1. Proof/s of Identity;
2. Proof/s of Residence; and,
3. Proof/s of Income or Source of Repayment
PROOF OF IDENTITY:
Lenders require valid IDs. The preferred IDs by lenders are government-issued IDs such as passport, driver's license, SSS ID. Some borrowers require at least 2 IDs. Further, some lenders classify IDs as primary ID or secondary ID - Primary are those issued by government and Secondary by non-government entities such as employment ID. Rules also vary depending on the comfort level of the lender. (eg. 1 primary ID or 2 secondary IDs, etc.) ID/s submitted must be updated or not expired and shall contain the client's recent photo, correct basic information and importantly, the signature.
In some cases, lenders would like to further establish the identity of borrowers and hence require more proofs of identity such as marriage contracts, birth certificate, for single loan applicants - a certificate of no marriage, photo ID, etc.
PROOF OF RESIDENCE:
The most commonly submitted proof of residence is a recently issued billing statement mailed to the borrower's residence. Some lenders have preference and specify the issuer of the billing statement. The more acceptable billing statements are those issued by electric, phone, or water (utilities) companies, and bank account or credit card statements.
PROOF OF INCOME OR SOURCE OF REPAYMENT
Lenders need to be assured that there will be repayment. Proofs of income or source of repayment is a mandatory requirement. Proofs of income vary base on the loan applicant's occupation.
1. Locally Employed - Income Tax Return (ITR), Certificate of Employment with Compensation, payslips or Employment Contract.
2. Overseas Filipino Worker -
a. Land-based: Employment Contract, Payslips
b. Seafarer: Employment Contract, History of Embarkment/Employment, Allotment slips
Proofs of Remittance are also being required by some lenders.
3. Self-Employed/Partnerships/Corporations: ITR, Audited Financial Statements, Operating Account - Bank Statement, List of Customers and Suppliers
The above are also in compliance with the Anti-Money Laundering Act (AMLA). Follow this LINK, to know more about AMLA.
