Credit Loan Processing and Approval Standards of Lending Companies in Taguig

Abstract

The study intends to determine the Credit Loan Processing and Approval Standards of Lending Companies in Taguig. A descriptive method of research was employed to the study in determining the Credit Loan Processing and Approval Standards. The respondents were composed of 130 personnel from four (4) lending companies, for the evaluation of loan processing and approval standards. Based on the findings, the respondents’ assessment on the importance of credit loan processing and approval standards in terms of character, capital, documents submitted, credit history & credit rating are very important. The study also notes several significant differences, the assessments of the respondents varies depending on the credit policy the business were using. Further, the number of years in lending companies, job position level, years in the present job and number of trainings on the present job has an effect on how the respondents’ assessed the loan processing and approval standards. The researcher recommends that the lending companies should focus on the areas of character, capital, documents submitted, credit history, and credit rating when evaluating the loan application of their borrower. Furthermore, lending companies should have an intensive evaluation on the borrowers’ accounts and should constantly check and consider the way the competitor moves in the market, then compare their process to determine if there are changes that should be applied in credit operating guidelines, procedures and parameters.