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: 13% fixed
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: May be required 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.
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/.