Document Sample
sbc-credit-guarantee Powered By Docstoc
					               The Redesigned
                  SBC Credit
              Guarantee Program

Product briefer by RPerez/08.08.2007/FDS-DMU
    Policy objectives

•   To strengthen government
    credit guarantee for SMEs in
    terms of outreach and
    sustainability, thus, to better
                                      2      To provide a better fit for near
                                             bankable SMEs in assisting
                                             their graduation from being
    service SBC bank partners in             pre-bankable to being fully
    their loan guarantee                     bankable through more
    requirements and expectations            guarantee facility options
    by way of a robust and more
    reliable guarantee call system

                            3    To highlight the “surety
                                 nature” of the program
                                 where a guarantee call shall
                                 be paid regardless whether
                                 collection efforts have been
                                 fully exhausted or not
Credit supplementation framework
 1. Risk-based Orientation

 •   Adopts a risk-based lending framework, a shift from
     traditional orientation of the collateral factor, and where
     evaluation is purely based on borrower’s risk factors aided
     by the Borrower Risk Rating (BRR) system.

 •   The collateral consideration, including the credit guarantee
     is placed solely under the Facility Risk Rating (FRR), and
     the FRR factor should only affect the pricing of the loan
     and not the credit decision.

 •   Covenants on account supervision are risk-based with
     higher risk credits requiring more frequent monitoring
     than better rated borrowers.
Credit supplementation framework

2. Pro-active monitoring and remedial
   management posture
  • Timely and focused response of SBC to PFI’s
    monitoring compliance output with the end of
    preventing any further deterioration in the case of a
    weakening business and/or credit position of the
    MSME borrower.
Credit supplementation framework
3. Early Guarantee Review and Guarantee
   Call Provision

  •SBC shall make an early issuance of Certificate of
   Completeness of Loan Documents, in contrast with
   the earlier certification process commencing only
   upon call on guarantee.

  •A call on the guarantee may be made on a
   per defaulted promissory note (PN) basis
   without waiting for the entire loan to expire
   and mature, as in the past.
Accreditation and performance review
1.     For FIs which intend to utilize the Credit Guarantee Program
       only, the following simplified minimum eligibility criteria
       shall apply:

          •   Latest CAMELS Rating of at least “3”
          •   Positive net income for the past two years
          •   Past due rate of not more than 20%
          •   Risk-based capital adequacy ratio of at least 10%
          •   Operational SME lending unit
          •   No negative credit track record

 2.     Program accreditation and review process
                                                              -PFI claims rate is
      PFI signs
      the Master
                                         Suspension      if    higher than 4%;
                                                              -PFI claims
      Guarantee         review by                              exceed 30% of
      Agreement         SBC                                    total guarantees
                                                               paid since 2002
Use of BRR system

1. SBC shall review the PFI’s BRR system to
   understand its proper use and validate its
   consistency with industry standards or
   regulatory guidelines.
  •   The BRR system must comply with the BSP
      standard of at least six rating grades for
      unclassified accounts and four rating grades
      for classified accounts. Of the resulting 10-
      scale BRR system, “1” represents the lowest
      risk and “10” the highest.
  •   The BRR system must have qualitative
      description at par, if not better than that of the
      BRR system of SBC, where the BRR of “5” is the
      passing mark.
SBC Borrower Risk Rating Scale
  BRR score   Description      Probability   Score
                               of default
     1          Excellent          2%         >89    Very low risk

     2           Strong            3%        80-89   Low risk

     3            Good             4%        70-79
                                                     Moderate risk
     4             Fair            6%        60-69

      5       Acceptable          8%         55-59
                                                     High risk
     6          Marginal          15%        50-54

     7        Unsatisfactory      30%        45-49
                                                     Very high risk
     8        Substandard         50%        40-44

     9          Doubtful          80%        35-39

     10       Expected loss       100%        <35
BRR of 5.0 as acceptable risk means

 BRR 5
Presents some risks. Interest   BRR 6
payments and principal          Still acceptable but have
security appear adequate for    obvious weaknesses.
the present. However, the       Repayment capacity is
repayment capacity could be     dubious. Historically,
a concern in the long run       profits have been
and/ or in recession period.    irregular. Loans payments
The company has been            have been up to date for
reasonably profitable for the   the last year and the client
last 2 years. The borrower      is very cooperative. These
respects its obligations, and   borrowers are considered
has for the last 3 years been   as being risky.
up to date with the bank.
Use of BRR system
2. The BRR system may audited or in-house
   financial statements for as long as these
   are validated by the PFI.

