We have a previous discussion on the regulation of the business of lending (click here) over at Blog.Pinoy-Business.com. On 22 May 2007, Republic Act No. 9474, also known as the “Lending Company Regulation Act of 2007,” was approved. The law is consistent with the declared policy of the State to, among others, regulate the establishment of lending companies and to place their operation on a sound, efficient and stable condition to derive the optimum advantages from them as an additional source of credit.
In essence, the law now requires that only corporations may engage in the business of lending. The minimum capitalization of the lending company is PhP1 Million. Please proceed here to read the full discussion on how to start a lending company in the Philippines.
