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
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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!
