Financing Programs Loans and Financing Programs for Micro, Small and Medium Enterprises

28Nov/086

Micro-Lending Through Rural Banks

Program Title: Micro-Lending Through Rural Banks:  (MICRO-LOCAL)
Eligible Borrowers: Micro, Small and Medium Enterprise (MSME)-Oriented Rural Banks

  • May be a start-up in micro-finance, but minimum of three (3) years as a bank
  • Minimum number of micro-finance clients: If a start-up, should plan for at least fifty (50) clients
  • Minimum manpower in micro-finance operations: If a startup, should plan for at least three (3)
  • Minimum asset size: Per BSP guidelines
  • Minimum current ratio of 1:2
  • Maximum debt-equity ratio after loan:   Per BSP guidelines


Loan Purpose: For re-lending to microentrepreneurs. Terms/Requirements:

  • Amounts: Minimum of P200.000.00;   Maximum of P50.0 Million for the 1st year with SB Corp; double of first year for succeeding years with SB Corp
  • Loan Availment per Drawdown:  Minimum of P100.000.00;   Maximum of P2.0 Million or 20%, whichever is higher
  • Interest Rate: Retail lending rate less 0.5% if start-up in micro-finance;   up to 2.5% points less

Service Fees:

  • Evaluation Fee (once a year) - 0.1% of loan amount but not less than P3.000.00
  • Availment Processing Fee - 0.25% of availment but not less than P1.000.00
  • Out-of-town Processing Fee - same as retail lending

Total Effective Rate (excluding out-of-town processing fee):

  • Large Micro Finance-Oriented Institutions - 9.35% per annum minimum; 11.35% p.a. maximum

Contact Details

Ms. Luna C. David, OIC - Finance and Guarantee Sector
Small Business Corporation (Small Business Guarantee and Finance Corporation)
17 & 18 Firs, Antel Corporate Centre,
139 Valero Street Salcedo Village, Makati City
Phone: (02) 751-1888
Fax: (02) 813-5726, 894-1677
Email: ldavid@sbgfc.org.ph
Web: www.sbgfc.org.ph

Comments (6) Trackbacks (0)
  1. Dear Sir,

    We are currently salvaging a sunken vessel in zambales, and we need additional capital to continue lifting up the blasted scrap metal so we can sell to waiting buyers. Kindly email me back if we are qualified to borrow.

    Respectfully,
    Maryann G. Agana

  2. Pls call me baka makatulong ako. I represent the Bank of Florida.

    Tel. 8450835

    Erwin

  3. Can i have an info regarding starting rural bank, can i request having tis informations:
    interest rates for possible costumers
    possible needed budget for opening
    and other info for whom i can use for future creating such bank………….

  4. I am planning to start a internet cafe, can you tell me how to avail your loan?

  5. I am a public school teacher and currently stucked with private lending investor here in cotabato city with a monthly interest of 5%, how can we avail of a loan with low interest rates? please help us! please don’t publish my name!

  6. i want to know a lot of info…in starting a rural bank…i want to engage in that kind od business …please do help me…and if u all know dome rural bank for sale here in the phil…please inform me..
    thank you and…
    Godbless


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