Public Sector Loans

Trade Services and Facilities

Government agencies may also access selected trade facilities to support eligible
transactions and financial obligations.

• Letters of Credit (L/Cs)

Provides a payment undertaking for eligible transactions, subject to the required
documents and applicable terms.


• Standby Letters of Credit (SBLCs)

May be issued as a guarantee to support specific obligations, subject to
applicable requirements and approval.

II. Government Owned and Controlled Corporations (GOCCs) and Water Districts (WDs)

- Veterans Bank provides a wider range of financing facilities for GOCCs and Water Districts to support their projects, operations, working capital, and trade related requirements.

Term Loans

Long Term Loans (LTL)

Designed to provide financing for project establishment, expansion, or modernization of facilities, as well as the acquisition of capital goods or services.

• Purpose: Project financing, facility expansion or modernization, and acquisition of capital goods or services

• Loan Term: 2 to 10 years

Short Term Loans (STL)

Designed to help GOCCs and Water Districts meet their working capital requirements and other short term financial needs.

• Purpose: Working capital requirements

• Repayment: Within one year

Revolving Promissory Note Line (RPNL)

A revolving facility that can help augment operating and working capital requirements. Funds may be made available through promissory notes with terms of up to 360 days, subject to the approved facility and applicable conditions.

Discounting Line

A financing facility that allows eligible government owned entities to convert qualified post dated checks received from customers into cash. This can provide earlier access to funds for organizations that regularly receive post dated checks as payment.

Omnibus Line

A multi purpose credit facility that can combine different financing facilities based on the organization's approved credit requirements. This provides flexibility in managing various funding needs under an appropriate credit arrangement.

Domestic Bills Purchased Line

A facility that allows eligible checks and bank drafts to be converted into cash, helping improve cash flow and provide access to funds from qualifying receivables.

Trade Services and Facilities

Veterans Bank provides trade related facilities to support eligible domestic and international transactions of GOCCs and Water Districts.
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• Letters of Credit (L/Cs)
A payment undertaking that can support eligible purchases and trade transactions, subject to the required documents and terms.
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• Documentary Collections
Available for transactions arranged under Open Account, Documents Against Acceptance, or Documents Against Payment, depending on the agreed transaction terms.
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• Standby Letters of Credit (SBLCs)
May be used to guarantee payment or support specific obligations, subject to applicable requirements.
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• Trade Finance
Trade finance facilities can help government owned entities manage the financing requirements of eligible import and export transactions.
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a. Import Financing through LC/TR Lines
Provides financing for eligible import transactions through Letters of Credit and Trust Receipt arrangements.
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b. Export Financing through Export Advance Lines
Provides pre shipment financing to support eligible expenses and funding requirements before goods are shipped.
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c. Export Bills/Drafts Purchased Lines
Provides post shipment financing by purchasing eligible export bills or drafts, giving the exporter access to funds before payment is received.
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d. Pre Settlement Risk Line / Settlement Risk Line
These facilities are designed to support eligible financial and settlement requirements related to approved transactions, subject to Veterans Bank's assessment and applicable terms.

Compliance Requirements

GOCCs and Water Districts must comply with the applicable documentary and regulatory requirements of the Department of Finance, Bangko Sentral ng Pilipinas, and other government and regulatory agencies that have jurisdiction over the borrower.
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Note: Additional documents may be required depending on the borrower's legal structure, type of facility, purpose of the loan, and applicable government regulations.

Loan processing fee

1% of approved amount

Deducted from loan proceeds upon release

Appraisal / collateral inspection fee

₱5,000

Per collateral appraised, if applicable

Credit investigation fee

₱2,000

Per borrower institution

Documentary stamp tax

Per BIR schedule

On the loan agreement and promissory note

Letter of Credit opening fee

0.25% of LC amount

Per LC issued

Standby LC issuance fee

0.5% p.a. of guaranteed amount

Per guarantee period

Bills purchased / discounting fee

Prevailing discount rate

Per transaction

Notarial fee

₱1,000

Per notarized document

Late payment penalty

2% / mo.

Applied on overdue amortization

Pre-termination fee

2% of balance

If settled before maturity

Loan restructuring fee

₱2,000

Per approved restructuring

Bank certification / statement of account

₱100

Per copy