Over the past twenty years the bank has developed its microlending business to expand its role in countryside development. The initial stage focused on Market Vendor Loans which eventualy developed into countryside Credit Program for Livelihood activities. It is the main focus of the bank’s lending program.
Patterned after proven international models of microfinance, the bank organized a microlending arm headed by Judy Frago. Procedures and training programs are now well developed and microlending groups have been formed in several branches.
The program’s ultimate objective is to raise the standard of living and livelihood activities in rural areas to a level beyond poverty and enable people to gain independent resources to house, educate and provide decent living conditions for their families.
In its program design, the bank took the major principles of microlending of small loans with weekly collection programs, close monitoring of activities to avoid fund diversion to non-productive activities, forced savings schemes and aclimatize people to the formal banking environment, and concepts of insurance to cover unforseen risks. The lending program is on individual basis unlike the traditional method of group lending.
If you are interested in supporting the funding of this program or would like this program introduced in your community near our branches, contact Mr. Eric A. Mondragon at eamondragon@gmail.com or Ms. Judy D. Frago at jude.frago@gmail.com.
