As the country’s oldest bank, the Bank of the Philippine Islands (BPI) is easily one of the top choices for SMEs seeking financing. BPI, which was founded in 1851 as El Banco Español Filipino de Isabel II, has over 1,000 branches nationwide and online banking services. Aside from BPI business loans, they offer banking, investments, and stock trading services.
Recently, BPI has also rebranded and diversified their business loans for small and medium enterprises (SMEs). However, this doesn't mean they have the best loan offers for all kinds of SMEs. Read on for our analysis below.
Table of Contents
I. Which BPI business loans are included?
II. Is BPI loan application available?
IV. What are the BPI business loan requirements?
V. How much can I get from BPI business loans?
VI. What is the BPI business loan interest rate?
VII. What BPI business loans are available as of writing?
• Ka-Negosyo SME Loan
• Ka-Negosyo Ready Loan
• Ka-Negosyo Credit Line
• Property Acquisition Loan
VIII. Summary
Which BPI business loans are included?
- Ka-Negosyo SME Loan
- Ka-Negosyo Ready Loan
- Ka-Negosyo Credit Line
- Property Acquisition Loan
Is BPI loan application online available?
You can email BPI at bbclientservices@bpi.com.ph to express your interest in getting a BPI business loan. A loan officer will contact you to assess your loan application further. You can also visit a BPI branch or call the bank at (02) 7918-2000.
What are the BPI business loan requirements?
- Filipino citizenship
- Philippine residency for at least 2 years
- At least 21 years old but not more than 70 years old at the time of loan maturity
- At least 3 years of business operations
- Duly accomplished application form
- 3 months’ worth of bank statements from BPI or other banks
- Authorization Letter for bank verification
- Real estate mortgage, deposit, or investment for secured loans

For loan applications with a loan amount of more than ₱3 million
• Audited Financial Statements for the last 3 years
• Income Tax Return for the last 3 years
For BPI business loan applications requiring real estate collateral
• Owner's Duplicate Copy of the TCT/CCT
• Tax Declaration
• Authorization Letter for Appraisal
• Authority to Debit (for the appraisal fee and TVR)
Additional BPI business loan requirements must also be submitted depending on the type of business ownership (sole proprietor, corporation or partnership):
For sole proprietors
• Valid IDs (and spouse if married)
• Registration from Department of Trade and Industry
• Mayor's Permit/Business Permit
For partnerships and corporations
• Valid IDs of the Key Officers and Shareholders
• SEC Registration Certificate, Articles of Incorporation and By-Laws
• Latest General Information Sheet
How much can I get from BPI business loans?
BPI business loans start at ₱300,000; to obtain higher amounts, you will have to present real estate collateral.
What is the BPI business loan interest rate?
Interest rate varies per type of loan, starting at 10% to 14% per annum. Most BPI business loans have variable interest rates and are subject to change after the initial fixing period.
What BPI business loans are available as of writing?
1. Ka-Negosyo SME Loan
Type of loan: Secured and unsecured term loan
Who can avail: Businesses with at least 3 years of operations
Loan Amount: ₱300,000 to ₱15 million
Basis of Loan Amount: Loan purpose, income, and/or appraised value of collateral
Loan Term: Payable monthly from 1 year to 10 years
BPI Business Loan Interest Rate: Up to 10% per annum if secured; at least 14% per annum if unsecured. After the initial fixing period, interest rate will be repriced annually. Comes with ₱3,500 processing fee.
This BPI loan, also known as the BPI SME Term Loan, provides SMEs a lump sum for their funding needs.
In the short term, you can use the loan as working capital to fund day-to-day operations, pay suppliers, increase inventory or equipment. In the long run, this business loan can fund expansion through capital expenditures, such as building factories or buying new property.

