Metrobank Business Loan: Facts You Need to Know
Got a business in mind?
Every business needs cash to get kick-started. Along the way, you will still need more cash to supplement arising needs.
More than 90% of the registered businesses with the Department of Trade and Industry (DTI) are SMEs. And since these ventures would need a loan to expand, various loan products have been created for their needs.
Metrobank is one of the banks which developed a loan product, especially for SMEs. However, you must take the time to know these facts to see if this is the best loan option.
Metrobank Business Loan
Credit: Metrobank
Metrobank offers three business loans: SME Credit Line, SME Short-term Loan or Straight Loan, and Long-term Loan. These loans are secured loans. You will need to present collateral. Each one is used for different needs and purposes.
Straight Loan
A Straight Loan is for short-term funding, which can be a minimum of P1 Million up to P20 Million. The loan is payable for one year or up to 60 days.
Long-Term Loan
The Long-term Loan is used to acquire a property for business expansion, renovation, equipment purchasing, or to finance a new franchise. The loan term can stretch up to seven (7) years. You can borrow at least P1 Million up to P20 Million.
Credit Line
A Credit Line can be an option if you are looking for working capital since you can easily access it a couple of times a year. A credit line is renewable every year. Most entrepreneurs use this to bridge the gap between receivables and expenses.
Metrobank Loan Requirements
Though there are a lot of banks that offer loans to SMEs, Metrobank has its own list of requirements.
Personal and Business Identification
- Duly Accomplished Business Loan Application Form
- One government ID
- Business Registration Certificate or Permit
- Proof of Billing
Financial Documents
- Income Tax Return (ITR) for the last three (3) years
- Audited Financial Statement for the last three years
- Bank Statements for the last six months
Collateral Documents
- Owner’s Duplicate Copy of Transfer Certificate of Title
- Certificate of Placement
- Tax Declaration
- Vicinity Map, Lot plan, and Bill of Materials for construction.
Metrobank Loan Calculator
Loan calculators are very handy. You can easily know how much you can borrow, the number of months or years you can choose to stretch your term, and the payment method.
Once you click the “Calculate” button, you will be shown how much you have to pay each month should the loan amount you choose be approved.
Why is a Metrobank calculator important? You can easily see if you can handle the monthly payments at ease.
Metrobank Business Loan Interest Rate
The interest rate is the amount charged in terms of percentage. The usual interest rate is expressed on an annual basis. Most Filipinos compare loans based on interest rates because this can easily tell which one could cost more in the long run.
However, Metrobank’s business loan interest rate is not shared on its online site. You have to inquire about the bank and give your personal and business details first.
While the interest rate is an important factor to consider, you also have to take a look at other things. Check other fees and charges, penalties, loan term, loan amount, the loan process, and needed collateral documents.
Metrobank Business Loan Fees and Charges
Metrobank does not charge a processing fee. However, you have to pay the appraisal fee on the collateral and the notarial fee on the loan documents.
On the other hand, be prepared for the tedious paperwork and other fees you must shed for the required documents.
Benefits of Metrobank Business Loan
Business loan in Metrobank is indeed beneficial to its borrowers for these reasons.
- Metrobank offers you three choices depending on your business needs. You have to choose specifically based on your purpose.
- Also, Metrobank does not charge a processing fee. Most banks charge non-refundable administrative fees.
Limitations of Metrobank Business Loan
However, you have to be aware of the restrictions Metrobank loans offer.
- If you have a micro business, you have to look at other options since the minimum loan amount for the Metrobank Business Loan is P1 Million. If this amount is too high, consider other loans.
- Consider a personal loan if you need cash for a sudden business need. Metrobank Business Loan takes at least 15 banking days upon submission of the complete required documents. This is more than two weeks.
- You need collateral to apply for a loan. Not all business owners can have property they can use as collateral.
Consider a personal loan if you just want to put up micro or small business for another source of income. Cash Mart offers multi-purpose personal loans, which you can instantly receive just a day after completing simple requirements.
Visit CashMart.ph or call (02) 829-0000 to find out more.
