Which is better between Finance Charge and BPI SIP Loan?

BPI credit card calculator

As a credit cardholder, knowing how to maximize its uses is an advantage. For example, you can get the best deal out of your credit card while building a good credit score. In the Philippines, BPI is one of the leading credit card issuers. If you have a credit card with them, it’s best to know the possible charges that may incur on your cards such as finance charges, cash advance, BPI SIP loan, and other bank charges.

READ: BPI Credit Card | Why Getting a Secured Credit Card a Good Choice?

Which is better Finance Charge or SIP Loans?

I was reading randomly on Reddit when I chance upon someone who posted something about BPI credit cards. He shared that whenever cannot fully pay his balance, during events like the Christmas season, he converts it to BPI SIP loans. And was like, why do you have to convert it to that? So I browsed for more and he said that it’s to save on finance charges.

Again, it left another question. Can you really save on finance charges in that way?

BPI Credit Card Calculator

I made a calculator using the examples that can be seen in a BPI’s billing statement. I wanted to compare the BPI SIP loan interest and finance charges using an Excel sheet. Aside from the two computations, I also added the cash advance, personal loan, and car loan calculator to my Excel file.

bpi credit card finance charge and SIP loan

Finance Charge vs. SIP Loan

After I created the calculator, I came to realize that you can really save money if you convert your retail purchase to a SIP loan. But in some scenarios, the finance charge is superior.

For example, if you have a total retail purchase of Php 20,000 that you want to pay for 12 months, the finance charge will only be Php 2,532.14. But with a SIP loan, the interest and charge will amount to Php 2,700. So for this scenario, the finance charge is more desirable.

BPI Credit Card Calculator
BPI SIP loan calculator

Another example, let’s make the retail purchase of Php 100,000 payable for 12 months.

Now, the finance charge will be Php 12,662.86 while the interest for the BPI SIP loan is only Php 12,300 (including the service fee of Php 300).

BPI Finance Charge Calculator

From the example above, we can deduce that a finance charge is a better option in some cases depending on the amount of retail purchase and for how long you’re planning to pay it.


If your retail purchase is below Php 50,000 and payable for 12 months (and below) then the finance charge will save you more money. On top of it, it’s less hassle on your part because you don’t have to call the BPI hotline for the conversion.

But if you just wish to pay your purchase for 3, 6, and 9 months then a finance charge is better, regardless of how much your retail purchase.

Let’s wrap it up!

I must admit, it took me several hours before I was able to decipher and create a computation similar to the examples in BPI billing statements. That is because it’s rarely talked about especially when most of us are paying our dues on time.

But what if, here comes the time, when our expenses suddenly surge to an unmanageable amount? By using our BPI Calculator you can now easily compare which can give you a better interest rate.

Don’t get me wrong, I’m not encouraging you to avail a SIP loan. It’s still always best to pay your dues in full amount. What we shared with you is just in case you need it.


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Get it for as low as Php 149 only. You can use this calculator to compute the retail finance charges, cash advance interest, BPI SIP loan, personal loan, and car loan.

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