The Bangko Sentral ng Pilipinas is promoting financial inclusion by standardizing MSME business loan forms.
The Bangko Sentral ng Pilipinas (BSP) standardized the micro, small, and medium enterprise (MSME) business loan application form of BSP-supervised financial institutions (BSFIs) as part of its broader efforts to increase financial product and service availability and foster greater financial inclusion.
BSP Circular No. 1156, which was issued on September 30, 2022, includes a borrower-centric Standard Business Loan Application Form (SBLAF) that makes the MSME loan application process more streamlined, efficient, and transparent.
SBLAF is expected to help MSME borrowers to better familiarize themselves with the loan process and find formal loan applications less intimidating.
Adoption of SBLAF by BSFIs can result in faster loan processing and the use of digital loan application platforms. The SBLAF can help credit registries meet data requirements for efficient and effective credit information services.
The creation of SBLAF for MSMEs was one of the initiatives identified by the MSME Development Council-Access to Finance Cluster which BSP is a member of. The SBLAF templates were developed in close collaboration with a technical working group comprised of key MSME finance stakeholders from relevant banking associations and government agencies.
The SBLAF became mandatory on October 28, 2022, or fifteen calendar days after the required publication of the circular on October 13, 2022. Covered entities have eighteen months from the effective date to fully comply with SBLAF requirements.
Thus, BSP continues its efforts to promote financial inclusion by increasing MSMEs' access to financial products and fostering a regulatory environment responsive to their needs.
Tags: #BSP, #MSME, #Loan, #Finances