21 October 2013

Dear fellow rural bankers:

The Home Guaranty Corporation (HGC), through its two latest programs – the Guaranty Program to the Countryside through Rural Banks and the Guaranty Program for Microfinance and Small Loans for Home Improvement – extends guaranty lines to financial institutions and secures investments for home-lending programs with the goal of encouraging financial institutions (such as rural banks) to lend more for housing.

Under these HGC Guaranty Programs, the government guarantees the payment of HGC’s obligations. The same is likewise beneficial for both the banks and the borrowers as the latter could avail up to 90% of the appraisal value of collateral property while the former are exempted from the BSP capital reserve requirement for HGC guaranteed loans. It also freed-up banks from administrative burden if a loan evades.

The expansion of HGC guaranty programs to the countryside is an ongoing initiative that started in 2011. Orientations and briefings about the HGC guaranty were conducted to rural banks in different parts of the country. By the end of 2012, HGC was able to reach 237 rural banks form 15 provincial federations in 9 regions, namely: National Capital Region, Regions I-IVA, Region V, Regions VII-VIII and Region XIII.

From this extensive marketing campaign, rural bank clients increased from two in 2011 in 12 in 2012 and 18 in 2013. Seven of these rural banks are actively enrolling, while the rest are in the process of consolidating their accounts for enrollment.

To maximize these guaranty programs, we highly encourage our member rural banks to become an HGC accredited bank.

Attached are the pertinent documents to be filled up to secure a Guaranty Line from HGC:

  1. Secretary Certificate
  2. Enrollment Letter
  3. Batch List Form
  4. Application Letter
  5. Bank CAMELS Certification and Authorization
  6. Guaranty Briefing Kit
  7. Revised Terms and Conditions

For further details, you may contact Mr. Michael R. Lagrosas at 896-4116 or visit their website at