Two rural banks share stories of housing microfinance loan clients

Inspiring stories of how loans as tiny as PhP5000 are helping build assets and improve the homes of micro loan clients were shared during the recently concluded National Roundtable of participating banks of the Microenterprise Access to Banking Services. Held on June 2-3, 2010, the Roundtable event featured three panelists.
Mr. Gerry Butardo of Bangko Sentral ng Pilipinas (BSP) discussed the major features of the new regulations on housing microfinance contained in BSP Circular 678, while Ms. Teresa Ganzon of BangkoKabayan, and Retired Gen. Charles Hotchkiss of Cantilan Bank shared inspiring stories of how their clients and their families are enjoying improved homes, bigger space, security and better living environment. Showing “Before” and “After” pictures of home improvement and repairs undertaken by their clients, both bankers emphasized market research as an important tool for developing the loan product, the need to have a common understanding of the product down the line, and the key role that commitment from top to bottom plays in getting the product off the ground. Both Cantilan Bank and Bangko Kabayan are among the first banks to offer housing micro loan product to their clients. Both initially targeted their existing microenterprise clients and quickly built their portfolio within a year.
Market demand research conducted jointly in 2008 by RBAP-MABS and Mercy Corps found a strong demand for housing loans to serve the microfinance markets. The MABS Program, which is supported by the USAID, has trained 19 additional banks which are poised to offer their housing loan product, and will conduct another training for interested banks in August 2010.

Inspiring stories of how loans as tiny as PhP5000 are helping build assets and improve the homes of micro loan clients were shared during the recently concluded National Roundtable Conference of MABS participating banks. Held on June 2-3, the conference featured three panelists.

HMF Presentation Panel

From Left: Mr. Gerry Butardo (MSME Finance Specialist Group Head, Bangko Sentral ng Pilipinas), Ms. Ma. Teresa Medrano-Ganzon (Managing Director, Bangko Kabayan), and Gen. (Ret.) Charles Hotchkiss (Executive Committee Chairman, Cantilan Bank)

Mr. Gerry Butardo of Bangko Sentral ng Pilipinas (BSP) discussed the major features of the new regulations on housing microfinance contained in BSP Circular 678, while Ms. Teresa Ganzon of Bangko Kabayan, and Retired Gen. Charles Hotchkiss of Cantilan Bank shared inspiring stories of how their clients and their families are enjoying improved homes, bigger space, security and better living environment.

Showing “Before” and “After” pictures of home improvement and repairs undertaken by their clients, both bankers emphasized market research as an important tool for developing the loan product, the need to have a common understanding of the product down the line, and the key role that commitment from top to bottom plays in getting the product off the ground. Both Cantilan Bank and Bangko Kabayan are among the first banks to offer housing micro loan product to their clients. Both initially targeted their existing microenterprise clients and quickly built their portfolio within a year.

Market demand research conducted jointly in 2008 by RBAP-MABS and Mercy Corps found a strong demand for housing loans to serve the microfinance markets. The MABS Program, which is supported by the USAID, has trained 19 additional banks which are poised to offer their housing loan product, and will conduct another training for interested banks in August 2010.

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