Advisory BSP Memorandum No. M-2020-074. Read here.

Retail Lending for Micro and Small Enterprises (RLM)

The Retail Lending for Micro and Small Enterprises (RLM) is a retail lending facility that aims to enhance micro and small enterprises’ (MSE) access to credit through simplified loan procedures and shorter turnaround time.

Eligible Borrowers

Any duly registered MSEs of good standing with legal personality to engage in a business enterprise with asset size of not more than P 15 Million with loan requirements of not more than P 10 Million.

Eligible Loan Purpose

  • Working Capital (short-term or permanent)
  • Fixed asset acquisition
  • Purchase Order (PO) / Letter of Credit (LC) financing
  • Acquisition of Franchise

Loanable Amount

  • For regular loans, up to 90% of the Total Project cost (TPC)
  • For PO/LC financing, the loans shall be up to 80% of the total amount of the instrument or based on actual cost of the goods purchased
  • Acquisition of franchise up to 70% of the cost of franchise purchases.

Loan Tenor

Based on enterprise development period but not to exceed 10 years, payable based on business cash cycle

Interest Rate

Prevailing interest rate

Grace Period

Maximum grace period of three (3) years on principal for projects with short gestation period and five (5) years on principal and interest on long gestating projects.

Collateral Security

Any or combination of the following:

  • Real Estate Mortgage and Chattel on Transfer Certificate of Title (TCT) and Equipment
  • Mortgage on Tax Declaration/CLOA and Original Certificate of the title (OCT)
  • For PO/LC Financing, a Deed of Assignment on Irrevocable PO/LC is accepted provided the term shall not exceed its expiry date.
  • Other alternative collaterals such as postdated checks (PDCs), assignment of contracts/receivable/inventory, guarantee/surety cover etc.

Documentary Requirements

  1. General Requirements
    • Letter of Intent
    • Application Form (DBP Form)
    • Customer Record Form (DBP Form)
    • Confidential Information Sheet (DBP Form)
    • Certificate of Business Registration (from DTI/SEC/CDA/DOLE)
    • Business Permit (from LGU)
    • Income Tax Returns for the past three (3) years (if applicable)
    • Financial Statements for the latest three (3) years (if applicable)
    • Statement of Assets and Liabilities and Networth (if applicable)
    • Bank Statement for the last three (3) months
    • Business Plan, to include projected income statement and cashflow
    • Authority for the Bank to conduct inquiry and provide credit information to/from credit bureaus and other banks/credits (DBP Form)
  1. Specific Requirements for Corporations and Cooperatives
    • Latest General Information Sheet
    • By-Laws and Articles of Incorporation/Cooperation
    • Board Resolution and Secretary’s Certificate authorizing the loan, indicating the authorized signatories

For inquiries, feel free to contact:

Joseph Angelo Diamante
Program Development and Management II
(02) 818-9511 local 2330
pdm2@dbp.ph

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