3. PFIs with no BRR system may opt to
   formally adopt SBC’s BRR system in
   order to enjoy the full guarantee

Thus, the evaluation and monitoring of the
level of risk of an MSME borrower shall be
Determination of the BRR score

  In case of a major difference in PFI-rated BRR and
  that of SBC, the latter shall prevail in the
  determination of the following:

          o approval or disapproval of the
            requested guarantee cover
          o features of the guarantee cover
          o guarantee fee
          o frequency of BRR review
MSME borrower eligibility requirements

1.   Must have a BRR of “5” or better vis-à-vis the loan package
     by the PFI, meaning acceptable risk quality

2.   Must have an asset size between P 500 thousand and
     P 100 million prior to the loan, exclusive of the value of the
     land where the project is located

3.   Must have a sound business track record of at least three

     • For MSMEs with at least one year business track record
       but less than the three-year requirement may still be
       eligible, provided that the SME borrower obtains a BRR
       of “4” or better.
MSME borrower eligibility requirements

4. Must have a positive net income for the immediate past year
   based on BIR-filed financial statements

5. The SME industry involved should not be among the SBC
   exclusionary list:

   o   Farm-level crop or livestock production
   o   Real estate development
   o   Vice-generating activities
   o   Pure trading of imported goods
PROGRAM GUIDELINES                              Amortized working
Eligibility criteria for loan package           capital loans are
                                                eligible but limited to
                                                small loans of P 500
                                                thousand and below.

 1.     Loan size shall be at the discretion of the PFI,
        provided that it is justified by the debt-
        servicing capacity. (The earlier loan limit of
        P 20 million of SBC has been lifted.)

 2.     The repayment term of the loan should be
        properly matched with the subject of
        financing, such that working capital loans
        should be in the form of a credit line, and
        fixed asset acquisition should be financed
        through amortized term loans.
Working capital may either be:
  Transactional                        credit line
   credit line                 -Credit line packaged by the PFI
                                should not be more than 80% of the
                                SME’s account receivables and/ or
 For MSME loans against         inventory less other active trade and
 purchase order and/ or         financial credits, as follows:
 receivable, and/or against     Additional <   80% (Acct. Receivable +
 inventory for liquidation.     working    =   Inventory – Account
                                capital        Payable – Existing
-With maturity of not more      loan for       Working Capital Loans)
 than 360 days, including       guarantee
 extension and roll-over.
-Full settlement of the loan   -This facility is available only to
 on the maturity date is a      SMEs with an operational
 must.                          accounting system that is able to
                                generate regular financial
Eligibility criteria for loan package
                                Must be amortized
                                term loan

    Fixed asset acquisition
-To include facility construction
                                           -Only at most 50% of the
 and/or improvement and                     loan may be used for
 equipment purchase                         loan refinancing.

-At most 25% of the loan may be            -The loan for take-out
 used to finance land acquisition.          should be on current
                                            status and not
                                            previously restructured.

                                           -The term of the new loan
                                            should be aligned with
                                            the subject of financing.
SME-GEAR: Guarantee for Gearing–up
Enterprises without Collateral
(Clean Loan Guarantee Facility)
  PFI Credit      Maximum Guarantee Cover
  Evaluation              (In Pesos)
                                                 Risk Sharing

With internal     At most P 6 Million       70% - SBC guarantee
BRR system                                  30% - PFI

Without internal At most P 2 Million        70% - SBC
BRR system                                  guarantee
                                            30% - PFI
     (Guarantee cover and risk sharing are based on the entire
    clean loan.)
 SME-GROW: Guarantee for Growing
 Enterprises with Partial Collateral
  (Collateral-short Facility)

                 Maximum Guarantee Cover
 PFI Credit            (In Pesos)
                                              Risk Sharing

With internal   At most P 6 Million        70% - SBC guarantee
BRR system                                 30% - PFI

Without         At most P 2 Million        70% - SBC
internal BRR                                       guarantee
system                                     30% - PFI

      (Guarantee cover and risk sharing are based on the
      unsecured portion of the loan.)
Provision for REM re-appraisal

