CARD gets $4 million loan from ADB

MANILA, Philippines — Microlender Center for Agriculture and Rural Development (CARD) Inc. has secured a $4 million loan from the Asian Development Bank (ADB) to augment its capacity to lend to low-income borrowers, particularly women.

In a statement, the Manila-based multilateral lender said the loan is intended to ramp up the microlender’s capacity to provide working capital for micro-borrowers, many of whom are women and farmers.

Majority of the micro, small and medium enterprises in the country are owned by women.

“Lockdowns during the pandemic significantly reduced the income of women-owned micro-borrowers, forcing them to take more expensive loans from informal channels,” ADB Private Sector Financial Institutions Division director Christine Engstrom said.

“Non-bank microfinancing is a viable formal lending alternative for underserved groups like women. Boosting CARD’s capacity will improve livelihoods of low-income earners and help them withstand future crises by broadening their access to affordable finance,” she said.

For his part, CARD MRI managing director Aristeo Dequito said they are committed to help the socially and economically challenged to contribute to efforts to eliminate poverty in the country.

He said the loan facility would create opportunities to enable access to financial products for those in need.

“Our collaboration with ADB, other institutions, and individuals that share the same mission with CARD furthers financial inclusivity and contributes to our shared goal of sustainable livelihood and the realization of zero poverty in the Philippines. Together we and our partners strive toward our common goal of empowering Filipino families,” he said.

CARD, which has presence in most of the country’s provinces, provides low interest loans without charging service fees.

It caters to owners of small community stores, food vendors, resellers of clothing apparel, backyard farmers and growers.

To expand in rural areas, CARD has digitalized loan applications and enabled remote financial transactions using digital wallets.

As of December 2020, CARD has about 1.3 million micro-borrowers, 85 percent of them women. Its loan portfolio amounts to P8.8 billion (around $160 million).