties
with RCBC Bank. This creates a “chain” effect,
where both banks collaborate and offer
overlapping services, though retaining
separate legal entities.

• Correspondent Banking: Correspondent

banking is a system in which two banks agree
to provide services to each other’s customers.
For example, a small bank may not have a
branch in a certain city, but it can partner with
a larger bank in that city to provide its
customers with banking services.
Correspondent banking is also used by banks
to clear checks and transfer funds between
different countries. Land Bank of the
Philippines (LandBank):** LandBank partners
with smaller rural banks as correspondent
banks. This allows LandBank to reach remote
areas through these partnerships, extending
financial services to underserved communities
while rural banks benefit from LandBank’s
expertise and resources.
Savings and Loan Associations — founded to secure a
large pool of funds to support home financing and
homeownership. Only association members or the
depositors could borrow from this bank and most of
these loans are home mortgages.

 **Philippine Savings Bank (PSBank):** Primarily

serving individuals, offering savings accounts,
personal loans, and other retail banking products.

 **Masbuild Savings and Loan Association, Inc.:**

Caters to the housing and construction sectors,
providing home loans and construction financing.
  **Producers Savings and Loan Bank, Inc.:**
Focused on micro, small, and medium enterprises
(MSMEs), offering loan and deposit products
tailored to their needs.

Savings Banks — are smaller than commercial banks

and oriented more toward their local geographic areas.
These tanks are mutual associations managed by self
perpetuating board of trustees. Provide a place for
small savers.

 **City Savings Bank, Inc.:** Offers various savings

accounts, personal loans, and other retail banking
products.

 **Union Bank of the Philippines (UnionBank):**
Provides a range of products for individuals and
businesses, including savings accounts, credit
cards, and investments.
 **Land Bank of the Philippines (LandBank):**
Primarily serves the agriculture sector, offering
loans and other financial services to farmers and
rural communities.
Credit Unions — accepts deposits from members of a
group example teachers employees lending only their
depositors for short term personal needs.

 **Teachers’ Credit Union (TCU):** Caters to

educators, offering savings accounts, loans, and
other financial services specific to their needs.

 **Government Service Insurance System (GSIS)

Credit Union:** Serves government employees,
providing financial products and services tailored to
their benefits and salary structure.

 **Philippine National Police (PNP) Savings and

Loan Association, Inc.:** Caters to police officers,
offering savings accounts, loans, and other
financial services relevant to their profession.