• Should have license to engage in lending
• At least 1 year operating as an MFI
• Minimum Capitalization: At leastP500T
• Asset size Limit: Up toP5.0B
• Net Income is positive for the past 12months
• Microfinance Portfolio at Risk: PAR – 30 days should not be more than 20% net of provisioning
• Past Due Portfolio Quality: 20% net of provisioning
• Capital Adequacy Ratio (CAR): 15%
• Debt-to-Equity Ratio (DER): Not to exceed 80:20 after loan
• Liquid Asset to Deposit Ratio: 10% but low liquidity shall not be a disqualifying factor
• Borrower Risk Rating (BRR): BRR 5 or up
• Regulating Agency: SEC, CDA and BSP

LOAN FEATURES: SB CORP. TO CONDUIT

• Credit Line Amount: Based on SB Corp. assessment
• Credit Line Term: 1 year subject to annual review
• PN Term: Up to 24months
• Repayment Term: Quarterly
• Interest Rate: no interest on the first year; 3%p.a. for the second year
• Grace Period/ Pre-payment Penalty/ Rebates: No grace period on principal; No pre-payment penalty; Simultaneous payment of principal and interest; No rebates
• Penalty Fee for Late Payment: 0.5% per month
• No Collateral Requirement
• Service Fee: 2.75% per availment
• Manner of Loan Release: Via bank or check
• Schedule of Loan Release: Advance drawdown (loan amount not yet secured by sub-PN of end- borrowers) depending on financial profile of the MFI but not to exceed 50% of the approved loan amount at any point.

LOAN FEATURES: CONDUIT TO MICRO ENTERPRISE BORROWER

• Loan Limit: Up to P300T to end-borrower
• Manner of Loan Release/ Schedule of Loan Release/ Repayment Term/ Tenor/Collection System: Conduit free to determine
• Interest Rate and service Fees: Up to 2.5% per month all-in