Start Up Business Loan Without Collateral Philippines: Is it possible to obtain a start up business loan without collateral in the Philippines? Today will be answering this question by exploring the topic of SME business loans in the Philippines, government loans for small businesses in the Philippines, and much more. So let’s look at some of the banks and non-banks that offer start up business loans in the Philippines without collateral.
Banks That Offer A Start Up Business Loan Without Collateral Philippines
Security bank is our first bank in the Philippines that offers a startup business loan without collateral. The name of the financial product is called the SMEs business express loan. The loan amount is between 1 million to 5 million pesos with a loan payment term of anywhere from 12 to 36 months. The loan term will affect the interest rate, which begins at 1.50% for 12 months.
BDO offers a similar small business loan in the Philippines without collateral. Their loan name is simply BDO SME loan. The loanable amount is 1 million to 20 million pesos. However, the interest rate varies due to the amount of money borrowed. Therefore you will find a substantial difference in the interest rate between borrowing 1 million pesos and 20 million pesos.
The third banking option that offers start up business loans in the Philippines without collateral is from LandBank. There are several loan options, each with different amounts, requirements, and interest rates. However, I have added the relevant page above for your reference as a point of interest.
Non-Banks That Offer A Start Up Business Loan Without Collateral Philippines
DTI Small Business Corporation
Suppose you are looking for government loans for small businesses in the Philippines or alternative options for a startup business loan in the Philippines. In that case, DTI may be an option you wish to consider. There are several different branches and possibilities available for entrepreneurs; therefore, we have broken these down into 3 simple options below.
Options 1. Bayanihan Cares
The first option is suitable if you are looking for COVID loans for small businesses in the Philippines. The loanable amounts range from 10,000 pesos up to 5,000,000 pesos. The great news is when applying for this government business loan in the Philippines, there is no interest, but there is a one-time payment of 8% for a four-year term loan.
Option 2. Helping the Economy Recover through OFW Enterprise Startups (HEROES)
The next option offers a loan between 10,000 pesos to 100,000 pesos. Therefore this loan is more suitable for small businesses in the Philippines. Moreover, borrowing up to 100,000 pesos is also collateral-free making it an excellent small business loan without collateral in the Philippines. However, fees are included for longer loans, such as 24 months and 36 months.
Option 3. Pondo para sa Pagbabago at Pag-asenso (P3): Business Loan
The third small business loan in the Philippines is another government-funded source. This type of loan aims to help the smallest entrepreneurs across the country by providing loans with an interest rate of only 2.5% per month. Lenders can borrow anywhere from 5,000 to 200,000 pesos depending on the payment ability of the entrepreneur.
AsiaLink Finance Corporation
AsiaLink offers some outstanding small business loans in the Philippines without collateral and is also another option available if you are looking for SME loans with no collateral in the Philippines.
Seafarers Non-Collateral Loan Requirements
Asia Link highlights just how straightforward their process is. Some of that is that they can offer small business loans for start-ups in the Philippines without collateral. As a result, they are fairly flexible compared to COVID business loans in the Philippines and other small business loans in the Philippines. However, some requirements can affect how much you can borrow.
This loan type is also fairly flexible. This can help you start up a business in the Philippines, but the loan can also help you own your own house or can be used to support your child’s education. However, 1 disadvantage is that you will need to prove that you can repay the loan financially. If you launch a startup or small business in the Philippines, this may be slightly challenging.
What Are The Requirements Of A Small Business Loan In The Philippines
The requirements to obtain a small business loan in the Philippines will differ from provider to provider. Nevertheless, most government-funded projects and private loan companies in the Philippines require identification, proof of earnings, proof of address, and, finally, financials of the business.
The data shows that government-funded loans are for much smaller amounts (such as 10K, 50K, 100K, etc.) than private loan companies and banks. Additionally, government-funded loans also have a lower interest rate on average. Therefore business owners may find it less challenging to apply with government-funded loans compared to private loan providers.
What Is The Best Non-Collateral Business Loan In The Philippines
Through research and data gathered, government-funded loans such as the DTI Small Business Corporation offer the best rates of interest with flexible terms. These are also tailored towards smaller businesses and start-up businesses, resulting in the best non-collateral business loans for start-ups and small businesses in the Philippines.
Naturally, personal circumstances will have an impact on what the best non-collateral business loan is in the Philippines for you. for example, if you need to borrow 5,000,000 pesos to grow your business, then banking products such as business loans offered by security bank, BDO, and landbank offer some fantastic options.
Is Obtaining A Non Collateral Business Loan In The Philippines A Good Idea
Whether to obtain a non-collateral business loan is a good idea or not will come down to the business and the individual. Leverage (financial and non-financial) is essential in business growth; however, careful consideration and calculation should always be made before obtaining any business loan in the Philippines with or without collateral.
It may be wise to contact a local business expert or financial advisor when obtaining an SME business loan or a non-collateral business loan in the Philippines. In addition, if you are obtaining a government-funded loan in the Philippines, several agents will be able to assist you further.
|Bank & Non-Bank||Loan Name||Loan Amount||Loan Payment Term||Loan Time||Loan Rate|
|Security Bank||SME Business Express Loan||Php 1M – Php 5M||12, 18, 24, or 36 months||12 Months||1.50%|
|BDO||SME Loan||Php 1M – Php 20M||please try their SME Loan calculator for quick computation|
|Landbank||General/Small & Medium Enterprises (many options to choose from)|
|DTI Small Business Corporation||BAYANIHAN Cares||Php 10,000 – Php 5M||No interest but w/one-time payment of 8% for a 4-year term loan|
|Helping the Economy Recover through OFW Enterprise Startups (HEROES)||Php 10,000 – Php 100,000||12 months grace period|
|Pondo para sa Pagbabago at Pag-asenso (P3): Business Loan||2.5% fixed rate every month|
|AsiaLink Finance Corporation||OFW Non-Collateral Loan Requirements||Will not exceed a million|
|Seafarers Non-Collateral Loan Requirements|
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