The Bangko Sentral ng Pilipinas (BSP) will implement a standard business loan application form (SBLAF) for targeted borrowers such as the micro, small and medium enterprises (MSMEs).
BSP’s Monetary Board has approved via Circular No. 1156 the new business loan processing which they deemed as more “borrower-friendly”. BSP Governor Felipe M. Medalla signed the circular on Sept. 30.
“lt is the thrust of the BangkoSentral to promote broad and convenient access to high quality financial services and consider the interest of the general public. In line with this, the BangkoSentral mandates the adoption of a standard business loan application form or SBLAF templates by covered entities in accordance with the parameters and guidelines (of the circular),” said Medalla in the circular memo.
Medalla also said that the SBLAF will make the loan application process streamlined and borrower-friendly for its target users which are the MSMEs.
The SBLAF will support MSMEs' access to financial products and services byfacilitating transparency, ease of understanding, and efficiency in loan applications and processing, said Medalla.
“lt is also expected to enable the covered entities to improve their risk assessment, hasten turnaround time, and facilitate transition to digital loan application platforms. Moreover, the use of SBLAF among covered entities will likewise support data requirements for improved and consistent credit information services,” he added.
The SBLAF templates will encourage more borrowers especially MSMEs and startups to approach a BSP supervised financial institution (BSFI) for loans or credit access, and other financial products.
It will also promote efficiency in loan applications by reducing turnaround time in processing loan applications.
The SBLAF templates include the borrower information sheet and the list of supporting documents. It will improve the gathering of data requirements for an improved and consistent credit information services.
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.
SBLAF refers to the prescribed templates for loan application which serves as the primary application screening tool to be accomplished by the borrower.
The SBLAF templates have two components: the borrower information sheet; and the list of supporting documents.
Meantime, there are two kinds of SBLAF based on the type of applicant-borrower: for individual and sole proprietorship; and for cooperative, partnership, and corporation, including one person corporation.