BDO Interest Rate for Business Loan

BDO Overview 

BDO is a subsidiary of the SM Group, one of the Philippines’ most successful business conglomerates. It’s currently the largest bank in the country in terms of consolidated resources, customer loans, deposits, assets under management, and capital, not to mention the number of branches and ATM network nationwide.

Furthermore, the bank offers a variety of financial products and services, including corporate and consumer lending, deposit-taking, foreign exchange, brokerage, trust and investments, credit cards, retail cash cards, corporate cash management, and remittances.

BDO Business Loan Products 

If you’re a business owner or entrepreneur looking for funds to get started, check out the BDO business loan products and features.

Term Loan

BDO term loan provides business owners with the necessary funds to meet long-term business investments. Aside from that, it also addresses purchasing new assets such as machines and equipment and acquiring real estate properties, construction, repair, and renovation of business facilities.

Features 

Loanable Amount:  ₱1 million to ₱20 million or use up to 70% of your real estate property’s value

Loan Term: maximum of 10 years 

SME Ready Check

SME Ready Check is a revolving credit line that is ideal for business owners who are constantly in need of additional funds but do not want to go through the same lengthy loan processes.

It covers inventory or supply purchases to meet seasonal or large orders, working capital, and payment to suppliers while waiting for customer collection. 

Features

Loanable Amount: ₱3 million to ₱20 million or use up to 70% of your real estate property’s value

Loan Term:  1-year validity with an option to renew 

BDO Business Loan Related Fees

Pre-approval Fees

Appraisal Fee

• ₱5,000 if collateral offered is within 30 km radius from any neighboring BDO branch 
•  ₱5,500 if collateral offered is outside 30 km radius from any neighboring BDO branch 

Post-approval Fees

Handling Fee: ₱5,000

Notarization Fee:  ₱600

Collateral Registration Fee: depends on the approved loan amount and standard Registration of Deeds (RD) fees

Documentary Stamp Tax: ₱1.50 for every ₱200 of the approved loan amount 

Credit Life Insurance: 

•  ₱4.75 for every ₱1,000 of the loan amount for borrowers ages 50 to 69 years old
•  ₱6.50 for every  ₱1,000 of the loan amount for borrowers ages 50 to 69 years old

Fire Insurance (FI) Premium: depends on the appraised value of the improvement on the property submitted as collateral 

Contractors All Risk Insurance (CARI): depends on the estimated bill of materials of the property for construction

Processing Fee (FOR SME READY CHECK): depends on the percentage of approved credit line

These loan-related fees are subject to change without prior notice and you can settle them at any BDO branch.                                                                           

BDO Interest Rates for Business Loan

The BDO interest rates that business owners should consider before applying are listed below. Note that these quoted rates are subject to change without notice. 

Advantages of BDO Business Loan

SME Loan Calculator

BDO has an SME loan calculator that lets you select an option of your preferred loan amount and loan term. Upon filling out the figures, it will show you an estimate of monthly amortization and the required monthly income you should be earning. The figures are only for illustration purposes and are subject to change. 

Multiple Modes of Application

The bank’s multiple modes of application have made it simple to apply for a BDO business loan. BDO has gone digital, allowing its clients to access its products and services safely from home. 

However, if they find online applications complicated and time-consuming, they can simply visit any of the nearby BDO branches to take advantage of their offers. The bank has over 1,000 branches nationwide, making it easier to locate. 

Offers Competitive Interest Rates 

Many people, not just business owners, are hesitant to approach a bank for a loan because of the high-interest rates that banks are known to charge. Fortunately, BDO business loans have reasonable interest rates ranging from 6.2% to 7.25% per annum. 

Offers Promotions 

Aside from these benefits mentioned above, the bank also offers promotions on its business loan offers, including the Tuloy ang Negosyo with BDO SME Loan, where a borrower can save up to ₱30,000 in their loan fees should they apply for a BDO SME Loan until September 30, 2022. 

Conclusion

BDO business loans can be a viable alternative should a business owner desire to carry on with his plans. But, to do so effectively, they must first determine what they need, how much they can borrow, and what the interest rate is.

Failure to consider these factors before taking on debt can lead to the business’s downfall instead of financing its success.