The Bangko Sentral ng Pilipinas (BSP) has approved standardized business loan forms to improve access of micro, small and medium enterprises (MSMEs) to credit and financial products.
BSP recently approved BSP Circular No. 1156 for a “borrower-friendly” and borrower-centric Standard Business Loan Application Form (SBLAF) to streamline, make the loan application process MSME more efficient and transparent.
The BSP said on Tuesday November 8 that the mandatory adoption of the SBLAF came into effect on October 28, 2022. All financial institutions supervised by the BSP or BSFI have 18 months to comply with the requirements of the SBLF.
“The SBLAF (should) help MSME borrowers become more familiar with the loan process and find formal loan applications less intimidating,” the BSP said.
BSP also said that the adoption of SBLAF will facilitate faster loan processing by increasing the use of digital loan application platforms. The SBLAF will also support credit data requirements for credit registries.
“The introduction of a SBLAF for MSMEs was one of the initiatives identified by the MSME Development Council – Access to Finance Group, of which BSP is a member,” BSP said. The board includes Small Business Corp., Landbank of the Philippines, Development Bank of the Philippines, Credit Information Corp. (CIC), as well as representatives of the banking sector and microfinance NGOs.
In the meantime, the SBLAF models have been developed in close coordination with the technical working group consisting of the following people: Philippine Bankers Association, Federation of Cooperative Banks of the Philippines, Chamber of Savings Banks, Rural Bankers Association of the Philippines , Department of Trade and Industry – Small Business Group and Bureau of Small and Medium Enterprises, Philippine Guarantee Corporation, CIC and BSP.
SBLAF loan application templates are the primary tool for screening borrower applications. It includes the borrower’s information sheet and the list of supporting documents.
The BSP expects the SBLAF to improve an OSFI’s risk assessment, speed up turnaround times, and ease the transition to digital loan application platforms. The models will also improve the collection of data requirements for improved and consistent credit information services.
Entities covered include public non-bank financial institutions, stand-alone finance or leasing companies with a quasi-banking license, and credit-granting entities under the supervision of the BSP.
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