Micro-Lending Through Lead Microfinance Institution (Micro-Lead)

SMALL BUSINESS CORPORATION (Small Business Guarantee and Finance Corporation)
17th & 18th Floors, 139 Corporate Centre, Valero Street Salcedo Village, Makati City

Lead Microfinance Institution

Title: MICRO-LENDING THROUGH LEAD MICRO FINANCE INSTITUTIONS (MICRO-LEAD)

Target Conduit:
– Micro Finance-Oriented Institutions (with asset size of at least P15 Million and not more than P100 Million)

Minimum Qualifications:
– At least 3 years in microfinance operations
– At least 3,000 microfinance clients; if wholesaler, at least 10 conduits
– Must have a manpower of at least 20 exclusively for microfinance operations; if wholesaler, at least 10
– At least 60% microfinance portfolio
– If bank, CAMELS rating of at least 3
– Latest Financial Ratios
– Liquid assets not below 10% of deposits
– Capital Adequacy Ratio of at least 20% (if bank, at least 10%)
– Microfinance portfolio-at-risk (PAR) not more than 10%.
-Borrower Risk Rating of “5” or better per SBC evaluation

Loan Purpose:
– Retail re-lending to micro-borrowers
– Wholesale relending to MFIs

Terms and Requirements:

Loan Amount:
– Minimum of P3 Million
– Maximum of P100 Million on the first year
– Maximum of P200 Million for the succeeding years

Line Drawdown:
– Minimum of P100 Thousand but up to 30% of credit line per drawdown

Term and Line Expiry:
– One year credit line, subject to renewal

Repayment Term per Drawdown:
– 360 days, payable quarterly; may be up to 2 years, if justified by nature of micro-borrowers’ business

Interest Rate: Available upon request

Service Fees:
– Evaluation fee of 0.05% of credit line (none, if bank)
– Processing fee of 0.1% of loan availment (none, if bank)

Pass-on Rate Incentive:
– MFIs with monthly average end-borrower pass-on rate of 2.5% (1.2% for wholesalers), inclusive of service fees, shall be given an incentive. All fees (evaluation and loan availment processing fees) shall be refunded in favor of the MFI upon its credit line renewal.

Security:
– Continuing Surety Agreement of principals

Documentary Requirements:

– Letter of Intent to Borrow
- Notarized Client Information Sheet with 1×1 recent ID picture of each principal stockholders/officer (SBGFC form); for banks, Bio-data of all major stockholders and/or officers as submitted to BSP
- Business registration papers
- Board Resolution to borrow and on authorized signatories with specimen signature/s
– Audited financial statements for the past three years, if applicable, and latest interim financial statements (not more than 6 months old)
– Organizational structure/background information
– Schedule of borrowings including details on terms of payment, collateral cover and credit status
– Certificate of good standing from creditors (if applicable)
- Ageing of loan portfolio
- Schedules of past due, microfinance PAR and loan-loss provisioning

Contact Details:
SB Corporation Head Office
17th Floor, 139 Corporate Centre
Valero St., Salcedo Village, Makati City
Phone No. (632) 751.1888
Fax No.: (632) 894.1677
URL: www.sbgfc.org.ph