Mindanao rural banks complete Housing Microfinance training

April 7, 2011 By Leave a Comment

HMF TrainingFour Mindanao rural banks completed the RBAP-MABS training course on housing microfinance (HMF) held last April 4-6 in Butuan City.

The 2nd phase of a two-part HMF training course, the workshop provided the banks with the tools to complete their loan product manual and financial projections. Rural Bank of Labason and Rural Bank of Cotabato both plan to introduce their housing loan product during the first semester of this year. On the other hand, Cantilan Bank and Green Bank, which have been offering HMF loans in some of their branches since 2008, will be rolling out the product to more branches.

The training provided the participants with additional tools and the opportunity to validate their proposed product features using the results of the market research. It also allowed the participants to experience conducting focus group discussions with clients firsthand. Finally, RBAP-MABS drilled the trainees on cash flow analysis, especially when handling clients with dual loan accounts. The training team guided the participants on the step-by-step process of finalizing the product manual.  The participants valued most their learning experience from the focus group discussion conducted with loan clients and the cash flow analysis.

The USAID-supported RBAP-MABS Program initiative in housing microfinance began in 2008.  To date, 60 bank units of seven (7) rural banks offer micro housing loans to their clients. BSP Circular 678, which was issued by the Bangko Sentral ng Pilipinas in January 2010, is encouraging more banks to add housing to their suite of microfinance loan products.

As of January 2011, 2,092 borrowers have received housing loans worth over P85 million primarily for home improvements. The Circular permits banks to lend to microfinance clients up to PhP300,000 with tenor up to 15 years for home or lot acquisition or home construction.

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A look at microfinance in Cotabato City

July 17, 2010 By Leave a Comment
Cotabato City, the seat of the ARMM Government in Mindanao, has a big market for microfinance as evidenced by the robust business activities within and outside its business district. The favourable business climate it experiences nowadays is the result of continuing effort exerted by the national and local government, the military, and more importantly, the unwavering resolve of the local populace to bring lasting peace and prosperity.
To date, there are 3 privately owned and 2 government-owned commercial banks active in the city’s commercial lending sphere. However, despite the city’s enormous potential for microfinance, only one bank offers microfinance products in the area – the Rural Bank of Cotabato, Inc. (RBCI) established almost 50 years ago. The only rural bank in Cotabato City, RBCI was established in 1961 for the primary purpose of providing the city’s public school teachers with access to salary loans and deposit services. It now offers loans for agricultural and commercial purposes, among others. RBCI joined the USAID-supported MABS Program in 2004 and in 2005, it began applying the MABS Approach to microfinance lending.
In order to gear up RBCI’s financial services for the large micro and SME (small and medium enterprise) sectors in Cotabato City and its environs, MABS reviewed RBCI’s microfinance operations on July 14-16 to evaluate its areas for improvement and training needs. Assisted by MABS, the bank drafted an action plan to guide the bank in moving towards further strengthening its banking and microfinance operations.
With assistance from MABS, RBCI hopes to provide better financial services to Cotabato City and its neighbors’ microfinance clients, taking its own share of bringing peace and prosperity in the once feared metropolis.

Cotabato City, the seat of the ARMM Government in Mindanao, has a big market for microfinance as evidenced by the robust business activities within and outside its business district. The favourable business climate it experiences nowadays is the result of continuing effort exerted by the national and local government, the military, and more importantly, the unwavering resolve of the local populace to bring lasting peace and prosperity.

To date, there are 3 privately owned and 2 government-owned commercial banks active in the city’s commercial lending sphere. However, despite the city’s enormous potential for microfinance, only one bank offers microfinance products in the area – the Rural Bank of Cotabato, Inc. (RBCI) established almost 50 years ago. The only rural bank in Cotabato City, RBCI was established in 1961 for the primary purpose of providing the city’s public school teachers with access to salary loans and deposit services. It now offers loans for agricultural and commercial purposes, among others. RBCI joined the USAID-supported RBAP-MABS Program in 2004 and in 2005, it began applying the MABS Approach to microfinance lending.

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