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
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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
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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):
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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!