7 DTI Loans for Small Businesses

Business Growth
August 19, 2022

Micro, small and medium enterprises (MSMEs) comprise 99.5% of businesses in the Philippines, employing at least 63% of our labor force. Sadly, despite these numbers, this sector suffers from a major lack of financing opportunities. 

To address this issue and stimulate MSME growth, the Department of Trade and Industry (DTI) – through their financing arm Small Business Corporation (SB Corp) – developed various DTI loans for small businesses. Aside from reviving businesses that were affected by the pandemic, these DTI business loans also provide special interest rates to SMEs in different industries and stages of growth.

Which DTI loans are included?

  • RISE UP Micro Multi-Purpose Loan
  • RISE UP Multi-Purpose Loan for SME First Time Borrowers
  • RISE UP Multi-Purpose Suki Loan
  • RISE UP Tindahan Loan
  • RISE UP Turismo Loan
  • HEROES Loan
  • Pondo sa Pagbabago at Pag-Asenso (P3) Program

What are the DTI business loan requirements?

DTI business loan requirements vary depending on the loan you are taking. Most require the following:

  • Valid ID
  • DTI loan application form (which you will fill out during the DTI online loan application process)
  • Business permits 
  • Proof of your business operations and assets
  • Corporate documents

Is DTI online loan application available?

DTI online loan applications are now available at SB Corp’s official website. Just create an account at their website, choose the small business corporation DTI loan that you would like to apply for, and complete the online DTI loan application form. After submitting your DTI loan application form, an SB Corp officer should contact you regarding your application.

Small Business Corporation (SB Corp) has account officers to contact MSMEs that apply for loans.

How much can I get from DTI small business loans?

DTI small business loans can provide you as much as ₱10 million for collateral financing and ₱5 million for non-collateral financing. However, the final amount of your DTI small business loan will vary depending on the following factors:

  • DTI loan you applied for
  • Your business’s financial standing
  • Collateral provided, if any

Do note that some DTI loans also have a one-time processing fee of up to 8% of your final loan amount.

What DTI loans are available for MSMEs?

1. RISE UP Micro Multi-Purpose Loan

Type of loan: Unsecured term loan
Who can avail:
Multi-sectoral micro-enterprises in business for at least 1 year
Maximum Loanable Amount:
Up to ₱300,000
Basis of Loan Amount:
Up to 20% of existing business asset
Loan Term:
Payable monthly up to 3 years
Interest Rate:
12% per annum
To acquire this small business corporation loan, you must submit:
  • Government-Issued ID
  • Barangay Certification for loans not more than ₱100,000
  • Barangay Micro Business Enterprise (BMBE) Certificate* or Mayor’s Permit for loans more than ₱100,000
  • Photos and video of business operations and assets
  • Corporate documents showing your business is operating for at least 1 year, if applicable

*A Barangay Micro Business Enterprise (BMBE) Certificate proves that you are a business entity with an asset size of not more than ₱3 million. Having one exempts you from paying income tax on your business income. It also gives your business access to special credit opportunities at DTI and other government lending institutions.

Pros and Cons

This DTI business loan is the most accessible to MSMEs due to its low entry requirements, long payment term, and affordable interest rate. However, the maximum loan amount can be low for SMEs that need the money for rapid expansion or bigger purchases.

2. RISE UP Multi-Purpose Loan for SME First Time Borrowers

Type of loan: Unsecured term loan
Who can avail: Multi-sectoral SMEs in business for at least 3 years
Maximum Loanable Amount: Up to ₱2 million
Basis of Loan Amount: 15% of prior year sales, based on BIR-filed FS
Loan Term: Payable monthly up to 3 years
Interest Rate: 12% per annum
This DTI loan requires the following:
  • Government-Issued ID
  • BMBE Certificate or Mayor’s Permit for loans more than ₱100,000
  • Pictures and Video of business operations and asset
  • Corporate Documents, if applicable
  • BIR-filed Financial Statement (FS) for prior year reflecting positive net income
  • BIR-filed FS for earlier two years
  • Other proof of sales and/or assets
Pros and Cons

This DTI loan offers a larger amount to SMEs while maintaining an affordable interest rate. However, the 3-year business duration requirement may be harder to meet. If you have been in business for less than 3 years, try applying for First Circle’s Revolving Credit Line. Aside from a fast and free application process, businesses of any age with at least ₱5 million annual revenue may apply.

First time getting a DTI loan? The RISE UP Multi-Purpose Loan for SMEs is a low-entry DTI SME loan.

