As of December 2020
Total Clients Served: 109,199
Amount of Loan Disbursed 7.9B
Total Loan Portfolio 152.3M
Total Savings Balance 83.4M
Total Branches 22
Total Employee 150

March 2018


The SMALL BUSINESS LOAN (SBL) is a business support loan to increase the productivity of micro-enterprises.

The lending policies, guidelines, procedures and product features are follows:

  1. Who May Borrow (Target Client)
    1. The target clients are small business oweners/ operators.
  2. Purpose of Loan
    1. The purpose of loan to be granted may be used for the following:
      • As additional capital
      • Purchase of stocks/inventories
      • Purchase of machines and equipment for business operations
      • Business Expansion
      • Putting-up/Establishing another business/venture
      • For salaries/wages of Employees/Workers
  3. Eligibility Criteria
    1. To be qualified for the loan, the following eligibility criteria should all be met by the applicant. These are follows:
      • At least 2 years of profitable operations in the same line of business
      • Has valid mayor's/business permit
      • With DTI Business Registration
      • With at least 1 paid employee and
      • Business asset of at least 300,000
      • 18-60 Years Old
  4. Loan Amount
    1. The loanable amount ranges from P50,000.00 - P300,000.00. The loan amount will be determined based on the loan appraisal and collateral.
      • If no collateral and no PDC - the maximum loanable amount is P50,000
      • If no collateral and but with PDC or Co-Borrower/Co-Maker - the loanble amount is P50,000 to P100,000
      • If it secured by collateral - the loanable amount is P100,000 to P300,000
  5. Loan Term/Maturity
    1. The borrower may choose from 3,6,12,24 & 36 months
  6. Interest Rates
    1. The monthly interest rate varies depending on the amount of loan and collateral given. The monthly interest are as follows:
      • 2.5% per month for 50K below
      • 2.0% per month for 50K-100K with PDC, add-on
      • 1.5% per month for loans with vehicle collateral, add-on
  7. Service Fee
    1. Upon loan disbursement, a 5.0% of the total loan amount shall be collected/deducted as service fee.
  8. Loan Guarantee Fund
    1. Upon loan disbursement, a 1.0% of the loan amount for first year; 1% of the loan balance for each succeeding year (If 2 years or 3 years term).
  9. Closure Handling Fee
    1. 5% of the unbilled principal component of the loan that is prepared.
  10. Late Penalty Charge
    1. 5% of the past due installments/amortization
  11. Monthly Interest Charge for Past Due Account
    1. 4% monthly for past due account (60 days default) based on total amount due compounded monthly.
  12. Collateral/Co-Maker
    1. The following are the collateral and co-maker requirements:
      • No collateral will be required for loan P50,000. In replacement to the collateral, the borrower will be required to have a co-borrower and co-maker.
      • For loans amounting to P50,000 up to P100,000 - postdated checks will be required to be issued by the borrower.
      • Collateral will be required for loans amounting to P100,000 up to P300,000. Acceptable collateral are 4 wheel vehicles, house and lot.
  13. Loan Processing and Approval
    1. Loan processing is 1 week upon submitting the complete set of required documents and compete all (mandatory) fields of the Personal Application Form. For loan renewal, the processing is 2 days upon receipt of the loan application.
      Loans will be approved according to the following:
      • If loan amount is P50,000 to P74,000 - approval is at the area level.
      • If loan amount is P75,000 to P100,000 - Senior Operations Director Approval
      • If loan is above P100,000 - Executive Director/Execom Approval
  14. Loan Release
    1. Check disbursement Personal Appearance of the borrower.
  15. Repayment
    1. Cash or Check payments to be paid at the office by the borrower or to be deposited direct to KGMI bank account.
  16. Documentary Requirements
    1. The requirements that must be submitted by the employee-borrower are as follows:
      • 2pcs. 2x2 picture (for the first loan only)
      • Accomplished personal data sheet (for the first loan only)
      • Accomplished application form
      • Latest payslip for the past 2 months (for employed)
      • 1 valid ID photo and signature
      • DTI Certificate (photocopy)
      • Valid Mayor's/Business Permit (Photocopy)
      • Latest ITR and Latest Audited Financial Statement (for self-employed)
  17. Lending Procedure
    1. The lending procedure as follows:
      • The qualified borrower-applicant inquires at KGMI Branch office regarding Personal Loan.
      • The qualified borrower-applicant initiates loan application and submit the required documents.
      • The Admin and Finance Officer (AFO) checks and verify the completeness of the loan application submitted.
      • The Admin and Finance officer review and submit loan application for validation.
      • The Branch Manager validate and analyze loan application for approval.

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