Small and Medium Enterprise Loan

Small and Medium Enterprises (SME)  Loan (Jan. 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 Php 200,000.00

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 RateCumulative Add-on RateEffective Rate
121.44%17.26%30.45%
181.40%25.16%29.73%
241.39%33.38%29.34%
361.41%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

 
Months36241812
LOANS AMOUNT100,000.00100,000.00100,000.00100,000.00
less (Service Charge):5.95%5,950.005,950.005,950.005,950.00
Net Proceeds94.050.0094.050.0094.050.0094.050.00
Monthly Amortization3,069.444,458.335,847.228,625.00
Total Interest10,499.846,999.925,249.963,500.00
Annual Interest3.50%3.50%3.50%3.50%