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Is RCBC Savings Bank’s My Biz Loan Simple Enough for Pinoys?

Filled under: Borrow Business 

RCBC Savings Bank's My Biz Loan is an SME loan giving entrepreneurs with three loan options depending on their preferences and purpose. These short term secured loans address the usual small and medium business needs of Filipinos.

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RCBC Savings Bank's My Biz Loan

RCBC offers SME loans with the minimum amount of P1million while the maximum loan amount is 60% of appraised value (AV) of the collateral since these loans are secured loans.  An individual client must be a Filipino citizen of legal age but not older than 65 upon the maturity of the recent loan. As for a corporation, 60% must be owned by Filipinos with at least three years of successful business operations.

The acceptable collaterals are residential, commercial and industrial properties which can either have improvements or none. Aside from the real estate mortgages, RCBC also accepts deposit placements, Joint and Several Signatures of principal officers on bonds, shares and stocks, and machinery, equipment and inventory. If you are a startup and you do not have any collateral, then this loan is not fit for you.

Aside from the usual personal, income and trade documents which clients have to submit, they also have to include a photocopy of the passbook of all the client’s banks for the last six months. Automated transfer accounts are not counted. The applicant must also present the credit card bills for the latest three months. If you do not have a credit card, then you can’t get the SME loan. Utility bills must also be included with proofs of payment.

Credit Line and Accounts Receivable Purchase Line

With Credit Line, the entrepreneur can get a loan with a promissory note covered by a collateral which has been approved by the bank.

On the other hand, the client can also use the Accounts Receivable Purchase Line. This means that aside from the real estate as a collateral, post-dated customers’ check can also be used. Simply said, if you have customers who haven’t paid yet which causes your company to get stuck, RCBC can give you a loan based on the unpaid invoices in faith that your customers will eventually pay. Newer checks are preferable than the old ones.

This SME loan may be paid in a year and can be renewed annually and the interest can be paid in advance while the principal loan can be paid later before the maturity of the loan.

Domestic Standby Letters of Credit

The Domestic Standby Letters of Credit means a letter issued by a bank in your behalf to increase your creditworthiness. This may also mean that your bank will be responsible for your credit in case you become incapable of paying up. Issuance Fee with the minimum amount of P2, 000 or 1/8 of 1% of certificate's amount multiplied by the number of months which the certificate will be valid. This loan is usually used for additional working capital or acquisition of additional equipment for more production.

Term Loan

This loan is used to finance business expansion, construction, renovation, and acquiring fixed assets. You can apply for a loan which can expand up to seven years, however, if your purpose is construction, the actual building must not exceed a year of construction. You must provide an illustration or vicinity map of the location.

Depending on the bank’s approval, you can pay only the interest for the first year or during the time of construction. The principal loan can be paid a year after the drawdown date.

Trade Reference

Whichever you are going to use as your SME loan, you must remember that you must list all of you major suppliers and customers with their contact persons and contact details. If you are a type of a conservative entrepreneur or your customers are, then you must brave to ask them if you can give their details to the bank. Also, if your business needs does not even reach P1, 000,000, then it is better to opt for another option. Remember that as a golden rule of borrowing, you only must borrow what you need and the amount you can confidently pay to avoid further financial dilemma.

RCBC Savings Bank's My Biz Loan may be complicated for small to medium enterprices if you are unable to meet the requirements. If you need quick cash loan for immediate minor business needs? You can get a loan from Cash Mart today.

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