In the Philippines, the legality of online loans is contingent upon certain regulations and requirements that online lending companies must adhere to. Instead of being supervised by the Bangko Sentral ng Pilipinas (BSP), these companies are required to register with and obtain a license from the Securities and Exchange Commission (SEC).
To offer loans, they must first acquire a Certificate of Authority (CoA) from the SEC. This CoA serves as a verification that the company has fulfilled the necessary criteria and is permitted to engage in the lending business. By following these procedures, online lending companies in the Philippines ensure compliance with the legal framework established by the authorities.