Security Bank SME Business Mortgage Loan

Security Bank Overview

Security Bank was established on June 18, 1951, with the corporate name of Security Bank and Trust Company. It is a universal bank that caters to commercial, corporate, retail banking, and other financial activities, like working as an investment house, financing and leasing, stock brokerage, etc. As of June 30, 2021, Security already has 316 branches and 789 ATMs nationwide. 

SME Business Mortgage Loan 

Security Bank offers this secured type of business loan for companies who are looking at scaling up the operations of their business or making a considerable investment. The processing of the loan will take approximately 15 to 20 working days, depending on the completeness of the documents submitted. 

Loan Features

Loan Amount: ₱1,000,000 to ₱30,000,000 (depending on the value of the collateral)

Loan Term: up to 20 years but will depend on the valuation of the bank

Interest Rates:

Other fees

• Appraisal fee 
  • Metro Manila –  ₱3,500
  • Outside Metro Manila –  ₱4,500

             *Additional  ₱500 for additional title within the same area

• Real estate mortgage fees – 2.5% to 3% of the loan proceeds. Fees inclusion: Documentary Stamp Tax, notarial fee, processing fee, registration fee.
• Late payment fee – 2% for every unpaid amortization

Listed below are the types of accepted collaterals: 

• Residential Properties ( improved and vacant lot) – up to 80% of the appraised value
• Commercial Properties – as much as 80% of the appraised value
• Mixed-use Properties –  as much as 80% of the appraised value
• Hold-out deposit – as much as 100% of the deposit amount

For Residential, Commercial, and Mixed-use properties, the loanable amount can be more than 80% depending on the capacity of the borrower to pay or the bank’s valuation of the collateral.

Eligibility Criteria

For Business Enterprise

• DTI Registration (Sole Proprietor)
• SEC Registration (Partnership/Corporation)
• Minimum of 3 years of operation
• Proof of profitability in operations (Audited Financial Statements)
• Years Operating: 
  • General – minimum of three (3) years
  • Exception – Start-up businesses with less than three (3) years of operation is subject to approval.

For Employed

• At least 21 years old when the loan matures  
• With a minimum monthly income of  ₱50,000
• Minimum years of employment: 2 years

Documentary Requirements

Employed

• Completed loan application form. 
• For married applicants, a PSA-issued Marriage Certificate
• 1 government-issued valid ID for the following:
  • Borrower
  • Spouse
  • Co-borrowers
  • Signatories of the loan
• Proof of Employment (any of the following)
  • Certificate of Employment
  • Employment Contract
  • 3 months payslip
  • Latest Income Tax Return
• DTI Business Name Registration (Sole Proprietor) or Articles of Partnership
• Letter of Authorization
• Verification of borrower’s employment
• SPA for OFWs

Sole Proprietorship

• Completed loan application form. 
• For married applicants, a PSA-issued Marriage Certificate
• 1 government-issued valid ID for the following:
  • Borrower
  • Spouse
  • Co-borrowers
  • Signatories of the loan
• DTI Business Name Registration (Sole Proprietor) or Articles of Partnership
• Income Tax Return (latest) and Audited Financial Statements (comparative). If comparative, the last two years Audited Financial Statements
• If Start-up or operating for less than a year, Financial Projections and Prospects
• Authorization Letter 
• Business / Mayor’s Permit

Partnership / Corporation

• Completed loan application form. 
• 1 government-issued valid ID for the following:
  • Borrower
  • Spouse
  • Co-borrowers
  • Signatories of the loan
• Company Profile
• Partnership / Corporation SEC Papers
• Latest 6 months Bank Statements
• Income Tax Return (latest) and Audited Financial Statements (comparative). If comparative, the last two years Audited Financial Statements
• Authorization Letter
• Business / Mayor’s Permit
• Suretyship of Majority Owners

Why Get an SME Business Mortgage Loan 

The SME Business Mortgage Loan offers the most convenient and flexible way of applying for collateralized loans. Many borrowers choose this loan product because of these reasons:

• High Loanable amount – unlike any other financial institution, Security Bank provides higher loan proceeds to the qualified borrower. 
• Fast approval – at Security Bank, the borrowers don’t need to wait for a long approval process. The approval period is only 15 – 20 working days.
• Flexible loan terms – borrowers may apply for up to a 20-year loan term but is subject to banks’ approval.

Conclusion

Security Bank’s SME Business Mortgage Loan is one of the most trusted secured loan products by many. Security Bank has built its reputation and maintained its business relating to its customers for over 71 years. It is not only business enterprises but also qualified individuals who can benefit from high loanable amounts, flexible loan terms, and competitive interest rates.