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

Eligible Sectors

• • Infrastructure and logistics
  • Social services
  • Environment
  • Agriculture and agri-business
  • Hotels and Restaurants
  • Manufacturing
  • Wholesale and retail trade

Eligible Borrowers

• • • Any duly registered MSEs of good standing in the community
      – Single Proprietorship

 

• • • – Partnership

 

• • • – Corporation

 

• • • – Cooperative

 

• • – Other entities with legal personality to engage in a business enterprise
  • Medium Enterprise (ME) with asset size of more than PhP15.0 million up to PhP100.0 million and Loan Requirement up to PhP100.0 million
  • Other Business Enterprise (OBE) with asset size of more than Php3.0 million up to PhP15.0 million and loan requirement of more than PhP10.0M

Eligible Loan Purpose

• • Working Capital (Short-term or Permanent)
  • Export financing
  • Fixed asset acquisition
  • Purchase Order (PO) / Letter of Credit (LC) financing
  • Franchise Acquisition
  • Re-lending scheme for cooperatives

Loan Amount

• • For ME loans, up to 80% of project cost, depending on fund source and borrowing capacity
  • For OBE loans, up to 90% of project cost, depending on fund source and borrowing capacity
  • For franchise, up to 70% of total project cost

Interest Rate

Prevailing market rate (fixed or variable)

Loan Repayment Term

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

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