Personal Loan Application Process in the Philippines
Everyone wants a loan until they find out how much work it takes to get one.
You have to get your required documents, fill out an application form, and then after that you have to wait to get approved. Then, if you’re lucky, you’ll have to wait some more for the loan amount to get disbursed.
But all of that can be worth it in the end if you end up getting approved!
One way of making sure that happens is by learning the entire personal loan application process from start to finish. In this blog, we’ll take you through it step by step. We’ll also let you in on a (not so) little secret: online loans are much easier to apply for. So keep on reading and take out the personal loan of your dreams, hun!
Personal Loan Application Process from Traditional Banks
Step 1: Choose a lender
The entire loan application process begins with you choosing a lender. That may seem like a no-brainer, but it is worth reminding that you have to choose carefully.
This decision isn’t something you can just flip a coin on. There are a lot of things you must consider first because taking out a loan is a lot like getting married, or any other major commitment you can think of.
Right off the bat, you have to consider the lender’s 1) eligibility criteria as well as their 2) maximum loan amounts, 3) repayment periods, 4) interest rates, and the 5) fees. Once you’ve found a lender with a loan that fits your needs and means, it’s time for the next step.
Step 2: Get your personal loan requirements ready
Personal Loan requirements are documents that you need to submit to lenders to prove your identity, and to help them determine whether you’re eligible for a loan or not.
If you’re employed locally, you probably won’t have a hard time getting these documents. These typically include a valid government-issued ID, a Certificate of Employment, and your BIR Form 2316 or payslips as proof of income.
Self-employed applicants need to submit documents like their latest Audited Financial Statements and Certificate of Business Registration with DTI or SEC. On the other hand, if you're employed abroad, you're going to need your Latest Crew Contract (for seafarers/seamen) or your Latest Employment Contract from the Philippine Consulate (for OFWs).
Now, gather all those personal loan requirements and get yourself a copy of your chosen lender’s application form!
Step 3: Explore Pre-Approved Loan Options
Before you proceed to fill out the application form, it's worth considering if you might qualify for a pre-approved loan. This step can make your loan application process smoother, as the lender has already done a preliminary review of your financial situation. But keep in mind that while pre-approval is a promising start, it's not a final guarantee of loan approval, luv! If you're eligible for a pre-approved loan, it could provide a clearer understanding of the loan amount, terms, and rates you might expect.
Step 4: Fill out the application form
You’ll be asked to provide personal information such as your date of birth, occupation, and dependents. Make sure that all information is correct, and that it matches with the documents that you’ll submit.
Once you’ve filled out the application form and you have your other requirements on-hand, it’s time to submit them all to your lender. Next up: the waiting game.
Step 5: Wait for approval
You may have to wait one day or a full week before hearing about your application. After all, your loan application will go through an underwriting process where lenders will assess the risk of giving you a loan. That might be a bit nerve wracking, so try not to think about it too much while you wait. Go out, hang out with friends and family, touch some grass, luv.
But remember to keep your lines open, because your lender may send you an email, shoot you an SMS, or give you a call to give you an update. That’s something you don’t want to miss!
Step 6: Sign the Contract
Once you receive the exciting news that you’ve been approved for a personal loan, it’s time to sign your contract. Good for you!
Before you go pen-crazy, though, don’t forget to read everything. And when we say everything, we mean everything - including the fine print. If you agree to all the terms and conditions, you can finally sign the contract.
Step 7: Wait for Disbursement
Don’t pop the champagne just yet. You’ve got another round of waiting ahead of you, this time for your loan to be disbursed into your bank account.
But that’s okay, because now you know that you’ve been approved, and all you must do is wait. Some banks only need 1 day for this, while others may take up to a week. It really depends on where you borrow from, so to tie this back to the first step: make sure to choose wisely.
Why Online Personal Loan Applications are Better
The loan application process for online banks is almost the exact same as ones from traditional banks. However, there are a few key differences that make them the better option.
The Process is Easier
Online loans feel like a walk in the park compared to traditional banks. Yes, you still have to submit documents, and you still have to fill out an application form, but there’s no need to send the documents via e-mail and then wait for an agent to contact you. Usually, you can do it all through a single app!
The Wait is Shorter
Remember when we said that you may have to wait for up to a week for your loan approval? With a lot of online loans, like our Quick Loan, you can get approved in less than an hour and get the full loan disbursement in real time!
You Don’t Have to Leave the House
If you’re an introvert, this is probably the only reason you need to choose online personal loans. Still, we’re pretty sure anyone would rather take out a loan in the safety of their home instead of lining up at a boring old bank. Plus, you can apply even during banking days so you can get the cash you need in a flash!
They’re Just as Safe as Traditional Loans
Perhaps the last thing that’s keeping you from going digital is the fear that your money may not be safe in a digital bank. That’s okay, boomer, we get it: the internet looks like the Wild, Wild West to the untrained eye. But the thing is, many online banks are now regulated by the Bangko Sentral ng Pilipinas (BSP).
And guess who’s included in that list of BSP-regulated digital banks?
Get an All-Digital Loan from Tonik Today
If you said Tonik, you guessed right, luv. We’re the Philippines’ first digital bank to secure a banking license from the BSP!
What’s more, we have a wide range of loans, one of them being Big Loan the first (that’s right, another first) fully-digitalized collateral lending product in the Philippine market.
Want to experience the ease of online loan applications first-hand? Try it when you download the Tonik App today!