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Getting Started
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Go through the loan application process of the bank you chose. |
Submit the various documentary requirements and go through interviews and credit investigations:
- Application forms
The forms vary according to the bank but the following information
are usually asked: name, address, telephone number, legal form and
nature of the business; registration with government business registries
(such as the Securities and Exchange Commission, the Department of
Trade and Industry, or the city or municipal government); product
lines; amount of capitalization; names of owner/partners/stockholders;
type, amount, and purpose of loan applied for; and description of
collateral offered.
- Documentary requirements
The requisite papers should preferably be prepared before applying
for a bank loan. Incomplete documents can cause delays. The following
documents are commonly asked for:
- Residence certificate, taxpayers' identification number, BIR-stamped
tax declaration for the past three years, financial statement
for the past three years, bank and grade references.
- Mini business plan or project feasibility study, especially
for borrowers who are just starting in business. The business
plan basically contains a forecast in terms of money of what the
business is going to be like for each month of a given year. It
gives estimates of production expenses and expected sales revenues.
- Business registration papers. For single proprietorships, registration
with the Department of Trade and Industry and with the municipal
office. For partnerships, articles of partnership and joint resolution
to borrow. For corporations, SEC-certified articles of incorporation
with by-laws, board resolution to borrow, and stockholders’ biodata.
For cooperatives, registration with the Cooperative Development
Authority.
- Papers pertaining to collateral. For real estate mortgage, copy
of TCT, location plan with vicinity map, tax clearance, tax receipts,
tax declaration, insurance, floor plan or pictures. For chattel
mortgage, invoice with official receipt for payment of chattels,
registration certificates, insurance, L/C evidencing payment in
case of imported equipment. For exporters, letters of credit,
confirmed purchase orders and sales contracts.
Be sure you understand all these documentary requirements clearly. Ask
for a checklist and go through each requirement carefully with the loan
officer assigned to you. Know the documents required – in what form (original
or certified true copy) and in how many copies. Don’t hesitate to ask
questions and clarifications.
Personal Interview
The purpose of the interview is to gather information in order to establish your creditworthiness as a prospective borrower. Again, this is an opportunity for raising questions which you have in mind.
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Read about DBP's 1-2-3 easy steps to apply for a loan.
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