How To Get A Loan Approval In the Philippines?


In the pursuit of financial stability and achieving various life goals, obtaining a loan can serve as a crucial stepping stone. However, the journey from loan application to approval is far from a linear path. The disappointment of a rejected loan application can be disheartening, to say the least. Nevertheless, this setback is an opportunity for introspection and growth, allowing you to address potential financial red flags. Sean Martin D. Plantado, a prominent figure as the Head of Customer Service at, emphasizes that a deep understanding of the reasons behind loan rejections can significantly enhance your chances of securing a personal loan in the intricate landscape of the Philippines’ financial system.

Common Factors Leading to Loan Rejection

1. Poor Credit Score: Unveiling the Lender’s Concerns

Your credit history mirrors your repayment and borrowing behavior. Timely payments and an absence of arrears signal reliability to financial institutions. However, consistent delays or loan defaults categorize you as a high-risk borrower, potentially leading to your blacklisting.

2. Loan Overcommitment: Balancing Loan Portfolio

The number of active loans you carry can affect your loan approval chances. Lenders assess your existing commitments, encompassing mortgages, car loans, personal loans, and credit card dues. While the threshold varies, a widely accepted standard is adhering to a maximum of 60% of your net salary.

3. Absence of Credit History: Navigating the Newcomer’s Conundrum

A lack of credit history can be as detrimental as a poor one. Lenders gauge your reliability based on past behavior, making it challenging to evaluate your repayment potential. Although this isn’t a deal-breaker, some lenders may extend smaller loans with higher interest rates to mitigate the risk.

4. Inadequate Income: Aligning with Lender Requirements

Banks impose minimum income criteria and internal limits based on earnings. Diversified income sources, such as commissions, might not be considered in their entirety. If your primary income stems from sales commissions, obtaining approval might pose difficulties. Engaging with your bank representative can provide clarity on potential roadblocks.

Strategies Post Loan Rejection

1. Seek Alternative Lenders: Broadening Horizons

Each lender employs distinct credit evaluation methods. Rejection by one bank doesn’t entail the same outcome elsewhere. Exploring other financial institutions presents an opportunity for approval that aligns more closely with your financial situation.

2.2. Elevate Credit Score: A Journey to Financial Redemption

Accessing your credit report enables you to address disputes promptly. Collaborating with concerned banks to rectify discrepancies aids in enhancing your credit score, contributing to future loan success.

2.3. Trusted Lenders: A Viable Alternative

Licensed money lenders offer an avenue for applicants facing repeated rejections from banks. While interest rates are higher, these lenders are more lenient in their assessment. This option can be a lifeline for those seeking immediate financial relief.


Navigating the loan application process in the Philippines demands an understanding of potential obstacles and strategic maneuvering to overcome them. By recognizing the key factors leading to loan rejection, you empower yourself to take corrective actions. Whether through improving your credit score, exploring alternative lenders, or considering licensed moneylenders, the path to loan approval becomes clearer. While the journey might seem daunting, armed with knowledge and persistence, you can confidently steer your financial ship toward calmer waters. Remember, you don’t need to explore every avenue; your journey towards securing a personal loan begins with informed steps. Best of luck on your endeavor!

4.8/5 - (5 votes)
cashexpress Changed status to publish August 29, 2023