MABS studies demand for Micro-Agri Loan Product among Mindanao bank clients

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MABS conducted focus group discussions and interviews with Green Bank’s and Cantilan Bank’s clients and management officers to gather essential information for the expansion of its Micro-Agri Loan Product (MAP) initiative.

To further the reach and services of its Micro-Agri Loan Product (MAP) initiative, MABS conducted product demand research among the clients of two of its largest Mindanao-based participating banks (PBs): Cantilan Bank and Green Bank. The research visits conducted on September 28-30 for Cantilan Bank and on October 1-3 for Green Bank aim to determine the need for a micro agricultural loan among the banks’ clients.

MABS conducted focus group discussions (FGDs) with the two banks’ best performing centers to determine the group lending clients’ need for a farm loan. The MABS team also conducted interviews with existing micro agri loan clients to determine product and customer satisfaction. The activities were aimed at acquiring essential information that can help the banks expand their loan portfolio. Among the information gathered were bank monitoring and documentation, as well as client feedback on product policies and delivery, specifically on the amortize-partial balloon mode of payment, suggestions for product modification and improvement, and client satisfaction on the product and the banks’ staff.

Since 2004, MABS has been equipping its participating rural banks with skills, tools and information to be able to provide agricultural loans to bank clients. With the rural banking sector catering to a relatively huge number of clients venturing into agricultural activities or businesses (e.g. crop farming, cattle and poultry raising, fish farming, etc.), the MAP initiative was set up to offer an alternative to banks’ traditional agricultural lending. As of August 2009, MABS PBs have already disbursed over 34,500 MAP loans totaling to more than PhP 452.2 million (USD 9 M), with about 54 rural banking units reaching more than 16,100 small farmers.