3. RISE UP Multi-Purpose Suki Loan

Type of loan: Unsecured and secured term loan
Who can avail: Existing SB Corp borrowers in good standing only
Maximum Loanable Amount: Up to ₱5 million for unsecured; up to ₱10 million for secured
Basis of Loan Amount: Latest approved loan; up to 15% of prior year sales, based on BIR-filed FS
Loan Term: Payable monthly up to 5 years
Interest Rate: Up to 12% per annum
This DTI loan requires the following:
  • Proof of Sales including bank statements
  • Proof of Value of Asset in case of fixed asset acquisition
  • In-house Financial Statement (FS)
  • BIR-filed FS for loans exceeding ₱3 million
  • Proof of ownership and of government valuation of real estate asset that will secure the loan
Pros and Cons

You have a wider range of loan amounts to choose from, making it a good fit for large one-time purchases. However, this loan is limited to SB Corp borrowers, and has a longer application process due to the additional government requirements. A secured loan also puts the borrower at a higher risk, since you can lose your real estate asset if you default on your loan.

4. RISE UP Tindahan Loan

RISE UP Tindahan is a small business corporation DTI loan for sari-sari stores with FMCG accreditation.


There are 2 types of DTI loans under RISE UP Tindahan:

Loan details

RISE UP Micro Tindahan Loan

RISE UP SME Tindahan Loan

Type of loan

Unsecured term loan

Unsecured term loan

Who can avail

Sari-sari stores with fast-moving consumer goods (FMCG) accreditation

Retail stores, dealers and distributors with FMCG accreditation

Loan Amount

Up to ₱300,000

Up to ₱5 million

Basis of Loan Amount

40% of annual sales with FMCG

40% of annual sales with FMCG for retail stores; 15% of annual sales with FMCG for dealers and distributors

Loan Term

Payable monthly up to 3 years

Payable monthly up to 3 years

Interest Rate

10% per annum

8% per annum

Requirements

  • Government-Issued ID
  • Barangay Business permit for loans up to ₱100,000
  • BMBE Certificate or  Mayor’s Permit for loans more than ₱100,000
  • Pictures and video on business operations and asset
  • Corporate documents, if applicable
  • FMCG Reference Number
  • Must be in business with an SB Corp-accredited FMCG company for at least 1 year
  • Must be 100% Filipino-owned for sole proprietorship or partnership; at least 60% Filipino-owned for corporation
  • Government-Issued ID
  • Mayor’s Permit
  • Corporate documents
  • Pictures and video on business operations and asset
  • FMCG Accreditation Number
  • Proof of Asset Size not exceeding ₱100 million
  • Must be in business with an SB Corp-accredited FMCG company for at least 1 year; 3 years for loan amounts above ₱1 million
  • Must be 100% Filipino-owned for sole proprietorship or partnership; at least 60% Filipino-owned for corporation
Pros and Cons

DTI loans under RISE UP Tindahan have a lower interest rate than their multi-purpose small business corporation loans. However, they limit applicants to sari-sari stores, groceries, supermarkets, dealers, and distributors with FMCG accreditation and transactions for a year or more.

5. RISE UP Turismo Loan


There are 2 types of DTI loans under RISE UP Turismo:

Loan details

RISE UP Micro Turismo Loan

RISE UP SME Turismo Loan

Type of loan

Unsecured term loan

Unsecured term loan

Who can avail

Tourism enterprises; tourism support services located in focused tourist destinations

Tourism enterprises; tourism support services located in focused tourist destinations

Loan Amount

Up to ₱300,000 

Up to ₱5 million

Basis of Loan Amount

Up to 20% of existing business asset

Up to 15% of prior year sales; loans more than ₱3 million to be based on BIR-filed FS

Loan Term

Payable monthly up to 4 years

Payable monthly up to 4 years

Interest Rate

One-time service fee of up to 8%, depending on repayment term

One-time service fee of up to 8%, depending on repayment term

Requirements

  • Government-Issued ID
  • Barangay Certification for loans less than ₱100,000
  • BMBE Certificate or Mayor’s Permit for loans more than ₱100,000
  • Pictures and video on business operations and asset
  • Corporate documents, if applicable 
  • Government-Issued ID
  • BMBE Certificate or Mayor’s Permit
  • Pictures and video on business operations and asset
  • Corporate documents, if applicable 
Pros and Cons

The RISE UP Turismo DTI loans were launched to stimulate tourism activities across the country. The biggest benefit for approved borrowers is that you only need to pay a one-time service fee in lieu of interest rates. 

