AFC SME Finance Inc. is expanding access to home construction financing, offering loans of up to P5 million to landowners who have regular income but may struggle to meet traditional banks’ documentation requirements.
The Asialink Group company is targeting borrowers often underserved by conventional lenders, including market vendors, farmers, small contractors, jeepney and tricycle operators, and households supported by overseas remittances. Employed individuals and small business owners are also eligible to apply.
“Families keep telling us the same thing — they have the land but they simply cannot raise the money to build. This is the gap we are trying to bridge,” AFC SME president Bernadette “Bernie” Recto said.
The loans carry repayment terms of up to 20 years, with approved amounts based on verified construction costs and subject to a maximum loan-to-value ratio of 70%. Applicants must pledge a lot with a verified land title in their name as collateral and undergo credit evaluation.
Loan proceeds are released in three or four tranches, depending on construction progress and compliance with disbursement requirements, linking access to funds to the actual development of the property.
Recto said AFC SME seeks to simplify documentation and accelerate approvals for qualified borrowers, particularly those whose earnings are difficult to capture through conventional income records.
“We look at what a household earns and what it can realistically carry. That is the same discipline we apply to small business borrowers,” she said.
The financing offer comes as households face the challenge of turning land ownership into completed housing amid construction expenses that can make building a home difficult without substantial savings or access to credit.
However, borrowers must still demonstrate repayment capacity and meet collateral and project requirements. The 70% loan-to-value ceiling also means applicants may need to cover a portion of construction costs through their own funds or other financing.
AFC SME began as a microfinance provider in 2018 before shifting to real estate-secured lending in 2021. It disbursed P1.06 billion in loans this year, bringing cumulative lending since inception to P2.8 billion through September 2026.
The company has also partnered with property developers to broaden access to affordable housing, complementing its construction financing for individual landowners.
