TSPI Housing Loan Program STAKEHOLDERS’ WORKSHOP for SUSTAINABLE FINANCE FOR ISF HOUSING DILG-NAPOLCOM Center, Quezon City
Presentation Brief introduction of TSPI Why Housing Microfinance Housing Performance Indicators Key Roles and Responsibilities of Project Officer in processing Housing Loan (delivery Mechanism) Partnerships/Recognition in delivering HSLP Future plans –scaling up
TSPI … is a non-stock, non-profit Microfinance Institution founded in October 1981 stands for Tulay sa Pag-Unlad, Inc. (Bridge to Progress) has a total 1,970 employees, majority of whom are Account Officers based in 154 branches has a total outreach of 254,796 has a loan portfolio of Php 1.8B or ($41.88M)
Cagayan (1) Ilocos Norte (4)
LUZON
Ilocos Sur (6) La Union (9) Benguet (2) Pangasinan (19)
Isabela (6) Quirino (1) Nueva Vizcaya (2) Nueva Ecija (9) Bulacan (5) Rizal (5)
Zambales (2) Tarlac (7)
Camarines Norte (2)
Pampanga (2)
Camarines Sur (7)
Bataan (1)
Albay (6)
Metro Manila (16) Cavite (7)
Sorsogon (1)
Batangas (7) Laguna (8) Quezon (15)
Cagayan de Oro-Misamis Oriental (1)
AREA COVERAGE: 27 Provinces 154 branches
Bukidnon (3)
MINDANAO
Our Vision & Mission To see people live with dignity, sufficiency, and responsibility, demonstrating this through love and service in their community.
To provide individuals and communities the opportunities to experience fullness of life through small & micro enterprise development.
Our Philosophy towards Poverty and its Alleviation
1.
We want to help the poor “cross the bridge” from poverty to prosperity. We do this because this is our way of loving the Lord and loving our neighbor.
2.
We believe there is no single solution to a person’s poverty, because the causes of his poverty are many.
3.
We join with the rest of society in addressing the many needs of the poor. What we contribute to this social effort is our expertise and resources in microfinance.
TSPI Housing Loan Program (HLP) started in 2006, as a reward to longest staying clients of TSPI later rationalized as one of TSPI’s social loan programs: a way to improve productivity of clients considering that many of them do their micro businesses at home opportunity to help clients realize their aspirations to have secured and dignified housing without having to tap the capital reserved for their micro businesses provides facility for non-employed poor to avail of a housing loan program
HSLP Performance History 6000 5000
160,000,000.00 140,000,000.00 120,000,000.00
4000
3000 2000
100,000,000.00
80,000,000.00
TOTAL LOAN DISBURSEMENTS
60,000,000.00
TOTAL # OF CLIENTS
40,000,000.00 1000
20,000,000.00
0 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 120
100
160,000,000.00 140,000,000.00 120,000,000.00
80 60 40
100,000,000.00 80,000,000.00 60,000,000.00
40,000,000.00 20
20,000,000.00
0 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014
TOTAL LOAN DISBURSEMENTS TOTAL # OF PROJECT OFFICERS
HLP represents 10% of the TSPI Loan Portfolio with 2.78% PAR. Target for 2013 is to serve 6,500 clients.
How do we market HLP? HLP is offered to existing clients of TSPI by the Account Officers. Our AOs meet our clients every week. During these 1-hour meetings, AOs inform clients about the program and its features. Clients who are interested to apply for housing loan are encouraged to attend the product orientation conducted regularly by the Project Officer. Those who are interested are provided with checklist of required documents for completion within the given time. PO then schedules the house visit to clients for loan application and house cost estimate.
How do we mitigate risk in HLP?
Loan size depends on level of security in lot ownership and the client’s capacity to pay to ensure clients will not be driven away and waste their investment in housing
Mortgage Redemption/ Credit Life Insurance to safeguard clients against default due to death or permanent disability.
Life insurance (thru TSPI Mutual Benefit Association) & Health Insurance to mitigate the risk of default due to illness or death in the family
Client high participation in the project process to ensure client satisfaction and full cooperation
Partnership with suppliers & foremen to facilitate non-cash disbursements and proper loan utilization
Close project monitoring to ensure compliance in HSLP Policies and Procedures
HLP is a highly supervised loan Amount of loan allocated for materials is disbursed in the
form of materials and delivered to the clients by the partner suppliers. Amount of loan allocated for labor is paid directly to the workers through the Project Foreman; Amount of loan equivalent to 5% of labor and materials is allocated for Administrative Fee and deducted outright from the loan proceeds; If needed, maximum of 20% of loan amount allocated for updating tax receipts is released to the client thru check upon presentation of support document Mortgage Redemption Insurance (MRI) premium is deducted outright and paid directly to Grepalife, when applicable.
HLP main actors Account Officers • Marketing & Promotion • Capacity to pay evaluation • Endorsement to Project Officers for processing
Project Officers • processing loans • coordinating with partner suppliers & foreman • Facilitates project deliberation • supervising construction until turnover to the clients
Foreman • Project scoping & cost estimate • Work plan • Supervision of workers & release of wages
Client • Provides construction plan • Canvass cheaper materials, if preferred • Provides labor equity, if possible
MILESTONES (Partnerships):
HABITAT PHILIPPINES Supported by Habitat Philippines during the first 2 years Provided low-interest loan to cover 1/3 of loan releases Extended technical assistance and supervision of construction projects Served total of 160 clients with total loan release of Php 5M in 6 branches in Metro Manila and Quezon province In 2009, program expansion started with high demands from other branches in the provinces and in Metro Manila USAID In 2011, HLP, specifically the toilet loan, got support from USAID for the promotion of proper human waste disposal CEMEX PHILIPPINES In 2011, Cemex Philippines extended low-interest loan equivalent to cement component in selected branches in Rizal province
MILESTONES (Partnerships): LAFARGE CEMENT SERVICES In November 2012, TSPI-Lafarge partnership started for the Tahanan Ko Project. Provide TSPI with technical support in the form of the following actions: Development of a training program on basic construction standards, site management and safety, bill of materials and basic home designs for TSPI Foremen. Engagement of Technical Advisors to provide training and assistance to the TSPI Foremen.
RAFAEL B. BUENAVENTURA FOUNDATION Recently, TSPI was selected by Rafael Buenaventura Foundation as one of the Most Outstanding Microfinance for Innovation in delivering Housing and Sanitation Loan Program
MERALCO MOA will be signed soon for the provision of electricity connection loan to selected areas in Cavite. Meralco provided a seed fund to guarantee these loans even for first time clients.
TSPI HSP PLAN To target 6,500 existing clients to avail of Housing and Sanitation Loan by Dec 2013 To roll-out partnership program with Lafarge Cement Services to all TSPI branches To offer Sanitation Loan to non-TSPI clients To explore partnership with Social Housing Finance Corporation in Quezon Province for the Community Mortgage Program To strengthen partnership with MERALCO (Manila Electric Company) for Electrical Line Connection Program
Salamat po!