How to Know the Requirements for Personal Loans in the Philippines

Personal loans in the Philippines are one of the most flexible financial tools available.

They can be used for almost anything — from education, travel, and medical expenses to home renovation or consolidating debts.

But before you apply, it’s important to understand the requirements that lenders ask for.

Knowing them in advance helps you save time, avoid rejection, and prepare the right documents.

Why Requirements Matter

Every lender wants assurance that you can repay what you borrow. That is why requirements exist — they prove your identity, show your financial capacity, and establish your credibility as a borrower. By preparing properly, you increase your chances of approval and may even qualify for better loan terms.

Common Eligibility Criteria

Most banks, government programs, and loan apps in the Philippines use similar eligibility standards. Borrowers typically need to meet the following:

• Age: Usually between 21 and 65 years old at the time of loan maturity
• Citizenship: Filipino citizen or resident with valid documents
• Income: Stable source of income, whether through employment or business
• Employment status: At least 1–2 years of continuous work for employed applicants
• Credit history: A good repayment record increases approval chances

If you fall within these criteria, you already meet the basic conditions to apply for a personal loan.

Standard Document Requirements

To complete your application, lenders usually ask for:

• Valid government-issued ID (Passport, Driver’s License, UMID, PhilHealth, or TIN ID)
• Proof of income (latest payslips, Certificate of Employment, or Income Tax Return for self-employed)
• Proof of billing (utility bill or credit card statement under your name to verify address)
• Bank statements (some lenders require 3–6 months of statements to review cash flow)

Preparing these in advance makes the process faster and shows the lender you are a responsible borrower.

Bank vs. Loan App Requirements

While requirements overlap, there are differences depending on the type of provider:

• Banks: Often stricter, with higher income thresholds and credit checks. They may require longer employment history and more supporting documents.
• Loan Apps and Fintech: Usually more lenient. Many approve applications with just a valid ID and a mobile phone number. However, interest rates may be higher.
• Government Loans: Available for members of programs like SSS, GSIS, and Pag-IBIG. Requirements are simpler but limited to those who are contributors.

Tips for Meeting Loan Requirements

• Keep copies of your documents updated and organized.
• Maintain a good credit record by paying bills and debts on time.
• Choose a lender whose requirements match your financial profile.
• Avoid submitting incomplete applications, as this leads to delays or rejection.

Frequently Asked Questions

What is the minimum income to apply for a personal loan in the Philippines?
It varies. Some banks require at least ₱15,000–₱20,000 monthly income, while loan apps may accept lower.

Do I need collateral for a personal loan?
No. Personal loans are unsecured, which means they do not require collateral.

Can I apply without a payslip?
Yes, some loan apps accept alternative income proofs such as remittances or digital earnings.

Is a good credit score required?
Not always. Loan apps often approve new borrowers without checking credit history, though banks prefer applicants with established credit.

How many valid IDs are needed?
Most lenders require at least one, but some may ask for two government-issued IDs.