Aspac Rural Bank infuses P500M for lending service

CEBU, Philippines — Stakeholders of Cebuano-owned Aspac Rural Bank Inc., have infused a fresh capital of P500 million to fund the bank’s lending facility.

Former Aspac Rural Bank chairman Augusto W. Go said that along with a series of expansion and new branding positioning, Aspac Bank is making a closer step to the Small and Medium Entrepreneurs (SMEs), as well as individual borrowers to make credit easier, faster, and cheaper.

As a Cebu-based banking institution, loan approval may only take a day or less, because approving officers are just in Cebu, Go assured.

Furthermore, with capital sourced from its internal coffer, the bank can provide cheaper interest rates to borrowers, lower than rates charged by industry counterparts.

Aside from providing wholesale loans for micro, small and medium entrepreneurs, Go also emphasized the bank’s opening to individual borrowers, such as salary loan, motorcycle loans, among others.

The P500 million fresh capital by the investment arms of the owners, is just an initial infusion, Go explained.

Established 27 years ago by the Go and Ong families, Aspac Rural Bank now has 12 branches across Cebu province, with capitalization of P270 million.

Aspac Rural Bank’s loan portfolio now stood at P500 million with deposit portfolio of P750 million.

With its aggressive expansion plans in terms attracting depositors, bank digitalization investments, professionalization and modernization, the bank is poised to double its deposits volume in the next two years.

According to Go, Aspac Rural Bank’s aggressive move to digitalization opens up opportunities to attract clients outside of Cebu, even without brick-and-mortar branches.

In fact, the company is opening its new Aspac Rural Bank model branch in Toledo City, Cebu before end of the year.

Aspac Rural Bank’s new look and new branding, which will be reflected in its model branch in Toledo City, Cebu signifies the bank’s commitment to take part in the promising post-pandemic banking and finance service.