BSP wants standard loan application form – Manila Bulletin

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BSP wants a standard loan application form

The Bangko Sentral ng Pilipinas (BSP) will adopt a Standard Business Loan Application Form (SBLAF) for a more “borrower-friendly” process of underwriting loans from banks and non-banks.

BSP/Reuters building and logo

In a circular proposal, the BSP said that the SBLAF models will encourage more borrowers, especially micro, small and medium-sized enterprises (MSMEs) and startups, to contact a financial institution supervised by the BSP (BSFI) to obtain loans or access to credit, and other financial products.

The SBLAF is “designed to make the loan application process simpler and more user-friendly for its target users,” the BSP said. It will support MSMEs’ access to financial products and services by facilitating transparency and ease of understanding.

It will also promote efficiency in loan applications by reducing loan application processing times.

The BSP describes the SBLAF as prescribed templates for the loan application and the main tool for screening borrower applications. SBLAF templates include Borrower Information Sheet and List of Supporting Documents.

Once adopted, the SBLAF is expected to improve an OSFI’s risk assessment, speed up turnaround time and ease the transition to digital loan application platforms. The models will improve the collection of data requirements for improved and consistent credit information services.

“Bangko Sentral’s objective is to promote broad and convenient access to high-quality financial services and take into account the interest of the general public. With this in mind, the Bangko Sentral mandates the adoption of a standard business loan application form or SBLAF templates,” the BSP said in the draft circular, which is being circulated among OSFIs such as all banks, their subsidiaries or affiliated finance and leasing companies. Entities covered also include public non-bank financial institutions, stand-alone finance or leasing companies with a quasi-banking license, and credit-granting entities under the supervision of the BSP.

OSFIs are requested to submit their comments and recommendations to BSP by 15 July.

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