Truth And Transparency In Lending

Enhanced Implementation of the Truth in Lending Act (Republic Act 3765)

The State protects its citizens from a lack of awareness of the true cost of credit to the customer by assuring a full disclosure of such cost and other terms and conditions with a view of preventing the uninformed use of credit.

As such, a disclosure statement is a required attachment to the loan contract. It shall include, at a minimum, the following information:

  • Total amount to be financed
  • Finance Charges and all others charges incident to the loan
  • Net proceeds of the loan
  • Schedule of Payments
  • The percentage that the finance charge bears to the total amount to be financed expressed as Effective Interest Rate (EIR)

The borrower has the right to demand a copy of the disclosure statement