A secured loan for business requires collateral—such as real estate properties and bank deposits—that the lender will claim to recover its losses in case the borrower defaults on the loan.
The collateral reduces the risk for lenders, which is why secured loans generally have lower interest rates, longer loan terms, and higher loan amounts than unsecured loans. These features make a secured business loan affordable and suitable for startup businesses that need funding at a time when they’re just beginning to make profits.
For secured business loans, lenders charge several collateral-related fees such as appraisal fee and collateral registration fee.
With the exception of a few, term loans and credit lines in the Philippines are secured business loans.
Secured Business Loan Options in the Philippines
| Secured Business Loans | Collateral |
| BDO SME Loan | Residential, commercial, industrial, or mixed-use property |
| BPI Family Ka-Negosyo Loan | Residential or commercial propertyBank deposit or investment |
| Metrobank SME Business Loans | Real estate mortgageBank deposit or placement |
| OWWA Loan (for OFWs) | Real estate property or any loan security accepted by the bank |
| PSBank SME Loans | Residential, commercial, or industrial propertyCash deposits |
| Security Bank SME Business Mortgage Loan | Residential, commercial, or mixed-use propertyHold-out deposit |
| SSS Business Development Loan Facility / SSS ASENSO | Any collateral accepted by the SSS and partner bank |
