THE Bangko Sentral ng Pilipinas (BSP) has now standardized and streamlined the business loan application form to allow micro-size, small-scale and medium-scale enterprise (MSME) greater access to funding.
BSP Circular 1156 provides a borrower-centric Standard Business Loan Application Form (SBLAF) that makes the MSME loan application process more transparent and efficient.
“The SBLAF is, likewise, expected to help MSME borrowers better familiarize themselves with the loan process and find formal loan applications less intimidating,” BSP said.
For BSP-supervised financial institutions (BSFIs), the SBLAF can facilitate faster loan processing and the use of digital loan application platforms.
For credit registries, the SBLAF can support data requirements for efficient and effective credit information services.
The introduction of an SBLAF for MSMEs was one of the initiatives identified by the MSME Development Council-Access to Finance Cluster where BSP serves as a member.
Other members include representatives from: the Small Business Corp.; LandBank of the Philippines; Development Bank of the Philippines; Credit Information Corp.; banking sector; and, a nongovernment organization for microfinance.
The SBLAF templates were developed in close coordination with the technical working group composed of key stakeholders in MSME finance from banking associations and government agencies, the central bank statement read.
These associations and agencies are: Bankers Association of the Philippines; Cooperative Banks Federation of the Philippines; Chamber of Thrift Banks; and, the Rural Bankers Association of the Philippines.
Also included in the list are the following: Credit Information Corp.; the Department of Trade and Industry’s Small Business Group and Bureau of Small and Medium Enterprises; Philippine Guarantee Corp.; and, the BSP.
The mandatory adoption of the SBLAF is now in effect. Covered entities are given 18 months from said effectiveness date to fully comply with SBLAF requirements.
The BSP continues to promote financial inclusion by widening the access of MSMEs to financial products and promoting a regulatory environment that is responsive to their needs.