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2 types of loans designed for SMEs

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One integral part in starting or growing your business is finding the capital to fund it. Plantersbank, which has prided itself as the bank for small- and medium-sized enterprises (SMEs) in the country, has set up two loan programs specifically for the entrepreneurial Filipino.

Below is an outline of two types of loans for small- and medium-sized enterprises:

 

Micro to small business loans

Approval period: 10 days

Purposes:
For expanding the business, improving cash flow, house renovation, payment for tuition fees, or travel expenses

Requirements: Loan application form (separate for individual and corporate borrowers); Photocopy of two valid IDs with signature; Bank statements for the last 3 months; Copy of Land Title (TCT or CCT); Updated Tax Declaration and Real Estate Tax Receipts; Master Deed of Restrictions (for condominium units)

Loan amount: From P250,000 to P10 million via credit line or term loan

Interest rate: Starting at 9 percent for a 12-month term; Payment term of 1 year to 10 years with no prepayment penalties in case of early loan termination; Rates are fixed for the first 5 years; No “unpredictable” monthly dues

 

Small to medium business loans

 

Approval period: 3 weeks

Purposes:
Credit line for working capital; Term loan for business expansion, equipment acquisition and factory construction; Liquefying customers’ post-dated checks through check discounting; Domestic bills purchase line; Standby letter of credit; Back-to-back loan; Program loans

Basic criteria: Any SME profitably in business for at least 3 years, managed by an “experienced, competent team,” and is engaged in a “moral, legal and legitimate business.”

Loan amount: From P10 million up to P50 million; Higher funding requirements are entertained on a case-to-case basis.

Interest rate: Fixed for the entire term or variable (re-priced at the beginning of each month)

 

For Plantersbank contact details click here.

 

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