AMA Bank sets aside add’l P400M for loan programs

AMA Bank, with branches nationwide, announced the infusion of additional capital to jumpstart its multi-million financial and loan programs.

Alex Soliman, AMA Bank executive vice president, said the new capital will enable AMA Bank to increase its loan programs by at least three times compared to its present level of transactions.

AMA Bank launched recently with its affiliate school, AMA Computer University, a "study now pay later plan." The P400-million program will allow students to take up a full college course and amortize payments for as long as 10 years.

"In effect, the student will be able to graduate at small amounts being paid in the course of his residency at AMA Computer University and the balance will be payable after graduation when the student will already be at work," said Soliman.

The bank has also been active in its "one day salary loan release" program whereby loan applicants from qualified companies receive the proceeds in the same day that they apply. The bank’s information technology infrastructure has made same-day loan processing possible.

Soliman said that since most of the purpose of the salary loans are emergency in nature, the same-day release of the loan has made cash available to employees at the time they need the money most.

The bank will also launch a micro-finance loan program similar to the very successful program of Grameenbank in Bangladesh. This program, which is in line with the thrust of the Bangko Sentral ng Pilipinas in alleviating poverty, will extend loans to cluster or group undertakings.

Soliman emphasized that the bank strongly believes that small and medium size industries can very well serve as the backbone of the economy. The development of more entrepreneurs through micro-finance will certainly have an effect in alleviating the unemployment problem.

Recently the bank has been very active in car financing by extending very low interest rates.