Loan options and approval tips for freelancers in the Philippines

Loan for the self-employed in the Philippines | Moneymax

Being a freelance writer has its downsides, and one of them is getting a loan for freelancers in the Philippines.

Formal lending institutions like banks and government agencies are strict about loan approvals. They require borrowers to provide their payslips, income tax return (ITR), employment certificate, and other financial documents to prove their ability to repay a loan on time.

If you don’t have proof of a stable income, you are unlikely to be approved. Worse, you can be turned down for a loan outright. Even if you earn more than an average employee, lenders will still view you as a credit risk due to the usual unpredictability of freelance earnings, unless you have documents to prove otherwise.

However, don’t let your self-employment status stop you from borrowing money to cover your financial needs. It takes effort and patience. But you can definitely improve your chances of getting independent loan approval with the following tips.

How to get a loan as a self-employed person in the Philippines

1. Register as a taxpayer

Loan for Freelancers Philippines - Be a Registered Taxpayer

Loan for Freelancers Philippines – Be a Registered Taxpayer

To find out how to get a loan as a freelance writer, you need to register as a professional or independent business with the Bureau of Internal Revenue (BIR). Once you are a registered taxpayer, you can start filing your ITR.

In addition to being proof of income tax payment, the RTI shows how much you earn in a year. It is one of the documents that lenders use to decide to have easy approval of loan application.

As tedious as the process can be, filing your RTI will help you get not only a freelance loan, but credit cards and visas as well. So start doing this as soon as you can as it is difficult to get a personal loan for self employed in the Philippines without ITR.

Read more: 9 payroll loans to consider in a financial emergency

2. Secure your business registration documents

Are you a self-employed person running a small business in addition to your freelance gigs? You must register with the Department of Trade and Industry (DTI) and obtain business permits from various government offices.

Your business registration papers will help you increase your chances of getting approval quickly for a self-employed loan. These documents prove that you have other sources of income than self-employment.

3. Maintain a good credit rating

Another way to make yourself solvent and likely to be approved for a freelance loan in the Philippines is to build and maintain a good credit rating.

A credit score is what lenders use to assess loan applicants. By looking at the payment history of a potential borrower, a lender will get an idea of ​​that person’s ability to repay a loan.

As a freelance writer, having a great credit score will be to your advantage. Pay your insurance premiums and credit card bills in full and on time. If you don’t have a credit card yet, you can easily qualify for a secured credit card and use it responsibly to build a good credit history.

Read more: Should I borrow money from private lenders?

4. Prepare your supporting financial documents

Loan For Freelancers Philippines - Prepare Your Supporting Financial Documents

Loan For Freelancers Philippines – Prepare Your Supporting Financial Documents

Lenders need to be assured that their borrowers will repay what they owe, which is why they ask for multiple income documents. Even if you are not employed by a company and do not have payslips as proof of income, you can try submitting other documents to prove your ability to pay.

Take a look at all of your income sources and see if you can get any documents as proof. Here are the documents that some lenders accept:

  • Bank statements for the last six months

  • Client work certificate – You can ask your clients to give you a certificate indicating your employment, your gross income and how long you have been providing services to them.

  • Upwork income certificate – If you get your freelance projects through Upwork, you can get income certificate report[1] of the online job search platform. This document shows the income of a freelance writer over the past 12 months. Lenders such as Pag-IBIG Fund accept income certificate for self-employed loan applications, subject to certain conditions.

  • Share certificate and other investment certifications – If you have been investing in stocks, UITFs and / or mutual funds for some time, you can get certification from your broker or bank that proves you own the investments.

  • Proof of ownership of assets in your name – Do you own a car, real estate or any other valuable asset? You can provide documents to the lender to prove that you own certain assets.

5. Try to borrow from a bank where you have a long standing account

Contact the bank with which you have a long banking relationship (at least a year) to see if you can get a personal loan for self-employed people in the Philippines. The bank may consider loaning you money if you receive payments from your freelance assignments into your bank account and have had a large deposit for a long time.

