MANILA, Philippines - The Rural Bankers’ Association of the Philippines (RBAP) said that the Bangko Sentral ng Pilipinas (BSP) has approved an increase in the ceiling of its housing microfinance loan product. RBAP president Joseph Omar Andaya said BSP approved the generic operations and procedures manual that would allow microfinance lenders and rural banks to raise the loan ceiling from P150,000 to P300,000.
The increase in ceiling would enable microfinance 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. The BSP also allowed a longer loan term for microfinance loan products.
Housing microfinance terms 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. It used to be from six months to one year.