CEBU, Philippines — Reinforcing its commitment to help alleviate poverty particularly this pandemic, the Ramon Aboitiz Foundation Inc. (RAFI) Micro-finance Inc. (RAFI MFI) vowed to increase its loan portfolio to at least P8.5 billion by 2023.
In an interview with RAFI-MFI chief operating officer (COO) Jonar Dorado, he announced that with the aggressive stance of the organization to aid economic recovery starting off in the grassroots, it is poised to open branches in 10 new provinces this year.
This means that RAFI’s micro-finance services will be made available to communities in Masbate, Palawan, Albay, Camarines Sur, Quezon, Agusan del Norte, Bukidnon, Camiguin, Surigao del Norte and Surigao del Sur.
Moreover, to hit the goal of providing financial assistance to micro businesses, like the “Tindahan ni Nanay” concept, Dorado said another batch of branch opening is scheduled in 2022. These are Batangas, Laguna, Occidental Mindoro, Oriental Mindoro, Rizal, Davao del Norte, Davao del Sur and Compostela Valley (Davao de Oro). It will expand further to Bulacan, Cavite, Marinduque, Romblon, Agusan del Sur and Davao Oriental the following year, 2023.
“By end of 2023, we hope to assist 1.6 million families, facilitate 1.5 million livelihoods and hit a total loan portfolio of P8.5 billion,” said Dorado adding that providing support to micro businesses could save them from getting capital requirements from loan sharks or 5-6.
Last year, at the height of COVID-19 threat, RAFI-MFI opened 42 branches in Luzon and Mindanao. Within the year also, the non-profit entity catered to 427,708 clients and assisted a total of 323,663 borrowers.
Considering the state of the pandemic battered economy, Dorado said RAFI MFI saw the need to all the more expand its services, now covering the entire country, from largely concentrated in the Visayas.
Encouraged by its experience over the years with 98 percent payment rate, Dorado said the P8.5 billion loan portfolio by 2023 may be hit earlier than expected.
“Our goal is not just to provide access to finance, but an encompassing and comprehensive platform for micro business,” he said. Non financial assistance, include among others access to market, training, value chain, and technology, in partnership with Department of Trade and Industry (DTI), Department of Science and Technology (DOST) and TESDA (Technical Education and Skills Development Authority).
In April this year, RAFI MFI opened 16 branches, the highest so far in the organization’s history, Dorado said.
Currently, RAFI MFI is operating 228 branches.
A micro-finance institution in the Philippines can extend up to P300,000 micro loans to micro businesses, defined by the Department of Trade and Industry as those with having assets of P3 million and below.
Operating under the proven belief that small, struggling micro vendors are very good payers, Dorado said the organization has develop a platform which makes borrowing easy and convenient.
According to Dorado, “we don’t bill their clients with service charges and we don’t require “rigid requirement” for loan applications.”
Its clients include self-employed individuals, overseas Filipino workers, entrepreneurs without sustainable income, kasambahay, workers and other sectors.
Established on Dec. 10, 2009, RAFI MFI provides micro-finance services to underprivileged entrepreneurs. It was initially designed to help women-entrepreneurs to become financially stable and independent by providing them access to financial services and knowledge.