HGC expands guarantee programs to 18 rural banks and microfinance in Luzon

September 27, 2013 9:59 am 

MANILA, Sept. 26 -– Seventeen rural banks and a microfinance institution have officially partnered with the Home Guaranteed Corporation (HGC) to be able to give Filipinos living in the rural areas easy access to housing loans.

Vice President Jejomar Binay, who serves the Chairman of Housing and Urban Development Coordinating Council (HUDCC), HGC President Atty. Manuel Sanchez, and Rural Bank Association of the Philippines President Vittorio Almario led the event held at the Coconut Palace Thursday.

According to Sanchez, the expansion to 18 partners is part of HGC’s two programs dubbed as: The Guaranty Program to the Countryside through Rural Banks and the Guaranty Program for Microfinance and small Loans for Home Improvement.

The programs basically encourage financial institutions to lend more for housing, while the HGC guarantees security of banks’ investments for their home-lending.

“The net effect (of the program) is to give rural poor access to easy financing for them to buy their own home,” Sanchez said.

The 18 rural bank and microfinance institution are located in areas of Luzon. This include the: 1st Macro Bank; AMA Bank; Banco Alabang; Bank of Makati; Cantillan Bank, Inc.; Lipa Rural Bank, Inc.; Mount Carmel Rural Bank, Inc.; Rang-ay Bank;

Rural Bank of Cauayan; Rural Bank of Guinobatan; Rural Bank of Mabitac (Laguna), Inc.; Rural Bank of Pagbilao; Rural Bank of Porac (Pampanga); Rural Bank of Rosario (La Union); Rural Bank of San Jose (CAmarines Sur), Inc.; Zambales Rural Bank; and the Alalay sa Kaunlaran Inc., which is the only microfinance institution joining the program.

The HDC head said the 18 is just an initial batch of banks that they are willing to guaranty, to be able to spur the housing developments and ownership in the countryside, where there are less lenders.

“Ang aming target is 40,000 (home loans) ang maguarantee namin every year, usually ang nakukuha namin ay 35,000. So hopefully, through the help of rural banks, makatulong kami sa mga mas maraming homebuyers especially sa countryside,” Sanchez said.

Sanchez added that they are also hopeful that more financial institutions will take part and apply for the program.

“I’m encouraging all rural banks for partnership, para mas malakas ang loob nilang magpahiram sa mga home buyers,” he added.

Sanchez said they are aiming to reach at least 100 rural banks partners by 2016.

Danilo Fausto, HGC Board Member, also noted that rural banks need to pass certain criteria, to be able to be part of the program.

“Kami naman, hindi naman kami pumapayag basta-basta. Iyong mga rural bank kailangan mahusay ang sistema nila. They have to pass certain criteria like efficiency in collection, o kung ano ang system of collection nila,” he said.

Binay on the other hand lauded the HGC, as well as the participating rural banks and microfinance institution, saying they are the key in making housing programs readily available in rural areas.

“We are truly grateful to you (the HGC and the Rural banks and microfinance institution), for working with us. Through this partnership, we can make meaningful feedback in the life of every Filipino, who dreams of owning a home in the rural, as much as in the urban areas,” he stressed.

The Guaranty Program to the Countryside through Rural Banks and the Guaranty Program for Microfinance and small Loans for Home Improvement started in 2011, as initiated by the vice president.

Through promotions, partners of the programs increased from 2 in 2011, to 12 in 2012 and 18 by 2013. (PNA)

DSP/JOSINE F. ESTUYE/RSM

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