SME Loan
- Overview
- Interest Rate
- Application Requirements
- FAQs
- Loan Calculator
- Videos & Articles
- Useful Links
- Loan Services
WHAT WE OFFER
Term Loan
A one-time fund release which helps your business finance long-term investments.
- Purchase new equipment to address production increase
- Acquire or construct new warehouse or office space
Check our SME Loan Calculator to know how much you can borrow and get an estimate of your monthly amortization.
Click here to inquire about BDO SME Loan.
SME Ready Check
A revolving credit line which gives access to funds whenever your business needs it.
- Purchase additional inventory or supplies to meet seasonal orders
- Immediately address working capital needs
Check our SME Loan Calculator & get a quick computation to help you with your loan decision.
Click here to inquire about BDO SME Loan.
Know More
Loan terms and options available
| Term Loan | SME Ready Check | |
| Min. Loan Amount | P 1,000,000 | P 3,000,000 |
| Max. Loan Amount | P 20,000,000 | |
| Min. Loan Term | 1 year | 1 year validity with option to renew |
| Max. Loan Term | 10 years | |
Collateral
BDO SME Loan is secured by real estate properties, either residential and/or commercial.
- House and Lot
- Townhouse
- Condominium
- Vacant Lot
- Commercial Property
- Industrial Property
- Mixed-used property (residential and commercial)
Check our SME Loan Calculator & get a quick computation to help you with your loan decision.
Click here to inquire about BDO SME Loan.
HOW TO APPLY
Step 1: Check your Qualifications
At least 21 years old but not exceeding 70 years old at the end of the loan term
Business Owners
- Sole Proprietorship, Partnership, Corporation
- Business is in profitable operation for at least 2 consecutive years
- Minimum annual gross sales of 1 Million
- Business is within a BDO serviceable area
Step 2: Prepare the Documents
COLLATERAL AND SUPPORT DOCUMENTS
- Photocopy of Title
- Lot plan with vicinity map
- Tax declaration
- Special Power of Attorney (SPA), if applicable
For Construction Loan
- Building / Floor Plan of proposed improvement
- Bill of Materials
- Specifications of proposed finishes
For Refinancing / Loan Take out
- Statement of Account from current bank
-
Official receipts for the last three (3) months
*Other documents may be required upon evaluation
Click here for the checklist of loan requirements.
Step 3: Submit Application Form and Requirements
Submit through any of the following channels:
- Apply Online
- BDO SME Loan Provincial Business Centers
- More than 1,000 BDO Branches Nationwide
TOOLS TO HELP YOU
Links
Commercial Properties for Sale
New SME Loan Applications
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Fixing Period
|
Interest Rate |
| 1 year | 6.25% |
| 2 years | 6.25% |
| 3 years | 6.75% |
| 4 years | 7.25% |
|
5 years
|
7.75%
|
Note: Quoted rate is subject to change without prior notice.
Existing SME Loan Borrowers
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Applicable Repricing Interest Rate will apply.
|
to get an estimate of how much you can borrow.
Step 1: Check your Qualifications
At least 21 years old but not exceeding 70 years old at the end of the loan term
Business Owners
• Sole Proprietorship, Partnership, Corporation
• Business is in profitable operation for at least 2
consecutive years
• Minimum annual gross sales of 1 Million
• Business is within a BDO serviceable
Step 2: Prepare the Documents
COLLATERAL AND SUPPORT DOCUMENTS
• Photocopy of Title
• Lot plan with vicinity map
• Tax declaration
• Special Power of Attorney (SPA), if applicable
For Construction Loan
• Building / Floor Plan of proposed improvement
• Bill of Materials
• Specifications of proposed finishes
For Refinancing / Loan Take out
• Statement of Account from current bank
• Official receipts for the last three (3) months
*Other documents may be required upon evaluation
Click here for the checklist of loan requirements.
Step 3: Submit Application Form and Requirements
Submit through any of the following channels:
• Apply Online
• BDO SME Loan Provincial Business Centers
• More than 1,000 BDO Branches Nationwide
Click here for the checklist of loan requirements.
APPLYING FOR AN SME LOAN
1. How do I know which SME Loan is right for me?
The SME Loan that is right for you will depend on the business requirement you need to address. To determine which product best fits your financing requirements, you can refer to this quick guide:
| Term Loan | SME Ready Check | |
| What do you plan to use the funds for? |
Ideal for long term business investment such as:
• Acquisition of • Purchase of new • Improvement of |
Suitable for short term financing needs: • Purchase of • Financing of
|
| How do you want to access your funds? |
Lump sum or single loan release.
