Loan Application for Small Business Using BDO SME Loan

When you are building your small business, one of the crucial needs to get it moving is infusion of fresh capital. Whether you are acquiring new equipment or upgrading the current one, buying property or expanding your line of products, applying for a small business loan will help meet these requirements.

BDO Small Business Loan

BDO is largest bank in the Philippines in terms of assets, with assets valued at P1.03 trillion under its management in 2016. It offers BDO SME Loan, which provides financing options for your business.

BDO SME Loan comes with Term Loan, the conventional fixed-loan facility where a fixed amount is lent to borrower at a specific payment timeframe under certain interest rates.

It also has SME Ready Check, which acts as secured revolving credit line which can be used anytime to address business capital requirements.

Payment Terms for BDO SME Loan

Applicants can borrow up to P20 million depending on the appraised value of collateral – residential, mixed-use or commercial properties. And based on existing cash flow, borrowers can repay loans between one and 10 years.

Loan Application
Business owners can simply head to any of more than 880 BDO branches all over the Philippines to apply for loan and receive expert advice from dedicated account officers.

BDO SME Loan Interest Rates

Fixing Period Interest Rate (Subject to Change)
One year 8.00%
Two years 8.50%
Three years 8.50%
Four years 9.00%
Five years 9.00%
6 to 10 years 11.00%

Eligibility Requirements for BDO Small Business Loan

For Individuals / Sole Proprietors

  • 21 years old at the time of loan application and not older than 65 years old at maturity
  • Business is in profitable operation for at least 2 consecutive years, with minimum annual gross sales of P1 Million
  • With stable source of income from business and/or employment
  • If Employed, at least 2 years of continuous employment (may be waived if rank is at least Manager level)
  • If Professional (doctor, lawyer, etc.), at least 3 years in practice of profession
  • With good credit standing

For Partnerships / Corporations

  • Business is in profitable operation for at least 2 consecutive years
  • With minimum annual gross sales of P1 Million
  • With SEC or DTI registration or application papers if registration is still pending
  • Principal business must be within a BDO serviceable area
  • With good credit standing

Documentation Requirements

A. Pre-approval Requirements

Basic Documents

  • Completely filled-out application form
  • Clear copy of one (1) valid ID matching application details
  • Last 2 years Income Tax Return (ITR)
  • Marriage contract, if applicable

Business / Income Documents

For Employed Individual

  • Latest Crew Contract and Employment History
  • Original Certificate of Employment & Compensation
  • Certificate of Employment & Income or Employment Contract (for OFWs)
  • Last 3 months Proof of Remittance (for OFWs)
  • Latest Full-Month Payslip

For Sole Proprietorship

  • Last 2 years Audited Financial Statements
  • Last 6 months Bank Statements or photocopy of passbook with transaction records for the past 6 months
  • Department of Trade & Industry (DTI) Registration
  • Business Permit / Mayor’s Permit
  • Business Background / Company Profile
  • List of major suppliers and customers (minimum of 3) with contact information

For Partnership

  • Last 2 years Audited Financial Statements
  • Last 6 months Bank Statements or photocopy of passbook with transaction records for the past 6 months
  • Securities & Exchange Commission (SEC) Registration
  • Articles of Partnership
  • Business Background / Company Profile
  • List of major suppliers and customers (minimum of 3) with contact information
  • For Corporation
  • Last 2 years Audited Financial Statements
  • Last 6 months Bank Statements or photocopy of passbook with transaction records for the past 6 months
  • Securities & Exchange Commission (SEC) Registration
  • Latest Amended Articles of Incorporation & By-laws
  • List of Elected Officers
  • Board Resolution or Secretary’s Certificate
  • Business Background / Company Profile
  • List of major suppliers and customers (minimum of 3) with contact information

Collateral Documents

  • Copy of TCT/CCT (property title)
  • Copy of Tax Declaration
  • Appraisal Fee with Official Receipt
  • Building Plan or Floor Plan (for Construction Loan)
  • Bill of Materials and Labor Cost (for Construction Loan)
  • Building specifications certified by Architect / Civil Engineer (for Construction Loan)
  • Latest Statement of Account and Official Receipts for the last three (3) months (for Refinancing / Loan Take-Out)
  • Copy of Lease Contracts and Title for Income from Rented / Leased Properties (if applicable)

B. Post-approval Requirements

  • Original Owner’s duplicate copy of TCT/CCT
  • Original Certified True Copy of latest Tax Declaration on land and improvement
  • Master Deed of Declaration (for condominium)
  • Original Certified True Copy of Tax Clearance
  • Original Real Estate Tax Receipts
  • Electronic-certified True Copy of TCT/CCT with Original Official Receipt
  • Mortgage Redemption Insurance
  • Fire Insurance
  • Payment of Bank Charges (if applicable)

 

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