BSP raises salary loan repayment cap to seven years

The seven years is the maximum tenor and not a fixed loan term.

The Bangko Sentral ng Pilipinas (BSP) has raised the maximum repayment period for salary-based loans to seven years.

“The longer period makes loans easier to repay while still encouraging responsible borrowing,” the central bank said in an announcement on 19 June 2026.

The seven-year period represents the maximum allowable tenor, not a fixed loan term. Banks and other BSP-supervised financial institutions must still determine the actual repayment terms based on the borrower’s capacity to pay.

Previously, salary-based general-purpose consumption loans (SBGPCLs) were limited to three years. They could be extended to five years only in meritorious cases.

SBGPCLs are unsecured loans that are usually for immediate to short-term needs like education, healthcare, emergencies, travel, household needs, and other personal expenses, the BSP said.

These loans are typically repaid through salary, pension, or other forms of stable cash flow.