Yes, as a dedicated deployment for banks and for lending and financing companies with 50 or more staff. PHP, InstaPay, the SEC and BSP rules that apply to you and your templates are built into the implementation, and your team tests it before go-live.
Philippines · Loan origination system
Loan origination system for Philippine banks and lenders
Applications, documents, checks, credit assessment and approval on one record, with an AI banking agent preparing the file and your credit officers approving it.
In brief
What a loan origination system does in Philippines
A loan origination system (LOS) takes a loan from application to booking: borrower details, documents, checks, the credit assessment, approval and the loan agreement.
Covenant Desk is the AI lending system for banks and for lending and financing companies with 50 or more staff. In the Philippines, banks are supervised by the Bangko Sentral ng Pilipinas (BSP), while lending companies (Republic Act 9474) and financing companies are registered with the Securities and Exchange Commission (SEC). The platform is built to the rules your licence carries, with PHP, InstaPay and your templates, as part of the implementation.
Philippines
What a Philippine LOS has to get right
- 01
A credit file for BSP-supervised lenders
For banks: documents, spread, grade and approval trail behind each facility.
- 02
Documents read once
Financial statements, bank statements, payslips, government IDs and business registration documents are extracted by AI and the figures go to the right fields, each linked to its page and line.
- 03
Pricing rules for covered loans
Where SEC caps apply, for example on small unsecured loans with a 6% monthly nominal cap, a 15% monthly effective-rate cap and a total-cost cap of 100% of the amount borrowed, they sit in the product set-up and are checked before the offer.
- 04
Disclosure the borrower can read
The effective rate and every fee shown before the borrower accepts, in the form the agreement will use.
- 05
Credit data to the CIC
Regulated lenders submit borrower credit data to the Credit Information Corporation. The LOS captures the fields the submission needs from the first application.
- 06
Personal data under the Data Privacy Act
Government IDs, payslips and bank statements are handled by role, masked on screen and every lookup is recorded.
Covenant Desk
How Covenant Desk covers it
All of this is available, built to your operation and delivered as part of the implementation.
- 01
Intake
The borrower, directors, shareholders and guarantors in one case. Staff open cases or the borrower applies on your own online form; a secure upload link and a checklist collect the documents. Identity numbers are stored encrypted and shown masked.
- 02
Document extraction
OCR and AI document extraction read financial statements, bank statements, certificates, ID and business registration documents, and the figures go to the right fields, each linked to its page and line.
- 03
Assess
Financial spreading by period; DSCR, leverage and interest cover; bank-account analysis; a versioned 100-point scorecard in which missing evidence shows as unassessed.
- 04
AI banking agent
The AI builds and edits client profiles, prepares the credit memo and facility letter from your templates, summarises the file, schedules client and committee meetings and drafts communications. Every action is logged, permissioned and reviewable.
- 05
Decide
AI prepares the decision; your credit officers approve it, with approval limits by amount, escalation, four-eyes control on exceptions and a full audit trail.
- 06
Core banking engine
Covenant Desk includes its own core banking engine for lending: loan accounts, ledger and postings, interest and fees, repayment and collections, and disbursement. It also integrates with the core banking systems you already run, through APIs or file exchange, so you can adopt it as the lending core or run it beside your existing core.
- 07
Philippines rules, currency and payments
Philippines's rate and fee rules, currency, payment rail and document templates are built into your deployment as part of the implementation, and your team tests them on your own cases before go-live.
Evaluation
Questions to ask any LOS vendor in the Philippines
- 01
How are covered loans identified?
By amount, term, security and purpose, so the rules apply to the right products.
- 02
Show the effective-rate check
Ask to see an offer whose fees push the effective rate over the limit being stopped.
- 03
What data does it capture for the CIC?
The fields your submission needs, collected at application, not chased later.
- 04
Where is the data hosted?
Database, documents and backups, and whether anything leaves that region.
- 05
What does the AI do?
Look for an AI that reads, drafts, summarises and flags, with approval left to your credit officers.
- 06
How do we exit?
A full export and written confirmation of deletion.
FAQ
Questions banks and lenders ask
Yes. The submission file is built from the loan records in your deployment, and the data is captured on each loan and exportable.
Yes. Each product carries the rules for the company type and loan type it belongs to.
AI prepares the decision and your credit officers approve it, under four-eyes control, your approval matrix and a full audit trail.
Sources
Official sources, checked 29 October 2026
- Republic Act No. 9474, the Lending Company Regulation Act of 2007
- Securities and Exchange Commission, Philippines
- BusinessWorld: SEC issues rules on interest rate cap for lending and financing companies (2 March 2022)
- Bangko Sentral ng Pilipinas
- Credit Information Corporation, Philippines
- National Privacy Commission, Philippines (Data Privacy Act of 2012)
Rules change; check the current text with the regulator and your adviser. This page is not legal advice. Covenant Desk is software: it does not provide loans or make lending decisions.
See it on one of your own loans.
We set up a personalised demo around your own products and workflows, then your team tries it before you decide.
Book a personalised demo