Financing products can vary significantly, despite providing essentially the same service—access to other people’s money. Beyond the standard lending product information you need to know (such as interest rates, payment options, and loan terms), you might also feel overwhelmed by the additional information that needs to be processed. This is especially true when loan products are specialized or tailored to particular markets, like OFW loans. You might also need to consider the best option and decide whether it’s better to apply to just one loan provider initially or maintain one strong relationship (excluding quick and small loans, usually below 10,000 pesos).

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This is where loan agents or loan consultants come in.

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Loan agents can provide borrowers with comprehensive information about different loan products and offer advice about better options. These consultants are typically not full-time employees of financing companies, but they are trained to handle inquiries from loan applicants on everything from basic questions to process-related matters. They earn through commissions on successful referrals and can be connected to multiple financing institutions—very similar to the agency model used in the insurance industry.

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Comparing interest rates and maximum loan amounts are common tasks for loan applicants, but with the help of loan agents, you can also gain valuable information about the lending company’s processing time, processing fees (if any), applicable rebates or discounts, and their staff’s friendliness—which matters greatly in lending situations. The overall borrowing experience, from choosing which loan product suits your needs, makes the service “personalized.” Even the form of communication and payment methods, which loan agents are well aware of, are significant factors in making financing services tailored not just to your needs and purpose, but to your convenience and comfort as well.

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At a recent virtual financing forum by the Asialink Group of Companies, Wisefund and Asialink Finance shared insights about their “partners”—the loan agents. According to Jeffrey Venezuela, trade marketing manager of Asialink, more than 30 percent of their loan partners were previously unemployed, while the rest are employed in both the public and private sectors. Venezuela cited the unlimited income potential and bonuses, including local and international trips for top-performing loan agents, as key motivators for these loan partners to help and assist more Filipinos. Wisefund president and CEO Arvin Dale Antonio enhanced these benefits with incentives even for renewal referrals and repeat borrowers for agents working with them.

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Unfortunately, bad actors have entered the scene, scamming people interested in applying for loans. They unnecessarily collect personal information beyond what lending companies actually need and sometimes even demand advance payments or application fees, which are unusual for most legitimate lending companies. One OFW shared that she was asked to pay 20,000 pesos to process her loan application for 1 million pesos.

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When something seems absurd or sounds too good to be true—especially if you’re asked for money when money is what you actually need—it’s likely illegitimate or a scam. Therefore, it’s crucial to identify legitimate loan agents from fraudulent ones.

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The best way to avoid proceeding with potential scammers is to ask them for their IDs or proof of affiliation with the lending company, and inquire if you can verify their accreditation directly with the firm. If they discourage you from verifying their credentials (or claim it isn’t necessary), this should raise red flags and warrant further investigation.

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Relationships and personalization should work for the better, even in lending. Unfortunately, scammers are exploiting both concepts. We must stay alert and cautious.