SME Business Mortgage Loan
A convenient secured loan option with high loanable amount and low interest rates.
What is Business Mortgage Loan?
This loan is perfect for larger SMEs who are looking to make big purchases or investments to scale their business.
This secured loan can go up to P20M for 10 years loan term if you have the collateral to back it up.
MINIMUM LOAN AMOUNT
PHP 1,000,000
MAXIMUM LOAN AMOUNT
PHP 20,000,000
LOAN PAYMENT TERM
Up to a max of 10 years (for asset acquisition, loan take out and construction) and 5 years for permanent working capital.
Why Get a Business Mortgage Loan?
Higher loan amount compared to other business loans
Lower interest rates and offer tailored to client needs
Approval in 15-20
working days
Startups (operating less than 3 years) are acceptable on a case to case basis
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 | 9.25% | 8.75% |
| 6-10 Years | 9.50% | 9.00% |
| Revolving Credit Line | ||
| Regardless of loan term | 9.75% | 9.25% |
*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 | 80% of Appraised Value for lot with improvement 80% for vacant lot |
| Commercial Properties | 80% of Appraised Value |
| Mixed-use Properties | 80% of Appraised Value |
| Hold-out Deposit | 100% of Peso deposit accounts maintained with SBC. |
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 September 19, 2021: 2% of unpaid amortization |
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
- 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