Appendix 52

SMALL AND MEDIUM ENTERPRISE UNIFIED LENDING OPPORTUNITIES FOR NATIONAL GROWTH BANK ACCREDITATION APPLICATION FOR RURAL AND THRIFT BANKS ELIGIBILITY AND DOCUMENTARY REQUIREMENTS
(Appendix to Sec. 332)

 

Requirements Documents to be submitted
a. CAMELS rating should be at least “3.0” Latest report of Bangko Sentral bank examination
b. Compliance with the ten percent (10%) maximum ratio of DOSRI past due loans Copy of quarterly report submitted to Bangko Sentral
c. No loan with LBP and Bangko Sentral, Quedancor, PBSP, SBGFC, PhilExim, DBP, and SSS in arrears. Rediscounting privileges with Bangko Sentral and LBP not suspended Credit investigation report by GFI credit and appraisal management unit or department
d. Past due loans and items in litigation is not in excess of the industry average plus two percent (2%) but not to exceed twenty five percent (25%) (based on latest quarterly report of Bangko Sentral) Copy of the Consolidated Statement of Condition and Income & Expense as submitted to Bangko Sentral
e. Not deficient in loan loss provisions/reserves Certification from Bangko Sentral
f. Ratio of acquired assets to total assets is not more than industry average plus two percent (2%) but not to exceed fifteen percent (15%) Copy of the latest computation of the risk-based capital adequacy ratio cover for credit risk under applicable and existing risk-based capital adequacy framework
g. Positive results of operations in the last preceding calendar year. If such is negative, the average income of the past two (2) or three (3) years should at least be positive Copy of latest interim financial statements as submitted to Bangko Sentral
h. Not deficient in bank reserves for the last six (6) months preceding the filing of application Copy of weekly report submitted to Bangko Sentral or Bangko Sentral certification
i. Ratio of accrued interest receivables to surplus (free) plus undivided profits is less than 100% Copy of latest interim financial statements as submitted to Bangko Sentral
j. The bank is owned and managed by the same persons (key officers) at least for the last two (2) years Applicant’s records
k. No derogatory information gathered on the officers and directors of the bank GFI Credit and Appraisal Management Unit or Department
l. Compliance with corporate governance Applicant’s reply to questionnaire on comparison of Bangko Sentral mandated practices with actual practices

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SMALL AND MEDIUM ENTERPRISE UNIFIED LENDING OPPORTUNITIES FOR NATIONAL GROWTH
LENDING FEATURES OF SHORT-TERM LOANS

 

Loan Purpose Export Financing
(Export Packing Credit)
Credit Line
(Temporary Working Capital)
Target Industries All industries except trading of imported goods, of liquor and cigarettes, extractive industries All industries except trading of imported goods, of liquor and cigarettes, in extractive industries
Eligible Enterprises At least sixty percent (60%) Filipino-owned whose assets are not more than P100 million, excluding the value of the land At least sixty percent (60%) Filipino- owned whose assets are not more than P100 million, excluding the value of the land
Maximum Financing Seventy percent (70%) of the value of LC/PO; maximum of P5.0 million Seventy percent (70%) of working capital requirement; maximum of P5.0 million
Interest Rate1 Nine percent (9.00%) Nine percent (9.00%)
Repayment term Maximum of one (1) year Maximum of one (1) year
Collateral2 Post dated check
Registered/Unregistered REM/CHM
Assignment of LC or PO
Assignment of life insurance
Guarantee cover
Post dated check
Registered/Unregistered REM/CHM
Assignment of life insurance
Guarantee cover
Corporate Guarantee (if franchisee)
Assignment of lease rights (if franchisee)
Evaluation and Service Fees P2,000 for every P1 million Plus front-end fee of one-half of one percent (½ of 1%) of approved loan P2,000 for every P1 million
Plus front-end fee of one-half of one percent (½ of 1%) of approved loan
Financial Profile of the Borrower
Debt-Equity Ratio At most 80:20 after the loan At most 80:20 after the loan At most 70:30 (if franchisee)
Profitability Positive income for last year. (If past year’s income is negative, the average income of past two (2) or three (3) years should be positive) Positive income for last year. (If past year’s income is negative, the average income of past two (2) or three (3) years should be positive)
Other Ratios Based on industry standards Based on industry standards

SMALL AND MEDIUM ENTERPRISE UNIFIED LENDING OPPORTUNITIES FOR
NATIONAL GROWTH LENDING FEATURES OF LONG-TERM LOANS

Loan Purpose a. Purchase of equipment
b. Building construction
c. Purchase of lot
d. Purchase of inventories – permanent working capital
Target Industries All industries except trading of imported goods, of liquor and cigarettes, in extractive industries and in housing projects
Eligible Enterprises At least sixty percent (60%) Filipino-owned whose assets are not more than P100.0 million, excluding the value of the land
Maximum Financing Eighty percent (80%) of the incremental project cost; maximum of P5.0 million
Interest Rate 3-year T-Bond rate + 2% (3-year loan)3
5-year T-Bond rate + 2% (5-year loan)4
Repayment Term Maximum of five (5) years, inclusive of maximum one (1) year grace period on principal monthly amortization
Collateral5 Post dated check
Registered/Unregistered REM/CHM
Assignment of life insurance
Corporate guarantee (if franchisee)
Assignment of lease rights (if franchisee)
Evaluation and Service Fees P2,000 for every P1.0 million
Plus front-end fee of ½ of 1% of approved loan and commitment fee of 125% of unavailed balance
Financial Profile of the Borrower:
Debt-Equity Ratio At most 80:20 after the loan At most 70:30 (if franchisee)
Profitability Positive income for last year. (If past year’s income is negative, the average income of past two (2) or three (3) years should be positive)
Other Ratios Based on industry standards

Footnotes

  1. Applicable to all loan applications with complete requirements received up to 30 June 2003. A GFI committee shall be set up to review the pricing thereafter on a quarterly basis.
  2. The Program will not decline a loan only on the basis of inadequate collateral. However, the borrower must be willing to mortgage all available business and personal collateral, including assets to be acquired from the loan to secure the borrowing.
  3. Based on yield of bonds with three (3) or five (5) year remaining loan tenor as per MART 1 of Bloomberg. As of 22 January 2003, MART 1-Bloomberg, 3-year term loan has a yield of 9.25% and 5 year term loan has a yield of 10.75%. With a premium of 2%, the 3-year rate will be set at 11.25% and the 5-year rate at 12.75%.
  4. Based on yield of bonds with three (3) or five (5) year remaining loan tenor as per MART 1 of Bloomberg. As of 22 January 2003, MART 1-Bloomberg, 3-year term loan has a yield of 9.25% and 5 year term loan has a yield of 10.75%. With a premium of 2%, the 3-year rate will be set at 11.25% and the 5-year rate at 12.75%.
  5. The Program will not decline a loan only on the basis of inadequate collateral. However, the borrower must be willing to mortgage all available business and personal collateral, including assets to be acquired from the loan to secure the borrowing.