BPI Family Savings Bank (BFSB), the largest thrift bank in the Philippines, rolled out what it called its “All-Out Promo” in a move to provide more value to loaners towards the purchase of a new home or car. BFSB’s All-Out auto loan offers up to P50,000 in savings on chattel mortgage and first-year comprehensive insurance, based on a loan amount of P1 million payable over a 60-month term.
Meanwhile, until October, qualified applicants can avail of a housing loan for as low as 20 percent down payment and a longer payment term of up to 25 years — resulting in lower monthly amortizations.
Speaking at the recent media launch of the program, BFSB president Ma. Cristina “Ginbee” Go said, “You may ask what’s our motivation for doing this. We can very well stick to the old rates, continue to charge fees — which by the way are really meant not to pay the bank but the government for annotation and registration. If we do that, the bank can earn more. But do we really want to when we know that in a NEDA study, 79 percent of Filipinos aspire for a simple and comfortable life, with 61 percent of them are dreaming of a medium-sized home, and 59 percent are desiring to have their own car?”
She added, “Imagine enjoying 6.88 percent fixed for five years with waived fees of up to P50,000 for our housing loans.”
In a release, BFSB said that last year it “disbursed a total of P20.4 billion in auto loans and more than P38 billion in housing loans, P6 billion of which are for low-income housing projects.” The bank cited a study by the Department of Trade and Industry and Board of Investments which predicted a rise in the country’s housing backlog (assuming an annual production of 200,000 units) from four million to 6.9 million by 2030.
Replying to a question from Property Report on defaulters, BFSB housing loans division head Herbert Tuason maintained that BFSB’s approval process is “rigorous and thorough” to accurately ascertain the capability of its loaners. He added, “We’ve always been very prudent (and it shows) in our very low non-performing loan (NPL) levels. Our total portfolio is at P135 billion, and our NPLs are at only 2.4 to 2.6 percent.” The industry NPL rate is at four percent.
“For many who have limited savings, and/or whose earnings are only enough for day to day, how can you even think about buying a car, much less a house?” posited Go. “This is what motivates us in BPI Family — to let them know that it is possible. That they can, and that we can teach them how through a combination of some savings and bulk through a housing loan or an auto loan.”
The executive continued: “We believe that financial inclusion is more than just having a savings account, or having the means to pay day-to-day expenses. Financial inclusion means also being able to provide guidance on how a person can provide a better future for the family — imparting that needed confidence to make the necessary step towards owning their dream home or driving their dream car.”
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