Business owners often face the challenge of securing the right financial support to grow their ventures, especially when large capital is involved. The Security Bank SME business mortgage loan addresses this need by offering structured financing solutions designed to support property acquisition, expansion, or refinancing.
Businesses can borrow from ₱1 million up to ₱50 million, depending on their collateral. The loan payment term can be as long as 20 years, with a loan-to-value (LTV) ratio of up to 80% of the appraised value for most property types. This enables SMEs to pursue growth projects without the strain of short-term repayment pressure.
In this article, you’ll learn how the Security Bank SME Business Mortgage Loan supports your growth through eligibility criteria, loan terms, and fast approval.
Key Takeaways
- Loan amounts range from ₱1 million to ₱50 million, secured against commercial or residential property.
- Repayment tenure extends up to 20 years with fixed principal plus interest amortization.
- Up to 80% of the property's appraised value can be financed, depending on asset type.
- Businesses must have been operating for at least 3 years, with verifiable income and legal registration.
- Support includes grace periods, early closure options, and restructuring during financial disruptions.
What is the Security Bank SME Business Mortgage Loan?
The Security Bank SME Business Mortgage Loan is a secured term loan offered by Security Bank Philippines. It’s designed for SMEs looking to purchase, refinance, or monetize commercial or industrial property. With competitive interest rates, long repayment tenures, and quick processing times, it gives SMEs access to much-needed capital without the cash flow strain of short-term borrowing.
Here are a few key features of the Security Bank SME Loan:
- Collateral Type: Accepts commercial or industrial real estate as security.
- Usage: Ideal for business property acquisition, refinancing, or unlocking working capital.
- Flexible Repayment: Long-term payment plans are designed to match SME cash flows.
- High Financing Coverage: Competitive loan-to-value structure based on property type.
Security Bank SME Business Mortgage Loan stands out for its combination of asset-backed security and flexible terms, making it ideal for growth-focused SMEs.
Now that you know what the loan offers, let’s see why the Security Bank SME Loan stands out over other business financing options.
Why Choose Security Bank SME Business Mortgage Loan?
The Security Bank SME Business Mortgage Loan is a collateral-based financing option designed for established businesses. It offers long-term, cost-effective funding with fewer restrictions compared to many traditional and unsecured loans. Here’s why it can be a better choice for your business:
1. Higher Loan Amounts (Up to ₱25 - ₱50 Million)
Mortgage-backed loans allow you to borrow larger amounts based on the appraised value of your real estate. This is ideal for SMEs that need significant capital for expansion, equipment purchase, or restructuring existing loans. The loan-to-value (LTV) ratio can go up to 80%, depending on the collateral type.
2. Lower Interest Rates
Since the loan is secured by property, the interest rate is much lower than what you'd get with unsecured business loans. This reduces the overall cost of borrowing and results in smaller monthly amortizations, helping businesses manage cash flow more efficiently.
3. Longer Repayment Terms
Unlike short-term working capital loans that require repayment within 1 to 5 years, this mortgage loan offers terms of up to 10–20 years. This extended period spreads out your payments, allowing you to preserve liquidity while continuing to invest in your business.
4. Flexible Use of Funds
There are no strict limitations on how the loan proceeds should be used. You can fund construction, purchase equipment, refinance debts, or support working capital. This loan offers flexibility to use funds where your business needs them most.
5. Transparent Process and Responsible Lending
Security Bank is known for its clear loan terms, absence of hidden fees, and relationship-first approach. The eligibility criteria and document checklist are transparent, and bank officers guide you through the process to minimize delays or confusion.
6. Better Fit Than Other Loan Types
Compared to unsecured loans, credit lines, or government MSME loans, this loan offers a better balance of funding size, repayment flexibility, and cost-effectiveness. If you have real estate to pledge, it offers unmatched advantages.
While the strategic benefits are clear, let’s now walk through the eligibility criteria and documents you’ll need to move forward with your application.
Eligibility Criteria for SME Business Mortgage Loan
Security Bank applies a well-defined set of eligibility criteria to evaluate your business’s financial health, ownership profile, and collateral strength. Here’s a quick overview of the key requirements for the SME Business Mortgage Loan, based on Security Bank’s application guidelines:
1. Business Criteria: Your business should be legally established, financially stable, and preferably have a track record of consistent operations.
- Must be legally registered with DTI (Sole Proprietorship) or SEC (Partnership/Corporation).
