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SME Loan

Overview

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 to know how much you can borrow  and get an estimate of your monthly amortization.

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 to know how much you can borrow  and get an estimate of your monthly amortization.

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:

 

TOOLS TO HELP YOU

Links

SME Loan Calculator

Lecture Videos and Articles

Commercial Properties for Sale

 

Interest Rate

New SME Loan Applications

Fixing Period
Interest Rate
1 year
8.50%

Note: Quoted rate is subject to change without prior notice.

 

Existing SME Loan Borrowers

Applicable Repricing Interest Rate will apply.

 

 

  SME Loan Calculator

  Need funds for your growing business? Use our Loan Calculator
              to get an estimate of how much you can borrow.
 

 

Application Requirements

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.

 

FAQs

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
  properties for
  factory, warehouse,
  and store or office
  space.

• Purchase of new
  equipment to
  support business
  expansion.

• Improvement of
  facilities used in
  business operation.

Suitable for short term financing needs:

• Purchase of
  inventory and/or
  supplies to meet
  seasonal demand.
 

• Financing of
  receivables.

 

 

 

 

 

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)

P 3,500 if property offered as collateral is located within Metro Manila

P 4,500 if property offered as collateral is located outside Metro Manila

*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
Mortgage Redemption Insurance (MRI) 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.
b. Always check your record of available balance before your next issuance to prevent returned check and corresponding bank charges.

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, which falls every 25th of the month.

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:

• Mortgage Redemption Insurance (MRI) – 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) – Provides financial protection for your
  property in case of damage or loss due to fire, calamity,
  catastrophe, etc. Do take note that the FI is only applicable
  if your collateral property has an existing improvement on
  it (e.g., house, office, building, factory, etc.).

• Contractors All Risk Insurance (CARI) - Provides coverage
  for damage to the property while under construction and
  for the material and equipment that will be used for the
  construction of your property/improvement. 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?

To settle you annual premiums, you may request for Automatic Debit Arrangement (ADA) from your account or Over the Counter (OTC) payment at any BDO branch. Always take note of your policy numbers as your reference in paying for your insurance premium.

 

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.

 

Loan Calculator

Videos & Articles

 

BDO SME LOAN LEARNING PORTAL

Empowering entrepreneurs with valuable ideas and inspiring them to take their business further.

 

FEATURED VIDEOS
Take the next step and expand your business.
Let BDO SME Loan help you with your plans.

 

 

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

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.

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.

Empowering SMEs with financial solutions: BDO can help entrepreneurs address their funding requirements through SME Loan. Watch this video to know more.

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.

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.

To rent or to buy, that is the questionWhen it comes to your store, office or factory, which is the better choice?  Watch this video to help you decide.

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

A closer look on investment mix options that might be right for your business. Read full article here.

 

Useful Links

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) 702-7088 / (02) 702-6000.

If you wish to apply for a BDO SME Loan to purchase a commercial property, please call (02) 667-1624 / (02) 631-8000 or click here for the online application form.

Loan Services