Rural finance scheme designer receives honorary degree

A new approach to rural financing is fast gaining support. Consisting of a package of collateral-free loans coupled with capability-building activities, this new credit system favors lending to individuals and non-formal groups.

Administered by Quedancor, the government’s credit and guarantee company, the latest financing approach is called the "Buenaflor Model", coined by Agriculture Secretary Leonardo Q. Montemayor after its designer. Nelson C. Buenaflor who is the president and CEO of Quedancor.

Under this model, the cost of operation of any agricultural undertaking will be minimized. Instead of having more people in the social preparation of the beneficiaries and the meticulous hiring of collectors to ensure efficient repayment, the innovative approach taps the team leaders of non-formal groups to become the agency’s administrative arm.

In recognition of the promising contributions the Buenaflor Model has made in the state of the country’s rural financing system, the Pangasinan State University (PSU) board of regents, chaired by Commission on Higher Education Chairperson, Ester Albano-Garcia, recently conferred a doctorate degree on Development Management, honoris causa, to Buenaflor on the occasion of PSU’s 23rd commencement exercises held at the PSU, Sta. Maria campus.

University president Rodolfo V. Asanion said Buenaflor was unanimously chosen by the selection committee to be awarded the title because of his outstanding performance in public service and excellence in the field of agriculture and rural finance.