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Micro Financing Program
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MICRO FINANCING PROGRAM > MICRO LEAD

 

Program Description

Wholesale micro lending through lead micro finance institutions (MFIs) whose lending portfolio and organizational structure are predominantly or at least 60% microfinance.

Product Features

Type of Facility

Credit Line

Target Conduit

Medium and Large MFIs

(Open to different types including microfinance-oriented banks, cooperatives and non-government organizations)

Purpose of Loan

- Wholesale relending to MFIs
- Retail relending to micro borrowers

Loan Amount

Medium MFIs

  1. Minimum of P3 Million
  2. Maximum of P50 Million (on the first year with SBC)
  3. Maximum of P100 Million (for the succeeding years)

Large MFIs

  1. Minimum of P15 Million
  2. Maximum of P100 Million (on the first year with SBC)
  3. Maximum of P200 Million (for the succeeding years)

Line Drawdown

Minimum of P100 Thousand or 5% of credit line; maximum of 30% of credit line per drawdown

Term and Line Expiry

One year credit line, subject to renewal

Repayment Term per Drawdown

360 days, payable quarterly; may be up to two years, if justified by nature of micro-borrower’s business as in the case of graduating micros

Security

Continuing Surety Agreement of principals (on best effort basis)

Other Terms of Financing

Conduit must be willing to monitor its micro borrowers and be monitored by SBC
 

Minimum Borrower Qualifications

          Medium-sized MFIs (with asset size of at least P15 Million)

    • At least three years in microfinance operations
    • At least 3,000 microfinance clients; if wholesaler, at least 10 conduits
    • Must have at least a manpower of 20 exclusively for microfinance operations; if wholesaler, at least 10
    • Microfinance portfolio must be at least 60%
    • If bank, CAMELS rating must be at least 3
    • Latest financial ratios
      • At least 1.2 current ratio (at least 1.0 if bank)
      • At least 20% capital adequacy ratio (at least 10% if bank)
      • Not more than 10% microfinance portfolio-at-risk (PAR)

          Large MFIs (with asset size of at least P100 Million)

    • At least ten years in microfinance operations
    • At least 20,000 microfinance clients; if wholesaler, at least 20 conduits
    • Must have at least a manpower of 100 exclusively for microfinance operations; if wholesaler, at least 20
    • Microfinance portfolio must be at least 60%
    • If bank, CAMELS rating must be at least 3
      • Latest financial ratios
    • At least 1.2 current ratio (at least 1.0 if bank)
    • At least 20% Capital adequacy ratio (at least 10% if bank)
    • Not more than 8% microfinance portfolio-at-risk (PAR)

 

For more information about our products, please contact us:

Small Business Corporation
Development Finance Group
Telephone No. 751-1888
or at any SBC office nearest you.

(Link to SBC area offices directory)