Guide on Producers Bank SME Loan Application Process
PRODUCERS BANK SME LOAN – Here is a guide on the features of this business loan offer of the Producers Savings Bank and how to apply for it.
There are countless banks in the Philippines and there are those with hundreds of branches across the nation. One of them is the Producers Savings Banking Corporation or more popularly called Producers Bank.
The Producers Bank has at least 253 branches across the nation. It offers different kinds of deposit accounts, loans, and electronic banking services. One of the loan offers of the bank is the Producers Bank SME Loan or the Pang-Negosyo Loan.
The said business loan offer is designed to provide for a financial solution for working capital boosting or the expansion of projects. It is a collateral loan offer which will be “adequately secured by at least 2:1 ratio by REM on agricultural, commercial and residential lots”.
Who are qualified to apply for the Producers Bank SME Loan? Here are the qualifications set by the bank under the loan offer:
- owners of small & medium business establishments
- palay trader/rice miller, grocery/bakeshop, poultry and agri-supply, agri-machinery and equipment supply
- hardware and electrical supply, computer equipment and supply store, steel fabrication shop, aluminum and glass supply
- bookstore/school supply, printing press, drug store, boutique, tailoring/dress shop, furniture shop, auto/motorcycle spare parts supply/repair shop
- meat shop, restaurant, internet café
- bicycle store, used car dealer, gas station, antique shop
- cottage industries – makers of toys, children’s dresses/decors, processed foods, bamboo/rattan products, etc.
- medical/dental/optical clinics, kindergarten and other schools
- pawnshops, water refilling stations, travel agencies, flower shops
- SMEs engaged in food, construction, service and agricultural industries registered in areas where bank is located
- stable business and profitable for the last two (2) years
- has acceptable/adequate collateral
Under the Producers Bank SME Loan, a business owner may borrow over Php 1 million “depending on the capitalization requirements and cash flow of the project”. The interest rate is based on the prevailing interest rate at the time of the loan application.
To apply for the loan offer, there are a few documents required by the Producers Bank for submission. Here are the documents required in applying for the business loan offer:
- Business permit/DTI Registration/NFA license
- TCT/fully paid EP/OCT
- Audited FS and ITR (comparative for at least three years)
- Tax Declaration with tax receipt for current year and tax clearance
- Location plan with vicinity map
- Barangay and Court Clearance
- Bank Statements from other banks
- CTC of borrower
- CASA with Producers Bank
- Mortgage Redemption Insurance (MRI) assigned in favor of Producers Bank