Northern Luzon Banks complete the Housing Microfinance Workshop series

Mallig, Isabela. Thirteen (13) participants from nine (9) banks gathered once again to complete the 2nd part of the Housing Microfinance (HMF) Workshop: Designing a Housing Microfinance Loan Product. Held on November 25-26 at the Mallig Plains Colleges Training Center, the series of HMF workshops was organized by Ms. Praxedes Ignacio, president of Northeast Luzon Microfinance Council and special assistant to the president of Mallig Plains Rural Bank.

A key important lesson that caught the attention of the participants was the Focus Group Discussion (FGD) methodology, a qualitative tool to assist the bank in gathering pieces of information on what potential clients like or dislike about the features of a new product, and what changes are needed to the product to make it more acceptable and suitable to better meet client needs. Mr. Kenneth Salas, a marketing assistant of Mallig Plains Rural Bank said, “we thought conducting a client FGD to validate the product features of the Housing Microfinance Loan product is no longer needed once the product features are in place, so we now understand this is important.”
The two-day workshop featured the recommended Generic Housing Microfinance Product Features and Lending Procedures as approved by the Bangko Sentral ng Pilipinas (BSP), with emphasis on the minimum criteria to determine the banks’ capacity to offer Housing Microfinance as stipulated in BSP Circular No. 678 Section 2. Other salient topics were: Product Promotions, Computation of the Annual Percentage Rate, Financial Projections, MIS Enhancements and an Action Plan to guide the banks on their next steps six months after the workshop.
The Housing Microfinance Workshop is an RBAP-MABS initiative in collaboration with MABS certified service providers, Punla sa Tao Foundation and Microfinance Innovation Center for Resource and Alternatives (MICRA-Philippines). RBAP-MABS and the MABS Service providers are closely working with the rural banks in developing a market driven Housing Microfinance Loan Product. Per Bangko Sentral Circular No. 678, the banks can now serve the housing microfinance needs of the microenterprises based on strict regulations and parameters to ascertain the banks’ technical capacity to serve this unique market segment.
Representatives from the following banks completed this series of HMF trainings which started in August this year: Philippine Rural Banking Corporation (PR Bank), Mallig Plains Rural Bank Inc., Cooperative Bank of Cagayan, Rural Bank of Luna (Kalinga-Apayao), Rural Bank of Maddela, Agri-Business Rural Bank, Rural Bank of Mabitac, Rural Bank of Jose Panganiban and Rural Bank of San Vicente.

HMF training

A key lesson that caught the attention of the participants was the Focus Group Discussion (FGD) methodology, a qualitative tool to assist the bank in gathering pieces of information on what potential clients like or dislike about the features of a new product, and what changes are needed to the product to make it more acceptable and suitable to better meet client needs. Mr. Kenneth Salas, a marketing assistant of Mallig Plains Rural Bank said, “we thought conducting a client FGD to validate the product features of the Housing Microfinance Loan product is no longer needed once the product features are in place, so we now understand this is important.”

The two-day workshop featured the recommended Generic Housing Microfinance Product Features and Lending Procedures as approved by the Bangko Sentral ng Pilipinas (BSP), with emphasis on the minimum criteria to determine the banks’ capacity to offer Housing Microfinance as stipulated in BSP Circular No. 678 Section 2. Other salient topics were: Product Promotions, Computation of the Annual Percentage Rate, Financial Projections, MIS Enhancements and an Action Plan to guide the banks on their next steps six months after the workshop.

The Housing Microfinance Workshop is an RBAP-MABS initiative in collaboration with MABS certified service providers, Punla sa Tao Foundation and Microfinance Innovation Center for Resource and Alternatives (MICRA-Philippines). RBAP-MABS and the MABS Service providers are closely working with the rural banks in developing a market driven Housing Microfinance Loan Product. Per Bangko Sentral Circular No. 678, the banks can now serve the housing microfinance needs of the microenterprises based on strict regulations and parameters to ascertain the banks’ technical capacity to serve this unique market segment.

Representatives from the following banks completed this series of HMF trainings which started in August this year: Philippine Rural Banking Corporation (PR Bank), Mallig Plains Rural Bank Inc., Cooperative Bank of Cagayan, Rural Bank of Luna (Kalinga-Apayao), Rural Bank of Maddela, Agri-Business Rural Bank, Rural Bank of Mabitac, Rural Bank of Jose Panganiban and Rural Bank of San Vicente.