TRUTHINLENDING ACT
(Republic Act 3765)

Enhanced Implementation of the Truth in Lending Act

The State protects its citizens from a lack of
awareness from the true cost of credit to the customer by
ensuring full disclosure of such cost and other terms and
conditions with the aim of preventing the uniformed 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:

1. Total amount to be financed
2. Financial Charges and all other charger incident to the loan
3. Net proceeds of the loan
4. Schedule of payments
5. The percentage that the finance charge bears to the total amount to be financed expressed as an Effective Interest Rate (EIR)

IMPORTANT NOTICE
The Borrower has the right to demand a copy of the
disclosure statement