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| MICRO FINANCING PROGRAM > MICRO LOCAL
Program Description
Wholesale micro lending through MSME-oriented rural and cooperative banks
Product Features |
Type of Facility |
Credit Line |
Target Conduit |
- Rural banks
- Cooperative banks
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Purpose of Loan |
Re-lending to micro borrowers |
Loan Amount |
Minimum of P200 Thousand
Maximum of P50 Million on the first year with SBC
Maximum of P100 Million for the succeeding years |
Line Drawdown |
Minimum of P100 Thousand
Maximum of 30% of credit line |
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
- Hard collateral maybe required if start up in microfinance
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Other Terms of Financing |
Conduit must be willing to monitor its micro borrowers and be monitored by SBC |
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Minimum Borrower Qualifications
- At least three years in existence as a bank; may be on start-up basis in microfinance
- At least 50 existing micro finance clients; if start up, should plan for at least 50
- Must have at least a manpower of three exclusively for microfinance operations; if start up, should plan for at least three
- Minimum asset size - should conform with BSP guidelines
- Must have CAMELS rating of at least 3
- Latest financial ratios
- At least 1.0 current ratio
- At least 10% capital adequacy ratio (per BSP guidelines)
- Not more than 10% microfinance portfolio at risk (PAR)
- Past due rate within industry average, but not exceeding 15%
- Documentary Requirements for Loan Application
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)
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Micro Financing Program