The branch of CARD Bank, Inc in Daet, CamNorte ... providing cheap capital for the marginalized Filipinos. - MWBuzzpic by ALFREDO P HERNANDEZ
By
ALFREDO P HERNANDEZ
Editor,
MWBuzz
THE
LaPIMa (Laking PIM Ako) is looking at bringing to Jose Panganiban a unique
lending program hoped to boost the earning capacity of many less-privileged and
marginalized individuals and families in the municipality.
The
lending program offers capital at low interest rates to qualified individuals
who wish to start a livelihood project.
This
lending scheme is right now being run across the Philippines by a non-governmental
organization (NGO) called CARD, or the Center for Agriculture and Rural
Development, Inc.
These
days, CARD has about 762,688 active clients comprising small entrepreneurs who
were former jobless and non-earning individuals.
The
lending scheme is being pitched to LaPIMa by banker Florentino (Jun) E Espana,
Jr, who is currently the senior vice-president at the Home Development Mutual
Fund (Pag-Ibig Fund).
Incidentally,
Espana is one of the prominent members of LaPIMa who has been helping the
organization plan its livelihood program for its less-privileged members and
their families.
The
leadership of LaPIMa, both overseas and in the Philippines , is open to Espana’s
proposal as it needs a viable source of funding that could support and sustain its
livelihood assistance program to the growing number of poor LaPIMa families,
who opted to stay in Larap, Sta Milagrosa and Pag-asa for a hand-to-mouth
existence.
The
association has many members who make a living from doing odd jobs or engaging
themselves in fishing, vending, marginal farming, gold-panning, charcoal-making
and the like.
Espana
told MWBuzz recently that the CARD scheme has been patterned from the Grameen
lending program in Bangladesh ,
which helped hundred thousands of Bangladeshis rose above poverty by providing
them a source of cheap capital for their own small-scale businesses.
Incidentally, CARD has an affiliate group called CARD Bank, which has a regional office in Daet, CamNorte, making it more attractive for
LaPIMa to consider tapping the organization for possible funding, said Espana.
CARD Bank office is located just across the provincial capitol.
“CARD
is well-staffed and has the expertise and technology to effectively carry out
the program for the grassroots in Mambulao,” Espana said.
He
said the credit program covers individuals who wished to engage in small
business projects such as buy-and-sell, retailing, market stalls, food
processing, food production and many more.
The
point is, it has to be viable to operate and could make a return in a short
period of time.
Espana
said that the CARD scheme has been very successful in areas where it operated
in the Philippines ,
with the “repayment rate at 99.44%”.
“But
for one thing, it could be a long process to reach this end (the repayment
rate) for Mambulaoans,” he said.
“The
program has to be explained to target individuals in Mambulao thoroughly as
this would involve reorientation of individual values that have been ingrained
all their life, re-education and re-evaluation of their goals in life.
“In
short, it is an overhaul of the individual’s personality that simply would
redound to one basic thing – a responsibility towards himself, his family, his
neighbors and the society.
Espana
said the end goal is for them to make it realize that a debt (a capital loan in
this case) is something that has to be repaid and that it should be done under
an agreement.
“Admittedly,
this is a long process that could take more than six months … or ever more than
a year because the re-education process is the most difficult thing and time
consuming.
“For all
you know, many of those who joined could drop out along the way,” Espana said,
explaining that the prospective capital beneficiaries have to attend series of
workshops, seminars and certain re-education classes over a period of time.
“To
many, this is a time-consuming and a waste of time for them … but to others, it
is the opposite.
“But
once the idea has been inculcated to each of the potential
borrower-beneficiaries, we could say “everything is in the bag”.
“This
was how the Grameen scheme worked in Bangladesh and this is how it works
right here in the Philippines
where CARD is running the scheme.”
To
prove a point, Espana recalled an incident in a far-flung village where a group
of CARD beneficiary-borrowers lived.
When
the time came for a team of CARD collectors to visit the village to get the
payment that fell due on that particular week, a storm came, causing flooding
all over the place and swelling of the river nearby.
When
the storm passed, the villager-borrowers waited on their side of the river bank
for the CARD people to come for their payments.
However,
the river current had remained violent, discouraging the debt collectors from coming.
So, they decided to leave and head back home.
You
know what happened next?
When
the villagers saw the leaving CARD men, they immediately plunged into the river
and swam across, their money intact in their pockets.
Said
Espana: The villagers did not want to miss their payment on that day.
“This was
the kind of re-education these villagers underwent and it is this mindset they
acquired that is making sure the lending program will succeed.”
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