Requirements and Conditions

Conditions

• Interest Rate Type. Borrowers have the option to select between fixed interest rates, which stay the same over the life of the loan, and variable interest rates, which may adjust according to the financial market's fluctuations.

• Loan Type. There are primarily two categories of loan products available: unsecured and secured. Unsecured loans, including those like payday loans, do not necessitate collateral for repayment. In contrast, secured loans require collateral, such as for home equity or auto loans.

• Repayment Schedule. The loan agreement specifies the repayment plan, detailing payment frequency and amounts, which could be set on a monthly basis or another agreed-upon schedule.

• Prepayment Penalties. Certain loans may impose fees for early repayment, ensuring the lender retains their anticipated interest earnings.

• Late Payment Fees. Fees may be applied for payments made past the due date, promoting on-time repayment among borrowers.

• Grace Period. Lenders might offer a grace period before the commencement of payment obligations, aiding borrowers who encounter short-term financial hurdles.

• Minimum Loan Amount. A minimum threshold for loan amounts may be established by lenders to validate the administrative expenses involved in processing the loan.

• Maximum Loan Amount. To mitigate risk and ensure alignment with the borrower's repayment capability, a maximum limit on the loan amount might also be enforced.

• Loan Approval Conditions. Conditions for pre-approval may include the submission of further documentation or fulfillment of certain prerequisites prior to obtaining final loan approval.

• Regulatory Compliance. Both lenders and borrowers are required to adhere to the legal and regulatory frameworks governing lending activities.

Requirements

• General Eligibility. Eligibility criteria for loan applicants in the Philippines typically include an age requirement of 21 to 65 years old, Filipino residency, and a functional landline for communication.

• Income Requirements. Employed individuals must present a valid government ID and proof of income, such as the most recent ITR, Certificate of Employment, or latest payslip. For self-employed individuals, necessary documents include an Audited Financial Statement, Business Permit, DTI or SEC Registration, reference list, recent bank statements of the past three months, and the latest GIS for corporations.

• Additional Documents for Foreigners. Foreign nationals are required to submit further documents like the Alien Certificate of Registration (ACR), a valid passport, and proof of residency.

• Special Documents for Seamen. For OFW loans, seamen need to provide specific documentation, including a completed loan application form, copies of their Passport, Working Visa, Overseas Employment Certificate, Employment Contract, recent electric bills, a valid government-issued ID, airline ticket, Seaman's Book, and Seafarer's Registration Certificate (SRC).

How to apply for a loan in Tagbilaran? Step-by-Step

• Determine Your Loan Purpose

  Start by pinpointing the exact reason for seeking a loan, be it acquiring real estate, initiating a venture, or addressing personal financial needs. Recognizing your specific objective aids in selecting an appropriate loan variant.

• Check Your Credit Score

  Secure a copy of your credit report to examine your credit rating. Possessing a strong credit score not only boosts your chances of loan approval but could also result in more advantageous interest terms. Rectify any errors in your credit report prior to applying.

  Apply

• Research Loan Options

  Investigate a variety of lending sources, such as banking institutions, credit unions, digital lenders, and government entities. Assess the differences in interest rates, loan conditions, and qualification requirements to find the most suitable loan offer and lender for your financial situation.

• Understand Loan Terms

  Carefully scrutinize the loan agreement, paying close attention to the interest rates, payment plans, associated fees, and penalties for early repayment. Comprehending these details ensures full awareness of your financial obligations.

• Gather Necessary Documentation

  Anticipate the need for certain documents by lenders, including income proof, employment confirmation, credit history, and loan purpose details. Organizing these documents beforehand can streamline the loan application process.

• Complete the Loan Application

  Fill out and submit a detailed application to your lender of choice. While many lenders facilitate online applications, certain loan types might necessitate a visit in person. Ensure all information provided is accurate and honest.

• Wait for Loan Approval

  The lender will evaluate your application, taking into account your credit standing, earnings, and loan purpose. Approval times vary by lender, with some offering initial pre-approval as an indication of likely acceptance.

• Review Loan Offer

  Upon approval, examine the proposed loan agreement meticulously, focusing on the interest rates, repayment terms, and any fees involved. It's crucial to understand every element of the offer before proceeding.

• Receive Loan

  Following all procedural requirements, the lender will issue the loan funds. Depending on the arrangement, the money may be deposited directly into your bank account or provided as a cheque.