BPI Family Savings Bank Optimistic Lending Activities Will Pick up Pace Post-ECQby Fintech News Philippines October 1, 2020
BPI Family Savings Bank is optimistic that its first variable amortisation loan programme called Step Up PayPlan will pick up pace, noting that lending activities have improved after the lockdown period.
In a virtual launch on Wednesday, BPI Family Bank President Ma. Cristina Go said lending activities were affected by the government’s implementation of the enhanced community quarantine (ECQ) in Luzon from middle of March until end of April, which was extended until end of May for the National Capital Region (NCR).
She, however, said that “right after the ECQ, we saw a rise in lending activities as much as five times”.
“We are not yet back to pre-ECQ level. We are at around 60% of pre-ECQ levels in terms of loan releases on regular housing and regular auto loans but we definitely have seen a very promising trajectory and we hope that we can continue on that growth trajectory such that by year end, we will not be as low during ECQ. And so we are very confident that this product will help our developers, brokers, and dealers get needed clients so that these clients can afford their dreams,”
Go said this makes them confident for the strong uptake for their latest loan program, adding that their partner brokers, car dealers, and property developers are looking forward to some form of support from the banking industry to provide the needed assistance for people to still buy properties and vehicles.
The Step Up PayPlan allows borrowers for varied payments annually, starting with the smallest value in the first year and increases as the loan matures.
For an auto loan, the minimum amount is PHP500,000 with a five-year term and payable via auto-debit. Borrowers are required to cover at least 15% of their unit cost as down payment to qualify for the loan.
For housing loans, the minimum amount is PHP1 million, payable in 10 years or more through auto-debit arrangement. Borrowers can choose a lock-in period in their interest rate in three, five, or 10-year increments and they need to cover at least 10% of the property’s total cost.
Featured image credit: BPI Boracay Branch