Mobile App Loan Agreement


       In consideration of the loan that I applied for from Cantilan Bank, Inc. through its mobile application, I hereby agree:

    1. To submit the official and authentic 3-month consecutive latest pay slips for every loan availment as the basis for the amount of loan;
    2. To avail of and pay credit life insurance premium every loan availment or every loan release anniversary date of every year thereafter as long as the loan is outstanding and to designate Cantilan Bank as a beneficiary of the insurance policy;
    3. That one of the reasons for the approval of my loan application is my voluntary commitment to assign the custody of my legitimate and only payroll ATM card to Cantilan Bank together with the PIN to assure repayment and to authorize any of its representatives to withdraw from my monthly salary at any ATM machine and to commit not to make any misrepresentation to assign the ATM card, not the one being used as payroll account or replace the ATM card at the issuing Bank by means of executing an Affidavit of Lost to evade loan payment as this will constitute lying under oath tantamount to perjury;
    4. That the said ATM card shall be in Cantilan Bank’s custody while the loan is outstanding and/or I continuously avail of the loan from Cantilan Bank;
    5. That while the loan is outstanding, the ATM card shall not be used to guarantee other loans with other Banks or financial institutions or individuals;
    6. Not to withdraw over the counter at the Bank where my salary is being credited to or use electronic, internet banking, or mobile phone banking to transfer my salary to another account as this will constitute a fraudulent act tantamount to lying under oath or perjury;
    7. Any change of payroll servicing bank from the end of the agency where I am connected with, I have the duty and obligation to surrender the new payroll ATM card or else the entire obligation shall become due and demandable and will lead to legal action for not settling the loan. The failure to surrender the new ATM card without notice to Cantilan Bank shall be considered fraudulent and shall give authority to Cantilan Bank to file the appropriate criminal action/s;
    8. Not to avail of any other loan from other financial institutions which will diminish my repayment capacity to Cantilan Bank or else the entire loan obligation shall become due and demandable;
    9. To authorize Cantilan Bank to use my loan documents for rediscounting purposes;
    10. To give authority to Cantilan Bank to inquire whether I have existing loans to other banks/lending institutions and to inquire from my employer’s HR regarding the same;
    11. To authorize Cantilan Bank that my loan records be submitted to the Credit Information Corporation of the Philippines (CIC) in compliance with Philippine laws and to the Negative File Information System (NFIS) of the Bankers Association of the Philippines Credit Bureau (BAP-CB) if I fail to meet my loan obligations;
    12. That I declare that the foregoing declarations are my voluntary commitment and any misrepresentation thereof shall be ground for the entire loan obligation to become due and demandable and will be ground for criminal or civil action;
    13. That in case of any conflict between the provisions of this Loan Agreement and the provisions of the Availment Documents, the provisions of this Loan Agreement shall prevail;
    14. That I acknowledge and agree to all terms and conditions set forth in the mobile banking application regarding the implemented loan features;
    15. I further acknowledge and agree that the loan details reflected in Cantilan Bank’s Core banking system, including but not limited to the loan amount, maturity date, interest rate, and repayment schedule, are deemed to be confirmed by me upon agreeing to this Loan Agreement;
    16. Upon signing this Agreement through electronic means, the full acceptance of the approved loan is hereby acknowledged in accordance with the terms and conditions set forth in this Agreement;


    1. That I acknowledge and agree that all loan disclosures, including but not limited to the Truth in Lending Act disclosures and the Loan Estimate, and the terms of this Loan Agreement, shall serve as the Promissory Note for the loan;


    1. That I acknowledge and agree that all deductions, including but not limited to any fees, charges, and taxes, will be deducted from the loan proceeds before disbursement;
    2. That the loan proceeds shall be credited to my savings account with Cantilan Bank;


    1. To pay the loan in accordance with the terms and conditions set forth in the mobile banking application. The loan principal, interest, and any penalties shall be paid by automatic deduction from my ATM Card Payroll and shall ensure that there are sufficient funds in the account to cover the loan payments on the due date;
    2. To pay the monthly amortization completely and not miss any amortization or delay based on the amortization schedule. Any excess in the payment shall be deposited to my savings account with Cantilan Bank;


    1. That the loan availed of shall become Past Due right after I fail to completely and promptly pay any of my installment/amortization due. In this case, I am aware and conform that Cantilan Bank will pursue collection/ demand for payment from me and I am bound to pay the entire arrearages;
    2. That in case I fail to settle my past due account despite Cantilan Bank’s demands, I am aware and I conform that Cantilan Bank will resort to all legal means including the filing of legal action for the collection of the unpaid loan with interest and penalties. As a recourse of Cantilan Bank, in cases of bonuses, incentives, and other benefits that I may receive through my ATM payroll account, I authorize Cantilan Bank to debit from the said account/s an amount at least equal to the installment I failed to pay. In the same manner, if the bonuses, incentives, and other benefits are not enough to pay the arrearages, I further authorize Cantilan Bank, without the need of prior notice, to auto-debit from my other savings/time deposits accounts any amount and effect payment to the said missed amortizations, surcharges and possible accounts payable;
    3. That if the loan becomes past due, I will pay a monthly penalty of two percent (2%) based on missed amortization and in case of past due maturity, I will pay an additional penalty of twenty-four percent (24%) per annum based on the past due amount aside from the accrued interests;
    4. That in case of a situation that needs remedial measures, I commit to abide by Cantilan Bank’s remedial measures to activate or update the loan to current status;
    5. That violations of the above conditions/undertakings constitute an intention to commit fraud, and the entire loan obligation will automatically become due and demandable.  I shall fully pay the loan or else Cantilan Bank, at its option, may file the appropriate legal actions including perjury and collection of the unpaid loan with interest, penalty, damages, and attorney’s fees;


    1. That I acknowledge and agree that all loan disclosures and this Loan Agreement may be provided and signed electronically;
    2. I further acknowledge and agree that the electronic acceptance of this Loan Agreement, including but not limited to clicking the “SUBMIT REQUEST”, “I Agree” or any other button or mechanism provided for such acceptance, constitutes the valid and binding electronic signature for all purposes;
    3. That I agree not to indicate my wet signature on any form related to this loan. Instead, all forms, disclosures, and agreements related to this loan shall be deemed to have been signed by me upon acceptance of this Loan Agreement through electronic means;


    1. That in the event that legal action would arise from this LOAN AGREEMENT AND UNDERTAKING, the same shall be filed exclusively in the courts of Cantilan, Surigao del Sur, or in the courts that have jurisdiction over the place where Cantilan Bank has a branch office.

I / We have read understand and consent to be bound by all the terms and conditions stated above.