1. CANTILAN BANK: Addressing Home
Improvement and Housing Needs
Brig. Gen. Charles Y. Hotckiss (Ret.)
Cantilan Bank
2010 RBAP-MABS National Roundtable Conference
Hyatt Hotel and Casino, Manila
June 2-3, 2010

2. Housing Micro-Loan:
Micro-
One of the best products
for helping poor people
get a decent shelter
and improve their assets!

4. From Bare To Covered

10. Living Room Area Dining Room Area

11. Dining Room
Living Room Dining Room

15. BEFORE

19. Demand for housing was
staring us in the face!
We did not recognize it
until we did the market
research.

20.  Many own their homes
 They make small, varied improvements when
resources become available
 Use mostly own cash/savings to improve their
homes
 Strong demand among microfinance clients
 Preference for separate loan for housing:
◦ Longer term
◦ Less stringent collateral

22. Product Highlights
•Targets existing clients
initially
•Loan of P5k to P150k

23.  Performance fell dismally short of targets
Pilot Phase Targets Actual Performance Compliance with
(2 branches) Pilot Phase Targets
20 accounts 4 accounts 20%
300k loan 184k loan
61%
portfolio portfolio

24. Causes
• Weak driving force from the Head
Office down to the branch level
• Account Officers turnover
• Fear of PAR – perception that giving
more loans to clients will increase
delinquency

25. We took steps.
We made adjustments.
We modified policies.
We asked for everyone’s
commitment.

26. # Accounts Portfolio Size
Php184K to
From
From 4 to 280
accounts
Php3.7M loan
portfolio

29.  Secure commitment, top to bottom
 Set roadmaps with clear targets and product
operational plan
 Customize product based on market needs
 Stick to cashflow analysis of debt capacity
 Continuous product review & enhancements
keep products relevant to market needs
LEAD TO SUCCESS...