The Bank of the Philippine Islands (BPI) has launched a pioneering type of loan for eco-conscious purchases that promote environmental sustainability.
BPI Green Solutions offers consumer loans for purchasing solar panels, building eco-friendly houses, and purchasing electric vehicles (EVs), all contributing to the reduction of carbon emissions. I Photo: BPI X
BPI Green Solutions offers consumer loans for purchasing solar panels, building eco-friendly houses, and purchasing electric vehicles (EVs), all contributing to the reduction of carbon emissions.
The bank stated that this innovation aligns with the Marcos administration's commitment to the Paris Agreement, aiming to pursue initiatives on clean energy and promote sustainability across sectors.
"This is a significant milestone in 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 healthier planet," said Dexter Lloyd Cuajotor, head of BPI Retail Lending and Bancassurance Group.
Cuajotor explained that for solar and eco-build financing, BPI offers lower interest rates ranging from 9 percent down to 7 percent, along with a longer fixed-rate term of seven years.
Additionally, BPI provides discounts on bank fees of up to PHP70,000. For purchasing EVs, consumers would benefit from a lower interest rate, free bank fees of up to PHP50,000, discounted prices on EVs' retail price, and free personal accident insurance worth PHP1 million.
BPI's Chief Finance and Sustainability Officer, Eric Luchangco, expressed optimism for stronger loan growth this year, especially for consumers and small and medium enterprises.
He disclosed that currently, corporate loans share the majority of BPI’s loan portfolio, but with the introduction of Green Solutions and other retail-oriented financial products, consumer loans are expected to take up a larger share.
"We are expecting this year to be stronger from a perspective of loan growth. The main driver for that, we think, is primarily our customer optimism... they’re feeling that 2024 is going to be a better year from an overall GDP growth perspective, and that’s also our expectation," Luchangco stated.
He added that the market's expectation of easing policy rates by the second half of the year would also fuel loan growth.