Once upon a time, banks treated all their customers the same. Each bank would have two or three products from which everyone would choose regardless of their business and financial status. A majority of these financial services favored the very wealthy and people in what was considered mainstream business.
It wasn’t until later that these financial institutions noticed the business potential of lower-income earners and sought to get intentional about reaching a wider clientele. Now there are so many banks and financial products that you need UpFinance. A convenient service to help you determine the best financial service for you.
Producers Saving Bank Corporation, commonly known as Producers Bank, is one of the banks specifically established to meet the needs of this market segment.
Advantages of Producers Bank
The bank’s primary focus is on enhancing people’s economic capacity in the lower cadres, such as farmers and Small and Medium Enterprises. They seek to achieve this goal through innovative deposit and loan products. These financial products are intended to meet this market segment’s needs as precisely as possible.
The following are some of the Producers Saving Bank Corporation’s loan products.
1. SME Loan
This loan is available to all types of SMEs located. A business qualifies to apply if the area where it is located has a Producers Bank has a branch. A business must have been profitable for at least two years before applying for the loan. This is a secured loan, and you, therefore, need to have acceptable collateral for the amount you borrow.
The minimum SME loan amount is 1,000,000 PHP with an interest rate of 12% on a reducing balance, and it is payable for a maximum of 36 months. The loan will be approved within seven to twenty-one days if all your documents are in order. You can repay the loan with regular installments or in a lump sum, depending on the nature of the business you are involved in.
2. Teacher’s Salary Loans
This is advanced for teachers on their salary. The minimum loan amount is 1000 PHP while the maximum is 500000 PHP payable within 1-3 years. It has varying interest rates between 7.5 – 9.66% depending on the loan term; the shorter the period, the lower the interest rate.
3. Crop Loan
This loan is available to Palay farmers within the bank’s localities. A farmer must have at least 5 hectares of land to access this facility. You need to have appropriate, usually the farm, collateral for the loan land. You get a maximum of 35,000 PHP for hybrid seeds per hectare and 25,000 PHP for certified seeds per hectare. You can also get 500,000 PHP to buy agricultural machines. The loan term is six months, payable in a lump sum at the end of the six months or after harvest, whichever comes first.
4. Livestock Loan
This loan is available for chicken and hog keepers who have supply contracts with some buyers. The applicants must reside where the Producers Bank is located. The farm must have existed and been profitable for a minimum of two years. This is a secured loan; thus, you need collateral. You get a minimum of 1,000,000 PHP in this facility; the amount can increase depending on the quality of the business’ needs and financial position.
Other products include Go Negosyo Loan, Car Loan, and Housing Loan. You can find out more about these and every other product Producers Bank has in an easy-to-follow format in UpFinance. Click here for further information.
The author: Sofia Garcia