Designing a Housing Microfinance Loan Product

TRAINING WORKSHOP FOR BANKS INTERESTED IN OFFERING HOUSING MICROFINANCE

OR SIMPLY CURIOUS ABOUT IT

• What is it?• What is BSP Circular 678?• Why Housing Microfinance for your Bank?

– Crafting Objectives for your bank• MABS Framework for Designing a Housing

Microfinance Product

“The application of microfinance principles and methodologies to the provision of shelter finance.”*- small loan amounts-alternative forms of collateral-character & cash flow-based lending- regular amortization- short-to longer-term

*/CGAP

• BSP guideline allows up to 15 years to pay a loan for new housing• Requires cash flow analysis

11

Better Credit HistoryImproved Asset, Shelter &

Home-based EnterpriseStronger

Community & Economy

OUTPUTS

Finally, Housing Microfinance Outputs

Role Play:•Convince the mock Board of Directors to implement Housing MF in the bank

– Divide participants in 2 groups – one pro and one against– The groups’ output will be presented to a mock Board on

Day 3 • 5 minutes for group consultation• 1st argument presentation – 3 minutes each• 2 Rebuttals – 2 minutes each• Synthesis

Workshop: Group by bank – Craft your own bank’s objectives for offering HMF loan product

5 – 10 MINUTES

Thank you!