     Under the Collateral-Short Guarantee
     Facility, the value of the unsecured
     portion may be adjusted at most
     annually based on collateral valuation,
     but applicable for real estate assets
     under REM only*.
 *SBC shall certify on the adjusted value of the unsecured portion
 of the loan covered by guarantee. This shall be the basis for
 guarantee fee computation for the period thereafter until such
 time that an adjustment is again to be agreed between SBC and
 the PFI.
 SME-GAIN: Guarantee for Gainful
 Enterprises with Available Collateral
 (Collateral-Sharing Guarantee Facility)

 PFI Credit      Maximum Guarantee Cover            Risk Sharing
 Evaluation            (In Pesos)

With internal   At most P 10 Million             80% - SBC guarantee
BRR system      (If the collateral cover is at   20% - PFI
                least 25% of the loan)
                At most P 6 Million
                (If the collateral cover is      70% - SBC guarantee
                less than 25% of the loan)       30% - PFI

Without         At most P 3 Million              70% - SBC guarantee
internal BRR                                     30% - PFI
          (Guarantee cover and risk sharing are based on
          the entire loan.)
                                             Brand       Term of the loan shall
                                             new unit    not exceed five years

Other program guidelines                     Second-     Term of the loan shall not
                                             hand unit   exceed 70% of the
                                                         remaining economic life or
                                                         three years, whichever is

      Credit line                  Amortized term loan
•Credit lines may have a   •Fixed asset loans for acquisition
 maximum life of one        shall be guaranteed for a maximum
 year.                      period of 7 years. (If the loan is more
                            than 7 years, guarantee cover will be for the
                            first 7 years only.)
•Tenor shall be based on   •For equipment acquisition, the
 the transaction to be      allowed term of the loan is shorter.
 financed, but not to
 exceed 360 days.          •Grace period on principal shall be
                            not greater than 1 year depending
                            on the subject of financing.
Calling on the Credit Guarantee
under the “early call feature”
 1. Consistent with the policy that guarantee call
    shall be on a per defaulted PN basis, the PFI may
    call on the guarantee each time a PN defaults
    under a guaranteed credit line or term loan
    facility. Loan default is based on the PFI
    originally approved, extended or restructured
    maturity date or amortization due date, as the
    case may be.

 2. Default is defined for credit lines as the non-
    payment upon maturity date of the promissory
    note availed during the life of the guaranteed
    credit line, and for amortized term loans, the
    non-payment upon due date for three monthly
    amortizations, one quarterly amortization or
    one semi-annual amortization.
What cannot be guaranteed
 Any further loan release/tranche after the
  occurrence of past due on any of the
  implemented PNs under the guaranteed
  loan facility

   Under Transactional Credit Lines, there should
   be no extension in the maturity date of PNs
   where the buyer of the MSME borrower has
   either cancelled the already financed order or
   expressed refusal to pay for whatever reason.

   Should the PFI decide to continue the credit line
   where PN default has already been experienced,
   SBC shall no longer cover with guarantee
   prospective loan releases after the default has
   been established. Its guarantee cover on all
   prior PNs shall remain intact.
Guarantee call and restructuring deadlines

 –   The PFI should call on the guarantee within 120
     days from day-1 of default of the guaranteed

 –   The PFI may opt to restructure the loan within
     the same 120 days reckoned from the date of
     default. This shall not entail any change in
     guarantee cover, unless there is non-compliance
     in the monitoring and/or reporting covenants.

 –   A full BRR review of not more than 6 months old
     should accompany the call on guarantee or the
     proposed account restructuring.
SBC Commitment for an efficient guarantee
call system
1. The PFI shall submit within 30 days from the implementation
   of the guaranteed loan all pertinent documents on a per PN

2. SBC shall review the submitted documents on a per PN basis,
   and provide feedback to the PFI on the acceptability of the
   documents within not more than 30 days from date of
   receipt thereof.

3. The PFI shall be given 30 days to rectify noted imperfections
   on the subject documents, otherwise SBC shall revoke the
   guarantee on a per PN basis. SBC may grant the PFI an
   extension provided the reason is valid.

4. Once the loan documentation is completed and perfected,
   SBC shall issue the Certificate of Completeness Documents
   on a per PN basis within not more than 30 days from date of
   receipt of the perfected documents.
Guarantee call payment by SBC

                       P            PFI

    •On condition that the PFI is up-to-date on its
     guarantee fee payments, SBC commits to pay all valid
     calls on guarantee within 30 days.
    •Non-compliance of the monitoring covenants shall not
     result to a delay in payment of call, only in guarantee-
     deduction penalty.
Risk-based guarantee fee schedule
                               • Guarantee fee shall be
  Borrower     Guarantee Fee     reviewed annually based on
 Risk Rating                     the BRR score review for term
     1            1.00%          loans.

