## Appendix

**How commonly Philippines-based lenders require documents as part of a loan**  
**application:** We’ve divided this up into four sub-cases: where the applicant’s income is based on business revenue vs a salary; where the bank’s risk exposure is low vs high (meaning where low-exposure means when loan capital is low (typically below PHP50k or PHP100k), or applicant risk is low (for example, they are an existing client or exhibit other low-risk profile elements) compared with cases high-exposure means when loan capital is high, or applicant risk profile is high):

|  | Salary Income-based loan |  |  |  | Business Income-based loan |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Low- exposure |  | High- exposure |  | High- exposure |  |
| Personal Identity Verification |  |  |  |  |  |  |
| Picture ID (front) | 100% |  | 100% |  | 100% |  |
| Picture ID (back) | 100% |  | 100% |  | 100% |  |
| Birth certificate | 0% |  | 5% (only if place of birth must be confirmed) |  | 0% |  |
| Selfie (for matching to ID) | 50% |  | 100% |  | 50% |  |
| Marriage contract | 5% |  | 50% if applicable (married) |  | 5% |  |
| Residence verification |  |  |  |  |  |  |
| Proof of Billing/Proof of residential address | 30% (require one of any of these docs) |  | 100% |  |  |  |
| Electricity Bill | 30% (require one of any of these docs) |  | 100% (require one of any of these docs) |  | 100% (require one of any of these docs) |  |
| Internet Bill | 30% (require one of any of these docs) |  | 100% (require one of any of these docs) |  | 100% (require one of any of these docs) |  |
| Water Bill | 30% (require one of any of these docs) |  | 100% (require one of any of these docs) |  | 100% (require one of any of these docs) |  |
| Credit card statement | 30% (require one of any of these docs) |  | 100% (require one of any of these docs) |  | 100% (require one of any of these docs) |  |
| Barangay Certificate: residency | 30% (require one of any of these docs) |  | 100% (require one of any of these docs) |  | 100% (require one of any of these docs) |  |
| Lease contract | 30% (require one of any of these docs) |  | 100% (require one of any of these docs) |  | 100% (require one of any of these docs) |  |
| House Title |  |  | 20% (if homeownership is a requirement) |  |  |  |
| Income Verification: Salary income |  |  |  |  |  |  |
| Payslip(s) | 50%* |  | 85%** | 15%** | N/A |  |
| Bank statement(s) | 50%* |  | 50%* | 15%** | N/A | 85%**85%** |
| BIR Form 2316 = Certificate of Compensation Payment/Tax Withheld (i.e. Income Tax Return) | 50%* |  | 50%* | 15%** | N/A | 85%**85%** |
| Certificate of Employment (Employment confirmation letter) | 70%*** |  | 100% |  | N/A |  |
| Employee ID card (Staff ID) | 70%*** |  | 100% |  | N/A |  |
| Employment contract | 0% |  | 15% |  | N/A |  |
| Proof of remittance | 70% (if applicable) |  | 100% (if applicable) |  | N/A |  |

---

| Business Identity Verification |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
| Mayor's permit |  | N/A |  | 100% |  | 100% |
| BIR certificate (BIR 2303) |  | N/A |  | 70% |  | 100% |
| Barangay Certificate: business clearance |  | N/A |  | 40% |  | 100% |
| Annual Income tax return |  | N/A |  | 0% |  | 50% |
| IF Sole Proprietorship(i.e. SME loan to individuals) | DTI certificate | N/A |  | 70% |  | 100% |
| IF Partnership: | SEC Certificate of Partnership | N/A |  | 30% |  | 70% |
| IF Partnership: | Articles of Partnership | N/A |  | 30% |  | 70% |
| IF Partnership: | Board Resolution or Secretary Certificate authorizing representative | N/A |  | 30% |  | 70% |
| IF Corporation: | SEC Certificate of Incorporation | N/A |  | 30% |  | 70% |
| IF Corporation: | Articles of Incorporation | N/A |  | 30% |  | 70% |
| IF Corporation: | General Information Sheet (GIS) | N/A |  | 30% |  | 70% |
| IF Corporation: | Board Resolution or Secretary Certificate authorizing representative | N/A |  | 30% |  | 100% |
| IF Corporation: | By-laws | N/A |  | 0% |  | 30% |
| Income Verification: Business Income |  |  |  |  |  |  |
| BIR Form 1701 (Income tax return) |  | N/A |  | 0% |  | 20% (if applicable) |
| Photo of business |  | N/A |  | 90% |  | 100%*** |
| Video tour of business |  | N/A |  | 20% |  | 100%*** |
| Invoices/Receipts |  | N/A |  | 0% |  | 20% |
| Inventory list |  | N/A |  | 0% |  | 10% |
| Photo of inventory |  | N/A |  | 20% |  | 100% |
| Evidence of web presence |  | N/A |  | 20% (except 100% for online sellers) |  | 50% (except 100% for online sellers) |
| Trade references: suppliers |  | N/A |  | 50%†50%† | 50%† | 30%‡ |
| Trade references: customers |  | N/A |  | 50%†50%† | 50%† | 30%‡ |
| Collateral documents (if collateralized) |  |  |  |  |  |  |
| IF land | Land Title | 100% | 100%§ | 100% |  | 100%§ |
| IF land | Tax declaration for real property | 0% | 100% | 0% |  | 100% |
| IF vehicle | Official Receipt (OR) | 100% | 100% | 100% |  | 100% |
| IF vehicle | Certificate of Registration (CR) | 100% | 100% | 100% |  | 100% |

* 50% of lenders require ALL of these docs, 50% require ANY ONE of these docs. Number of statements varies from 1 to 6 (for example, 3 monthly bank statements or 3 payslips.

** 85% of lenders require ALL of these docs, 15% require ANY ONE of these docs. Number of statements required varies from 3 to 12 (depending on low/high exposure),

*** Either one accepted.

† 50% of lenders require both supplier and customer references, 50% require either. Number of references varies from 1 to 3.

‡ 70% of lenders require both supplier and customer references, 30% require either. Typically 3 required.

§ CTS only required when ownership has recently changed but updated title not yet issued.