Development Bank of the Philippines Review

Company Information

The Development Bank of the Philippines (DBP) functions mainly as a Development Bank based on its charter but may also exercise functions as a thrift bank. Its main role is to ensure that the Filipinos have a partner in sustainable economic growth through the resources that are provided. 

DBP’s main objective is to provide banking services to agricultural and industrial enterprises, specifically to small and medium companies. The President of the Republic of the Philippines sits as the Vice Chairman of the Board and Chief Executive Officer elected by the Board, consisting of nine members which the President has appointed. 

The main office of DBP is located at Sen. Gil J. Puyat Avenue corner Makati Avenue, Makati City. Their customer contact center can be contacted for complaints and inquiries from Mondays to Fridays, 8:30 AM to 5:30 PM through the following methods:

Email

• [email protected]

Telephone Numbers:

• (02) 8683 8324
• (02) 8818 9511 local 2750

Products and Services Offered

The financing products and services of DBP are primarily catered to government employees and small and medium companies. Currently, they offer EC Credit Salary Loan for personal banking and Rediscounting Facility Line for financial institutions.

EC Credit Salary Loan

Government employees can apply for the EC Credit Salary Loan as long as they are eligible and can repay the loan through salary deductions. 

The requirements may vary depending on which government sector the borrower belongs to but as long as the documents are complete, the borrower can get fast loan approval. 

Loan Features

Loan Amount: ₱10,000 to ₱1 million

Interest Rate: 6.62% to 33.58%

Loan Term: 12, 24, 36 and 48 months

For the borrower to avail of salary deduction for loan repayments, their employer must first have a tie-up arrangement with DBP. The approval of the loan takes five working days as long as the requirements are complete.

Trade Credit Facilities

The Trade Credit Facilities available with DBP are the following:

• Import or Domestic LC
• Foreign or Domestic Standby LC
• Trust Receipt Financing
• Export Advance/Packing Loan
• Export Bills Purchase

Rediscounting Line Facility for Financial Institutions

Rediscounting line facility caters to financial institutions to augment the funds needed by wholesale borrowers where they can borrow against the promissory notes (PNs) of their sub-borrowers.  This type of credit line also includes projects or business-based enterprises and enterprises that are eligible for salary-based consumption loans.

Loan Features

Loan Amount: Up to 85% of the current outstanding principal balance of the sub-PNs rediscounted

Interest Rate: Prevailing interest rate

Loan Term: 

• Short-term rediscounting line

Via a maximum of 360-day PN

• Term Loan Rediscounting Line
  • Based on the maturity of the sub-borrower’s PN rediscounted but not to exceed ten (10) days
  • The grace period may be granted on principal, to coincide with the grace period given by the PFI to the sub-borrower, which should be based on the gestation of crops and/or cash flow of the projects financed

• Salary Based General-Purpose Consumption Loans

Up to three (3) years provided that it shall not go beyond the maturity of the sub-PNs rediscounted. 

Borrowers Who Are Eligible for a Rediscounting Line Facility

• Financial Institutions (FIs)
  • Domestic Banks (UKB, KB, Thrift, Rural, and Cooperative banks)
  • Non-Bank Financial Institutions (i.e. Cooperatives, Non-Government Institutions (NGOs), Finance and Leasing Companies, Associations, Microfinance Institutions, etc.)

Projects / Purposes

Eligible Sub-Promissory Notes of:

• Micro, small, and medium enterprises
• Small farmers and fishers, agrarian reform beneficiaries
• Overseas Filipino Workers (OFW)s
• Salaried Personnel

Eligible Sub-Loan Purpose

• Retail and wholesale trading
• Agribusiness – crop, poultry, livestock, fishery/aquaculture for production, processing plantation, marketing, trading, purchase of agri-machinery and equipment
• Service-oriented projects – include transportation and heavy equipment, tourism-oriented projects (i.e. hotels, restaurants, travel agencies), food processing, warehousing, post-harvest facilities, refrigeration, slaughterhouses, utilities, etc.
• Property development – includes the construction of building facilities, housing projects, etc.
• Salary-based general – purpose consumption loans (as defined under BSP Circular 886 s. of 2015)

Requirements

The borrower must first meet the pre-approval requirements to be approved by a Rediscounting Line Facility. 

• Letter of Application
• Board Resolution duly signed by the Board of Directors or Board of Trustees (whichever is applicable) or duly notarized Secretary’s Certificate authorizing the FI to borrow funds, negotiate and enter into an agreement with the Bank, and designating at least two (2) officers of the FI authorized to sign, endorse loan documents, Deed of Assignments, notes, and other documents pertaining to the loan obtained from DBP.
• List of Incumbent Members of the Board of Directors/ Trustees and principal officers indicating therein their respective educational attainment and work experience as of a recent date;
• List of existing principal shareholders and their stockholdings (with 10%) or more of total shares;
• Audited Financial Statements (balance and Income Statements) for the past three (3) years and the latest interim FS, which should not be more than six (6) months old;
• Brief Company Profile;
• Articles of Incorporation/ Corporation and By-laws including amendments thereto, if any;
• Certificate of Registration with SEC and Certificate of Authority to Operate from the BSP (for the new applicant only);
• For projects involving constructions: Cost Estimates, Plans, and Specifications, Bill of Materials and Work Program/ Schedules;
• For Rural banks, copy of year-end and latest quarterly Risk-Based Capital Adequacy Ratio (RBCAR) Report as submitted to BSP;
• Copy of Updated Income Tax Return (ITR), duly stamped as received by the Bureau of Internal Revenue, together with the supporting financial statements, as applicable (in accordance with BSP Circular No. 855, s. of 2014).

Why Choose Development Bank of the Philippines

DBP offers different products and services for individuals and corporate clients. With its competitive interest rates and flexible payment terms on its loan products, Filipinos can rely on DBP anytime. 

DBP is a Bank for Filipinos

The Development Bank of the Philippines is a government bank that aims to help consumers and companies thrive in a competitive market. With a bank made by Filipinos for Filipinos, the terms of financing are more lenient and the repayments are more flexible, which are ideal for managing finances.

Convenient Banking With Over 100 Branches Nationwide

DBP has over 100 branches nationwide, ensuring that the products are accessible anytime to its customers who need financial relief. Many customers prefer to bank with convenience these days but there are also plenty of options available in the market. DBP is a government bank, making it a bank that Filipinos can trust and count on. 

Low-Interest Rates on Loans

Not many banks in the Philippines can offer annual interest rates as low as 6.62% to borrowers. But with DBP, they offer this interest rate through the EC Credit Salary Loan. This low-interest rate helps people and businesses pay more affordable monthly repayments until the loan is completely paid off. 

Helps Agricultural and Industrial Enterprises Thrive 

The Philippines is known as an agricultural country and small to medium enterprises in this sector can take advantage of DBP’s services for expansion and operations of businesses through bank financing. 

How to Sign Up

To avail of the loan products and services, the borrowers can either visit any of their branches nationwide directly, contact customer service at (02) 683 8324 or send an email at [email protected]

Here’s how to apply for the loan products:

Conclusion

Many Filipinos choose to bank with DBP because of the flexible terms they offer compared to other banks. And because it has over 100 branches nationwide, it provides a wider reach to all Filipinos in need of affordable loan financing. 

The good news with the EC Credit Salary Loan is that it has a maximum loan amount of ₱1 million, allowing its borrowers a higher loan bandwidth to take care of their personal financial goals.