The government of the Philippines has instituted a credit facility of USD 20 million intended to provide microloans to “small-scale” farmers and fishermen [1]. The funds will be disbursed through People’s Credit and Finance Corporation (PCFC), a subsidiary of the state-owned Land Bank of the Philippines that offers wholesale loans to microfinance institutions (MFIs). The end-borrowers must be listed in the Registry System of Basic Services in Agriculture (RSBCA), an electronic database of Filipino farmers, farm laborers and fishermen. The maximum amount that can be borrowed by each individual has been set at USD 7,000.
As of November 2013, PCFC reported partnerships with 111 microfinance institutions (MFIs) serving 2.4 million clients, an outstanding loan portfolio of PHP 3 billion (USD 66 million) and total assets of PHP 3.3 billion (USD 74 million) [2].
By Nisha Koul, Research Associate
About People’s Credit and Finance Corporation (PCFC): The People’s Credit and Finance Corporation is a government-owned finance company based in Manila, Philippines. Its sole focus is microfinance, and it is mandated by the government to provide financial services to the poor through retail microfinance institutions. As of November 2013, PCFC reported partnerships with 111 microfinance institutions (MFIs) serving 2.4 million clients, an outstanding loan portfolio of PHP 3 billion (USD 66 million) and total assets of PHP 3.3 billion (USD 74 million).
Sources and Additional Resources:
[1] Oman Tribune, “$20m Philippine microfinance plan to give poor shot in arm,” http://www.omantribune.com/index.php?page=news&id=161805&heading=Asia
[2] People’s Credit and Finance Corporation, “Operational Highlights,” http://www.pcfc.ph/dnn/OperationalHighlights/tabid/66/Default.aspx
MicroCapital Story, February 20, 2014, “Arab Gulf Program for Development (AGFUND) Partners with Philippines Chamber of Commerce and Industry (PCCI) to Bring Ibdaa Microfinance Bank to Eighth Country,” https://www.microcapital.org/microcapital-brief-arab-gulf-program-for-development-agfund-partners-with-philippines-chamber-of-commerce-and-industry-pcci-to-bring-ibdaa-microfinance-bank-to-eighth-country/
MicroCapital Story, September 30, 2013, “Philippines-based Cebuana Lhuillier Insurance Solutions (CLIS) Launches Microinsurance on Wheels,” https://www.microcapital.org/microcapital-brief-philippines-based-cebuana-lhuillier-insurance-solutions-clis-launches-microinsurance-on-wheels/
MicroCapital Story, March 15, 2011, “People’s Credit and Finance Corporation (PCFC) of the Philippines Targets 3.2m Microfinance Clients, Partnerships With 170 Microfinance Institutions (MFIs), Issuance of $47m in New Loans By Year-End 2011,” https://www.microcapital.org/microcapital-brief-people%E2%80%99s-credit-and-finance-corporation-pcfc-of-the-philippines-targets-3-2m-microfinance-clients-partnerships-with-170-microfinance-institutions-mfis-issuance-of-47/
MicroCapital Universe Profile, People’s Credit and Finance Corporation (PCFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=People%27s+Credit+and+Finance+Corporation+%28PCFC%29
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