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BPI Business Loans: How They Work and How to Apply

Imagine you have a brilliant business idea, a strong market fit, and a dedicated team. However, there’s one hurdle—funding. Money fuels everything in business, from employee salaries to inventory management, but earning it can feel like an uphill battle. 

This is where business loans come in. Research shows that 56% of small businesses apply for this type of financing to grow their operations, explore new ventures, or invest in assets. For Filipino entrepreneurs, the Bank of the Philippine Islands (BPI) offers a comprehensive suite of business loan options.

If you need extra funds to manage your company, this article is for you. It breaks down the types of BPI Business Loans and how you can apply for them. Whether you’re a small startup or a growing enterprise, understanding these options can help take your business to the next level.

What is a BPI Ka-Negosyo Loan?

A BPI Ka-Negosyo loan is a financing option from BPI that helps small and medium businesses in the Philippines. It includes Ka-Negosyo Credit Line, Ka-Negosyo Ready Loan, Ka-Negosyo SME Loan, and Ka-Negosyo SME Loan for Property Acquisition.

This type of financing is different from a BPI personal loan in the following aspects:

Ka-Negosyo LoanPersonal Loan
PurposeFor business-related expenses like capital investment, expansion, inventory financing, or equipment purchaseFor personal expenses such as home renovations, travel, education, medical bills, or debt consolidation
Loan AmountMinimum of ₱300,000Minimum of ₱20,000
CollateralReal estate mortgage for Ka-Negosyo SME Loan for Property AcquisitionNone
RequirementsDepends on the type of business: Sole proprietors and individuals Partnerships and corporationsDepends on employment type: Employed by a company or organizationSelf-employed

Types of BPI Business Loans

This section details the four types of BPI Ka-Negosyo business loans you can apply for.

  • Ka-Negosyo SME Loan
    This type of loan is ideal for funding various business needs such as product expansion, new equipment, or operational expenses. You can borrow a minimum amount of ₱300,000, which you can repay over a maximum of five years.

    Collateral is optional for this BPI SME loan, allowing you to secure funding without additional assets. You only need to pay a ₱5,000 processing fee. 
  • Ka-Negosyo Credit Line
    Recurring business expenses such as employee salaries, utilities, and equipment maintenance can put a dent in your funds. You can turn to BPI’s Ka-Negosyo Credit Line for help.

    You can borrow ₱1 million or more and renew it after a year. This loan doesn’t require collateral, similar to Ka-Negosyo SME Loan. Additionally, you can take a partial or full amount from this loan. There’s a processing fee of ₱5,000 and an annual fee of 0.5% of the approved loan amount.
  • Ka-Negosyo Ready Loan
    This type of loan caters to SMEs with seasonal working capital needs, like replenishing supplies and inventory for holidays, harvest seasons, or busy periods. You can start with ₱300,000 and repay it for up to six months. Ideally, you generate enough profits to pay it back and avoid late payment penalties.

    Collateral isn’t necessary, too. You only need to settle the processing fee of ₱5,000 that comes with the loan.
  • Ka-Negosyo SME Loan for Property Acquisition
    Are you planning to purchase land, an office space, or a commercial building for your business? You can apply for a Ka-Negosyo SME Loan for Property Acquisition to cover the expenses.

    It offers a minimum of ₱1 million and a maximum tenor of 10 years. BPI uses real estate mortgages as collateral for this loan and requires a processing fee of ₱3,500.

    Similar to other secured loans, you may lose your assets if you default on your loan. Additionally, you’ll shoulder the fees for collateral appraisal and insurance.

How to Apply for BPI Ka-Negosyo Loan

Are you ready to secure extra funding? Take note of the BPI business loan requirements below. 

Eligibility requirements

Before applying for a Ka-Negosyo loan, you should check if you meet the following criteria:

  1. A Filipino citizen 
  2. At least three years of business operations
  3. Minimum of one year of Philippine resident tenure

Application channels

Once qualified, you can use any of the channels below to apply for a business loan.

  1. Online portal – Visit BPI’s loan application portal to submit your application form.
  2. In-person – Go to any BPI branch.
  3. Hotline – Call BPI at (+632) 791-82000, then press 2 for business loans
  4. Email – Email BPI at

Required documents

Submit all required documents to expedite approval and secure funds for your business effortlessly.

For sole proprietors and individuals:

  • Duly accomplished application form​
  • DTI Registration/Business Permit​
  • Borrower’s ID​
  • Spouse’s ID (if applicable)​
  • Last three months bank statement (BPI or other banks)​
  • Income tax return (ITR) for the last three years
  • Audited financial statements (AFS) for the last three years
  • Collateral documents for Ka-Negosyo SME Loan for Property Acquisition and Ka-Negosyo Credit Line

For partnerships and corporations

  • Duly accomplished application form​
  • SEC Registration​
  • Latest General Information Sheet​
  • Articles of Incorporation/Partnership (including amendments, if any)​
  • By-Laws (including amendments, if any)​
  • IDs of majority shareholders/authorized signatories ​
  • Last three months bank statements (BPI or other banks)​
  • ITR for the previous three years (if aggregate loan exposure is more than ₱3 million)
  • AFS for the last three years (if aggregate loan exposure is more than ₱3 million)

Approval duration

While BPI has a fast approval process, the actual timeframe depends on the complexity of your application, loan amount, completeness of your documents, and other relevant factors.

BPI typically processes loan applications within five to seven working days upon receiving all the necessary documents. However, it’s best to directly check with the bank for a more accurate assessment of your situation.

Interest rate

BPI Ka-Negosyo loan interest rates are based on prevailing market rates and application evaluation.

Unlock Your Business Potential with the Right Loan

Securing a loan can benefit your business, allowing you to fuel operations, pay employees, and cover financial emergencies. Bank loans like those from BPI offer a great way to seek extra funding. 

If you’re expanding your options, Zenith Capital offers a great alternative for online lending in the Philippines. We’re all for empowering Filipino entrepreneurs like you to seize opportunities and realize your business dreams with proper funding.

Ready to unlock your business’ potential? Contact us or apply now for a hassle-free and easy loan application experience. 

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