Pros and Cons
This BPI loan can offer SMEs high amounts, long payment terms for larger amounts, and an initial interest rate of 14% per annum for unsecured loan option. If you choose the secured option, you may be putting yourself at a higher risk, as you can lose your real estate collateral in case of default.
Take note that your interest rate may also increase after your initial fixing period. This is because BPI will change your interest rates according to market rates set by the Bangko Sentral ng Pilipinas (BSP).
BPI loan applications take up to 7 banking days before you can receive a loan decision – provided that you have completed your requirements beforehand. You won’t qualify if your business has been operating for less than 3 years. Take note that there are added fees, such as a processing fee of ₱3,500 and appraisal fees, before you get your loan amount.
A faster and less risky alternative to this BPI business loan is First Circle’s Revolving Credit Line. Even without collateral, you can borrow up to ₱20 million within 3 business days. Just complete our online application process and submit two initial documents to get a conditional credit line offer.
The Revolving Credit Line is also available to businesses of any age with at least ₱5 million in annual revenue. More importantly, our credit line offer is free and non-collateral. You won’t have to risk any assets, and you only pay interest on the portion of the credit line that you use. Because you won’t pay anything until you use your credit line, this financing is also a good emergency fund option.
2. Ka-Negosyo Ready Loan
Type of loan: Secured and unsecured term loan
Who can avail: Businesses with at least 3 years of operations
Loan Amount: ₱300,000 to ₱15 million
Basis of Loan Amount: Loan purpose, income, and/or appraised value of collateral
Loan Term: Up to 1 year; renewal subject to a pre-termination fee
BPI Business Loan Interest Rate: Up to 10% per annum if secured; at least 14% per annum if unsecured. After the initial fixing period, interest rate will be repriced annually. Comes with ₱3,500 processing fee.
If you’ve ever needed to stock up on inventory for Christmas and other peak seasons, this BPI loan can meet your needs. Its short repayment period is designed specifically for SMEs with seasonal or cyclical working capital needs.
Pros and Cons
This BPI business loan is best for SMEs that need cash flow flexibility, so they can increase their inventory – and resulting profits – whenever the opportunity arises.
With the short repayment period, however, you must ensure your profits and collections will not be delayed in order to avoid late payment penalties. In addition, the risk of losing your collateral is much higher with this BPI loan, as you have a shorter amount of time to pay in full. Our concerns with BPI Ka-Negosyo SME Loan – regarding possible increase in interest rates, collateral requirements, speed of application, and added fees – also apply here.
3. Ka-Negosyo Credit Line
Type of loan: Secured credit line
Who can avail: Businesses with at least 3 years of operations
Loan Amount: ₱300,000 to ₱15 million
Basis of Loan Amount: Loan purpose, income, and appraised value of collateral
Loan Term: 1 year renewable. Interest dues are payable every 5th of the month; principal is payable anytime within the validity period; 20% of the outstanding balance must be paid before renewal
BPI Business Loan Interest Rate: Up to 12% per annum, with quarterly interest rate repricing and 0.5% processing fee
This BPI business loan, also known as BPI SME Credit Line, is meant to help SMEs finance on the spot and bridge working capital requirements. It is best for short-term needs such as paying for raw materials, employee salaries, or utilities.
Instead of a lump sum amount, SMEs can borrow partially or fully from their BPI Ka-Negosyo Credit Line. The amount can be issued as a check, ATM withdrawal, EPS transaction, or online fund transfer.

Pros and Cons
This BPI loan is best for addressing unplanned expenses and cash flow gaps. With capital available to them at any time, it also prepares SMEs for new business opportunities.
However, this secured BPI loan is the riskiest option out of the Ka-Negosyo loans due to the following reasons:
- Short repayment period. Borrowers must have a clear repayment plan in mind, especially if they are granted large amounts but short repayment times.
- Collateral requirements. You need to put up real estate property to secure the loan, which you can lose if you default.
- Quarterly repricing of interest rate. Your interest rate is likely to increase depending on market rates set by the BSP. The variable interest rate will also mean you’ll have inconsistent cash flow every quarter.
- 0.5% processing fee. This can get very high if you’re borrowing millions.
First Circle’s Revolving Credit Line is a less-risky alternative to BPI’s credit line. While our interest rate is a little higher (as low as 0.99%), you won’t have to provide collateral to get up to ₱20 million in funding. In addition, it has all the benefits you can get from BPI’s credit line.
Application for a Revolving Credit Line is free, and can choose from a one-time subscription fee or a convenience fee whenever you need to withdraw from your credit limit. More importantly, your interest rate will remain the same – and can even get lower upon renewal if you are a loyal First Circle client with good payment history.
4. Property Acquisition Loan
Type of loan: Secured term loan
Who can avail: Businesses with at least 3 years of operations
Loan Amount: At least ₱1 million
Basis of Loan Amount: Loan purpose, income, and/or appraised value of collateral
Loan Term: Up to 20 years
BPI Business Loan Interest Rate: Based on prevailing market rates and application evaluation, with longer loan terms equating to higher rates
This BPI loan is specifically made for SMEs that intend to expand through real estate – either by purchasing an existing property or building a new one. Thus, you will be asked to provide additional BPI loan requirements related to property acquisition or construction.
Pros and cons
This BPI business loan offers very long payment terms, making it easier for SMEs to invest in major capital asset construction and acquisition while minimizing profit losses from loan repayments and property acquisition costs.
Like other secured loans, you face the risk of losing your asset if you default on your loan. You also need to cash out fees to pay for collateral appraisal and insure your collateral. Lastly, your interest rate is subject to BSP’s lending rates, which is at its highest this year as of writing.
Summary
BPI Ka-Negosyo SME Loan is the most flexible financing with amounts starting at ₱300,000, long repayment period of up to 10 years, and option to provide collateral to obtain higher loan amounts.
BPI Ka-Negosyo Ready Loan is best for SMEs that want to seize a business opportunity or take advantage of seasonality to make more profits.
If your loan purpose is to invest in a business property, the BPI Property Acquisition Loan is a good option due to its lengthy repayment period and high loan amounts.
While the BPI Ka-Negosyo Credit Line is affordable at face value due to its annual interest rate of up to 12%, several factors such as the need to present collateral and quarterly interest rate repricing makes it a riskier loan for SMEs. If you want all of its advantages minus the high risks, consider applying for First Circle’s Revolving Credit Line instead. Our non-collateral SME loan has the following benefits:
- Up to ₱20 million of re-usable credit
- Interest rates as low as 0.99% per month
- Free application; you only pay for what you use
- Application processing in 3 business days
- Exclusive account manager
- Minimal documentary requirements
First Circle is a multi-awarded lending company supporting SMEs since 2016. To apply for a Revolving Credit Line, visit https://www.firstcircle.ph/business-financing/revolving-credit-line.