BDO Overview
BDO was formerly known as Acme Savings Bank, and it was acquired in 1976 by the SM Group. BDO Unibank, Inc. is a universal bank that offers different products and services to its consumers like retail and corporate banking, lending, trust and investments, deposit-taking, remittances, foreign exchange, brokering, and corporate cash management.
BDO subsidiaries offer other services like leasing and financing, private banking, investment banking, insurance, stock brokerage, and bancassurance. The bank has 740 operating branches nationwide, with more than 1500 ATMs.
What Is a Business Loan?
A business loan is a contract of loan between the borrower (business enterprise) and the lender (private lender) with the intention of the former to use the loan proceeds for a variety of purposes such as product improvement, plant expansion, payment for short-term expenses, purchase of new equipment, for investment purposes, etc.
BDO SME Loan Features
BDO SME Loan offers two types of business loans: SME Term Loan and SME Ready Check. The loan decision will be ten (10) working days upon submission of all related requirements.
SME Term Loan
SME Term Loan allows its borrower to use the loan proceeds for long-term transactions. Reasons for borrowing may be for purchasing new machinery or equipment, acquiring long-term assets, and repairing, constructing, or renovating facilities.
Loan Features
Loan amount: ₱1 million to ₱20 million (borrowers may loan up to 70% of the collateral’s market value)
Loan Terms: up to 10 years
SME Ready Check
SME Ready Check is a type of business credit line. The business granted a credit line may access cash until the credit limit is exhausted. The cash proceeds can be used for purchasing inventory, additional working capital, and payment for operating expenses.
In this business loan, the borrowers must issue a check against the approved credit line before they can be granted the applied amount.
SME Ready Check Loan Features
Loan amount: ₱3 million to ₱20 million (may borrow up to 70% of the collateral’s market value)
Interest Rate:
For New applicants
- One year – 6.25%
- Two years – 6.25%
- Three years – 6.75%
- Four years – 7.25%
- Five years – 7.25%
For existing applicants, repricing will be agreed upon by both parties.
Credit Line Term: valid for one (1) year, but with the option of renewal of the loan.
Other Charges
Pre-Approval fees
- Appraisal Fee
- The collateral is within 30km. radius from a BDO branch – ₱5,000
- The collateral is outside 30km. radius from a BDO branch – ₱5,500
Post-Approval Fees
- Handling fee – ₱5,000
- Notarization fee – ₱600
- Collateral Registration fee – based on the loan proceeds and registration of deed fees
- Documentary Stamp Tax
For every ₱200 of the loan proceeds – ₱1.50
- Credit Life Insurance
- For every ₱1000 of the loan proceeds – ₱4.75 (assuming borrowers age is up to 49 years old)
- For every ₱1000 of the loan proceeds – ₱6.50 (assuming the borrower’s age ranges from 50 to 69 years old)
- Fire Insurance Premium – based on the improvement’s appraised value of the collateral
- Contractors All Risk Insurance – material’s estimated bill
- Processing Fee (For SME Check) – basis: percentage approved credit line
Both SME Term Loan and SME Ready Check is a collateral-based loan. The accepted collaterals are listed below.
- House and lot
- Commercial property
- Vacant Lot
- Condominium
- Townhouse
- Real estate properties are categorized as mixed-used (residential and commercial)
How to Apply for a Business Loan in BDO
Here are the quick steps to apply for a Business Loan in BDO.
Check your Eligibility
The borrowers eligible to apply for a business loan must be:
21 to 70 years old
Business enterprise categories
Sole proprietor, Partnership, Corporation
Proof of profitable operations for at least two consecutive years
With minimum gross sales of ₱1 million annually.
Prepare Documentary Requirements
Listed below are general documentary requirements by BDO. There may be additional requirements depending on the loan requirement.
For Sole Proprietors, Partnership, Corporation
Duly filled out the application form
One (1) valid ID
Marriage contract (if applicable)
Copy of the latest ITR and latest two (2) years Audited Financial Statements
Copy of passbook or bank statement for the last six (6) months
Copy of business registration
Copy of DTI permit
Company profile
Additional Requirements for Partnership
Copy of Articles of Partnership
Copy of Certificate of Registration issued by SEC
Additional Requirements for Corporation
Any of the following:
Copy of Certificate of Registration issued by SEC
Latest Amended Articles of Incorporation and By-Laws
General Information Sheet
Board Resolution
Submit your application
There are three loan application channels borrowers can choose from:
Online Application:
Business Enterprise needs to enroll at BDO’s Online Banking.
Primary Requirement – SMEs must have a deposit account or Credit Card in BDO.
To create an SME Loan Account:
Log in to its existing account
Look for the Enrollment Services tab
Add an SME Loan Account
Visit the nearest BDO Loans Center
Visit any BDO branches nationwide.
Conclusion
BDO business loan applications require borrowers to submit and complete a comprehensive list of documents, and borrowers must meet the eligibility criteria. While the list is extensive, complete documentation, proof of stable income, and capacity to pay will likely result in an approved loan.
BDO is one of the few commercial banks offering competitive interest rates, higher loanable amount, and longer repayment terms.
Aunt Piggyy
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