     2            1.25%        • Based on entire credit line
     3            1.50%          amount and annually
     4            2.00%
     5            3.00%        • Based on beginning O/B of the
                                 amortization year, in case of
                                 term loans.

                               • May be amortized quarterly,
                                 but annual fee should be fully
                                 paid in case of call on the
Guarantee fee vis-à-vis term loan and credit line
             Term loan                                       Credit line
• Guarantee fee shall be based on the       • Guarantee fee is charged based on the full
  outstanding balance of the loan at          credit line amount and on a full one-year
  the beginning of each amortization          term basis, thus, all PNs made during the
  year.                                       life of the line regardless of maturity shall
                                              be covered.

• Guarantee fee is reviewable annually      • There is a one-year validity of the
  based on the latest BRR review. If          guarantee fee. The PFI may extend the life
  BRR deteriorates to “6” during the          of the credit line if it has been implemented
  life of the loan where no call has          way before the guarantee approval.
  been made, the guarantee fee shall
  remain at 3.0% p.a.

• A quarterly amortization of the           • Should the PFI find it restrictive to pay the
  guarantee fee may be considered for         guarantee fee on lump sum, it must at least
  approval by SBC, should the PFI find        pay 25% of the annual amount. Fee on or
  it restrictive to pay the guarantee fee     before the first drawdown, and full payment
  on lump sum. Upon call on the               at the end of the third quarter of the life of
  guarantee, however, the guarantee           credit line. Otherwise, the guarantee shall
  fee should first be updated for the
                                             be revoked.
  call to be valid.
Account monitoring covenants and sanctions
     “shall be required to conduct
      a review of the BRR on the
      MSME borrower and make a
      timely report submission to

       1. Project visit with
          borrower interview
       2. Updated credit
                                           Early response
          investigation report,            in case of BRR
          consisting of checking           deterioration
          on creditors, suppliers
          and buyers
       3. Latest in-house
          financial statements
       4. PFI-approved BRR

     (All of the above are PFI formats.)
Account monitoring covenants and sanctions

 Frequency of BRR review                 Timeline of BRR
   relative to BRR score                report submission
  BRR          BRR Review         Type of            Timeline
 Score         Frequency            Report

 1 or 2   Once a year full      Once a year   12 months from
          report with project   full report   date of the prior
          visit                               full report (initially
                                              reckoned on the date of
                                              guarantee approval)
 3 or 4   Once a year full
                                Semi-         6 months from date
          report with project
                                annual full   of the prior full
          visit; plus semi-
                                report        report
          annual CI update

                                Semi-         6 months from date
   5      Semi-annual full      annual        of the prior full
          report with project   CI update     report
Account monitoring covenants and sanctions

                      A timely BRR Report

                Project visit         Borrower interview

                                                 For PFIs not
                       SBC shall join the PFI   amenable to
                       in project visit and     conducting a
 The conduct of        borrower interview.
 project visit and                              semi-annual
                       In case of conflict of   project visit on its
 borrower interview    schedule, the PFI
 are a must                                     accounts with a
                       may go ahead             BRR of “5”, the
 component in the      without SBC. SBC
 BRR review. Non-                               guarantee cover
                       shall do project visit   shall be reduced
 conduct of these      at a later time
 shall mean non-                                by 10 percentage
                       without any negative     points at the start
 compliance of the     consequence to the
 BRR review                                     of the guarantee
                       PFI.                     cover.
Account monitoring covenants and sanctions

                     A timely BRR Report

    Updated                            Latest in-house
    credit                             financial
    investigation                      statements

   3 Components of         -Not more than six months old
    C.I.:                  -PFI shall make an approximation of
                            the financial statements should the
   -checking on             borrower fail to submit its updated
    creditors               F/S, to serve as basis for the BRR
   -checking on             review.
    suppliers              -The PFI’s approximation shall be part
   -checking on buyers      of the submissions to SBC, and
                            should include estimates on sales,
   A semi-annual C.I.
                            account receivable, inventory,
   update is a must for
                            account payable and borrowing.
   accounts with BRR of
Account monitoring covenants and sanctions
                 Mid-year official
                 amendment of the BRR
                 score by the PFI for
                 accounts with BRR of “5”

   -May be waived if due to
    internal policy           -SBC shall make its own
    constraint.                score amendment if
                               called for, and shall
   -The other components       inform the PFI of the
    of the BRR review,         resulting actions that
    however, must be           need to be taken on the
    conducted.                 account.
Account monitoring covenants and sanctions

   Submission of the BRR Report
    •The BRR review and/or CI
    update should be                     Late submission shall
    submitted within 30 days             be deemed as non-
    from the deadline for the            implementation.
    conduct of the BRR review
    and/or CI requirement.

