RCBC's microlending breaches P200-M mark

MANILA, Philippines - The microfinance business of the Rizal Commercial and Banking Corp. (RCBC) has amounted to P200 million in disbursement threshold as of May 13. Lending activities started in July 2009.

Disbursements totaled P200.2 million, and the businesses’ outstanding loan portfolio reached roughly P32.8 million. Over 4,500 loans have been disbursed since the start of microfinance lending operations and to-date active borrowers total 864 micro entrepreneurs. 

Average loan disbursement amount is P44,000. Portfolio-at-risk (PAR) one-day and above ratio is a comfortable 0.77 percent.

These disbursements emanated from lending offices in Laguna province (Calamba, Cabuyao), Batangas province (Tanauan City, Rosario, Lemery, Bauan, Nasugbu, Laurel), Quezon province (Candelaria), Occidental Mindoro province (San Jose City), South Cotabato province (Koronadal City) and Davao City.

RCBC will extend its microfinance business to Tagum, Davao del Norte and Digos, Davao del Sur by the third quarter of the year.

 RCBC projects to hit the P300-million disbursement threshold by November this year supported by geographical expansion through the establishment of three new microfinance business offices (MBOs) in southern Luzon and two new branches in southern Mindanao.

RCBC’s microfinance business in southern Luzon is housed within President Jose P. Laurel Rural Bank Inc. based in Tanauan City while the bank’s business in southern Mindanao is housed within Rizal Micro Bank (formerly Merchants Savings & Loan Association Inc.)

The microfinance business caters primarily to micro entrepreneurs through the disbursement of working capital loan facilities with tenors between three to six months. The loan product carries the brand name PITAKA.

PITAKA is composed of borrowers from various industries in the microenterprise sector, including, market vendors (20 percent); viajeros and traders/buy & sell (14 percent); personal services (beauty parlors, repair shops, etc.) and sari-sari stores (12 percent each); eateries/carenderias/bakeries (eight percent); crafts & light manufacturing (three percent); agriculture and food processing account for (one percent each); and, other allied businesses (such as mobile phone loading stations, direct-selling, auto supply, flower shop, beauty products, etc.) which accounts for 29 percent.