Small and Medium Enterprise Loan


SME Loan is a financing facility intended to provide a wider scale of lending opportunities to Small and Medium Scale Enterprises (SMEs) to support the government’s thrust towards accelerating countryside economic growth and development


Purpose of Loan:

  • Acquisition of fixed assets
  • Building improvement/expansion or construction of plant facilities
  • Purchase of machineries/equipment
  • Acquisition of raw materials, supplies, etc.
  • Trading operations
  • Working capital requirements
  • Financing other areas of investment


Product Features
Loan Amount
Shall be determined based on the following, whichever is the lowest, viz:
a.) Borrower’s actual need / requirement;
b.) Paying capacity;
c.) Loan value against offered collateral; or,
d.) Single borrower’s Limit (SBL) of OFBank (formerly Postbank)
Loan Term
Up to a maximum  of ten (10) years, starting from date of availment
An approved loan shall have a validity of six (6) months from date of approval. The loan shall be considered cancelled if no availment was made within the validity period.
Mode of release

Direct credit to the borrower’s account maintained at OFBank (formerly Postbank), or thru issuance of Manager’s Check in favor of the borrower

Term Loan: Lump sum or in tranches depending on the nature and purpose of the loan / project to be financed.
Revolving Credit Line: Lump sum or partial availment as per client request
Interest RateBased on the prevailing posted lending rate of the Bank at the time of loan availment or as may be contracted or agreed upon by the Bank and the borrower, provided that such rate does not drastically deviate from the prevailing posted rate and is well above the break-even threshold of the Bank
Interest Repricing Monthly, Quarterly, Semi-annually, Annually and Fixed for the term
Mode of Repayment 
a.) Issuance of Post-Dated Checks (PDCs) covering all installments/ amortizations every repricing period; or,
b.) Direct debit from the borrower’s deposit account with OFBank (formerly Postbank); or,
c.) Over-The-Counter payment.
Term Loan: Monthly, quarterly, semi-annual or annual amortization (Principal and Interest). Grace period may be granted up to a maximum of one (1) year depending on approval
Revolving Credit Line:
Principal – lump sum payment upon maturity of PN, unless renewed; Ten percent (10%) partial payment of principal every PN renewal
Interest – collected in advance at drawdown date. Interest can also be collected in arrears if circumstances warrant 
CollateralReal property (vacant lot/ land, residential / commercial / industrial property or condominium unit) 


Fees and Charges
Application Fee₱1,000.00 / Not applicable for credit line renewals
Appraisal Fee
Within Metro Manila / Branch Area – ₱3,600.00 – 
Outside Metro Manila / Branch Area – ₱4,500.00 or actual whichever is higher
Note: A fee of ₱500.00 will be charged for every additional property within the same location



Bank Fees: 
Processing  / Service Fee1,000.00 or 1/10 of 1% of the approved amount whichever is higher but not more than ₱5,000.00
Handling Fee½ of 1% of the approved loan amount / Not applicable to credit line renewals
Third Party Fees: 
Documentary Stamp Tax₱1.50 for every ₱200.00 of approved loan amount
MRI: Based on the loan value
Fire: Based on appraised value of improvements
All Risks Insurance: Based on appraised value of improvements
     Notarial FeeDependent on the nature of the document and based on the prescribed IBP rates
Collateral Registration FeesDependent on the approved loan amount and standard Registration of Deeds (RD) fees


Commitment Fee½ of 1% of the undrawn balance, to be collected if no drawdown was made within the required period. Not applicable to Revolving Credit Line (RCL)
Pre-Termination Fee3% of outstanding balance terminated within the term of the loan
Penalty2% per month on amortization in arrears
Partial Release and Substitution of Collateral
1/10 of 1% of the appraised value of released/substituted collateral provided that the amount shall not be lower than 1,000 nor more than 5,000, to be collected prior to release of requested collateral.
Certification Fee
200 to cover cost of administrative expenses
Bank Guarantee – Fee½ of 1% of the total amount in the guarantee letter
Bank Statement – Fee
30 per page upon request of the client except the monthly statement issued by the bank


Minimum Qualifications / Eligibility
  • Sole proprietorship, Partnership, Cooperative or Corporation engaged in industry, agribusiness and/or services whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, have value falling under the following categories;
    By Asset size:
    • Small Enterprise – ₱3M to ₱15M
    • Medium Enterprise – ₱15M to ₱100M
  • If enterprise is single proprietorship or partnership, must be 100% owned and capitalized by Filipino citizens
  • If enterprise is a juridical entity, at least 60% of its capital or outstanding stocks must be owned by Filipino citizens
  • The enterprise must not be a branch, subsidiary or division of a largescale enterprise


Documentary Requirements
  • Completely filled-out application forms and other bank documents including Customer Information Sheet (CIS)
  • Business Registration/corporate papers
  • Financial Statements
  • Income Tax Return
  • Valid IDs of signatories


Contact Information

For more information, please feel free to call or visit your nearest or preferred OF Bank Branch.