BPI pioneers consumer loans for ‘green solutions’

MANILA – The Bank of the Philippine Islands (BPI) is pioneering the country’s consumer loan for “green” purchases.

The bank launched on Monday the BPI Green Solutions providing solar mortgage, eco-build financing and electric vehicle (EV) financing.

In line with the Marcos administration’s commitment to the Paris Agreement to pursue initiatives on clean energy and promote sustainability across sectors, BPI Green Solutions offers consumer loans for the purchase of solar panels, building eco-friendly houses, and purchasing EVs, which all contribute to lowering carbon emissions.

“This is a significant milestone in the BPI’s journey towards a more sustainable and eco-conscious future. BPI takes pride in pioneering innovations. And we also understand that our role extends beyond financial transactions but rather encompasses a responsibility to contribute to a greener and a healthier planet,” BPI Retail Lending and Bancassurance Group head Dexter Lloyd Cuajotor said at the press launch in Makati City.

For solar and eco-build financing, Cuajotor said BPI offers lower interest rates from 9% down to 7%, and provides longer fixed-rate term for seven years. It also discounts bank fees of up to P70,000.

For purchasing EVs, consumers would get lower interest rate, free bank fees of up to P50,000, discounted prices on EV’s retail price, and free personal accident insurance worth P1 million.

“These green solutions are part of how we want to grow our business,” BPI chief finance and sustainability officer Eric Luchangco said.

Stronger loan growth

Luchangco is optimistic that the bank is up for stronger loan growth this year, especially for consumers and small and medium enterprises. Currently, corporate loans share mid-70% of BPI’s loan portfolio and the rest are consumer loans.

By offering the Green Solutions along with other retail-oriented financial products, Luchangco said this will help consumer loans to take up larger share of the pie.

“We are expecting this year to be stronger from a perspective of loan growth. The main driver for that, we think, is primarily, basically our customer optimism… They feel that 2024 is going to be a better year from an overall GDP (gross domestic product) growth perspective, and that’s also our expectation,” he said.

“And because it’s going to be a better year, that they’re also going to invest more into the year,” Luchangco said.

The market’s expectation of easing of policy rates by second half of the year will also fuel loan growth this year, he added. (PNA)