EastWest Business Loan FAQs

Revolving Credit Facility FAQs

  1. What is a Revolving Credit Facility and how does it work?

    RCF is a revolving credit line and a fully secured facility intended to provide borrowers with additional working capital. RCF is accessed via check issuance.

  2. What is the difference between RCF and a Term Loan?

    Term Loan is a one-shot loan usually available for purpose of financing simple capital expenditures that require longer repayment terms, such as the acquisition of machinery and equipment, renovation or expansion of facilities and purchase of property for business expansion.

    Maximum tenor of Emerging Enterprise Lending Term Loan is 10 years.

    RCF is usually for short-term working capital needs while Term Loan is for capital expenditure or asset financing (e.g., purchase of machines & equipment, construction or renovation of factory or place of business).

    If you have an RCF, you have the option to use only a certain amount of your credit line and interest will be charged only for this amount.

  3. What is the difference between RCF and a Revolving Promissory Note Line (RPNL)?

    Must have at least one fixed landline number (either home or business) and a mobile number.
    RPNL is availed of through submission of signed Promissory Note and Disclosure Statement, with loan proceeds to be credited to your account. In order to avail of this facility you have to issue a promissory note every time you avail of the credit line. On the other hand, RCF can be accessed by a simple check issuance.

  4. What payment terms are available?

    RCF has only one payment term which is 12 months but can be renewed every year. Your monthly Statement of Account will show your outstanding balance and the minimum amount due. The minimum amount due covers interest, fees and other charges. Your principal amount may be settled anytime during the duration of your credit line whether partial or full.

  5. If I pay my principal loan before my line matures, do I re-apply for an RCF?

    No, as long as you have not reached your line expiry date, you can still continue using the facility. Before the expiry date of your RCF, the Bank will coordinate with you on the requirements for line renewal.

  6. If approved, how soon can I receive my Revolving Credit Facility checks?

    When approved, we shall send you documents for your signature and a list of requirements to be submitted. We shall issue your RCF checkbook within 2 days from submission of signed loan documents and completion of REM registration.

  7. Will I be charged for Documentary Stamps and how will I be charged?

    Documentary stamps are required paid up in full upon approval of your RCF.

  8. What are the requirements needed for my RCF application?

    • Filled out and signed Loan Application Form
    • Company Profile
    • Photocopies of Borrower’s BIR-stamped Income Tax Return (ITR) and Audited Financial Statements for the past 3 years
    • Photocopies of Bank Statements (Current/Savings Accounts) of Borrower for the past 6 months
    • Photocopies of business registration papers (as applicable: DTI Registration / SEC Registration / Articles & By-Laws / General Information Sheet)
    • Photocopy/ies of latest BIR-stamped ITR of Surety/ies (for sole proprietorship: ITR of spouse; for corporations: ITRs of main stockholders)
    • Photocopies of two valid IDs of the proprietor & spouse (for sole proprietorship) or the authorized signatories (for corporation and partnership)
    • Photocopy of Marriage Contract of owner and spouse (for sole proprietorships)
    • List of affiliate/sister companies and subsidiaries (with complete business name, address and nature of business)
    • Notarized Secretary’s Certificate of Board Resolution or Partnership Resolution authorizing the application for a loan and the designation of the authorized signatories

    Real Estate Collateral Documentation
    • Photocopy of Owner’s Duplicate Copy of TCT; or CCT (if condominium)
    • Photocopy of Tax Declaration (on land and building, as applicable)
    • Lot plan with vicinity map signed by Geodetic Engineer
    • Payment of Appraisal Fee

  9. What kinds of collaterals are acceptable for RCF?

    Any or a combination of the following is accepted as collaterals:

    • Real Estate Mortgage (REM) on your residential property or any property used for the business.
    • Deposit hold out
    • Chattel Mortgage (CHM) on vehicle not over 6 years old owned by the borrower
    • Treasury Bills and Treasury Notes
    • Shares of Stock
    • Club and Golf shares
    • Government bonds/securities
    • Money Market/Trust Placements

  10. How long will it take to have a decision on my loan application?

    Your RCF application can be processed within 3 weeks after submission of all the required documents.

  11. How will I know if my application has been approved?

    You will receive a Letter of Advice regarding your approved RCF or you can call Emerging Markets Banking (EMB) department at telephone number 365-2075 for updates on your application.

  12. Where can I apply for a RCF?

    You can apply at any EastWest branch nearest you or call the Emerging Markets Banking (EMB) department at telephone number 365-2075.

  13. Where can I inquire more about RCF

    You can inquire from any EastWest branch nearest you or call our hotline 888-1700.

  14. How much can I borrow or what is the minimum credit line I can apply for?

    The amount will be based either on your business requirement or the loan value of collateral, whichever is lower.

  15. How much is the monthly interest rate for RCF?

    We offer competitive interest rates for the RCF. The interest rate for the RCF is based on prevailing lending rates.

  16. When do I pay for the RCF checks drawn from my credit line?

    You will receive a monthly Statement of Account within ten (10) days after the cut-off period containing the amount due and the due date of your RCF payment.

  17. I didn’t use up all my allowable credit line for the month, do I pay for interest for the whole amount of credit line or only on the amount I used?

    You will only pay for the amount that you utilize.

  18. How do I get the loan proceeds?

    You may use your funds via issuance of RCF check anytime or encashment of RCF check from any EastWest branch during Banking Hours.

  19. Do I need to pay a fee when I apply for RCF?

    The following are the applicable fees:

    • Appraisal Fee of P3,000 for Metro Manila property and P4,000 for outside Metro Manila property.
    • Real Estate Mortgage (REM) Registration Fees.
    • Documentary Stamps tax. (P1 for every P200 or a fraction thereof)
    • Processing Fee (P200 for every P100,000; minimum of P2,000, maximum of P10,000)

  20. Can I use my regular EastWest checks while waiting for my RCF checks to be available?

    No. Your regular EastWest checks are linked to your checking/current account. Your RCF checkbook is your access to your RCF line.

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For more information:

Visit any EastWest Store.

Call 24/7 Customer Service Hotline 888-1700.

Email us at csloans@eastwestbanker.com.