How to Have 100% Sure Approval For Cash Loans in Philippines

Personal Loan Approved in Philippines Updated on April 2023  

Loans are handy when you have desperate financial times. In fact, 47.1% of Filipino adults borrowed money in 2015. It is a relief to have instant cash within your reach. However, receiving rejection when you need it the most is also disheartening. It is important to note that lenders have various considerations when approving loans. 

How will you hear the sweet “yes”?

Here are the secrets to 100% assurance to get your personal loan approved.

Ever wonder why some borrowers get rejected all the time? 

Are you worried you’ll experience the same dilemma as them?

Don’t fret. We got you covered. We listed the top reasons for a personal loan being approved. 

Positive Credit Report

Why can’t some Filipinos have their personal loan approved when applying? One factor lies in the past. Ever heard about credit reports? 

Credit is “utang” and report means records. The credit report records your previous loans and how you have handled these. Most Filipinos are still unaware that the Philippines has a national credit bureau. The Republic Act No. 9510 mandated the creation of a Credit Information Corporation.

“A credit information system will directly address the need for reliable credit information concerning the credit standing and track record of borrowers.”

Suppose you borrowed from a registered money lender. You paid your loans on time, and they reported your good paying habit to the credit bureau. Then you went to a bank to apply for a housing loan. They will then look for your credit report in the credit bureau. With the credit report on hand, the bank will decide on what score to give it. While credit reports are completely based on how well you handled your loans, it will depend on how the banks and other financial institutions (where you applied) will score it. The credit report helps money lenders, banks, and other financial institutions keep track of their borrowers’ payment behaviors. This way, they will know if you are creditworthy or not.

Banks usually do not approve borrowers who have no credit history. This is why most of them require their loan applicants to have an existing credit card to be sure that they already have a credit history. On the other hand, registered money lenders lend even to first-time borrowers.

That being said, some factors can ruin your credit score. Keep your credit history clean and avoid missing your loan due dates and credit card bill payments. 

What To Do? 

Use this to your advantage! When you need a loan, apply from a registered money lender to be sure that your good payment history will be reported to the credit bureau. Pay your loans diligently and on time. 

Positive reports naturally have high credit scores and lead to better chances of getting your future personal loan approved.

Stable Income

Of course, this comes as an obvious concern for lenders but not in the way you think. Most borrowers speculate that lenders base their approval on the amount of income. Actually, it is way deeper than that.

Lenders are more concerned with the stability of your source of income.

They think compulsive job hoppers are risky borrowers. This is why most registered lenders will verify if the borrower is a regular employee working in the current company for the last six months.

How about the self-employed and OFW/Seafarer allottees? 

Also, self-employed and allottees can apply for a loan as long as they can prove a regular cash inflow. Lenders require bank statements, Income Tax Returns (ITR), proof of remittance, business permits, and other income-supporting documents. This assures lenders that you have the source of money to pay the loan. 

What To Do? 

When applying for a loan, ensure you have your company ID and payslips, at least for the last month. If you have a Certificate of Employment, make sure that it includes your hiring date and the amount of your current salary. If you are a freelancer, prepare your bank statements for the last six months. Also, small business owners should submit their business permits and taxation documents. Allottees must make sure that they have a clear copy of their OFW or Seafarer’s passport and employment certificate.

Honesty

Borrowing money is about making the lender trust you. Aside from the credit report, the money lender will verify the consistency of the information you gave them.

Don’t be the type of borrower who falsifies documents just to get a personal loan approved.

Credit agents are highly trained to spot information inconsistencies. They will know if the borrower is trying to sugarcoat information, such as making the salary seem higher or that they have been in a company for a longer time. 

What To Do? 

Naturally, lenders do not trust applications with falsified data. It is better to come clean and try your luck. You will be surprised that there are lenders who are more considerate than you think. Also, possibly the lender will offer flexible alternatives to accommodate your application.

Complete Loan Application Form

Lenders receive hundreds of applications per day. Usually, complete application processes are faster. Meanwhile, the incomplete ones remain on the pending list. And to save resources, applications that take too long to be updated or completed will be rejected until you make a re-application. 

