BMI advocates loan product for MSMEs
Ongtengco-led Bank of Makati (A Savings Bank) Inc., (BMI) is capitalizing on its non-collateral loan offerings to boost its business and client reach in Cebu.
BMI, which is the third independently owned thrift bank in the country, has relaunched its first and only branch in Cebu, located on Colon Street yesterday.
In an interview with Eric Sandoval, head for BMI business development and marketing services, he said that the bank is strengthening its ‘Power Negosyo Loan 300’ product to reach the broader MSME (Micro-Small and Medium Enterprises) market.
Power Negosyo Loan 300 is designed to address the lack of affordable financing available to small businesses in the Philippines.
BMI's stronger stance in this category came in time when the present administration is pressuring banks to reach out to the micro businesses to keep them away from underground credit offering of loan sharks or locally known as 5-6.
This non-collateral-need loan access offers as low as P50 thousand to P300 thousand quick loan, less stringent requirements, and loan release usually takes only a week after the applicant completes all the necessary requirements.
This particular program is the bank's way of reaching out to the MSMEs. In fact, it has an existing partnership with the Department of Trade and Industry (DTI) in holding seminars and educational campaigns to develop grassroots entrepreneurship through the Ka-Biz program.
Launched in 2015, the Power Loan 300 has registered a loan portfolio of close to P1 billion, from P200 million when it started three years ago.
In Cebu, most of the Power Negosyo Loan 300 clients are sari-sari store owners, wet market vendors, water refilling station operators, among others.
BMI is looking at opening two more branches in the next two years in Cebu. One location in Mandaue is being eyed.
There are now 62 Bank of Makati branches all over the Philippines.
Bank of Makati was founded in 1956 and its current Chairman is Thomas Ongtenco. For the past decades, it has targeted Filipino savers and entrepreneurs. BMI is part of the wide roster of companies owned by the Ongtencos of the Motortrade Group, founded by motorcycle maverick Vicente N. Ongtenco.