Bank Loan Requirements

Common Types of Bank Loans and Their Requirements

Listed below are the common types of bank loans offered in the Philippines and the minimum requirements. However, additional requirements may be requested at the bank’s discretion.

Personal Loans

This is a multi-purpose cash loan available for individuals who need quick access to cash. Most of the time, personal loans are unsecured which means that no collateral is required. The monthly installment and interest rate usually depends on the credit evaluation of the borrower. But banks typically charge the prevailing market rate of interest. 

Cash Loan / Salary Loan

Eligibility Requirements

• Age 21 to 65 years old
• Must be a Filipino Citizen
• Must meet the minimum salary requirement

Basic Documentary Requirements

• Duly-Accomplished Application Form 
• Government issued IDs (Passport, Driver’s  License, PRC ID, TIN ID, SSS ID, etc.,)
• Proof of Employment (any of the following)
  • For Employed Individuals
    • 3 months  payslip
    • Latest income tax return (BIR Form 2316)
  • For Self-employed Individuals
    • Business Permit
    • BIR Certificate of Registration
    • Latest Income Tax Return (1701)
    • Audit Financial Statements
    • DTI Registration/SEC Certificate of Registration
    • Bank Statement
  • For Overseas Worker
    • Certificate of Employment with boarding date
    • POEA Contract
    • Bank Statement

Auto Loan

Eligibility Requirements

• Filipino Citizen & Resident of the Philippines
• Foreign Citizen residing in the Philippines (with Filipino guarantor)
• Filipino Citizen Non-Resident (With Filipino guarantor)
• Age 21 to 65 years old
• Monthly income of Php40,000

Basic Documentary Requirements

• Duly-Accomplished Application Form 
• Government issued ID (Passport, Driver’s  License, PRC ID, TIN ID, SSS ID, etc.)
• Proof of Employment (any of the following)
  • For Employed Individuals
    • 3 months payslip
    • Certificate of Employment
    • Latest Income Tax Return (BIR Form 2316)
  • For Self-employed Individuals 
    • Business Permit
    • BIR Certificate of Registration
    • Latest Income Tax Return (1701)
    • Audit Financial Statements
    • DTI Registration / SEC Certificate of Registration
    • Bank Statement
  • For Overseas Worker
    • Certificate of Employment with boarding rate or 
    • POEA Contract
    • Bank Statement
  • For Corporate Sectors
    • SEC Certificate of Registration
    • Business Permit
    • Articles of Incorporation and By Laws (Corporation)
    • Articles of Partnership (Partnership)
    • Audited Financial Statements
    • Bank Statement

Home Loan

Eligibility Requirements

• At least 21 but not over 65 years old
• Filipino Citizen
• Foreign Nationals (subject to evaluation)
• With stable source of income from employment or business

Basic documentary requirements

• Duly-Accomplished Application Form 
• 2 Government issued IDs (Passport, Driver’s  License, PRC ID, TIN ID, SSS ID, etc.)
• Proof of Employment
  • If locally employed
    • Certificate of Employment (at least 2 years with current employer)
    • Income tax return
    • 3 months payslip
  • For Self-employed Individuals 
    • Business Permit
    • BIR Certificate of Registration
    • Latest Income Tax Return (1701)
    • Audit Financial Statements
    • DTI Registration / SEC Certificate of Registration
    • Bank Statement
  • For Overseas Worker

• • • Certificate of Employment with boarding date 
    • POEA Contract
    • Bank Statement

• Collateral Documents
  • Photocopy of Tax Declaration
  • Transfer Certificate of Title / Condominium Certificate of Title
  • Vicinity Map / Lot Plan with location
  • Contract to Sell (for developer tie-up only).

Business Loan

This type of loan offers short-term or long-term agreement depending on businesses’ loan purpose.

Eligibility Requirements

• Duly registered with applicable regulatory bodies (DTI, BIR, SEC etc.)
• Business operation for at least 3 years

Basic Documentary Requirements

Sole Proprietorship

• Duly accomplished Application Form
• 2 Government issued IDs (Passport, Driver’s  License, PRC ID, TIN ID, SSS ID, etc.)
• Latest Income Tax Return (1701)
• Audit Financial Statements
• DTI Registration / SEC Certificate of Registration
• Bank Statement
• List of Top 3 customers / suppliers
• Business Permit

Partnership/Corporation

• Duly accomplished Application Form
• 2 Government issued IDs (Passport, Driver’s  License, PRC ID, TIN ID, SSS ID, etc.) of authorized signatory
• SEC Certificate of Registration
• Business Permit
• Articles of Incorporation and By Laws (Corporation)
• Articles of Partnership (Partnership)
• Audited FInancial Statements
• Bank Statement
• List of Top 3 customers / suppliers

Conclusion

Some Filipinos assume immediately that getting a bank loan is extremely difficult and requires too many requirements that they will not be able to provide. But the reality is that most banks only require basic documents and depending on the type of loan and the amount they wish to apply for, some banks might require more documents to support their declaration on the loan application and ensure that they will be able to pay off the monthly repayments.