Last Updated on July 27, 2024 by admin
Applying for a Small and Medium Enterprise (SME) loan can be a significant step towards the growth and expansion of your business. BDO Unibank Philippines offers a range of financial solutions tailored to the specific needs of SMEs, providing access to essential capital for development and operational requirements.
The bank believe that Small and Medium Enterprises (SMEs) play a major role in most economies, particularly in developing countries since they contribute towards job creation and global economic development. SMEs contribute up to 40% of national income (GDP) in emerging economies
Customers can borrow up to 1 million to 20 million with BDO bank Philippines term loan and pay back base on chosen loan tenor which up to 10 years. The interest rate range from 6.25% to 7.25% depend on loan duration.
In this guide, we will explore the process of applying for an SME loan at BDO Unibank Philippines, including eligibility criteria, required documentation, application steps, available loan options, and valuable tips to enhance your application success.
Requirement for BDO Unibank SME loan
Eligibility:
- Business Type: Sole proprietorships, partnerships, and corporations are eligible.
- Operational History: Your business must have been in profitable operation for at least two (2) consecutive years.
- Minimum Gross Sales: At least ₱1 million in annual gross sales.
- Location: Your business should be within a BDO serviceable area.
Documentation:
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Basic Documents
- Filled-out and signed BDO SME Loan application form.
- Clear copy of one (1) valid government-issued ID matching application details.
- Marriage Contract (if applicable).
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Income Documents (Vary based on business type):
- Sole Proprietorship: Latest Income Tax Return (ITR) and Audited Financial Statements
- Partnership: Latest ITR, Audited Financial Statements, and Partnership Agreement
- Corporation: Latest ITR, Audited Financial Statements, SEC Registration documents (Articles of Incorporation/By-Laws), and General Information Sheet.
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Collateral Documents: Titles, bank statements, property appraisals (depending on the collateral offered).
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Additional: Bank statements, List of Suppliers/Customers, Company Profile
Loan Terms:
- Minimum Loan Amount: ₱3,000,000
- Maximum Loan Amount: ₱50,000,000 or up to 70% of the appraised value of the collateral.
- Loan Term: One (1) year validity with option to renew.
Other Considerations:
- Credit History: BDO will assess your creditworthiness and repayment history.
- Purpose of Loan: The intended use of the loan funds may be considered.
- Fees: There are processing, appraisal, and post-approval fees associated with the loan.
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
Reimbursement
• Certificate of Full Payment.
• Deed of Sale
• Sales Invoice or Official Receipt as proof of payment
for the asset you acquired.
• Reimbursement is only applicable to assets purchased
within the last 12 months.
Feess and charges
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.
Post-approval Fees*
1. Handling Fee—P 5,000
2. Notarization Fee— P 600
3. Collateral Registration Fee—Based on the approved loan amount and standard
Registration of Deeds (RD) fees:
4. Documentary Stamp Tax P1.50 for every P200 of the approved loan amount
5.Credit Life Insurance P4.75 for every P1,000 of the loan amount (assuming standard rate for borrowers up to 49 years old)
6. P6.50 for every P1,000 of the loan amount (assuming standard rate for borrowers ages 50 to 64 years old)
7. Fire Insurance (FI) Premium Based on the appraised value of the improvement on the 8. property submitted as collateral.
Contractors All Risk Insurance (CARI) Based on the estimated bill of materials of the property for construction.
Processing Fee
(for SME Ready Check) Based on percentage of approved credit line
How to apply
To apply for BDO Unibank Philippines SME loan kindly Submit through any of the following channels:
- Online:
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- Visit BDO’s website and look for the “Apply Now” button.
- Complete the online application form, providing details about yourself and your business.
- You may be asked to upload some of your documents electronically.
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- BDO Branch:
- Visit your nearest BDO branch and speak to a Loan Officer.
- They will guide you through the application process and help you submit the completed form and supporting documents.
- BDO Account Officer:
- If you have an existing relationship with a BDO Account Officer, they can streamline the application process for you.
Step 4: Wait for Evaluation and Decision
- BDO will assess your application, creditworthiness, and supporting documents.
- You may be contacted by a BDO representative for additional information or clarification.
- If the loan is approved, you will be given the loan agreement and terms to review and sign.
Step 5: Loan Disbursement
- Once the paperwork is finalized, the approved loan amount will be disbursed to your designated account
Frequently Asked Questions
Q1: Who can apply for a BDO SME Loan?
A: Sole proprietorships, partnerships, and corporations with a minimum annual gross sales of ₱1 million and at least two years of profitable operations can apply. The business should also be located within a BDO serviceable area.
Q2: What are the requirements for a BDO SME Loan?
A: The basic requirements include being at least 21 years old, having a registered business, being in profitable operation for at least two consecutive years, and having a minimum annual gross sales of ₱1 million.
Q3: How can I apply for a BDO SME Loan?
A: You can apply online through the BDO website or visit your nearest BDO branch to inquire and apply in person.
Q4: How much can I borrow with a BDO SME Loan?
A: The loan amount varies depending on the specific loan product. For SME Ready Check, the minimum loan amount is ₱3 million and the maximum is ₱50 million or 70% of the appraised value of the collateral.
Q5: What are the interest rates for BDO SME Loans?
A: Interest rates vary depending on the loan product, amount, and your creditworthiness. You can check the current rates on the BDO website or inquire at a branch.
Q6: What is the repayment term for BDO SME Loans?
A: The repayment term varies depending on the loan product. SME Ready Check has a one-year validity with an option to renew.
Q7: Can I make early repayments on my BDO SME Loan?
A: Yes, you can make early repayments on your BDO SME Loan. However, there may be penalties or fees associated with early repayment, so it’s best to check the terms and conditions of your loan agreement.
Q8: What is the collateral requirement for a BDO SME Loan?
A: BDO SME loans usually require collateral in the form of real estate property.
Q9: Are there any other fees associated with a BDO SME Loan?
A: Yes, there may be appraisal and post-approval fees, aside from the interest rate.
Q10: How long does it take to get approved for a BDO SME Loan?
A: The processing time for loan applications varies depending on the complexity of your application and the availability of required documents. Typically, it takes a few weeks.
