Designing a Housing Microfinance Loan Product TRAINING WORKSHOP FOR BANKS INTERESTED IN OFFERING HOUSING MICROFINANCE OR SIMPLY CURIOUS ABOUT IT.
Post on 21-Jan-2016
Designing a Housing Microfinance Loan ProductTRAINING 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 bankMABS Framework for Designing a Housing Microfinance Product
The application of microfinance principles and methodologies to the provision of shelter finance.*- small loan amountsalternative forms of collateralcharacter & cash flow-based lending regular amortization short-to longer-term */CGAP
BSP recognizes loans for housing to low income groups as microfinance but with loan amount and term that may extend beyond P150k and 12 months, respectively.
BSP guideline allows up to 15 years to pay a loan for new housingRequires cash flow analysis
*Better Credit HistoryImproved Asset, Shelter &Home-based EnterpriseStronger Community & EconomyOUTPUTSFinally, Housing Microfinance Outputs
*Stronger Community & EconomyMicrofinance is no silver bullet for poverty, but it does have things to offer. builds dynamic institutions that deliver inherently useful services to millions of poor people. builds businesses and offers financial services for the poor including microcredit, savings, microinsurance, money transfers & housing too.
Role Play:Convince the mock Board of Directors to implement Housing MF in the bankDivide participants in 2 groups one pro and one againstThe groups output will be presented to a mock Board on Day 3 5 minutes for group consultation1st argument presentation 3 minutes each2 Rebuttals 2 minutes eachSynthesis
Workshop: Group by bank Craft your own banks objectives for offering HMF loan product
5 10 MINUTES
*Deleted the debate about pros and cons of HMF since as per ms jen it will be in day 3
*Read DEFINITION (slide). Clarify that HMF consists mainly of loans to the poor and low-income households for home improvement/repairs, housing construction, house and/or lot acquisition, and/or access to basic infrastructure or public services. Consultative Group to Assist the PoorWe can say HMF Is marketable products since it is one of the basic necessities in lifeFor 150 K and up, secure tenure instruments as collateral / collateral substitutes for loan over P 150 K*INSTRUCT PARTICIPANT TO BRING OUT BSP CIRCULAR IN THEIR OWN KITALLOW 8 MINUTES FOR READING SESSIONCALL PARTICIPANTS FOR THEIR INSIGHTS/COMMENTS/QUERIES*This is a game to establish some bonding among the participants. Group participants to 3 or 4 groups.
Distribute pieces of paper with major provisions written on each piece of paper. Paper should be cut out so that they appear like puzzle pieces that when put together should form a house.*Delete PAR1 level of < 3 % since as per the circular it is just stated that Acceptable PAR level as evaluated by the BSP *Delete PAR1 level of < 3 % since as per the circular it is just stated that Acceptable PAR level as evaluated by the BSP *Delete PAR1 level of < 3 % since as per the circular it is just stated that Acceptable PAR level as evaluated by the BSP **ALTHOUGH APPROVED BY THE BSP, THIS IS NOT SOMETHING THAT YOU USUALLY ADOPT. WE RECOMMEND MAXIMUM TERM OF 5 YEARS.*Since the loan is just based on trust, borrowers should really be those clients with outstanding repayment record.
Housing loan improves a clients assets better dwelling places, improved productive assets.
One group will list the arguments why the bank should offer a new micro housing loan product.
The other group will list arguments against it.*HMF is a household-driven microcredit for clients which also builds on and combines other services including savings, remittance services, and microinsurance, all of which enable the lower income people to maximize their choices to expand and build their homes over time and better plan their futures.
*5-10 MINUTES TO CRAFT. WRITE OBJECTIVES ON PLAIN MANILA PAPER.
POST OUTPUTS ON THE WALL**