Quick Guide To Top Banks’ Business Loan Terms In The Philippines
There are many money sources such as savings or business loans, you could use to fund your business. But if you’re looking at taking a business loan from a bank, you need to be wary and evaluate the terms and conditions properly.
Remember, you don’t want to drown in debt for your business to thrive. Here is a quick guide to the banks you can look into to obtain a business loan.
1. BPI SME Term Loan
If you’re starting a small or midsize enterprise (SME), the BPI SME Term Loan could be for you. This is ideal for working capital, equipment purchases, and other things you need. The minimum loan amount is P300,000, with a term of a maximum of 5 years. You can use a real estate mortgage, deposit, or investment as collateral. The processing fee is P3,500. For more information on the requirements, check out the BPI website.
BPI also offers an SME credit line that helps you manage your business’ finances when your business is struggling to meet cash flow.
NegosyoKo Loan, powered by BPI, offers loans for self-employed microentrepreneurs (SEME). You can borrow from P25,000 to P300,000. For more details, you can check the website.
2. Security Bank Express Business Loan
The big goals of your company can be quickly funded with this business loan. The minimum loan amount is P1,000,000, and the maximum is P5,000,000. No collateral is needed for a P5,000,000 loan. Payment terms are 12, 18, 24, or 36 months, with loan rates of 1.30%, 1.40%, 1.70%, and 1.75%, respectively. The processing fee is P3,000. For more details, check their website.
3. BDO SME Loan
You can borrow from P1,000,000 to P20,000,000 to fund your business’s startup or expansion. You can choose a loan term of up to 10 years. You can also use up to 70% of the value of your collateral. It has a fixed interest rate of 7% for 1 year. After the fixed period, the interest rate will be repriced annually. You also need to prepare around P5,500 for the appraisal fee. For more details, check their website.
There are three different kinds of business loans available to SME borrowers: SME credit lines, SME short-term loans, and SME long-term loans. The minimum loan amount is P500,000.00. They suggest visiting a Metrobank branch near you for more updated details.
5. PSBank SME Term Loan with Prime Rebate
Small businesses can choose from a variety of tailored repayment options suitable to their business needs. You can also benefit from rebates or savings when you pay your PSBank SME Term Loans monthly due in advance or in excess. The minimum loanable amount is P2 million if the collateral is real estate property, and P500,000 if deposits. The minimum term is 1 year, and the maximum is 7 years. For more details, check their website.
These are just a few of the loan options you can consider. Continue researching for more to get the best one suitable for your needs. Good luck!