BSP approves housing loan manual

Business World – RURAL BANKS’ product template for small housing loans has been approved by the central bank, easing the process by which lenders can offer the product.

Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. said the approval by the Monetary Board of the Rural Bankers Association of the Philippines’ (RBAP) product manual for housing microfinance loans means banks need not ask the central bank for approval before they can offer such loans to clients.

These banks, however, must be participants in the Microenterprise Access to Banking Services (MABS).

“If you are a member of RBAP and a MABS participant, you don’t have to seek a separate approval from the BSP… to be able to extend housing microfinance. You can simply use the product manual that has been approved,” Mr. Tetangco said.

“(This) facilitates the process so all RBAP-MABS banks can simply use the product manual that was presented to the Monetary Board,” Mr. Tetangco said.

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