The Credit Surety Fund Program (CSF) is a credit enhancement scheme developed by the Bangko Sentral ng Pilipinas that aims to increase the credit worthiness of micro, small and medium enterprises (MSME) that are experiencing difficulty in obtaining loans from banks due to lack of acceptable collaterals, credit knowledge and credit track records.
How it works:
- The CSF is created by pooling the contributions of well-capitalized and well-managed cooperatives, non-government organizations, a local government unit and partner institutions such as Development Bank of the Philippines, Land Bank of the Philippines, Industrial Guarantee and Loan Fund, as well as other interested parties.
- The MSME-member submits a loan proposal, together with the application for the surety cover, to the cooperative for the initial loan evaluation.
- The cooperative then endorses the loan proposal to the Oversight Committee for its own evaluation and the latter endorses the same to the lending bank.
- The lending bank informs the Oversight Committee of the approval of the loan proposal and the latter issues a surety cover as security for the loan.
- Upon receipt of the surety cover, the bank releases the loan proceeds to the MSME-borrower.
List of CSFs established nationwide, CSF Primer and CSF FAQs can be downloaded here.