TARLAC CITY, Tarlac (March 19, 2026) — Local borrowers and small business owners may soon see a surge in digital credit options as the Securities and Exchange Commission (SEC) moves to lift its years-long freeze on new online lending platforms.
The commission recently issued a draft memorandum circular outlining a new regulatory framework designed to promote responsible innovation and financial inclusion while enforcing much stricter safeguards against predatory industry practices.
To ensure that only stable players enter the digital market, the SEC is introducing tiered paid-up capital requirements.
Under the proposal, financing companies must maintain between P30 million and P100 million, depending on how many platforms they operate, while lending companies will face requirements ranging from P20 million to P50 million.
Existing firms will be given a three-year window to comply with these new financial benchmarks, and no single company will be allowed to operate more than 10 platforms to ensure manageable oversight.
The new guidelines also take a hard line against the borrower harassment and “debt shaming” tactics that have plagued the industry.
The SEC explicitly prohibits lending companies from scraping borrower contact lists, social media records, or messaging history from mobile devices.
The use of automated or pre-programmed messages for debt collection is also prohibited, except for neutral payment reminders that do not contain threats or coercive language.