For construction loan: staggered loan release based on stage of completion. |
Access your funds by simply issuing checks.
Withdraw funds via checks up to a pre-approved credit limit. |
| How much do you want to borrow? | P 1M to 20M | P 3M to P 20M |
| How long do you intend to pay the loan? |
Long term (1 to 10 years) |
Short term (1 year validity with option to renew) |
| How do you want to pay off your loan | Fixed monthly installment | Flexible monthly payments |
2. What are the fees that I need to pay when applying for SME Loan?
| Pre-approval Fees* | ||
|
Appraisal Fee (per title) |
P5,000 if collateral offered is within 30 km. radius from any BDO branch. P5,500 if collateral offered is outside 30 km. radius from any BDO branch. |
|
*Subject to change without prior notice.
You can pay the loan-related fees at any BDO branch.
3. Are there other loan related fees that I need to prepare for?
| Post-approval Fees* | |
| Handling Fee | P 5,000 |
| Notarization Fee | P 600 |
| Collateral Registration Fee | Variable, based on the approved loan amount and standard Registration of Deeds (RD) fees |
| Documentary Stamp Tax | P1.50 for every P200 of the approved loan amount |
|
Credit Life Insurance |
P4.75 for every P1,000 of the loan amount (assuming standard rate for borrowers up to 49 years old) |
| P6.50 for every P1,000 of the loan amount (assuming standard rate for borrowers with ages 50 to 64 years old) | |
| Fire Insurance (FI) Premium | Variable, based on the appraised value of the improvement on the property submitted as collateral |
| Contractors All Risk Insurance (CARI) | Variable, based on the estimated bill of materials of the property for construction. |
|
Processing Fee (for SME Ready Check) |
Variable, based on percentage of approved credit line |
*Subject to change without prior notice.
You can pay the loan-related fees at any BDO branch.
4. How long would it take to approve my SME Loan?
If you have submitted all the requirements along with your completely filled-out application form, you will receive a loan decision in at least 10 banking days.
MAINTAINING MY SME LOAN
1. What are the things I need to know about my SME Ready Check Account?
| Using my SME Ready Check |
|
Your SME Ready Check can be used to immediately address working capital requirements of your business.
Upon receipt of your checkbook, you can access your funds by simply issuing checks for your business' purchases. a. Ensure that only authorized signatories sign on any issued checks. |
| Tracking my SME Ready Check availments |
|
For easy monitoring and tracking of your SME Loan transactions, monthly Statement of Account (SOA) will be sent to you before your due date.
Your SOA indicates your Available Credit Line, Total Outstanding Balance, Minimum Amount Due based on the cut-off date of your transactions. It also reflects your Credit Line details such as Loan Number, Approved Credit Line Amount and Expiry date of your line. |
| Other Reminders |
|
You have the option to pay your minimum amount due, your total outstanding balance or any amount in between. Payment should be made on or before the due date to avoid late payment penalty charges.
If outstanding balance is paid (partial or in full), paid amount revolves back to the available credit line. it is encouraged to plan your payments to make it convenient for you prior to the expiry of your account. |
2. What are the modes of payment for SME Loan?
For Term Loan
• Monthly loan payments are deducted from an enrolled
BDO account via Automatic Debit Arrangement (ADA)
For SME Ready Check
• Minimum amount due is deducted from an enrolled
BDO account via ADA
• Outstanding Balance maybe paid in partial or in full over
the counter at any BDO Branch nationwide.
Note: Please ensure that your account is sufficiently funded before the due date of your monthly loan payments to avoid penalties and late payment charges.
3. Is it necessary for me to get insurances in relation to my loan?
Yes. It is necessary for you to get insurances because they are an important security for yourself and your property from unfortunate incidents that may happen within the term of your loan. Mainly, these insurances are:
• Credit Life Insurance (CLI) – Provides you and your dependents with financial protection in case of untimely death or total disablement because it can pay off your loan’s total outstanding balance.
• Fire Insurance (FI) – Applicable only when your collateral property has existing improvements (e.g. house, office, building, factory, etc.), this provides financial protection for your property in case of damage or loss due to fire, calamity, catastrophe, etc.
Note: If your collateral property is still under construction, Contractors All Risk Insurance (CARI) will provide coverage for damage / risks normally associated with the construction project. Once the construction is completed, then you will be required to have your property covered with a Fire Insurance.
4. How do I pay for the insurance premiums?
• BUILT-IN INSURANCE
BDO offers payment of insurance premiums on installment for Credit Life Insurance (CLI) and Fire Insurance (FI) under the Built-In Insurance.
