LenddoEFL Loan App Review 2025: Is It Legal in the Philippines?

The online lending industry in the Philippines has undergone rapid digital transformation, making financial services more accessible than ever. With the rise of fintech solutions, platforms like LenddoEFL have gained popularity for their innovative approach to credit scoring, particularly for individuals who lack traditional financial history.

But with the increasing number of online lending apps, many people are asking: Is the LenddoEFL loan app legal in the Philippines? How does it operate within the country’s regulatory framework?

In this comprehensive review, we will explore LenddoEFL’s legality, how it works, its partnerships with financial institutions, and the risks and benefits associated with using its services.

What is LenddoEFL?

LenddoEFL is a financial technology (fintech) company that leverages alternative data to assess an individual’s creditworthiness. Unlike traditional credit scoring systems that rely on a person’s banking history or credit card usage, LenddoEFL analyzes non-traditional data sources, such as:

• Mobile phone usage patterns
• Social media activity
• Online behavioral data

By analyzing these data points using machine learning algorithms, LenddoEFL creates an alternative credit score, enabling financial institutions to assess borrowers who may not have formal banking records.

How LenddoEFL Works

LenddoEFL does not directly lend money to borrowers. Instead, it provides credit scoring and identity verification services to banks, microfinance institutions, and other lenders. Here’s how the process works:

1. Data Collection: When users apply for a loan through a financial institution that partners with LenddoEFL, they consent to share their digital behavior data.
2. AI-Powered Credit Scoring: LenddoEFL’s system analyzes mobile and online data, using predictive algorithms to assess the borrower’s risk profile.
3. Loan Approval Decision: Based on the credit score generated, the partner lending institution decides whether to approve or reject the loan application.
4. Disbursement & Repayment: If approved, the borrower receives funds from the lending institution and repays according to agreed-upon terms.

This innovative system allows lenders to provide fast, automated loan approvals, benefiting individuals who may not qualify under traditional credit assessment methods.

Is LenddoEFL Legal in the Philippines?

Regulatory Framework Governing LenddoEFL

To determine whether LenddoEFL operates legally, we must examine how it fits into the Philippine regulatory environment. While LenddoEFL itself does not issue loans, its partner financial institutions must comply with regulations set by the Securities and Exchange Commission (SEC), Bangko Sentral ng Pilipinas (BSP), and the Data Privacy Act of 2012.

1. Securities and Exchange Commission (SEC) Compliance

The SEC regulates lending companies in the Philippines through the Lending Company Regulation Act (Republic Act No. 9474). All lending institutions operating in the country must be registered with the SEC and adhere to its consumer protection guidelines.

• Is LenddoEFL SEC-Registered?
  LenddoEFL does not lend money directly, so it does not need to register as a lending company. However, the lenders that use LenddoEFL’s services must be SEC-registered. Borrowers should always verify whether the lender they are dealing with is legally accredited by the SEC to avoid illegal lending practices.

2. Bangko Sentral ng Pilipinas (BSP) Oversight

The Bangko Sentral ng Pilipinas (BSP) oversees financial institutions, including digital lenders, to ensure they comply with financial regulations, Know-Your-Customer (KYC) policies, and anti-money laundering (AML) guidelines.

• LenddoEFL helps partner banks and lending companies comply with BSP regulations by providing digital KYC solutions and fraud detection tools.
• The platform plays a key role in financial inclusion efforts, helping banks reach underserved populations by offering alternative credit assessment methods.

3. Data Privacy Act of 2012 (Republic Act No. 10173)

One of the main concerns surrounding LenddoEFL’s credit scoring system is data privacy. Since the platform collects personal information from users, it must comply with the Data Privacy Act of 2012, which regulates how companies collect, store, and share personal data.

• User Consent: LenddoEFL must obtain explicit consent from users before accessing their mobile and social media data.
• Data Protection: The company is required to implement strong cybersecurity measures to protect users’ information from breaches or misuse.
• Transparency: Users should have the right to access, correct, or delete their data if they wish.

Failure to comply with these data privacy laws can lead to penalties and legal action from the National Privacy Commission (NPC).

LenddoEFL’s Partnerships with Philippine Financial Institutions

LenddoEFL has established partnerships with various banks, microfinance institutions, and online lenders to provide alternative credit scoring solutions. Some notable collaborations include:

• Rizal Commercial Banking Corporation (RCBC): LenddoEFL partnered with RCBC to improve digital Know-Your-Customer (KYC) verification, helping the bank expand its reach to millions of unbanked Filipinos.
• Microfinance Institutions: LenddoEFL works with local microfinance lenders to provide small loans to individuals who lack a formal credit history.
• Fintech Startups & Online Lending Apps: Many online lenders in the Philippines integrate LenddoEFL’s scoring system to assess loan applicants more efficiently.

These partnerships demonstrate how LenddoEFL is playing a crucial role in bridging the financial gap for underserved communities in the Philippines.

Pros and Cons of Using LenddoEFL’s Services

While LenddoEFL offers many advantages, it also comes with potential risks. Here’s a balanced look at the pros and cons of using its alternative credit scoring system.

Pros

✔ Access to Credit for the Unbanked: Helps individuals who lack traditional financial history obtain loans.
✔ Faster Loan Approvals: Automated credit scoring allows for quick lending decisions.
✔ No Need for Traditional Credit Scores: Enables borrowers to qualify for loans based on digital behavior rather than banking history.
✔ Enhances Financial Inclusion: Expands access to financial services for people in rural or underserved areas.

Cons

❌ Data Privacy Concerns: Users may feel uneasy about sharing personal digital data with a third party.
❌ Reliance on Alternative Data: Social media activity and mobile phone usage may not always reflect a person’s true financial responsibility.
❌ Potential Data Security Risks: While LenddoEFL follows privacy laws, any company storing large amounts of personal data faces cybersecurity risks.

Final Verdict: Is LenddoEFL Safe and Legal in the Philippines?

Yes, LenddoEFL operates legally in the Philippines, provided that the lending institutions that use its services are SEC-registered and compliant with BSP regulations. The company’s alternative credit scoring technology has helped many Filipinos gain access to credit, particularly those who are unbanked or lack a traditional credit history.

However, users should exercise caution when sharing personal data. Before applying for a loan through any lender using LenddoEFL’s services, make sure:

• The lender is SEC-registered.
• You understand how your data will be used.
• You are aware of the risks and benefits of alternative credit scoring.

By staying informed and choosing legitimate financial institutions, borrowers can take advantage of LenddoEFL’s technology while ensuring their rights and personal data remain protected.

Would you consider using LenddoEFL’s services? Let us know in the comments below! 🚀