Welcome Bank Business Loan: Low Barrier Of Entry At A Cost

Welcome Bank Business Loan: Low Barrier Of Entry At A Cost

Welcome Bank is a subsidiary of Welcome Financial Group, a specialized retail banking provider from Korea established in 2002. They offer a wide range of financial solutions to retail consumers from credit lines and loans, to banking products such as savings accounts, to digital banking services. 

One of their offerings to the retail market in the Philippines is their Business Loan. This loan option caters to small and medium business owners in the country, offering them access to financial services that can enable them to expand their businesses. It comes with a fairly reasonable eligibility requirement, one that shouldn’t give our local entrepreneurs a hard time to qualify for. 

What is a Welcome Bank Business Loan?

Welcome bank’s business loan offer is not like any other loan in the market today. It’s a more inclusive business loan for small to medium businesses, with low-income requirements, and you can loan up to ₱2,000,000.


Welcome Bank requires their loan applicants to meet certain eligibility requirements and provide the following documents.

  • Filipino citizens  at least 21-65 years of age
  • Registered business must be operating for three years; or for professionals such as doctors – one year in practice. 
  • With a minimum net monthly income of ₱40,000.00 a month
  • Must have a valid landline or postpaid number. 


  • Fully accomplished loan application form.
  • Two Valid Government IDs
  • Three months Bank Statement
  • DTI Permit / SEC Registration
  • Latest Mayor’s Permit
  • Latest ITR with Audited Financial Statements (optional)
  • Utility Bill (under your residential address)
  • Three Trade Reference / List of Suppliers

Interest rates, repayment, and fees

  • 3% monthly interest rate.
  • Repayment options of 12, 24, or 36 months. 

The following fees will be deducted from your loan amount:

  • Processing Fee – 3% of Approved Loan Amount
  • Notarial Fee – ₱400
  • Documentary Stamp Tax – Approval Loan Amount / 200 * 1.5

What makes the Welcome Bank business loan different from other loans?

The first thing that makes Welcome Bank Business Loan different from the rest of the market is that it’s aiming to be a more inclusive product to the mass market. They prove this by imposing less intimidating eligibility and requirements than other providers. Being a new player in the market, it’s also their bargaining chip to attract more customers and establish their brand in the Philippine market. 

Professional practitioners running their own clinic, office, or agency are also eligible for this loan, and the requirements are less stringent for them too. 

The income requirement also sits at ₱40,000 a month (net). Considering this is a business loan from a bank, this criteria is already being very lenient for its applicants. It can be argued that non-bank financial institutions that offer business loans require much lower income criteria, but it’s worth noting that their regulations are different from actual banks. On top of that, banks typically require more than the documents listed above, adding more criteria to comply with.

The income requirement is applicable to both professionals and regular business owners. 

Welcome Bank’s business loan is a generous loan offering to entrepreneurs, its interest rates are comparable to those non-bank providers. Here’s a quick comparison between Welcome Bank Business Loan and other providers offering the same type of loan. 

BankInterest rateTerm
Welcome Bank3% per monthUp to 36 months
Esquire Business Loan3.5% per month6 months
RFC Business Loan3.5 to 4% per monthUp to 12 months
First Circle Business Loan2.5% per month6 months

What we like about Welcome Bank Business Loan

First of all, we can’t emphasize enough how low its barrier of entry is. This is a good business loan for self-starters and entrepreneurs who have good business standing but have not established a long-term credit record with banks to qualify for their business loans. It also specifically includes professionals (like doctors, engineers, architects, etc) running their own service-based businesses. 

It’s obviously a better alternative to those non-bank personal loans due to the fact that not only is it as easy to apply for, but it offers a longer repayment period of up to three years. 

This loan option is for thriving entrepreneurs who need extra funds for their businesses. If you meet the eligibility requirements of at least three years running your business or one year if you’re a professional running your own firm (or clinic for doctors), this loan is worth considering. 

Overall, it’s a very consumer-friendly business loan. 

Things to consider before applying for this loan

Welcome Bank’s Business Loan is a product suitable for the mass market because of its low barrier of entry. While that’s all well and good, one side that you might look deeper into is its interest rates. 

At first glance, 3% monthly interest for a business loan up to two million pesos may not be much, but it can be quite a significant amount over the length of your loan (at least 36% per annum). If the interest is too much, you can either consider shortening your repayment term or your loan amount. 

Either way, make sure that before you sign the loan agreement, you are agreeable to the total amount you’ll be paying for and that it won’t impact your cash flow negatively.  After all, the whole purpose of getting a loan should help you free up your cash not further choke it.

At the end of the day, it’s still about understanding the balance between the benefit of getting a loan and whether or not it’s worth paying for the interest. 

Welcome Bank Business Loan

Welcome Bank Business Loan

Loan up to ₱2,000,000 and pay up to 3 years

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