The Bangko Sentral ng Pilipinas (BSP) will introduce a Standard Business Loan Application Form (SBLAF) for targeted borrowers such as Micro, Small and Medium Enterprises (MSMEs).
BSP’s Monetary Board has approved via Circular No. 1156 the new treatment of corporate loans which it considers to be more “borrower friendly”. BSP Governor Felipe M. Medalla signed the circular on September 30.
“BangkoSentral’s goal is to promote broad and convenient access to high-quality financial services and take into account the interest of the general public. With this in mind, the BangkoSentral mandates the adoption of a standard commercial loan application form or SBLAF templates by covered entities in accordance with the parameters and guidelines (of the circular),” Medalla said in the circular note.
Medalla also said that SBLAF will make the loan application process streamlined and user-friendly for its target users who are MSMEs.
The SBLAF will support MSMEs’ access to financial products and services by facilitating transparency, ease of understanding and efficiency in loan applications and processing, Medalla said.
“It should also enable covered entities to improve their risk assessment, speed up turnaround times and ease the transition to digital loan application platforms. Additionally, the use of the SBLAF among Covered Entities will also support data requirements for enhanced and consistent credit information services,” he added.
SBLAF models will encourage more borrowers, especially MSMEs and startups, to approach a BSP-supervised financial institution (BSFI) for loans or access to credit, and other financial products.
It will also promote efficiency in loan applications by reducing loan application processing times.
SBLAF templates include Borrower Information Sheet and List of Supporting Documents. It will improve the collection of data requirements for improved and consistent credit information services.
Entities covered also include public non-bank financial institutions, stand-alone finance or leasing companies with a quasi-banking license, and credit-granting entities under the supervision of the BSP.
SBLAF refers to prescribed loan application templates which serve as the primary tool for selecting applications to be made by the borrower.
SBLAF templates consist of two elements: the borrower information sheet; and the list of supporting documents.
In the meantime, there are two types of SBLAF depending on the type of applicant-borrower: for individuals and sole proprietorships; and for cooperatives, partnerships and corporations, including sole proprietorships.
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