MANILA - Bank of the Philippine Islands said Wednesday it is offering collateral-free loans to small and medium enterprises through its Business Banking segment, in cooperation with the Department of Trade and Industry.
Besides not requiring collateral, the term loan also has minimal document requirements and fast turn-around time.
“It is offered to businesses that have been profitable for at least three years, with owners residing in their present residence for at least two years,” BPI said in a statement.
The Ayala-led bank said the loan for SMEs signifies the bank’s commitment to usher business owners who have endured the effects of the pandemic in the past months to sustainable recovery.
“Through this loan, the bank is optimistic that we will be able to provide more and better opportunities for SMEs to move forward,” said BPI Business Banking Head Eric Luchangco.
SMEs may use the loan for various purposes such as building up their inventory, adjusting or improving their operations, and adding manpower, BPI said.
DTI earlier said small businesses were reluctant to borrow because of low confidence in the health of the economy.
The Bangko Sentral ng Pilipinas said bank lending also contracted in recent months despite record low interest rates as new lockdowns imposed to rein in a fresh surge of COVID-19 cases dampened market sentiments.