- Must be operating for at least 3 years and profitable in the most recent year.
- No existing debt should exceed 40% of the business’s monthly income.
2. Ownership Requirements: For corporations and partnerships, the primary owner must formally represent the company in the loan application. The majority owner must:
- Complete and sign the application form.
- Be the signatory to the surety agreement.
If ownership is equally shared, any one of them can serve as the signatory.
3. Personal Qualifications: Business owners must meet basic residency, age, and banking history requirements to ensure accountability and repayment capacity.
- Must be a permanent resident of the Philippines.
- Must be at least 21 years old at the time of application and no older than 65 upon loan maturity.
- Must have either:
- An existing Security Bank account (active for at least 6 months with a PHP 50,000 average daily balance), or
- An existing credit card from any bank (credit card number must be provided).
Once you’ve confirmed that your business meets the eligibility criteria, the next step is to prepare the required documents that support your application.
Documents Needed for SME Mortgage Loan Application
To ensure faster processing, submit only valid, complete, and updated documents based on your business structure. Depending on whether your business is a sole proprietorship or a registered partnership/corporation, the required documents are as follows:
1. For Sole Proprietorship: These documents verify your business identity, financial status, and legal registration.
- Completed and signed the Loan Application Form
- Two valid government-issued photo IDs of the owner/authorized signatory
- Latest Income Tax Return (ITR) with BIR stamp
- Audited Financial Statements for the latest 1 year
- Valid DTI Registration Certificate
- Latest 3 months’ bank statements
- Valid Business or Mayor’s Permit
- List of customers and suppliers with transaction details
2. For Partnership / Corporation: Additional documents are needed to confirm business authority, registration, and ownership details.
- Completed and signed the Loan Application Form
- Two valid government-issued photo IDs of the owner/authorized signatory
- Latest Income Tax Return (ITR) with BIR stamp
- Audited Financial Statements for the latest 1 year
- Valid SEC Registration and updated General Information Sheet (GIS)
- Latest 3 months’ bank statements
- Valid Business or Mayor’s Permit
- List of customers and suppliers with transaction details
- Board or Partnership Resolution authorizing the signatory and permitting a credit investigation
- Continuing Suretyship Agreement (template provided at the time of application)
With your eligibility and paperwork confirmed, the next step is understanding the entire loan application process.
How to Apply for the SME Business Mortgage Loan?
Applying for the Security Bank SME Business Mortgage Loan is straightforward, with a dedicated team guiding you through each stage.
Here’s how it works:
- Initial Inquiry: Start by expressing your interest online or visiting a nearby Security Bank branch.
- Document Submission: Prepare and submit the required documents related to your business and the commercial property.
- Collateral Appraisal: The bank assesses the market value of your property to determine the loanable amount.
- Credit Evaluation: Your financials, cash flow, and business viability are reviewed to evaluate repayment capacity.
- Approval & Signing: If approved, the loan terms are shared. After your review and consent, contracts are signed.
- Disbursement of Funds: The loan amount is released either directly to your account or to the property seller, as applicable.
Each step is guided by Security Bank’s business loan specialists, making the entire experience smoother and more SME-focused.
Once your loan is approved and disbursed, Security Bank continues to support your business. Let’s look at how the repayment structure and servicing model are built around real SME needs.
How Does Security Bank Support You After Disbursement?
Security Bank’s SME Business Mortgage Loan combines flexible repayment terms with ongoing relationship management, designed to meet the realities of growing businesses. Below are the key ways this support is structured to ensure continuity, adaptability, and ease for SME borrowers:
1. Repayment Terms Built for Stability: This loan offers structured, long-term repayment options that support financial predictability, ideal for SMEs with seasonal or cyclical cash flows.
- Monthly Amortization: Fixed principal plus interest enables consistent, forecastable budgeting.
- Grace Periods: May be granted on a case-by-case basis, based on cash flow assessment.
- Pre-Termination: Allowed with minimal fees, giving borrowers the freedom to close early if needed.
This repayment design ensures SMEs can use large capital infusions without compromising their financial health.
2. Lifecycle Support and Restructuring Assistance: Beyond disbursal, Security Bank offers dedicated after-sales support to help you manage and sustain your loan through business shifts.
- Loan Restructuring: Available during short-term disruptions or market downturns.
- Dedicated Account Manager: A single point of contact for servicing, updates, and guidance.
- SB Online Access: Track balances, payments, and amortization schedules in real-time.
