Securing a loan does not have to be as complicated as everyone thinks it is. With proper research, you can easily understand how the application process works. Usually, lenders need to verify first your identity. Then, they perform credit and background checks to see how much risk they need to take if they lend you capital. This process could be as short as one day and up to 7-10 days depending on the bank or credit company.
To make sure that your application runs smoothly, be ready with the proper documents that may be asked of you. Banks and private lending companies usually require a proof of identification and a proof of income. Your proof of identification can be a valid government issued ID, which you may already have or you can avail of at your local government office.
If you’re currently employed, you may request a proof of income from your company’s Human Resources department which may come in the form of your payslip, Certificate of Employment, or BIR forms 2316 (W2) or 1700. If you’re self-employed, you must prepare some proof of how you’re going to finance your loan. It can be a DTI or SEC registration of your business, Mayor’s Permit, and BIR form 1707 or a bank statement from the business owner from the last six months.
These requirements, of course, may vary from one institution to another so it’s best to do your research first on what documents you need to prepare when applying for a loan with a specific bank or lending company.