DIGITAL lender JuanHand will fully comply with the Securities and Exchange Commission’s (SEC) decision lowering the interest rate cap on certain small loans, a company official said on Wednesday.
The lending app, operated by WeFund Lending Corp., also support for the stricter regulation despite the fact that the new ruling is likely to affect a sizeable segment of the consumer lending market.
“JuanHand is in support of regulation, in support of the SEC,” WeFund lending head Francis Fulgar told reporters.
“There are certain conditions, and we have always maintained as we have always followed. We have complied with the previous 15 percent and there is no reason for us again not to comply with the 12 percent this coming April 2026,” he added.
The SEC last month issued Memorandum Circular 14, Series of 2025, which set a cap of 6 percent per month on nominal interest rates and 12 percent per month on effective interest rates for loans of up to P10,000 with repayment terms of up to four months.
The order also capped late-payment penalties at 5 percent per month of the outstanding amount and sets a total cost limit, meaning interest, fees, charges, and penalties cannot exceed the original loan amount.
The caps will apply to loans made, restructured or renewed starting April 1, 2026.
The loan segment most affected by the new cap is the small-ticket loan category of up to P10,000, which is commonly used by new borrowers.
Fulgar said that while the company could not speak of its own portfolio in detail, this loan size is typically significant as it is often the entry point for first-time borrowers.
Industry-wide, loans of up to P10,000 are estimated to account for about 15 percent or more of total lending.
JuanHand, together with the Consumer Lending Association of the Philippines, last year proposed that, instead of lowering the current interest rate cap, the SEC consider allowing an additional product, such as loans of up to P20,000 with repayment terms of four to six months and a 10-percent monthly cap.
JuanHand CEO Francisco Mauricio previously said this option would give borrowers more choices without disrupting risk models that enable compliant fintech firms to serve high-volume, small-ticket loan demand.
Fulgar said the SEC acknowledged and considered the position paper, along with submissions from other industry groups, before finalizing the new rules.
However, the final circular did not adopt a tiered cap structure and the company said it accepted the outcome now that the rules have been finalized.
“[W]hatever is written there, all compliant players, especially our industry association, which is composed of the top compliant players in the market, will comply,” he said.
To help protect borrowers from cybercrime, JuanHand has partnered with the Philippine National Police Anti-Cybercrime Group.
The collaboration aims to shield consumers from scammers through public awareness campaigns on safe and responsible borrowing, and by educating borrowers on how to identify and avoid predatory lending schemes.
“Through education and collaboration, we aim to help consumers avoid scams and borrow safely from legitimate platforms. Responsible borrowing is a force for good that ultimately leads to financial empowerment,” Mauricio said on Wednesday.
He said the company had so far disbursed more than P85 billion in loans and recorded over 20 million registrations.
WeFund Lending Corp. started operating in the Philippines in June 2019 as a subsidiary of FinVolution Group, a leading fintech company in Asia that is listed on the New York Stock Exchange.
