AYALA-LED Bank of the Philippine Islands (BPI) is targeting to provide P3 billion worth of housing loans to give Filipino families access to affordable housing.
"We're here because we want to reach as many affordable housing developers [as we can] so we can book the loans of their clients. Because that's true, we also see a backlog from our end," BPI Vice President Dexter Lloyd Cuajotor said.
BPI will be financing 95 percent of the total contract price for accredited projects with a value of up to P3.5 million through its BPI MyBahay program, launched last year, to help bridge the gap in affordable housing for Filipino families.
"Normally [the loan term] is just 20 years, so now it's up to 30 years, and then we lowered the income requirement to P25,000 [combined household income], so more can qualify," said Cuajotor, who also heads BPI's Retail Lending and Bancassurance Group.
"Now, clients have options. Not anymore just Pag-IBIG [Home Mutual Development Fund]. They can also [come] to us," he said in a side interview during the 4th Affordable Housing Summit 2024 press conference last Thursday.
The housing summit was organized by the Organization of Socialized Housing Developers of the Philippines Inc. (OSHDP).
According to the bank official, clients can apply for a MyBahay loan nationwide through the bank's various lending centers, such as through its more than 800 BPI branches and agency banking partners, its drugstore unit Generika, and even through Uncle John's convenience stores, which may also process loan applications.
BPI has accredited at least 42 member-developers of OSHDP and was aiming to accredit more developers during last week's summit by sending accreditors to the event.
"There are about 141 [developers], so we will accredit more. We'll start the conversation, so, more and more projects," he said, explaining that the bank's initial target is to provide P3 billion worth of affordable housing loans.
"It's just the start," Cuajotor said.
BPI has so far extended loans to about 400 families and the number is said to be gradually increasing.
"From there, we'll see the performance. So far, if you want to know about [the] asset quality of the ones we've already bought, it's doing very well," Cuajotor said.
BPI's non-performing loan (NPL) rate was "very good," he noted, as was the profile of its qualified clients, claiming that the bank's asset quality was said to be better than Pag-IBIG's.
The BPI MyBahay program offers a minimum allowable loan of P300,000 up to a maximum of P3.325 million, with a repayment term of up to 30 years.
"We've also set a rebate, interest rebate for good payment. So, 2 percent of the interest paid for the year, we give it back to the customer."
Cuajotor reassured clients that BPI has intervention measures for those who fail to pay their loans on time. "If there are clients that are having a hard time, we have what we call a retail loan care program. We restructure [the loan] and give them extensions."
"The bank is serious," he said. "Our mission is to always build a better Philippines one family, one community at a time," he concluded.
Shares of BPI closed Friday up 0.24 percent at P124.70 apiece.