Advisory National Observances for the Month of April. Read here.

Medium Enterprise (ME) and Other Business Enterprise (OBE) Lending

The Medium Enterprise (ME) and Other Business Enterprise (OBE) Lending (ME+OBE) is a lending facility that aims to enhance small and medium enterprises (SMEs) access to credit through simplified loan procedures and shorter turnaround time.


Eligible Borrower

Any duly registered SMEs of good standing with legal personality to engage in a business enterprise.

Medium Enterprise – with asset size of more than P 15 Million up to P 100 Million and loan requirement of up to P 100 Million

Other Business Enterprises – with asset size of more than P 3 Million up to P 15 Million and loan requirement of more than P 10 Million

Eligible Loan Purpose

  • Working Capital
  • Export Financing
  • Fixed asset acquisition
  • Purchase Order (PO/Letter of Credit (LC) Financing
  • Franchise Acquisition
  • Re-lending for cooperatives

Loanable Amount

  • For OBE loans, up to 90% of project cost
  • For ME loans, up to 80% of project cost
  • For franchise, up to 70% of total project cost

Loan Tenor

Based on cash flow but with the following limits:

  • Export Packaging Credit – up to 180 days
  • Production Credit – up to one (1) year
  • Permanent Working Capital – up to five (5) years
  • Capital Expenditures – up to 10 years

Interest Rate

Prevailing interest rate

Grace Period

Maximum grace period on principal shall not exceed one (1) year for working capital and three (3) years for fixed asset acquisition/building construction

Collateral Security

Any or combination of the following:

  • Real Estate Mortgage/ Chattel Mortgage
  • Assignment of life insurance and mortgaged properties insurance proceeds
  • Hold-out on deposit
  • Co-makership or suretyship
  • For export packing credit, assignment of letter of credit (LC)/ confirmed Purchase Order (PO) or sales invoice or assignment of project income
  • Guarantee from acceptable government agencies/corporations

Documentary Requirements

  1. General Requirements
    • 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)
    • Business Plan, to include at least 2 years of projected income statements and cash flows
    • Statement of Assets and Liabilities and Networth (if applicable)
    • Bank Statement for the last three (3) months
    • 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

Download Brochure

For inquiries, feel free to contact:

Joseph Angelo Diamante
Program Development and Management II
(02) 818-9511 local 2330