The AFPSLAI business loan has a loanable sum ranging from ₱300,000 to ₱5 million. However, it should only be equivalent to the borrower's genuine need, 70% of the property's fair market value, or the amount appropriate to the borrower's paying ability, whichever is the lowest. The loan period spans from one to five years.
How to apply for the AFPSLAI business loan?
Follow the below steps to apply for the AFPSLAI business loan:
Visit the AFPSLAI branch that is most convenient for you.
Obtain, complete, and submit the AFPSLAI business loan application form and prerequisites.
If the provided papers meet all requirements, the loan specialist will proceed with the loan procedure (new/renewal).
The lending specialist will recommend that the loan be approved.
The loan expert will be required to submit loan release conditions after approval.
The borrower will get their loan funds if all loan release procedures are followed.
Requirements
Below are the eligibility and needed documents to be qualified for this loan:
Eligibility
Except for corporate members who are the registered proprietors (or one of the partners, as the case may be) of the company for which the loan profits are to be utilized, all regular and associate members in good credit standing are eligible. A member in good credit standing has no delinquent/past due loans on their record, has met the minimum needed balance for CCA and has no inactive savings bank account.
Documents
- Fully completed application form.
- Two copies of the borrower's current photo IDs from the primary applicant, owner, or authorized signatory.
- Latest ITR must bear a BIR stamp.
- Audited financial statements for the last year.
- Last three-month bank account statement.
- GIS and legitimate DTI/SEC registration papers, depending on your occupation.
- List of customers or suppliers and information about their transactions.
- Board or partnership resolution (authorizing signatory for accounts and loan, credit investigation on both the business and owners).
- Customers will receive templates at the loan application time to help them prepare for the loan decision, including the continuing suretyship agreement (for self-employed lenders).
- Mayor's Permit.
Pros and cons
Before deciding whether to apply for a business loan, members must constantly weigh the advantages and disadvantages of doing so. Below are some honest pros and cons of the AFPSLAI business loan.
Pros
- This loan will help hasten the expansion of your company.
- The loan can be applied to resolve cash flow problems.
- The loan calculator could be used to determine the potential cost of your loan.
Cons
- If you get behind on payments, you risk losing assets.
- The organization will investigate your loan history before approving a loan.
- The loan lacks term flexibility.
How to repay the AFPSLAI business loan?
Acceptable payment methods include salary/pension deduction and auto debit from the borrower's CCA/SDA02 account. This implies that auto debit must be enabled during the business loan application process.