BSP approves higher cap, longer term for micro loans

The Rural Bankers’ Association of the Philippines (RBAP) said the central bank has approved an increase in the ceiling of its housing micro finance loan product. Joseph Omar Andaya, RBAP president, said the Bangko Sentral ng Pilipinas (BSP) approved the generic operations and procedures manual that would allow micro finance lenders and rural banks to raise the loan ceiling from P150,000 to P300,000.
“It would enable micro finance institutions, like rural banks, to increase the depth and breadth of their outreach to provide financial services addressed to the segments belonging to the economic base of the pyramid,” Andaya said.
The RBAP official said that BSP allowed a longer loan term for micro finance loan products.
“The terms of micro loans before only ranged from 6 months to one year. Housing micro finance terms [can now] range from five years [for home renovation] to a maximum [of] 15 years [for] cases which involve acquisition of lot and construction of house,” he said.
Read the rest of the article on The Manila Times.net

The Rural Bankers’ Association of the Philippines (RBAP) said the central bank has approved an increase in the ceiling of its housing micro finance loan product. Joseph Omar Andaya, RBAP president, said the Bangko Sentral ng Pilipinas (BSP) approved the generic operations and procedures manual that would allow micro finance lenders and rural banks to raise the loan ceiling from P150,000 to P300,000.

“It would enable micro finance institutions, like rural banks, to increase the depth and breadth of their outreach to provide financial services addressed to the segments belonging to the economic base of the pyramid,” Andaya said.

The RBAP official said that BSP allowed a longer loan term for micro finance loan products.

“The terms of micro loans before only ranged from 6 months to one year. Housing micro finance terms [can now] range from five years [for home renovation] to a maximum [of] 15 years [for] cases which involve acquisition of lot and construction of house,” he said.

Read the rest of the article on The Manila Times.net