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Best Bank for Business Loan in the Philippines

Business owners planning to upgrade and expand their businesses often screams for one thing in particular – additional funds. Fortunately, they now have an endless range of alternatives and ways to acquire the financial boost their businesses demand, and one way to do so is through banks.

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Written by: Aunt Piggyy

Rating

4.4/5
Development Bank of the Philippines

Rating

4.4/5
Security Bank

Security Bank offers attractive loan terms. Get this offer now.

Rating

4.2/5
PSBank

Filipinos deserve loan products that help them, apply for a loan at PSBank, and avail of affordable loan rates.

Rating

4.1/5
Bank of the Philippine Islands

Avail of low interest rates with BPI. Do not miss this offer.

Rating

4.1/5
BDO

Apply for BDO’s low interest-rate loan products now.

Banks as a Business Lender 

 

Despite the rise of online lenders, which are known to give a faster and more convenient way to access finances, banks continue to dominate the banking industry thanks to the trusted reputation they have built over the years and conventional methods that Filipinos have become accustomed to.

 

Bank loans remain the most popular alternative, notably among business owners, for the opportunity to get extra funding in advance so they no longer have to wait until their company has made enough capital to fund growth and expansion on its own. Furthermore, bank loans provide both short-term and long-term financing solutions that can be used to meet various business goals.

 

On the other hand, banks have varying conditions – for instance, some need collateral while others do not but they may have stricter requirements, and it may take a while to apply for and receive approval for a bank loan. But, taking out a business loan from banks is still a viable option for generating more capital to expand businesses considering the lump sum of money that only banks can provide.  

 

Best Banks for Business Loan in the Philippines

 

These are among the best banks for a business loan in the Philippines:  

 

BPI SME Term Loan

 

Loan Features

Loanable Amount: Minimum of 300,000

Loan Term: Maximum of 5 years

Interest Rate: Based on the prevailing market 

Accepted Collateral: Real estate mortgage, deposit, or investment 

Processing Fee: 3,500

 

BDO SME Ready Check 

 

Loan Features

Loanable Amount: 3 Million to 20 Million

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

Interest Rate: 6.25% up to 7.25% depending on the loan term

Accepted Collateral: Real estate property such as house and lot, commercial property, vacant lot, condominium, townhouse, and mixed-used property (residential/commercial)

Turnaround Time: within 10 banking days 

 

Security Bank SME Business Express Loan 

 

Loan Features

Loanable Amount: 1 Million to 5 Million 

Loan Term: 12 to 36 months 

Interest Rates: 1.50% to 1.95% (depending on the term of the loan)

Related Fees:

  • Processing Fee: 3,000
  • Notarial Fee: 400 for Sole Proprietorship and P800 for Partnerships and Corporations 
  • DST: Approved loan amount / 200*1.50
  • Penalty Fee: 3% of the past-due amount for the month 

 

Mode of Payment: Monthly via Auto-Debit Arrangement (ADA) from their nominated or identified Security Bank deposit account for New-To-Bank (NTB) clients

 

No collateral required 

 

DBP Small Business Puhunan Loan Program

 

Loan Features

Loanable Amount: 300,000 to 1 Million 

Loan Term: 1 year or 2 years subject to Debt Service Coverage compliance

Interest Rate: Fixed at 9% p.a. for a 1-year term loan and fixed at 10% p.a. for a 2-year term loan

Fees: Front-end fee of 3% based on approved and booked loan amount

Collateral Security: Post-dated checks from the non-DBP account 

Mode of Payment: Monthly 

 

PSBank SME Term Loan with Prime Debate

 

Loan Features

Loanable Amount: Minimum of 2 Million if the collateral is real estate property; 500,000 if against deposits 

Loan Term: 1 year to 7 years from the date of availment 

Interest Rate: Based on the prevailing lending rate of the Bank at the time of availing

Interest Repricing: Monthly, Quarterly, Semi-annually, Annually, and Fixed for the term

Accepted Collateral: Any prime residential/commercial/industrial property with or without building improvements, and cash deposits

Turnaround Time: within 20 banking days or less from submission of complete requirements

Rating

4.1/5
BDO

Apply for BDO’s low interest-rate loan products now.

Review

Rating

4.4/5
Security Bank

Security Bank offers attractive loan terms. Get this offer now.

Review

Rating

4.2/5
PSBank

Filipinos deserve loan products that help them, apply for a loan at PSBank, and avail of affordable loan rates.

Review

Rating

4.1/5
Bank of the Philippine Islands

Avail of low interest rates with BPI. Do not miss this offer.

Review

Rating

4.4/5
Development Bank of the Philippines
Review

Some Considerations Before Applying for a Business Loan

 

Lender’s Reputation

The borrower must thoroughly check the lender’s reputation similar to how they were assessed by the lender throughout the loan application process.  Because, in most cases, lenders that appear to have the best business loan offers are actually problematic. Do not be blinded by the lender’s product offering, instead learn from the experiences of others and look for positive reviews and high ratings.

 

Loan Purpose 

Determining where and how the borrower will be using the loan proceeds is important because it will not only lead them into acquiring the business loan that best fits their needs, but also the terms and the amount they can only afford. 

 

Interest Rates 

Interest rate must be always taken into account since it dictates the cost of borrowing. By doing so, the borrower will be informed the soonest they land their eyes on the interest rate whether taking out a loan would be beneficial or will only lead them into further debt. 

 

Extra Fees

Unfortunately, even the finest business lender may demand additional charges that are not immediately disclosed. So, be sure to read and double-check the list of loan expenses provided by the business lender to determine how much the loan will cost the borrower and whether there are any fees they feel are unreasonable and do not want to pay.     

 

Conclusion 

 

Indeed, banks continue to prove their relevance, particularly in the business world. But, to fully enjoy bank-provided business loans, business owners must also play their part by doing some research. With so many banks to choose from, it can be challenging to find the ideal bank and the business loan for their needs – but one thing is for certain, the efforts will be well worth it.

Aunt Piggyy

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