GSIS FAMILY BANK (GFB)
2nd Floor, AIC Grande Tower, Garnet Road, Ortigas Center, Pasig City

Program Title: GSIS FAMILY BANK MICROFINANCE LENDING PROGRAM

GSIS Family Bank Microfinance Lending Program 1

Program Objectives:
* To introduce an accessible and affordable alternative credit system for the urban and rural poor for the financing of income-operating activities.
* To encourage the poor to use their time, effort and talents productively.
* To empower women through their involvement in economic activities and their participation in decision-making process.
* To reduce dependency on moneylenders who charge high interest rates and on dole outs and other forms of political patronage.

Eligible Borrowers:
* At least 18 years old but not more than 65 years old, preferably women. A student or an employed person cannot become a borrower since the livelihood activities require full-time responsibilities.
* Must have stayed in the present residence for at least one (1) year and is known in the community.
* Must be of good moral character as attested by the co-members.
* Must be poor, who is engaged in livelihood activities.

Eligible Projects:
* As a general rule, the business to be financed has to be existing for at least a year.
* Any micro-enterprise/livelihood activity (trading, services, vending) that can generate immediate additional income.
* Project(s) which is/are within the capacity of the borrower to manage.
* Must be a legal activity.

Loan Purpose: Additional working capital for any income generating activities.

Terms/Requirements:

Loan Amount: Minimum of P6,000.00; Maximum of P50,000.00

Interest Rate: 3% per month

Charges:
* One-time service charge of 2% per cycle
* Insurance Premium for Credit Life Insurance
* Penalty Charge of 3% per month for unpaid amortizations

Maturity/Repayment: All loans shall have maximum loan duration of 24 weeks (6 months). However, the term may be shortened to 12 weeks if at the start of the training the group agrees to shorten the loan period, if the cash flow would show the ability of the borrowers to pay the weekly amortization.

Security:
* As much as possible, no collateral shall be required from the borrowers. In lieu, the following shall be required:
* The signatures of all her co-group and center members as joint and several co-makers;
* A Deed of Assignment of deposit and authority to debit to authorize the bank to apply the savings against the loan in case of default;
* The borrower must be covered by an accredited insurance company (loan insurance);
* Strictly abide with the policies and guidelines of the micro-finance program.

Contact Details:

VP Ma. Virginia V. Querobin
BBG/Marketing Group
E-mail: mvvquerobin@gsisfamilybank.com

Mr. Armando S. Jose
Microfinance Unit – Head
E-mail: asjose@gsisfamilybank.com
Phone: (632) 706.0487 to 90 locals 155, 158
Fax: (632) 706.0482