Rural banks train for housing microfinance, microinsurance

MANILA, Philippines - The Rural Bankers Association of the Philippines Microenterprise Access to Banking Services (RBAP-MABS) had conducted its second module of the Housing Microfinance (HMF) Product Development Workshop held at the Pan Pacific Hotel in Manila last April 27-30.

Twenty-six participants from 11 MABS participating banks coming from Luzon and the Visayan region participated in the workshop.

A continuation of the HMF market research training started March, the workshop allowed the participants to complete the development of their housing microfinance loan products, draft their manual and business plan, and prepare an action plan for pilot testing their respective loan products over the next six months.

Bangko Mabuhay Microfinance Unit head Imelda Montenegro related the bank’s experiences and lessons learned in conducting their market research.

“From the results of the market research, there is a strong demand for shelter finance as a new loan product we can offer to complement our existing microfinance services to our clients,” Montenegro said. Most of potential clients surveyed expressed interest on getting loans for repairs or improvements in their homes. Bangko Mabuhay has been an active MABS participant bank in Luzon since 2003.

The MABS training team guided the participants on using the information from the market research in developing their loan product as well as in drafting the product manual, preparing the financial projections and business plan.

Bangko Sentral ng Pilipinas (BSP) Circular 678 issued on Jan. 6, 2010 recognizes loans for housing to microfinance clients as part of a wide range of financial services to the sector.

United States Agency for International Development (USAID) Philippine representative Teresita Espenilla said that empowering bank clients to invest in affordable housing builds a stronger family.

“It helps them improve their enterprises thereby contributing to efforts to better their lives and improve the economy,” Espenilla added.

The RBAP-MABS Program has been supported by USAID since 1997. Since the test phase for Housing Microfinance Product with four pilot banks, over 1,200 housing microfinance loans totaling more than P42 million have been disbursed to clients across the Philippines.