Together, these elements make the loan more than a one-time facility; it becomes an ongoing financial partnership aligned with SME growth and continuity.
This bank-led model suits established SMEs, but if you're scaling fast and need agility and fewer barriers, let’s see how n90 offers a better-aligned alternative.
Why n90 is a Smarter Choice for Fast-Growing SMEs?
Traditional banks often have strict eligibility criteria, lengthy application processes, and high interest rates, making it difficult for SMEs to secure the funds they need quickly and affordably. This creates a considerable gap for SMEs looking to grow and sustain their operations.
We built n90 to fill a gap in the financial market. Our mission is to empower SMEs with tailored lending solutions that are designed to be clear, flexible, and accessible.
- Flexible Loan Amount: At n90, we offer flexible loan amounts based on your company’s revenue, ensuring that you get the funding that aligns with your business needs:
- For businesses with annual revenues above ₱150 million, we provide loans up to ₱25 million with interest rates of less than 1% per month, ideal for scaling or major investments.
- For businesses with annual revenues between ₱15 million and ₱150 million, loans range from ₱1 million to ₱10 million with interest rates from 1.09% to 1.49%, perfect for growth and managing operational costs.
- For businesses with annual revenues below ₱15 million, we offer loans of up to ₱1.5 million at interest rates between 1.50% and 1.90%, ideal for bridging cash flow gaps or supporting day-to-day operations.
- Simple Eligibility: Our eligibility criteria are straightforward:
- BIR, DTI (for sole proprietorships), or SEC registration.
- Annual revenue of at least ₱25 million.
- Philippine residency with a valid government ID or Alien Registration Card (ARC).
What sets us apart is that most of our loans don’t require collateral, meaning your business doesn’t have to risk valuable assets to get the funding it needs.
- Fast, Transparent, and Hassle-Free Process: n90 offers clear, transparent terms with no hidden fees. Our quick approval process and minimal documentation allow you to get the funds you need without the delays or complexity typical of traditional banks.
Unlike traditional banks, n90 is a far more accessible and flexible option for SMEs. With quick approval, no collateral requirements, and competitive interest rates, we make it easier for your business to access the financing it needs to succeed.
Final Words!
The Security Bank SME Business Mortgage Loan provides affordable, flexible financing secured by commercial property. It supports Philippine SMEs with large loan amounts, transparent terms, and expert local support. Ideal for scaling operations, funding assets, or improving cash flow.
If Security Bank meets your needs, great. But if you’re looking for faster approvals, flexible terms, and a partner that understands the real challenges SMEs face, n90 is built for you. We offer customized loans up to ₱25 million, competitive monthly rates, a transparent, relationship-first approach, no hidden fees, and no unnecessary delays.
Let’s grow your business together. Apply now or call us at +63 962 663 1393 to get the funding you need, exactly when you need it.
FAQs
1. Can I apply for a Security Bank SME Business Mortgage Loan if my property title is under a different name?
No, the property used as collateral must be under the legal name of the business owner or the applying company. If it’s under a different party, Security Bank may require a transfer of title or legal authorization (e.g., co-borrower agreement) before proceeding. Ownership clarity is critical for collateral appraisal and risk assessment.
2. Does Security Bank allow multiple properties to be used as collateral for one mortgage loan?
Yes, Security Bank may allow multiple properties to be pledged as collateral under a single SME Business Mortgage Loan. This is often done to increase the total loanable amount. However, each property will need to undergo individual appraisal and must meet the bank’s title and documentation standards.
3. What happens if the appraised value of the property is lower than expected?
If the property’s appraised value is lower than anticipated, the approved loan amount may be reduced accordingly, as Security Bank typically finances only up to 70–80% of the appraised value. You may need to contribute more equity or pledge an additional property to meet your funding requirements.
4. Can foreign-owned businesses in the Philippines apply for this loan?
Yes, partially or wholly foreign-owned businesses registered in the Philippines can apply, provided they meet Security Bank’s eligibility requirements. However, land ownership laws still apply; foreigners cannot own land, so collateralized property must comply with Philippine regulations and may be subject to additional scrutiny.
5. Is there a lock-in period or prepayment penalty for early loan settlement?
Security Bank may apply a lock-in period, usually ranging from 1 to 3 years, depending on loan terms. Prepayment before the end of this period may incur minimal penalties. Borrowers are advised to clarify these terms in the loan agreement to plan repayment strategies effectively.
