The Bangko Sentral ng Pilipinas (BSP) will require banks to report and submit data on the Standard Business Loan Application Form (SBLAF) on a quarterly and annual basis starting next year.
The BSP approved the SBLAF as a new “borrower-friendly” loan application process in November 2023 to improve micro, small, and medium enterprises' (MSMEs) access to credit and financial products. BSP Circular No. 1156 mandates the SBLAF to streamline, improve efficiency, and increase transparency in the MSME loan application process. All banks were required to adopt it by April 28 of this year.
In BSP Memorandum No. M-2024-041, signed by BSP Deputy Governor Chuchi G. Fonacier on December 16, all covered entities are instructed to submit SBLAF reports quarterly, beginning at the end of March 2025. Annual reports will commence at the end of December 2025.
Covered entities include banks and their subsidiary or affiliate financing and leasing companies; government non-bank financial institutions; stand-alone financing or leasing companies with quasi-banking licenses; and credit granting entities under BSP supervision.
All reports will be submitted electronically using Extensible Markup Language (XML), Schema Definition (XSD), and Control Prooflist (CP).
When the BSP approved the SBLAF, it gave all BSP-supervised financial institutions (BSFIs) until the second quarter of 2024 to implement it.
The central bank said the SBLAF should encourage MSMEs to borrow from banks because the process is less intimidating than the usual procedure. Its adoption will facilitate faster loan processing by increasing the use of digital loan application platforms.
The introduction of the SBLAF for MSMEs was an initiative identified by the MSME Development Council – Access to Finance Cluster, of which the BSP is a member. The council includes the Small Business Corp., Land Bank of the Philippines, Development Bank of the Philippines, Credit Information Corp. (CIC), as well as banking sector and microfinance NGO representatives.
The SBLAF templates were developed in close coordination with a technical working group composed of the Bankers Association of the Philippines, Cooperative Banks Federation of the Philippines, Chamber of Thrift Banks, Rural Bankers Association of the Philippines, Department of Trade and Industry - Small Business Group and Bureau of Small and Medium Enterprises, Philippine Guarantee Corporation, CIC and the BSP.
The SBLAF template for loan applications is the borrower’s primary application screening tool. It includes the borrower information sheet and a list of supporting documents.
The BSP expects the SBLAF will improve BSFIs' risk assessment, hasten turnaround time, and facilitate the transition to digital loan application platforms. The templates will likewise improve the gathering of data requirements for improved and consistent credit information services.