Business loan
Business Loan
Working capital and equipment for sole proprietors and small companies, repaid monthly.
The terms
- Loan amount
- ₱50,000 to ₱1,000,000
- Term
- 12 to 36 months
- Payments
- Monthly
- Interest rate
- 2% a month
- How interest is computed
- Diminishing balance: interest is charged only on what you still owe, so each instalment pays less interest than the one before
- Late payment penalty
- 3% a month on the amount overdue, after 3 days of grace
Fees
- Processing Fee3% of the loan amount, deducted at release
- Notarial Fee₱400.00, deducted at release
- Documentary Stamp TaxDocumentary stamp tax at the rate the law sets on the loan amount, deducted at release
Fees are deducted from the loan at release, so the cash you receive is less than the loan amount. The worked example shows each one in pesos.
A worked example: ₱50,000 over 12 months
Paid every month. Computed by our lending system, the same way your disclosure statement will be.
| Loan amount (principal) | ₱50,000.00 |
|---|---|
| Less: Processing Fee | (₱1,500.00) |
| Less: Notarial Fee | (₱400.00) |
| Less: Documentary Stamp Tax | (₱375.00) |
| Net proceeds, the cash you receive | ₱47,725.00 |
| Instalment, monthly (12 payments) | ₱4,727.98 |
| Total interest | ₱6,735.76 |
| Total of payments | ₱56,735.76 |
| Nominal interest rate | 2% a month |
| Effective interest rate | 2.77% a month, 33.2% a year |
Payment schedule
| No. | Due, days after release | Principal | Interest | Instalment |
|---|---|---|---|---|
| 1 | 32 | ₱3,727.98 | ₱1,000.00 | ₱4,727.98 |
| 2 | 61 | ₱3,802.54 | ₱925.44 | ₱4,727.98 |
| 3 | 92 | ₱3,878.59 | ₱849.39 | ₱4,727.98 |
| 4 | 123 | ₱3,956.16 | ₱771.82 | ₱4,727.98 |
| 5 | 151 | ₱4,035.29 | ₱692.69 | ₱4,727.98 |
| 6 | 182 | ₱4,115.99 | ₱611.99 | ₱4,727.98 |
| 7 | 214 | ₱4,198.31 | ₱529.67 | ₱4,727.98 |
| 8 | 243 | ₱4,282.28 | ₱445.70 | ₱4,727.98 |
| 9 | 273 | ₱4,367.92 | ₱360.06 | ₱4,727.98 |
| 10 | 305 | ₱4,455.28 | ₱272.70 | ₱4,727.98 |
| 11 | 335 | ₱4,544.39 | ₱183.59 | ₱4,727.98 |
| 12 | 365 | ₱4,635.27 | ₱92.71 | ₱4,727.98 |
Due dates are counted from the release date, which is set when your loan is released.
This is the same computation your disclosure statement will use.
Illustrative figures for the amount and term you chose. The final terms are subject to assessment and are set out in your disclosure statement before you sign.
Who it is for
- Registered businesses with a mayor's permit
- Six months of bank statements or sales records
- Your spouse signs as co-maker if you are married
What to prepare
- DTI or SEC registration and mayor's permit
- Two valid government IDs
- Six months of bank statements or sales records
- Spouse as co-maker when married
- Collateral documents, if offered
Other loans
Apply for a Business Loan
A loan officer reviews every application and calls you. Approval is not guaranteed.