The Securities and Exchange Commission will lift its moratorium on licensing online lending platforms (OLPs) on August 1, anticipating a surge in applications.
Commissioner Rogelio V. Quevedo stated that the regulator will not limit the number of licenses issued, emphasizing the importance of competition and regulatory oversight.
From Saturday, the SEC will accept applications under Memorandum Circular No. 20, which also raises capital and disclosure requirements for financing and lending companies.
The circular ends a moratorium that began in November 2021, a period during which new rules were developed to address complaints of predatory lending and abusive debt collection.
Under the new rules, OLP applicants must maintain a minimum paid‑up capital of P10 million.
Financing companies with one OLP are required to hold P20 million in paid‑up capital, increasing by P20 million for each additional platform up to a maximum of five, which would require P100 million.
Lending companies with one OLP must maintain P10 million, rising by P10 million for each extra platform up to five, where the cap is P50 million.
The SEC limits the number of OLPs that any financing or lending firm can own to five and requires existing firms to meet the new capital thresholds within twelve months if they operate multiple platforms.
New financing firms must register with a minimum paid‑up capital of P15 million, while new lending firms must hold P5 million; existing firms need not adjust immediately unless expanding operations.
These regulatory changes aim to enhance oversight and protect consumers in the growing online lending sector.
