SME Business Credit Line Q: What is SME Business Credit Line? A: It is a credit line intended for business demands such as additional cash for working capital, bridge financing and other needs of business entities. You can conveniently access the credit line by simply issuing an SME Business Credit Line check. No need to apply again, call the bank or wait in line for each availment. You can issue a PSBank SME Business Credit Line checks directly to your suppliers or business partners even during weekends or off-banking hours. Q: Am I eligible to apply? A: You are qualified to apply if you are: 1. Sole Proprietorships or Qualified Individuals who are Filipino citizens; Corporations and Partnerships (at least 60% Filipino-owned). 2. Must have at least 2 years of profitable operations. 3. At least 25 years old but not more than 65 years old. 4. Business must be registered with DTI or SEC. 5. Must offer acceptable real estate collateral Q: What is the acceptable collateral? A: 1. Real Estate Collateral: Residential, Commercial, Industrial or mixed-use properties (excluding Agricultural properties, schools and hospitals). 2. Peso and Foreign Deposit with any PSBank branch. Q: What is the minimum loan amount? A: 1. Two million pesos (P2,000,000.00) Q: How long is the payment period? A: One (1) year and loan is renewable yearly provided repayment is satisfactory Q: What are the initial requirements? A: The initial requirements are as follows but additional documents maybe requested subject to the credit evaluation. 1. Application Form duly filled-out 2. Photocopy of TCT or CCT, Lot Plan with Vicinity Map, Tax Declaration of Land and Building a. For condominium-Master Deeds or Restrictions b. For Construction/Renovation-Floor and Bldg. Plans, Bill of Materials and Cost Estimates/Specifications signed by Civil Engr. or Architect 3. Bank Statements/Passbook for at least 3 consecutive months from all major depository banks If in business:
4. Business Documents a. BIR-stamped ITR, Audited Financial Statements for the last 2 years and latest available FS for the current year b. Business Registration: DTI Registration (for sole proprietorship), SEC Registration, Articles of Incorporation/Co-partnership, By-laws and Business Permit (for Corporation and Partnership) c. Board Resolution/Secretary’s Certificate to borrow, to mortgage and authorized signatories If employed: 5. Employment Documents a. Original copy of latest Certificate of Employment b. Copy of latest Certificate of Compensation/BIR Form 2316 or personal ITR 6. Valid Identifications, Marriage Contract (if applicable) and Community Tax Certificate Q: What and how much are the bank charges? A: The following charges apply and you may pay these in stages as the loan processing progresses. 1. Application Fee – P2.00 for every P1,000.00 of loan amount ( min. of P2,000 max. of P10,000.00 2. Appraisal Fee a. P3,000.00 for the 1st Title plus P500.00 for every additional Title (same location) Note: Another charge for Title in different location 3. Handling Fee – Per availment: One-eight (1/8) of One percent of the loan amount or P500.00, whichever is higher 4. Notarial Fee – P500.00 per document 5. Doc. Stamps – P1.00 for very P200.00 of loan amount availed 6. REM Registration – Depending the amount to be registered and based on registration fee schedule given by Register of Deeds 7. Mortgage Redemption Insurance – Standard amount of premium-P0.40 for every P1,000.00 per month a. Premium amount will vary depending upon the rating of each borrowers b. Premium is payable annually 8. Fire Insurance – Based on the appraised value of the building, for quotation of Philippine AXA Insurance. Most of these are standard charges even with other banks. The key advantage of PSBank’s SME Business Credit is that we do not require any commitment fee upon approval.
Q: How long will it take to process the loan? A: We take pride in our fast processing. Loans can be processed within ten (10) working days from the submission of complete documents.
Q: Where to submit application form/requirements? A: You may apply and submit at any PSBank branch near you and you will experience the same friendly service and fast processing at any of our branches. Q: What does the bank consider in approving loan applications? A: Our Credit Department does their standard evaluation and some of the things considered are: 1. Your capability to repay the loan 2. Character, no derogatory record related to credit 3. Business condition 4. The offered collateral Q: What is the basis of the interest rates and interest rate review period? A: Prevailing SME BCL rate, reviewable every 21st of the month Q: What are the interest due dates? A: Every 10th of the succeeding month Q: If due date falls on Sat., Sun. or Holiday, when am I going to pay? A: You can pay your due on the next banking day without penalty charges. Q: How much is the penalty rate for late payment? A: 3% per month of the amount due Q: Can I pay the loan before its maturity? A: Yes and the payment will revert as an available credit line.