BPI Small Business Loan

BPI Overview

The Bank of the Philippine Islands (BPI) was founded in 1851 as El Banco Espanol Filipino de Isabel II, and its founding not only changed the course of history but also paved the way for the Philippine banking and financial industry.

Furthermore, BPI has established a reputation for trust, financial strength, and innovation. Fortunately, amid the many rivals in the industry, BPI continues to be recognized as a major provider of financial services in the Philippines with a network of over 1,176 branches in the Philippines, Hong Kong, and Europe, and about 3,000 ATMs and CAMs (cash accept machines).

Consumer banking and lending, asset management, payments, insurance, securities brokerage and distribution, foreign exchange, leasing, and corporate and investment banking are among the bank’s products and services it offers up to date. 

Small Business Loan Features 

Here are BPI’s small business loan features to help business owners decide whether this offer is the financial solution that best fits their business needs. Unfortunately, the bank’s website does not provide interest rates for BPI small business loans but is available upon branch visit when the application is processed.

BPI SME Term Loan

Loanable amount: Minimum of ₱300,000

Loan term: Maximum of 5 years 

Collateral: Real estate mortgage, deposit, or investment 

Processing fee: ₱3,500

Purpose: 

• Working capital financing
• Supplier payments
• Inventory or equipment purchase 
• Capital expenditures 
• Expansion

BPI SME Credit Line

Loanable amount: Minimum of ₱300,000

Loan term: 1-year renewable  

Collateral: Real estate mortgage, deposit, or investment 

Processing fee: 0.5% of the approved amount

Eligibility and Documentary Requirements 

Most individuals believe that applying for a bank loan is a complex and daunting procedure. Fortunately, BPI has made things simple so that their products and services, notably business loans, would be accessible to them.

The eligibility and documentary requirements for submission to the bank are outlined below for interested business owners. Keep in mind that the mentioned criteria apply to both the BPI SME Term Loan and the Credit Line.

Eligibility Requirements 

1. The applicant must be a Filipino citizen who is at least 21 years old at the time of application but not older than 70 at the time of loan maturity. 
2. At least two (2) years in present / immediately preceding residence 
3. A minimum of three (3) years of business operations

Documentary Requirements

For Sole Proprietors and Individuals 

1. Duly filled-up application form 
2. DTI Registration / Business Permit 
3. Borrower’s ID
4. Spouses’ ID (if applicable)
5. Last 3 months’ bank statement (BPI and/or other banks)
6. Latest Income Tax Return (ITR) for the last three (3) years 

For Partnerships and Corporations

1. Duly filled-up application form
2. SEC Registration
3. General Information Sheet
4. Articles of Incorporation / Partnership including amendments (if any)
5. By-Laws including amendments (if any)
6. IDs of majority shareholders / authorized signatories (photocopy)
7. Last 3 months’ bank statement (BPI and/or other banks)
8. Latest Income Tax Return (ITR) for the last three (3) years
9. Annual Financial Statements for the last three (3) years 

Small Business Loan Application Steps

Once eligibility has been verified and documents have been prepared, the applicant may proceed through any of the stated channels. The bank has set up dedicated customer service for its SME clients.

• Visit any BPI branch
• Call at (02) 7918-2000, press then press 2 for Business Loans; or 
• Email at [email protected]

Other Banks that Offer Small Business Loans 

Aside from BPI, the Philippines is home to numerous banks from which to get business loans. Among them are the following:

Equicom Savings Bank Business Loan

Features and Benefits

• Term loan facility 
• Maximum loan amount of ₱5 Million
• Prevailing interest rates at the time of loan release
• Loan Purpose:  
  • Working capital
  • Business expansion, equipment acquisition, or factory construction

DBP Small Business Puhunan Loan Program

Loan Features

Loanable amount: ₱300,000 to ₱1 Million

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

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

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

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

Loan Purpose: For permanent working capital

Bank of Makati Power Negosyo Enterprise Loan (PNEL) 

Loan Features

• Maximum loan amount of ₱300,000 
• Low-interest rates 
• Longer-term of up to 2 years 
• No upfront payment; fees to be deducted from loan proceeds
• No collateral 
• Minimal pre-approval required documents
• Loan purpose for business expansion

Conclusion

Filipinos who would like to boost their inventory, purchase new equipment, cover various business expenditures, or are simply wanting themselves to be exposed to new paradigms through the corporate world may always rely on BPI for financial solutions. The bank’s small business loans are undeniably fast and simple to apply for, making it easier to meet business goals and become future-ready.