BSP wants standard loan application form

Published July 3, 2022, 8:10 PM

by Lee C. Chipongian

The Bangko Sentral ng Pilipinas (BSP) will adopt a standard business loan application form (SBLAF) for a more “borrower-friendly” process of taking out loans from both banks and non-banks.

BSP building and logo/Reuters

In a proposed circular, the BSP said the SBLAF templates will encourage more borrowers especially micro, small and medium enterprises (MSMEs) and startups to approach a BSP supervised financial institution (BSFI) for loans or credit access, and other financial products.

The SBLAF is “designed to make the loan application process more streamlined and borrower-friendly for its target users,” said the BSP. It will support MSMEs’ access to financial products and services by facilitating transparency and ease of understanding.

It will also promote efficiency in loan applications by reducing turnaround time in processing loan applications.

The BSP describes SBLAF as prescribed templates for loan application and the borrower’s primary application screening tool. The SBLAF templates include the borrower information sheet and the list of supporting documents.

When adopted, the SBLAF is expected to improve a BSFI’s risk assessment, hasten turnaround time, and facilitate transition to digital loan application platforms. The templates will improve the gathering of data requirements for an improved and consistent credit information services.

“It is the thrust of the Bangko Sentral to promote broad and convenient access to high quality financial services and consider the interest of the general public. In line with this, the Bangko Sentral mandates the adoption of a standard business loan application form or SBLAF templates,” said the BSP in the draft circular, currently being circulated among BSFIs such as all banks their subsidiary or affiliate financing and leasing companies. Covered entities also include government non-bank financial institutions, stand-alone financing or leasing companies with quasi-banking license, and credit granting entities under BSP supervision.

BSFIs are asked to submit their feedback and recommendations to the BSP by July 15.