However, qualified applicants are limited to the following enterprises with at least 1 year in operations:

Eligibility for RISE UP Turismo DTI loan is limited to SMEs in the tourism sector.
From DTI's RISE UP Turismo page

6. HEROES Loan

Type of loan: Unsecured term loan
Who can avail: OFWs retrenched from foreign work due to pandemic-related reasons; must be used as a startup loan
Maximum Loanable Amount: Up to ₱100,000
Basis of Loan Amount: Business plan presentation
Loan Term: Payable monthly up to 3 years
Interest Rate: One-time service fee of up to 8%, depending on repayment term
This DTI loan requires the following:
  • Accomplished Loan Application Form
  • Government-issued ID with photo
  • Scanned copy of passport
  • OWWA Certification or proof of being a repatriated OFW
  • Audio Visual Presentation of Business Plan
  • 1-page Business Plan
  • DTI Registration
  • Certificate of completion of training with the Philippine Trade Training Center (PTTC)
Pros and Cons

The HEROES (Helping the Economy Recover thru OFW Enterprise Start-ups) loan program is technically a startup loan, since it's meant to help retrenched OFWs start a business in the Philippines. Thus, applicants are required to undergo a free online training program with the Philippine Trade Training Center (PTTC), where you will be guided in creating your business plan materials and video presentation. 

A major advantage of this DTI loan is that it is interest-free and comes with free entrepreneurship training. However, it offers a small loan amount, and is limited to OFWs with proof of retrenchment from OWWA.

If you're an OFW looking for a startup loan, the HEROES DTI loan is your best option.

7. Pondo sa Pagbabago at Pag-Asenso (P3) Program

Type of loan: Unsecured term loan
Who can avail: Micro entrepreneurs operating for at least 1 year
Maximum Loanable Amount: Up to ₱100,000 (as per SB Corp website)
Basis of Loan Amount: Business size and ability to pay
Loan Term: Payable monthly up to 30 months
Interest Rate: 2.5% interest rate per month
This small business loan from DTI requires the following:
  • Accomplished Loan Application Form
  • One (1) Government-issued ID
  • Business registration
  • DTI Business Name registration
  • Barangay Clearance
Pros and Cons

The P3 Program was first launched by DTI in 2017 to protect micro enterprises from informal lenders. The funding was granted to micro enterprises for business expansion or inventory procurement.

In 2020, the P3 Bayanihan CARES (COVID-19 Assistance to Restart Enterprises) Program replaced the original P3 program to finance pandemic-affected MSMEs. However, the program ended in January 2022 after the program funds were exhausted.

The P3 Program for micro enterprises is still listed on SB Corp’s website. At the moment, it is unclear whether they still accept applications.

Summary: Small business loans from DTI

From the DTI loans listed above, RISE UP Micro Multi-Purpose Loan and RISE UP Multi-Purpose Loan for SME First Time Borrowers are the most accessible to SMEs. In addition to an affordable interest rate (12% per annum) and 3-year payment terms, they have no industry limitations. 

The maximum loan amount of RISE UP Micro Multi-Purpose Loan, however, may be too low for SMEs that need more than ₱300,000 for rapid expansion and bigger purchases. To ensure you’ll have enough funding, you can get a supplementary short-term, non-collateral Revolving Credit Line from First Circle. Aside from free application, our revolving credit line is valid for 12 months. You have the option to use it whenever the business need arises – or not to use it at all, if your DTI loan turns out to be enough.

The RISE UP Multi-Purpose Loan for SME First Time Borrowers offers up to ₱2 million, but limits applications to businesses with 3 years in operations. Unfortunately, this requirement is also common among other lenders. If you have been in business for less than 3 years, consider our Revolving Credit Line. New and old businesses are welcome to apply, as long as you have an annual revenue of at least ₱5 million and the proper business registrations.

A major benefit of DTI business loans is the grace period they offer with most of their loans. Some of the loans listed here can grant as long as 12 months’ grace period before beginning repayments. This gives SMEs enough breathing space to plan what to do with their business funding.

Bear in mind, however, that SB Corp receives a large number of applications nationwide. On their Facebook page, SME applicants report that application processing and disbursement can take months. Some applicants mentioned that they cannot register on the website to begin their online loan application process. Other borrowers complained that their latest payments and loan balances do not reflect accurately on their SB Corp online accounts – ruining their credit standing or preventing them from applying for another loan even if they are good payers. 

To augment your DTI loan and ensure you have enough funds for your business needs, let First Circle’s Revolving Credit Line help. Our non-collateral SME loan has the following benefits: 

  • Up to ₱10 million of re-usable credit
  • Interest rates as low as 1.39% per month
  • Processing of applications in 5 business days
  • Exclusive account manager
  • Minimal document requirement

‍First Circle is a multi-awarded lending company supporting SMEs since 2016. To apply for a Revolving Credit Line, click here.

Ready to get your own revolving credit line?

Apply 100% online, and get a credit line worth up to ₱5M. Use and re-use your credit limit anytime you need a business loan.

Apply for a Credit Line

Continue reading