         • BRR review must not be more         • BRR review format
           than 90 days old at the time of       should be that of
           submission to SBC while for CI        SBC for PFIs without
           update it must not be more than       a BRR system.
           60 days old.
Account monitoring covenants and sanctions
Sanctions for non-compliance of monitoring covenants

   Violation of Monitoring
            Covenant                      Sanction
   Non-implementation        Reduction in the guarantee
   of schedule of full       cover by up to 20 percentage
   BRR review or late        points
   report submission
                             (For term loans, the deduction
                             shall be pro-rated based on the
                             frequency of lapse.)
   Non-implementation        Reduction in the guarantee
   of schedule of C.I.       cover by up to 10 percentage
   update on first year      points
   of loan
                             (No longer applies if the 20
                             percentage point deduction is
 Account monitoring covenants and sanctions
 Sanctions for non-compliance of monitoring covenants

                         -For credit lines, the guarantee-deduction
                          penalty shall be automatically cancelled
Reduction in the          once there is an approved guarantee cover
guarantee cover by        on the succeeding line renewal for the
up to 20                  same MSME borrower.
percentage points
                         -For prior credit line availments that
                          default after the renewal of the new credit
                          line, the original level of guarantee shall
                          be honored provided that the renewed
                          credit line has a BRR of “5” or better.

                         -If default occurs prior to the approval of
                          line renewal, the guarantee-deduction
                          penalty shall remain.
BRR score fluctuation relative to guarantee cover

        5        -No negative impact on the guarantee cover as
                  agreed. Any eventual downgrading to BRR 6

BRR               or worse shall not result in deduction in
                  guarantee cover, provided, no lapse is
                  incurred under the monitoring covenants.

                 -Guarantee-deduction penalty shall only be
                  imposed on non-implementation of the
                  required monitoring schedule which includes
                  even accounts with BRR “5” or better.

                 -BRR fluctuation shall mean a change in the
                  guarantee fee on an annual basis.

                 -BRR fluctuation shall mean a change in the
                  frequency of the CI update and/or BRR review.
 Upgrading of guarantee cover vis-à-vis lapses
 in BRR review
 Lapses in the BRR review report and/or CI update which results to a
 guarantee-deduction penalty, may be remedied for accounts in
 current status and subject to these conditions:
                          -PFI pays the differential in guarantee fee
 – SBC shall certify on    (within 30 days from date of SBC validation)
   the regularization of
   the guarantee cover,    in case there is BRR downgrading at the
   which in effect
   nullifies the lapse in  time the PFI conducts its BRR review.
   the monitoring
                         -If downgraded to BRR-6 or worse, no
                           remedy shall be made and the guarantee-
                           deduction penalty shall apply upon
–Reconsideration of        guarantee call.
 the lapse in
 compliance has a        -If the BRR score improves, SBC shall not
 contestability period     make a refund of guarantee fee;
 of six months, within     adjustment in guarantee fee shall be on a
 which no default
 should occur              prospective basis only.
 otherwise the
 remedy gets
Past due occurrence must be immediately

  1. Any incidence of default should be
     immediately reported to SBC. The report
     should be submitted within 45 days from the
     date of default.

