Types of Loans

Commercial Loans

Lending has been the principal tool used by the Bank in support of the members’ economic development, and it continues to be the Bank´s main activity. You may apply for a commercial direct loan to start up a new business or expand your existing business. Following are the specific general information about our commercial direct loans.

Loans are allocated to businesses in the member countries based on the amount of equity capital contributed. For example, Yap, who has already paid its full $1 million in capital to the bank may receive loans up to $1 million.

Minimum Loan Amount: $20,000

Maximum Loan Amount: Not to exceed 20% of total assets; and depends on funds available to each member country (capital contributed less outstanding loan balances)

Interest Rate: 10% fixed

Loan Term: Up to 20 years

Collateral Required: Assets with value equal to or more than loan amount

Loan Fee: 1.5% of loan amount payable at loan closing

Other Fees: Borrower will be responsible for fees associated with escrow closing services

Commercial Direct Loans


Consumer Loans

As part of the Bank’s support to its member countries, one of its products is consumer loans. Its objective is to contribute to improved standard of living and quality of life of citizens of member countries through direct financing of a wide range of secured and unsecured loans to consumers for personal, family and household purposes. Following are the specific general information about our consumer loan programs.

Minimum Loan Amount: $500

Maximum Loan Amount: $25,000

Eligible Borrowers: Citizens of PIDB Member countries (Guam, CNMI, Palau, RMI, Chuuk, Kosrae, Pohnpei, Yap)

Interest Rate: 8% to 12% fixed rate, reduced rates for qualified borrowers

Loan Term: 5 years maximum

Eligible Expenses: Purchase of car, boat, recreational vehicle, personal, family, household and education purposes; debt consolidation

Prior Requirements: Copy of Purchase Agreement, Bill of Sale, Insurance Quotation, Copy of Title

Collateral Required: Yes

Acceptable Collateral:

  • Personal Property with validated valuation and demonstrated clear title of proof of ownership (automobile, boat, or equipment);
  • Assignment of deposit account (savings, TCD);
  • Assignment of life insurance;
  • Qualified and eligible guarantors(s).
  • We may consider other assets pledged on a case-by-case basis.

Loan Fee:

$500.00 – $2,500.00 – $25.00
$2,500.01 – $5,000.00 – $75.00
$5,000.01 – $10,000.00 – $100.00
$10,000.01 – $15,000.00 – $150.00
$15,000.01 – $20,000.00 – $200.00
$20,000.01 – $25,000.00 – $250.00

Closing costs may be taken from the loan.

Notice: PIDB will not be granting unsecured consumer loans at this time and for the foreseeable future.

Consumer Loan Requirements:

Residential Loans

As part of the Bank’s support to its member countries, one of its products is residential home loans. Its objective is to contribute to improved standard of living and quality of life of citizens of member countries through direct financing of residential homes including purchase of existing properties. Following are the specific general information about our residential home loans.

Minimum Loan Amount: $10,000

Maximum Loan Amount: $200,000

Eligible Borrowers: Citizens of PIDB Member countries (Guam, CNMI, Palau, RMI, Chuuk, Kosrae, Pohnpei, Yap)

Interest Rate: 7%

Loan Repayment Term: 30 years maximum

Eligible Expenses: Purchase existing property, construction materials, services, labor, and related costs for building new property, renovation of existing homes

Prior Requirements: Architectural plans and specifications for the building; builder’s cost quotation; valuation on an “as completed” basis; first time home-owner occupied; in the event of relocation, can rent out

Collateral Required: First registered mortgage or Deed of Trust as applicable; spouse to be co-borrower or guarantor; other personal assets with value; other securities as may be required by the bank

Loan Fee: 1.5% of loan amount

Closing costs: borrower will be responsible for all closing costs; may be added to loan

If you’d like to get to know more about different loan options, visit https://www.sofi.com/personal-loan-calculator/.