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By Maricel E. Burgonio, Reporter
Microfinance refers to the provision of
financial services to low-income clients, including the
self-employed. It also refers to a movement that envisions “a
world in which as many poor and near-poor households as possible
have permanent access to an appropriate range of high quality
financial services, including not just credit, but also savings,
insurance, and fund transfers.”
Microfinance institutions can take the form of
cooperatives and other self-help groups, rural banks, and small
economic formations. They are now emerging as remittance channels
and can effectively play this role, as they are present in many
rural areas and poor people’s enclaves.
Lately, money transfer agent PetNet Inc. has
decided to tap microfinance institutions to expand its remittance
market.
Lorenzo T. Ocampo, PetNet president, said PetNet
has partnered with microfinance institution Alalay Sa Kaunlaran,
Inc. (ASKI) to widen its market in Regions 1, 2 and 3 that ASKI
covers.
“In the partnership, Aski’s clients can
remit through PetNet. These areas are underserved,” Ocampo told
reporters.
PetNet signed on Wednesday a memorandum of
agreement (MOA) with ASKI. Under the partnership, ASKI’s clients
may channel its remittances through PetNet.
ASKI has 21 branches in the three regions, all
of which are areas with high demand for microfinance loans. PetNet,
meanwhile, is a money transfer agent of Western Union, has 200
locations nationwide.
Rolando Victoria, ASKI’s executive director,
said its loan portfolio increased by 20 percent year-on-year to P240
million as of May. It also has a capital base of P63 million.
ASKI provides P5,000 to P150,000 worth of micro
loans with 3 percent monthly interest rate to its clients.
“There is strong demand for microloans such as
in agricultural loans and for small businesses,” he said. It also
provides microinsurance with only P20 paid every week in exchange
for P120,000 insurance coverage.
ASKI also plans to use make use of ATM services
in releasing loans to their clients.
Besides ASKI, PetNet also signed a MOA with GSIS
Family Bank in April.
The Bangko Sentral ng Pilipinas (BSP) has been
encouraging banks to engage in microfinance, a flagship program for
poverty alleviation.
Microfinance loans posted double-digit growth
last year as more banks increased their participation in
microfinance lending,
Amando M. Tetangco Jr., governor of the BSP,
earlier said microfinance loans grew 12 percent to P6 billion last
year.
About 229 banks are into microfinancing, with a
total client base of 780,000.
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