SME Business Mortgage Loan
A convenient secured loan option with a high loanable amount and flexible loan terms.
What is Business Mortgage Loan?
This loan is perfect for growing businesses that are looking to make big purchases or investments to scale up. Whether it’s for property acquisitions or working capital, this secured loan can go up to P20M for 20 years loan term if you have the collateral to back it up. Startups are welcome to apply!
MINIMUM LOAN AMOUNT
PHP 1,000,000
MAXIMUM LOAN AMOUNT
PHP 20,000,000
LOAN PAYMENT TERM
Up to a max of 20 years depending on the bank’s valuation.
Why Get a Business Mortgage Loan?
High loanable amount
Compared to other business loans in the market
Low interest rates
Rates are tailored to client’s needs
Fast approval
Get approved in as fast as 15-20 working days
Flexible loan terms
Loan terms can be up to 20 years depending on the bank’s valuation
Special Promo Rate: Short-Term Working Capital Loan
| Facility | Working Capital Loan (Term) |
| Maximum Term | 2 years |
| Interest Rate | 7.0% per annum* |
| Loan Amount | Existing minimum and maximum policy |
| Booking Period | Until December 29, 2021 |
| Effectivity | Turn-ins starting August 24, 2021 |
*No one-year fixing period
Standard Loan Rates
| Fixing Period | Interest Rate per annum % For loan amount of P5M below |
Interest Rate per annum % For loan amount of P5M above |
| Term Loans | ||
| 1 Year | NO MORE FIXING RATE | NO MORE FIXING RATE |
| 2 Years | NO MORE FIXING RATE | NO MORE FIXING RATE |
| 3 Years | 9.00% | 8.50% |
| 4 Years | 9.00% | 8.50% |
| 5 Years | 9.00% | 8.50% |
| 6-10 Years | 9.50% | 9.00% |
*Please note that BML rates change on a monthly basis
**Rates are not applicable to BML amortized loans due for repricing
Acceptable Collaterals
| Type | LTV |
| Residential Properties | Up to 80% of Appraised Value for lot with improvement and vacant lot* |
| Commercial Properties | Up to 80% of Appraised Value* |
| Mixed-use Properties | Up to 80% of Appraised Value* |
| Hold-out Deposit | 100% of Peso deposit accounts maintained with SBC. |
*LTV can be as high as 80% depending on the bank’s valuation and capacity to pay evaluation.
FEES AND CHARGES
| Appraisal fee | Paid upfront– PHP 3,500 (Metro Manila); PHP 4,500 (Outside MM);PHP 500 for additional titles within same area |
| Real estate mortgage fees | Paid upon approval–~2.5% to 3.0% of loan amount (inclusive of: DST, registration fee, notarial fee, processing fee) |
| Late Payment Fee | 24% per day of unpaid amortization + past due interest for technical past dues Effective October 25, 2021: 2% of unpaid amortization |
*PHP 1,500 discount on Appraisal Fee (for the first property offered as collateral) until October 31, 2021 only.
Eligibility Requirements
For Business
- Registered business with the Securities and Exchange Commission or Department of Trade and Industry
- Business should be registered as either Sole Proprietorship, Partnership, or Corporation
- At least 3 years in operation.
- Must exhibit profitable operations
- Start-up businesses (operating less than 3 years) are acceptable on case to case basis
For Employed
- Principal should be at least 21 years old upon loan maturity
- Earning minimum monthly income of P50,000
- Employed for at least 2 years
Documentary Requirements
Sole Proprietorship
- Completely filled out and signed loan application form
- Clear copy of marriage contract (if married)
- Clear copy of one valid ID (photo-bearing government issued) of borrower/ spouse/co-borrower/ signatories of the loan
- Latest Income Tax Return and Comparative Audited Financial Statements (with Notes to AFS) or two years Audited Financial Statements if latest is not comparative
- If operating for ONE year or less: Financial Projections and Prospects
- Certificate of Business Name Registration with DTI (for sole proprietorship) or Articles of Partnership (for partnership business)
- Authorization letter (for bank, business and trade checkings)
- Valid Business/Mayor’s permit
- IF STARTUP: Financial Projections and Prospects (if applying as a startup or if business has been in operation for less than 3 years)
Partnership/Corporation
- Completely filled out and signed loan application form
- Company profile: background, owners, key officers
- Clear copy of one valid ID (photo-bearing government issued) of borrower/spouse/co-borrower/signatories of the loan
- SEC papers:
- Corporation – Certificate of Incorporation, Articles of Incorporation, By-laws and General Information Sheet, Board Resolution
- Partnership – SEC Certificate, Articles of Partnership, Partnership Resolution
- Latest Bank Statements (latest 6 months with debits and credits)
- Latest Income Tax Return and Comparative Audited Financial Statements (with Notes to AFS) or two years Audited Financial Statements if latest is not comparative
- Authorization letter (for bank, business and trade checkings)
- Suretyship of majority owner/s
- Valid Business/Mayor’s permit
- IF STARTUP: Financial Projections and Prospects (if applying as a startup or if business has been in operation for less than 3 years)
Employed
- Completely filled out and signed loan application form
- Clear copy of marriage contract (if married)
- Clear copy of one valid ID (photo-bearing government issued) of borrower/spouse/co-borrower/signatories of the loan
- Certificate of Employment and Compensation (COEC) / Employment Contract OR Latest 3 months payslips OR Latest ITR (BIR form 2316)
- Certificate of Business Name Registration with DTI (for sole proprietorship) or Articles of Partnership (for partnership business)
- Authorization letter (for bank, business and trade checkings)
- Employment Verification (EV) by SBC CI Unit
- If OFW, with Special Power of Attorney (SPA)
Collateral Docs for Real Estate
- Copy of collateral title (TCT/CTC)
- Lot plan and vicinity/location map
- Tax declaration on land and/or improvement
- Appraisal Fee; OR Number: ______________
Additional Documents for Specific Loan Purpose
LOAN TAKEOUT
- Proof of amortization payments for the last 3 months
- Statement of account from bank
CONSTRUCTION OR RENOVATION
- Bill of materials and estimates of construction and labor cost
- Floor and building plan and specifications