IC allows MBAs to Grant Loans to Partner MFIs
The Insurance Commission (IC) allowed Mutual Benefit Associations (MBAs) to grant loans to its partner microfinance institutions (MFIs) following the proposal of the Microinsurance Mutual Benefit Association of the Philippines, Inc. (MiMAP).
In a regular policy dialogue with IC, MiMAP proposed to allow a loan not exceeding to the 10% of the Mi-MBAs total admitted assets to its partner MFIs. This will allow MFIs to finance their lending business to its clients. With this progress, it is believed to foster improved working relationship between Mi-MBAs and MFIs.
MFIs play an important role in the formative years of the Mi-MBAs as they provide for the pre-operatiing expenses and assist its initial Guaranty Fund requirements. More so, MFIs serve as the distribution channel and collecting agents of the Mi-MBAs