  2. In case of call on the guarantee, late
     reporting of the default incidence shall result
     to a guarantee-deduction penalty equal to 10
     percentage points.
Documentary requirements when
applying for guarantee cover
1.   Letter of request by PFI for SBC guarantee cover

2.   Credit approval including details on nature and
     extent of intended guarantee cover

3.   Credit analysis of PFI where summary of
     historical financials is necessary, but financial
     projections are optional

4.   Information Sheet executed and signed by the
     principal MSME borrowers (not more than one
     year old)

5.   Notarized Statement of Assets and Liabilities of
     the principal MSME borrowers (not more than 1 year
Documentary requirements when
applying for guarantee cover
6.   C.I. report of PFI on the SME borrower to cover
     creditors, buyers and suppliers (not more than 6
     months old); and residence neighborhood (not more
     than 3 years old)

7.   Collateral appraisal report, if applicable   (not more
     than 1 year old)

8.   Financial statements of the MSME borrower in-
     house (not more than 6 months old) and BIR –
     filed (latest applicable year)

9.   Latest business registration papers of the MSME
10. MSME board resolution to borrow      (not more than 1
     year old)
Documentary requirements when
calling on the guarantee
As issued by SBC
1.   Certificate of completeness of documents

2.   Certificate of updated guarantee fee payment

3.   Certificate that the PN has not been released after
     occurrence of default on the guaranteed loan

4.   Certificate of latest adjusted value of the unsecured portion
     of the loan subject to collateral-short guarantee, if

5.   Certificate of latest level of guarantee cover vis-à-vis
     compliance with monitoring and reporting covenants
Documentary requirements when
calling on the guarantee
As prepared by the PFI

6.   Letter of request to SBC on call on the guarantee

7.   Loan ledger

8.   Latest full BRR review which should not be more than 6
     months old from the date of call on the guarantee

9.   Property search on the principal borrower and/or JSS parties

10. Original copy of the Deed of Assignment by the MSME
    borrower in favor of SBC on the PFI’s rights on the loan up
    to the extent of the guaranteed portion

11. Original copy of checks issued by the MSME borrower to the
    PFI including bounced checks
Documentary requirements when
calling on the guarantee
As prepared by the PFI

 12. Latest demand letter or notice of dishonor to the issuer of
     bounced checks, sent not later than 60 days after default

 13. Latest demand letter sent to the MSME borrower together
     with latest statement of account, sent not later than 60 days
     after default

 14. Annotated Deed of Assignment of Loan and Mortgage, if
Other guidelines
1. No need to redo financial statements for agri-
   business SME borrowers, so long as there is a sound
   basis in determining the purpose of the loan which
   must be non-farm level production.
2. Life insurance on the principal borrower is a must up
   to the unsecured portion for those more than 60
   years old and without succession, and regardless of
   the term of loan.
3. Non-life insurance on hard collateral shall be optional
   to the PFI, except for vital assets used in the business
   whose loss will affect its operations.

4. If the PFI has other means of collection on the SME
   borrower, it may opt not to deposit the post-dated
   check on the due date. PDC, however, must be
   deposited within 30 days after the due date in case
   the amount involved has not yet been settled.
Other guidelines
5. Registry receipts dated not later than 60 days
   after the date of loan default and/or certification
   of the post office that the demand letter has been
   sent within the 60-day deadline are acceptable
   documentary compliance when calling on the

6. The PFI may opt to foreclose a collateral even
   without SBC approval for as long as the details of
   the foreclosure are disclosed to SBC.

7. SBC may opt to split the MSME borrower’s original
   PN with the PFI where the resulting SBC-PN shall
   represent the guarantee call paid by SBC.
Loan buy-back option
The PFI may opt to execute a Deed of Undertaking
for a loan buy-back of accounts for which SBC has
already made a guarantee payment - i.e. for
accounts that SBC is able to make a turnaround to a
BRR of “5” or better as validated by the PFI.
                         End of presentation
                            Maraming salamat po.

Product briefer by RPerez/08.08.2007/FDS-DMU
 Simplified Accreditation for FIs
 interested only in Credit Guarantees
     (SB Circular 180, Series of 2006 - Issue dated April 28, 2006)

Eligibility requirements
1.     Latest BSP CAMELS Rating of “3.0”
2.     Risk-based capital adequacy ratio of at least 10%
       on solo basis (head office plus branches)
3.     Past due rate of not higher than 20%
4.     Positive net income for the past two (2) years
5.     A specialized lending unit or staff to handle
       SBGFC guaranteed accounts
Once accredited, a PFI is ready to access the credit guarantee
facilities, and shall undergo an annual performance review.
   Deadline for PDC deposit

    PFI may opt not to deposit on due date the sub-
    borrower’s post dated check (PDC) if there is
    other mechanism for collection. The PDC,
    however, must be deposited within not more
    than 30 days after due date in case the amount
    involved has not been settled.

Shared By:
fanzhongqing fanzhongqing http://