Small and Medium Enterprise Loan

Small and Medium Enterprises (SME) Loan (as of January 2011)

Product Description
SME loan is a financing package geared towards business enterprises engaged in industry, agri-business and/or services requiring cash funding to be used for various business related purposes.

Why will an SME need this Loan?
 Additional working capital
Business Expansion
Purchase of equipment, machinery or property business use
Putting-up Franchise business
Start up a new business
Purchase a property for business use

How much can an SME borrow?
50% of the appraised value but not to be exceed Php5 Million and not less than Php200,000.00 

What properties can be assigned as collateral?
 Vacant lot
House and Lot
Commercial Building with Lot

How much is the interest rate?


Term
(Months)

Monthly Add-on Rate

Cumulative
Add-on Rate

Effective Rate
12
1.44%
17.26%
30.45%
18
1.40%
25.16%
29.73%
24
1.39%
33.38%
29.34%
36
1.41%
50.80%
28.95%

Why AMA Bank?
AMA Bank rates are more competitive than private lenders (3-5% add-on rates) or Credit Cars companies (3.0-5.0% monthly add-on rate)
Other banks only allows a minimum loan of Php 1M which is too much for most SMEs

What are the documentary requirements?

General Requirements:
Photocopy of 2 valid IDs with photo and signature (i.e., passport, driver’s license, company ID, etc)
Bank Statements for the last 6 months
Copy of TCT/CCT       
Updated Tax Declaration & Real Estate Tax Receipts

Additional Requirements

FOR THOSE EMPLOYED
Photocopy of latest Income Tax Return (ITR) or W-2 Form/BIR Form 2316
Latest one month payslip or certificate of employment and compensation

FOR BUSINESS OWNERS/SELF-EMPLOYED
SME Loan Application Form
Business Registrations/Permits
SEC Registration/DTI registration
Articles of Incorporation/Partnership and By-laws
Financial Statements (last 3 years: In-house and Audited Statements)
Company Profile or History of Business
Income Tax Return (for the last 3 years)
Bank Statement for the last 6 months

OVERSEAS WORKERS
Contract of Employment/Certificate of Employment
History of Employment/Latest Crew Contract (if Applicants is seaman)

OTHER SOURCE OF INCOME
If applicable, documents showing proof of rental income, interest income, regular receipt of remittances.

Appraisal Fee
                Properties within Metro Manila – P 4,000.00
                Properties outside Metro Manila – P 6,000.00


Sample Computation


YEARS
5
4
3
2
1
LOANS AMOUNT
              
   1,000,000.00
              
   1,000,000.00
              
   1,000,000.00
              
   1,000,000.00
              
   1,000,000.00
MONTHLY ADD-ON RATE

1.41%

1.41%

1.41%

1.41%

1.41%
INTEREST RATE (EY)

27.39%

28.14%

28.95%

29.72%

29.89%
TERM IN YEAR
5.00
4.00
3.00
2.00
1.00
MONTHLY
30,766.67
34,933.33
41,877.78
55,766.67
97,433.33







- ooo -