MABS shares Housing Microfinance experience

RBAP-MABS Program shared its experience on housing microfinance at the conference “Moving Forward with Innovations” held on March 12 at the Asian Institute of Management (AIM). The conference was sponsored by Microfinance Innovation Center for Resources and Alternatives (MICRA Philippines) and attended by various microfinance players including rural banks, NGOs, cooperatives, insurance companies, providers of technological solutions and others.
MABS Deputy Chief of Party highlighted the results of the one-year pilot test of housing microfinance with MABS pilot banks, which are now expanding the pilot and offering the product in more than 40 branches. In his presentation, Green Bank President Joseph Omar Andaya emphasized the value added benefits of the product to their existing clients enabling the bank to meet clients’ pent up demand for home improvement loans.
Both speakers underscored how small, short-term incremental loans are helping leverage clients’ savings for home improvements by making additions and increasing the value of their homes. The importance of a proper cash-flow analysis was also pointed out especially as some clients are managing more than one loan in the household.
Bangko Sentral ng Pilipinas (BSP) issued Circular 678 early this year recognizing as microfinance such shelter finance loan products for micro borrowers. RBAP-MABS has been poised to rollout its initiatives in housing microfinance to more rural banks and has already held the first rollout for Mindanao rural banks on March 4-6. It is scheduled to conduct a second rollout for Luzon rural banks starting with market research on March 23-25.

RBAP-MABS Program shared its experience on housing microfinance at the conference “Moving Forward with Innovations” held on March 12 at the Asian Institute of Management (AIM). The conference was sponsored by Microfinance Innovation Center for Resources and Alternatives (MICRA Philippines) and attended by various microfinance players including rural banks, NGOs, cooperatives, insurance companies, providers of technological solutions and others.

MABS Deputy Chief of Party highlighted the results of the one-year pilot test of housing microfinance with MABS pilot banks, which are now expanding the pilot and offering the product in more than 40 branches. In his presentation, Green Bank President Joseph Omar Andaya emphasized the value added benefits of the product to their existing clients enabling the bank to meet clients’ pent up demand for home improvement loans.

Both speakers underscored how small, short-term incremental loans are helping leverage clients’ savings for home improvements by making additions and increasing the value of their homes. The importance of a proper cash-flow analysis was also pointed out especially as some clients are managing more than one loan in the household.

Bangko Sentral ng Pilipinas (BSP) issued Circular 678 early this year recognizing as microfinance such shelter finance loan products for micro borrowers. RBAP-MABS has been poised to rollout its initiatives in housing microfinance to more rural banks and has already held the first rollout for Mindanao rural banks on March 4-6. It is scheduled to conduct a second rollout for Luzon rural banks starting with market research on March 23-25.