BY Lailany P. Gomez Reporter, Manila Times –

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.

He said the BSP also approved the application for incentives and regulatory treatment granted to the Housing and Urban Development Coordinating Council.

Based on the resolution signed by BSP Deputy Governor Nestor Espenilla Jr., all RBAP-accredited banks, which have complied with the pre-qualification requirements set by the organization, can offer housing micro finance products.

They must provide the latest Camels rating of at least three and a management score of at least three.

On top of that, the banks must have a capital adequacy ratio at least 12 percent, should not have major supervisory concerns that would warrant a prompt corrective action under existing regulations, and no arrearages in micro finance borrowings.