SEC lifts moratorium on online lending firms

MANILA, Philippines – The Securities and Exchange Commission (SEC) has lifted its nearly five-year moratorium on the registration of new online lending platforms (OLPs), while raising capital requirements to strengthen consumer protection.

Under Memorandum Circular No. 20, Series of 2026, the SEC replaced the moratorium imposed under MC No. 10, Series of 2021 with a new regulatory framework covering financing and lending companies that offer financing and lending products through digital platforms.

READ: SEC suspends registration of new online lenders

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“The Commission recognizes the need to lift the moratorium imposed under MC No. 10 in order to promote responsible innovation, stimulate economic activity among financing and lending companies, and ensure that the operation of OLPs is aligned with consumer protection, market integrity, prudential objectives, financial inclusion, ease of market access and alignment with the global trend of digitalization,” the SEC said.

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The circular introduced higher capital requirements tied to digital operations.

Financing companies must maintain at least P20 million in paid-up capital to operate one OLP, rising to P100 million for up to five OLPs.

Lending companies, meanwhile, must have at least P10 million for one OLP, increasing to P50 million for five OLPs.

READ: SEC cracks down on illegal online lending platforms

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No company will be allowed to own, operate or control more than five online lending platforms.

Existing operators will be given a 12-month transition period to comply with the new capitalization requirements.

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The SEC also established a Single Certificate of Authority policy, under which one certificate will cover all financing or lending activities, including those conducted through OLPs.

To strengthen oversight, the SEC now requires all OLP names to be registered and disclosed to the commission. Companies must also clearly identify themselves on their digital platforms and borrower-facing channels.

The regulator may establish a centralized registry of OLPs while retaining the authority to suspend, delist or reclassify platforms found to be violating the rules.

The SEC also tightened borrower protection rules.

Before a loan is confirmed, online lenders must prominently disclose the total loan amount, amount to be released, applicable interest rates, effective interest rate, fees, payment schedule and loan term.

Borrowers must expressly acknowledge these disclosures before any transaction. Lenders are likewise required to provide borrowers with an electronic copy of the loan disclosure statement.

Collection activities must also be conducted fairly, transparently and in accordance with existing laws, the regulator said.

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The SEC said the new guidelines are intended to balance innovation with stronger regulatory safeguards as digital lending continues to expand in the Philippines. INQ