6. Get Cash Loan For Freelancers From Legitimate Private Lenders

Philippines Freelance Loan - Get Salary Loan From Legitimate Private Lenders

Philippines Freelance Loan – Get Salary Loan From Legitimate Private Lenders

Need to borrow money immediately but don’t have financial documents? The easiest way to get a personal loan for freelancers in the Philippines is to borrow from informal lenders. These companies offer payday loans, payday loans, online cash loans, instant loans, and quick cash loans.

However, be sure to only deal with legitimate loan companies. They must be registered with the Securities and Exchange Commission[2], such as Tala Philippines and Loan Ranger.

These private lenders for personal loans allow freelancers in the Philippines who are not eligible for bank loans to apply for their respective personal loans online. Unlike formal lenders, private lenders only require borrowers to present valid identification and meet the minimum age requirement (18 years).

Read more: Online loans in the Philippines: what Filipinos need to know

call to action personal loan

call to action personal loan

List of Personal loans for the self-employed

Below are the best personal loan options for freelancers in the Philippines. This list is based on loans with requirements that long-time freelancers can likely provide.

BPI personal loan

personal loan bpi

personal loan bpi

Required documents:

  • Completed BPI form

  • Valid government issued ID

  • Last income tax return (form BIR 1701)

  • SEC registration or DTI certificate

  • Latest Audited Financial Statements (AFS)

  • Business permit or mayor’s permit

Citibank personal loan

personal citi loan

personal citi loan

Required documents:

  • Citi form completed

  • Last income tax return (form BIR 1701)

  • Valid government issued ID

  • Latest Audited Financial Statements (AFS)

  • Minimum annual income of PHP 250,000

  • Have had a primary credit card for at least a year

Read more: Emergency loans and other convenient ways to borrow money

EasyRFC multipurpose loan

rfc personal loan

rfc personal loan

  • Maximum loan amount: up to PHP 150,000

  • Interest rate: 4% plus interest

Required documents:

  • Completed online RFC form

  • Last income tax return (form BIR 1701)

  • Latest Audited Financial Statements (AFS)

  • Two valid government issued IDs

  • SEC registration or DTI certificate

  • Business permit or mayor’s permit

  • Last electricity bill of one (1) month

  • Two 2 × 2 passport photos

  • Passbook (active for at least six months)

RCBC personal loan

rcbc personal loan

rcbc personal loan

  • Maximum loan amount: up to PHP 1 million

  • Interest rate: 6.08% per annum, increase of 1.40% per month

Required documents:

  • Completed RCBC Application Form

  • Latest ITRs or audited financial statements

  • Last 3-month bank statement

  • Copy of valid government IDs

  • SEC registration or DTI certificate

  • Business permit or mayor’s permit

SB Finance personal loan

sb finance personal loan

sb finance personal loan

  • Maximum loan amount: up to PHP 2 million

  • Interest rate: 29.48% per annum, increase of 1.89% per month

Required documents:

  • Completed SB Finance application form

  • Last audited financial statement (AFS) at one year with at least comparative financial data for the previous year

  • Copy of valid government IDs

  • Last three (3) month bank statements

  • SEC registration or DTI certificate

  • Business permit or mayor’s permit

  • List of 3 commercial references (at least 1 supplier and 1 customer)

TALA personal loan

loan tala philippines

loan tala philippines

  • Maximum loan amount: up to PHP 15,000

  • Interest rate: 15% plus interest

Required documents:

  • Android smartphone with OS 4.1 or higher

  • Tala Loan Philippines application

  • Copy of valid government IDs

Read more: Tala loan guide: all about borrowing from Tala Philippines

Final thoughts

Although it is difficult to obtain a loan for the self-employed in the Philippines, that does not mean that it is impossible. If you are starting out as a self-employed person, you’d better wait a few more years, at least a year or two, before applying for a personal loan. This allows you to follow the steps outlined above to increase your chances of loan approval.

Compare other loans for the self-employed!

Looking for a personal loan? Below is a list of trusted personal loan companies and their loan features. Compare your options and apply through Moneymax!

Personal loan provider

Characteristics

Citibank personal loan

Get a Citibank personal loan with Moneymax

EasyRFC multipurpose loan

Get an EasyRFC versatile loan with Moneymax

SB Finance personal loan

Get an SB Finance personal loan with Moneymax

TALA personal loan

Get a TALA personal loan with Moneymax

Sources:

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