Glossary: PhilSys, eKYC, and Loan Terms Explained
This glossary defines the key PhilSys and lending terms you'll encounter across this guide, from PSN and ePhilID to APR, flat rate, and tenor, so you can read any loan app's terms with confidence. Terms are grouped into identity/verification terms and loan/financial terms, with links to the relevant deep-dive guide where one exists.
Identity & Verification Terms
PhilSys
Short for the Philippine Identification System, the government's national ID program established under Republic Act 11055. It issues every registered Filipino citizen and qualifying resident alien a single PhilSys Number and ID card, free of charge. See our full explainer: what PhilSys is.
PSN (PhilSys Number)
The unique, permanent 12-digit identification number assigned to each registrant under PhilSys. It stays the same for life, even if your physical card is later lost, damaged, or replaced.
ePhilID
A printable or digital interim ID issued while a registrant's physical PhilSys card is still being produced. It carries the same PSN, QR code, and photo as the eventual card and is officially recognized as valid ID in the meantime. See PhilSys ID vs ePhilID vs PSA Digital ID for which lenders accept it.
Digital ID
The app-based version of your PhilSys identity, generated through the eGovPH app, which lenders can verify via QR scan or direct API integration. Compare it with the physical card and ePhilID in our format comparison guide.
eKYC (Electronic Know Your Customer)
The digital process lenders and banks use to verify a customer's identity remotely, typically involving ID scanning, QR/biometric matching against a government database, and a live selfie check. See our step-by-step verification walkthrough.
KYC (Know Your Customer)
The broader compliance process financial institutions follow to verify the identity of their customers before providing services, of which eKYC is the digital, automated version increasingly used by Philippine loan apps.
Liveness Check
A verification step, usually a live selfie with simple prompts like blinking or turning your head, used to confirm a real person matching the ID photo is the one applying — not a static printed photo or recycled image.
Loan & Financial Terms
SEC Registration
Registration with the Securities and Exchange Commission, required for any company legally operating as a lending or financing company in the Philippines under Republic Act 9474. See our step-by-step guide to verifying a lender's SEC status.
Certificate of Authority (CA)
A separate authorization from the SEC, distinct from basic corporate registration, that specifically permits a company to operate as a lending or financing business. A company can be a legally registered corporation without holding a CA.
Lending Company
A company licensed under the Lending Company Regulation Act (RA 9474) to extend loans using its own capital, as opposed to a bank that lends depositors' funds.
Financing Company
A company licensed to extend credit facilities, often for larger or asset-based financing, regulated separately from pure lending companies under its own SEC framework.
APR (Annual Percentage Rate)
The effective yearly cost of a loan expressed as a percentage, including interest and certain fees, used to compare loan offers on equal footing regardless of how each lender structures its headline rate.
Flat Rate (Add-on Rate)
An interest calculation method where interest is charged on the full original loan amount for the entire term, regardless of how much principal has already been repaid. A flat rate always produces a higher effective/true rate than the same percentage would under a declining-balance calculation.
Tenor
The total length of time over which a loan must be repaid, typically expressed in months (for example, a 12-month tenor).
Co-maker
A second person who agrees to be legally responsible for a loan if the primary borrower fails to repay it, commonly required when the primary applicant — such as a student — doesn't independently meet a lender's income requirement. See how this applies in our guide for OFWs and students.
Disbursement
The release of approved loan funds to the borrower's bank account or e-wallet, which typically follows shortly after final approval. See the full process in how to apply for a loan using your National ID.
Default
Failure to repay a loan according to its agreed terms, which can lead to penalties, collection action, or a negative entry on your credit record with the CIC.
Credit Information Corporation (CIC)
The Philippines' central credit registry, established under Republic Act 9510, which collects and consolidates credit data from participating lenders. If an account you don't recognize appears on your credit report, see how to dispute an unauthorized entry through the CIC.
Data Privacy Act (RA 10173)
The Philippine law governing how companies, including lenders, may collect, use, and protect your personal data, including ID information submitted during a loan application. See how this applies to lending specifically in our loan app safety guide.
Once these terms make sense, you're ready to compare real options: see our Top Loan Apps That Accept Digital National ID guide for five verified lenders using the concepts defined above.
Last updated: January 2026
Written and reviewed by Adrian Cruz
Adrian covers consumer lending and digital identity in the Philippines, tracking how banks and lending apps adopt PhilSys verification. Read more about Adrian →