Business Loan

Nature of the Loan

A loan facility designed to finance the acquisition of a new business venture, for expansion of an existing business venture, for capital expenditure including acquisition of agricultural lot and/or for additional working fund.

Interest and Term

Below are the Nominal Interest Rates per term as of June 1, 2024, approved by the Board of Trustees. Interest is computed based on the diminishing balance of the loan.

Effective interest rate (EIR) is the actual interest rate the borrower pays on the loan after taking into account fees/charges (e.g. documentary fee, filing fee, etc.) incidental to the loan availment.

*Assumed Loan Amount is P100,000.00

Loan Amount

The amount of loan to be granted shall be based on the paying capacity of the Borrower subject to applicable laws, regulations and policies including the Single Borrower’s Limit (SBL).

The maximum loanable amount shall be:

1. Seventy percent (70%) of the fair market value of any property acceptable as collateral on first mortgage, subject to the evaluation of paying capacity, taking in consideration the Take Home Pay policy of the borrower’s employer. The fair market value of the property shall be based on the Appraisal Report provided by the External Appraiser accredited by the Association;
2. 80% of the Capital Contribution or Special Savings Deposit;
3. Available SBL computed including proof of other income.

Requirements

1. Standard Requirements:
   1. Duly accomplished Mesala Loan Application Form;
   2. Copy of pay slips;
   3. Photocopy of their latest Income Tax Return (ITR);
   4. Proof of other income may be required if necessary;
   5. Borrower has an existing registered business; or
   6. Borrower intends to put up a new business venture.
2. Real Estate Collateral Documents
   1. Two (2) Photocopies of Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) – Owner’s duplicate copy;
   2. Appraisal Report;
   3. Certified true copy of the certificate of title from Registry of Deeds;
   4. BIR tax clearance;
   5. Photocopy of Tax Declaration (land and building, if applicable);
   6. Latest real estate tax receipt;
   7. Insurance requirements; and
   8. Deed of Mortgage
3. Additional Requirements:
   1. For Existing Entrepreneurs
      1. Company profile;
      2. Photocopy of BIR-stamped financial statements for the past three (3) years;
      3. Photocopy of Business Registration Certificate/Business Permit/ General Information Sheet for the past three (3) years;
      4. Photocopy of SEC-validated Articles of Incorporation/By-Laws, if corporation;
      5. Resume of major stockholders, if corporation or proprietors or partners
   2. For First Time Entrepreneurs
      1. Updated Certificate of Employment indicating salary, position, and tenure;
      2. DTI or SEC registration;
      3. Municipal license to operate business;
      4. BIR business registration;
      5. Franchise Agreement, if applicable.

If for valid reasons, there are still no business documentations available, any proof of submission/application of the same maybe presented. Actual submission date must be identified and stated.

Loan Proceeds

After all necessary documents have been secured by the Association, proceeds from the loan shall be released through one of the following methods, at the borrower’s option:

1. MESALA savings deposit;
2. Deposit to borrower’s bank account (Banco de Oro or Bank of the Philippines Islands); or
3. Check payable to borrower or his/her endorsed payee

Release of loan proceeds shall be made after the collateral has been submitted for annotation to the appropriate Registry of Deeds, the cost of which shall be borne by the borrower.