Payment will be spread out in 12 monthly installments without interest and will be billed together with your loan amortization.
CLI and FI will also be renewed automatically up to the term of your loan under this payment scheme.
Currently available to SME Loan clients availing of TERM LOAN facility only
• AUTOMATIC DEBIT ARRANGEMENT (ADA) OR OVER THE COUNTER (OTC)
If you are not enrolled under the Built-In Insurance, you may settle your annual insurance premium in full via ADA or thru OTC payment at any BDO Branch nationwide.
Insurance coverage is renewed annually with corresponding renewal premiums. Always take note of your policy numbers as reference when paying.
OTHER SME LOAN-RELATED CONCERNS
1. What are the other possible uses of an SME Loan?
Refinance existing business loan from another financial institution.
You would need to submit your Statement of Account from your current lender and proof of payment for the last six (6) months apart from the regular loan requirements.
Reimburse personal fund used to purchase an asset for your business.
Reimbursement is only applicable to assets purchased within the last 12 months. Aside from the loan requirements, you also need to provide any of the following: Certificate of Full Payment, Deed of Sale, Sales Invoice or Official Receipt as proof of payment for the asset you acquired.
2. How do I access my BDO SME Loan online?
BDO’s Online Banking Facility will enable you to access your BDO SME Loan details online. You should have a BDO deposit account or Credit Card to enroll. To set up an account in BDO online Banking:
1. Enroll at www.bdo.com.ph. Click here to access the BDO Online Banking Facility.
2. Activate via any BDO ATM
3. Add your SME Loan account under Enrollment Services
Once your account is set-up, you may view your Account and Transaction Details, such as Account Number, Interest Rate, Monthly Amortization, Outstanding Balance, etc.
There is also a Services menu where you can update your contact information, request for copies of your loan documents and others.
Note: Online banking facility is only applicable for Term Loan.
3. How will I get a copy of my loan documents?
Your loan documents, as well as other notices in relation to your BDO SME Loan will be sent to you electronically via email and/or SMS to the contact details you provided during your application.
Please ensure to keep your contact information updated.
To update your contact details:
Step 1 – Go to www.bdo.com.ph/loans and select Loan Services or click here.
Step 2 – Choose your existing loan product and click update contact information
Step 3 – Fill in all mandatory contact information and click submit.
BDO SME LOAN LEARNING PORTAL
Empowering entrepreneurs with valuable ideas and inspiring them to take their business further.
FEATURED VIDEOS
Never miss out on opportunities. BDO SME Loan can help you with standby funds for your immediate business needs.
Funds for your expansion plans? Investing in long term assets for your business, now made possible with BDO SME Loan.
WATCH MORE VIDEOS HERE
Client Testimonials
Get insights from some of our clients who have availed of a BDO SME Loan to grow their business.
Learning Videos
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Reach the full potential of your business with corporate governance: Learn from family Business Coach, Prof. Enrique Soriano III on how you can help your business grow. |
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Put harmony in a family enterprise with the right business model: Practical lessons to help you ensure the continued success of your business. Watch this video to know more. |
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Empowering SMEs with financial solutions: BDO can help entrepreneurs address their funding requirements through SME Loan. Watch this video to know more. |
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Turn your opportunity into reality: Decide which opportunity to grab and find out the best way to fund it. Watch this video to find out. |
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Increase your inventory without increasing the cost: Is supplier credit your ultimate choice or is there a better way to buy inventory that can help you earn more? Watch this video to find out. |
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To rent or to buy, that is the question: When it comes to your store, office or factory, which is the better choice? Watch this video to help you decide. |
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Expand your business and increase profits at the same time: Borrowing from a bank can be the more profitable path to growing your business. Watch this video to see why. |
FEATURED ARTICLE
Planning for your business' next move. Check out these key points from family business advisor Prof. Enrique Soriano III.
Commercial Properties For Sale
BDO SME Loan can help you obtain that much needed commercial space for your business. To get you started, click on the link below to go to the Real Estate web page.
Once there, just click on the dropdown button in the Type Field and choose “Commercial”. You will see a list of available commercial properties for sale. You also have the option to indicate your preferred area and price range.
List of Commercial Properties for Sale
To know more about a commercial property you’re interested in, you may get in touch with the BDO Asset Management Group at (02) 8702-7088 / (02) 8702-6000.
If you wish to apply for a BDO SME Loan to purchase a commercial property, please call (02) 8667-1624 / (02) 8631-8000 or 1-800-10-631-8000 (Domestic Toll-Free) or click here for the online application form.
