With today’s technological advancement, applying for a loan can be quick and easy especially when you are applying on a lender’s online platform. But of course, before they extend help with lending you cash, you need to first adhere to some of their requirements. To get approved for a loan in the Philippines, you must provide some pertinent documents to your lender. These documents help prove your identity and financial information. Once submitted, they will review it before they decide whether to grant you a loan offer.
While each bank or lending institution has its own unique application and eligibility requirements, almost all of them look for similar documentation. By familiarizing yourself with these kinds of documents you need to submit, you can prepare and speed things up for the application process which can also increase your chances of approval.
During the initial loan application and the verification process, you are required to provide your lender with a few documents. Most of the documents are the following:
Each lender has its own unique application form to initiate the loan process. For example, if you’re applying online, the application process is often done entirely online. If you’re applying at the lender’s branch or office, the application forms can typically be filled out either in person or online.
This initial application is usually very simple. You will be asked to provide your basic information such as your name, address, phone number, date of birth, SSS or TIN. Some lenders will want you to share additional financial details like your gross monthly income, existing debts with other companies, monthly rent or mortgage payment. Be sure to answer each question accurately.
Read also: Different Types of Loans in the Philippines
Lenders must be able to verify your identity to determine if you’re a Filipino citizen or a permanent resident. They might also want to confirm if you’re at least 18 years of age, and if you have a valid and active bank account. You’ll typically need to provide 2 forms of identification, such as:
● PRC ID
● National ID
● NBI Clearance
● Driver’s license
● Birth certificate
● SSS/ UMID
● Pag-ibig ID
● Company ID
● Barangay ID
● Voter’s ID
In most cases, you can submit photocopies of your two forms of ID so that you don’t have to give your originals to the lender. Once done, be sure to store the originals in a secured place so you don’t misplace them.
3. Employer and Income Verification
Lenders want to know if you have a steady source of income to repay the loan as this is an increased risk on their end.
If you are traditionally employed, you can submit the following as proof of your income or employment:
● Income Tax Return
● Bank statements
● Company ID
● Certificate of employment
If you’re self-employed, you can verify your income with these:
● Bank statement
● Sales logbook
● Financial statements
● Income tax returns
● Official receipts
Are you currently renting or living in your own home? Proof of your current living situation can help a lender assess how stable your lifestyle is. You can usually use one of the following:
● Electric bill
● Water bill
● Bank or credit card statement
● Lease or rental agreement
● Proof of insurance on your home, lease/rental or vehicle
● Property tax receipt
In case you don’t have a bill that doesn’t reflect your name on it (in other words, you’re renting), you may seek a barangay clearance to prove that you really do reside at that specific address.
Although not all lenders will likely collect the following information, it won’t hurt to have it handy just in case.
Once you submit your requirements or documents, the lender will do a hard pull of your credit score. While some lenders usually lend to borrowers with only high credit scores, others are lenient and very much willing to take a chance on those with lower scores or those who want to rebuild their credit standing. Do note though that if your credit score is on the lower side, you may have to accept a higher loan interest rate.
While most lenders don’t require you to share how you’ll use the loan, understanding your big “why” may help them recommend the best loan product for your needs. Some lenders offer specific loans such as SME business loans or collateral loans.
Before you apply for a loan in the Philippines, take a few minutes to reach out to the lender so they can advise you on the requirements needed to process your funding request. Gather any documents you have prior to filling out the loan application to avoid delays and facilitate a seamless process.
Now that you’re confident in knowing what the usual loan requirements are, it’s time to take that first step! If you’re searching for a reliable and fast-approving lender, RFC is here to help you. You may fill out an RFC application form HERE.