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.