‘Microfinance’ bank up in December
The First Pangasinan Microfinance Bank that would lend no-collateral loans to small borrowers and entrepreneurs will be opened in Dagupan City next month, according to House Speaker Jose de Venecia Jr.
De Venecia turnedover to the officers of the bank his own P16.5 million as the bank’s seed capital. The Pangasinan Catholic Cooperative is also contributing P1 million.
Patterned after the very successful Graamen Bank of Bangladesh that has a high repayment rate of 98%, the microfinance bank will extend loans to small borrowers, like market vendors, jeepney and tricycle drivers, farmers, fishermen and others so that they can start their livelihood projects.
The Graamen Bank, founded by Muhammad Yunus, was awarded the Nobel Peace Prize this year.
The microfinance bank will be headed by Jose Oviedo of Dagupan City.
Initially organized to cater to the people of Dagupan City and the fourth district of Pangasinan, the microfinance banks will soon be expanded to the other towns of Pangasinan.
“The microfinance bank will ensure that the days of loans sharks who charge borrowers at very usurious interest rates are numbered,” De Venecia said.
He said he will soon ask other congressmen in the Philippines to also set aside part of their respective Countrywide Development Fund as seed capital for microfinance banks so more poor people in the Philippines would be rescued from poverty.
Speaking before officials of San Fabian last Sunday, De Venecia urged everyone to contribute their share to the microfinance bank.
“Imagine, by contributing P1,000 to the bank, you can borrow as much as P10,000,” he said, adding that in the microfinance bank, what is simply needed is the signature of at least three co-makers who will be made to assume the loan in case of default by the borrower.
De Venecia said that by contributing his P16.5 million, members will be exempted from contributing P1,000 each this year. Next year, however, they will have to assume their own obligations.
Share your Comments or Reactions
Powered by Facebook Comments
