For most Filipinos who want to augment their income, setting up a business and eventually becoming their own bosses is the goal. But it’s no bed of roses, especially when you’re not sure how to fund your day-to-day operations, replenish your inventory, or expand your business.
Thankfully, there are loans, such as a BPI Business Loan, to help finance your business operations. In this article, learn about the different BPI Ka-Negosyo Loans, loan requirements, and application procedures.
What is BPI Ka-Negosyo Loan?
In an effort to help small-to-medium enterprises (SMEs) in the Philippines overcome business challenges and take advantage of emerging market opportunities, the Bank of the Philippine Islands (BPI) introduced a new loan program in 2022 called the Ka-Negosyo Loan.
SMEs seeking business funding through BPI can leverage the Ka-Negosyo Credit Line, Ka-Negosyo SME Loan, Ka-Negosyo Ready Loan, and Ka-Negosyo SME for Property Loan.
🤔 BPI Ka-Negosyo Loan vs BPI Personal Loan: What is the Difference?
You’re probably wondering: why apply for a business loan when you can just get a personal loan? Even if they can serve the same purpose, the BPI Ka-Negosyo Loan and the BPI Personal Loan are pretty different. Check out this comparison table below:
Read more: Startup Business Loans: An Entrepreneur’s Comprehensive Guide
BPI Business Loan: 4 Options to Fund Your SME Needs
📌 Ka-Negosyo Credit Line
- Loan amount: Starting at ₱1 million
- Loan term: One year (renewable)
- Interest rate: Based on prevailing market rates
- Collateral: Optional (deposit, investment, or real estate mortgage)
This BPI Ka-Negosyo Loan is ideal for funding working capital requirements or recurring business expenses such as raw materials, finished goods inventory, utilities, employee wages, sales and distribution costs, and equipment repair or maintenance.
Business owners can also use this BPI SME loan anytime for their short-term financial needs.
Instead of receiving a lump sum, you get a BPI Ka-Negosyo Credit Line. You can borrow fully or partially from your credit line. Any unused credit line will not earn any interest charges.
Enjoy fast approval for your application. Moreover, you can receive the loan proceeds conveniently via check, the BPI Mobile app, or your BPI Debit Card.
📌 Ka-Negosyo Ready Loan
- Loan amount: Starting at ₱300,000
- Loan term: Up to six months
- Interest rate: Based on prevailing market rates
- Collateral: None
Another SME business loan from BPI is the Ka-Negosyo Ready Loan, offered to small and medium-sized enterprises to help fund their seasonal working capital requirements. Use it during peak business seasons or harvest seasons to stock up on holiday inventory or supplies.
It offers flexible repayment terms and lower rates for your succeeding Ka-Negosyo Ready Loans.
📌 Ka-Negosyo SME Loan
- Loan amount: Starting at ₱300,000
- Loan term: Up to five years
- Interest rate: Based on prevailing market rates
- Collateral: Optional (deposit, investment, or real estate mortgage)
If you plan to grow your business, you can benefit from the Ka-Negosyo SME Loan. Avail of this loan to fund your working capital, purchase new equipment, or expand your product lines.
Application is fast and convenient; you can apply with or without collateral.
📌 Ka-Negosyo SME Loan for Property
- Loan amount: Starting at ₱1 million
- Loan term: Up to 10 years for construction or renovation, up to 20 years for acquisition
- Interest: Based on prevailing market rates
- Collateral: Real estate mortgage
This is similar to the Ka-Negosyo SME Loan. But this BPI business loan is for investing in your business through the purchase or construction of assets.
Enjoy fixed-rate interest pricing and up to 90% loan-to-collateral ratio with this BPI Ka-Negosyo Loan. As such, you must provide additional requirements and collateral for your property acquisition or construction loan.
If you’re not sure what type of BPI Business Loan works for your small business, you can answer the Ka-Negosyo Loan Finder[1] online.
Read more:
- Need a Small Business Loan? DTI Offers Several Options
- Starting a Business? Here’s Your Guide to Esquire Financing Business Loan
BPI Ka-Negosyo Loan Requirements
To qualify for a BPI Negosyo Loan, you must meet the following criteria:
- Filipino citizen
- At least a year of Philippine resident tenure
- Business operations of at least three years
You can further check your eligibility for a BPI Ka-Negosyo Loan by answering the Eligibility Checker.[2]
Are you eligible? Have you found the right loan product for your business? Then prepare the following BPI business loan requirements.
👉 Requirements for Individuals and Sole Proprietors
- Accomplished loan application form[3]
- Valid ID of borrower and spouse, if applicable
- DTI Registration or Business Permit
- Bank statements for the last three months
- Income Tax Return (ITR) for the last three years
- Audited Financial Statements (AFS) for the last three years
- For Ka-Negosyo Credit Line: Collateral documents
👉 Requirements for Partnerships and Corporations
- Accomplished loan application form
- Valid IDs of majority shareholders or authorized signatories
- SEC Registration
- Bank statements for the last three months
- Income Tax Return (ITR) for the last three years (if aggregate loan exposure is higher than ₱3 million)
- Audited Financial Statements (AFS) for the last three years (if aggregate loan exposure is higher than ₱3 million)
- Latest General Information Sheet
- Articles of Incorporation/Partnership and By-Laws
How to Apply for Ka-Negosyo Loan in BPI
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There are several ways to apply for a BPI Business Loan. You may apply through any of the following:
- Online - Enter the Unique ID sent to your email when you answered the Eligibility Checker or Ka-Negosyo Loan Finder and then fill out the loan application form.
- Branch visit - Go to any BPI branch and apply personally.
- Telephone - Call (02) 7918-2000 and select option 2 for Business Loans.
- Email - Send an email to bbclientservices@bpi.com.ph.
Related reading: Smart Tips to Get Approved for a Business Loan
Final Thoughts
Explore these BPI business loan options to see what works best for your business needs. While you’re at it, you might want to consider taking out a personal loan, which can be a good source of funding for SMEs as well. Compare them for free and apply for a personal loan easily via Moneymax.
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