Two micro lending NGOs start operations

The Opportunity Microfinance Bank (OMB), a consolidation of well-established microfinance non-government organizations (NGOs) was launched recently in response to the concrete action plans outlined by President Arroyo during her State of the Nation Address.

Established jointly by the Alliance of Philippine Partners in Enterprise Development Inc. (APPEND), the pioneer and one of the largest networks of microfinance institutions in the country, and Opportunities International, one of the largest providers of microfinance in the world, the OMB was created to easy access to micro loans to Philippines.

These micro loans will support the creation or expansion of small enterprise and generate jobs.

Under this scheme, non-collateral loans will be extended to groups composed of 30-35 women who are engaged in small trading businesses, like variety stores, or low capital skills-based enterprises. Members of these groups will cross guarantee each other’s loan payments and will be convened to meet weekly for trainings on enterpreneurship and all aspects of community development.

The OMD will also offer growth loans for individuals who need expansion capital at an initial amount of P10,000 which increases up to P150,000.