What To Do?

Every time you fill up an application, make sure that everything is filled out properly.

Note that the information must be consistent with the ones on your submitted documents. If you don’t receive an immediate reply, take the time to send a follow-up message. This way, you will immediately know if you still have to complete some information.

Requirements Compliance

Lenders put applications on hold if the data and required documents are incomplete.

This prolongs the process since they can’t completely verify your information. Obviously, if it takes too long, your loan application could get declined due to insufficient documents. 

What To Do? 

Look for the list of required documents from your lender. If the lender has a website, you can easily see this on the Frequently Asked Questions (FAQ) page. Online lending companies such as Cash Mart requires government-issued ID, company ID, and proof of billing. Take a picture or scan the documents before uploading them to the online application form. Make sure that the copies are clear and readable. Do not forget to check your email or phone so you will not miss any clarification messages. Your lender will contact you if they need supporting documents to help them verify your information.

Loan Calculator

How can a  loan calculator help your personal loan approval?

With the use of a loan calculator, you can easily see how much you can borrow, the interest charge, and the available payment terms.

Consider how much you can handle to pay easily because this is the same thing your lender will think. Also, lenders do not accept applications if you ask for a term that does not fit your financial status. 

Responsible lenders only lend the amount which the borrower can practically pay. Also, they approve only the terms which can help you pay without sacrificing your basic needs. Let’s say that your earn Php 15,000 a month. Do not expect your lender to lend you Php 15,000 to be paid in one month. 

What To Do? 

Use the loan calculator to make realistic loan amount requests. Lenders will decline requests for outstanding balances beyond the borrower’s capacity to pay.

Proof of Billing

Why do all lenders and banks ask for proof of billing? 

Proof of billing is a document that states your name and address. This can be an electricity, phone, cable subscription, or credit card bill. Lenders and banks use proof of billing to verify your residence. If you lend money to a stranger, you would want to know where the person lives, wouldn’t you? 

What To Do?

Know and submit your proof of billing and required supplementary documents.

Some lenders and banks require specific proof of billing. If you live in your own house, you only need to submit a clear copy of the bill. Meralco bill is the most common preference. However, this is impossible for every Filipino, as some only rent. Do not hesitate to ask the lender if there are other alternatives just like in Cash Mart:

• If the bill is under another person’s, you must secure an authorization letter and the owner’s valid government ID.
• If you are renting and the owner is not around to make an authorization letter, you can submit the Lease Contract.
• But, if you have no Lease Contract, you need a barangay clearance.

Responsible Lender

To increase your chance of getting your personal loan approved, you have to find the best lender that suits your needs. Lenders have different loan products for various purposes. Also, they have their own set of requirements. Note that under Republic Act 9474, lending companies must be registered under the Securities and Exchange Commission. 

A responsible lender must operate legally, pay taxes, and not overcharge penalties. They approve only the amount within your capacity to borrow and the best term to let you pay without sacrificing your basic needs. 

What To Do? 

Find a registered lender who offers flexibility that matches your needs and requirements that you can easily comply with.

Choose the one who can understand your personal situation and will adapt to your personal needs as much as possible.

Let’s say you have been renting your home for a year now. You have no proof of billing because your Meralco bill is under the owner’s name. Then an understanding lender can give you alternative options, such as a barangay clearance or an authorization letter. This way, you can still have your personal loan approved.

Final Thoughts on Personal Loan Approved

A declined loan application is painful, though every lender has the right to reject an application. Naturally, a lender will not divulge why you got declined as it is part of their internal system.

Lending is about trust.

When applying for a loan, remember to win the lender’s trust. If they trust that you can pay your loans on time, then they will approve your cash loan application. The consistency of information in your application required documents and interview makes a huge chunk of the approval decision. 

Looking for easy cash loans? 

Cash Mart offers flexible loans that best fit your financial needs at the most affordable interest rate. Experience the fastest loan process in the country with Cash Mart. Go home with your personal loan approved in no time.