Agriculture loans to boost microfinance sector growth

Business World – The country’s microfinance industry sees more growth in providing savings and micro insurance to low-income individuals and offering more agriculture oriented microfinance products.

“The microfinance industry is going to grow, as opportunities such as providing agri-microfinance products are now being tapped.

[Moreover,] microfinance has a strong prospective with financial tools such as providing savings and micro insurance to the unbanked sector,” central bank deputy governor Nestor A. Espenilla, Jr. told BusinessWorld at the sidelines of the Microfinance Stakeholders Summit at the Bangko Sentral ng Pilipinas (BSP) yesterday.

“The BSP is now partnering with other government institutions and the stakeholders in developing and regulating these up-and-coming microfinance products,” he added.

Microfinance primarily involves the extension of credit to poor borrowers who are normally turned away by the banks. The loans are often used to jumpstart enterprises-mostly buying and selling on a micro scale-and are regarded as a poverty alleviation tool.

Microfinance institutions, however, have now extended their financial services into providing savings and micro insurance opportunities to low-income individuals.

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