News and developments
BSP ADOPTS STANDARD LOAN APPLICATION FORMS
The BSP wishes to promote broad and convenient access to high quality financial services by mandating the adoption of a standard business loan application form (“SBLAF”) to facilitate transparency, ease of understanding, efficiency in loan applications and processing. The SBLAF is designed to make the loan application process streamlined and borrower friendly for its target users, i.e., micro, small, and medium enterprises (MSMEs). MSMEs are generally defined by the BSP as enterprises engaged in any business activity within the major sectors of the economy, i.e., industry, trade, services, the operation of tourism-related establishments, and agribusiness, and whose total assets are less than PhP100 million (see Section 332 of the BSP’s Manual of Regulations for a more specific definition of MSMEs).
What is the SBLAF?
The SBLAF refers to the templates prescribed by the BSP for loan applications. These applications serve as the primary application screening tools to be accomplished by the borrower. The SBLAF templates have two components: (i) the borrower information sheet; and (ii) the list of supporting documents. Copies of the SBLAF templates currently applicable may be accessed through this link.Which entities and transactions are covered by the Guidelines?
The Guidelines apply to all BSP-supervised financial institutions (BSFIs) that offer business loans to applicant borrowers (each such BSFI, a “covered entity”):- banks and their subsidiary/affiliate financing and leasing companies;
- Government Non-Bank Financial Institutions; and
- Financing/leasing companies with Quasi-Banking license that are not subsidiaries of banks.
- the applicant-borrower must be a sole proprietorship (or natural person), partnership, cooperative, or corporation that is classified as an MSME or start-up proposing to do business;
- the purpose of the loan should be the financing of business operations and capital expenditures. Credit accommodations for non-business or personal purposes such as education, hospitalization, emergency, travel, household and other personal consumption needs are not covered by the guidelines; and
- the loan may be either be secured or unsecured