LOCATION ISN’T EVERYTHING – ACCESS TO MICROCREDIT HELPS
|
|
|
Without access to much-needed capital funds, microenterprises rarely grow, even if they have an ideal location. The bustling Public Market in the town of Cabadbaran in Agusan del Norte Province on the island of Mindanao is a great location for operating a profitable business. In the scores of outdoor stalls, customers haggle with vendors over new and used clothing, handicrafts, and household items, among other goods. Kargadors (delivery men) carry the day’s supply of fish, fruits and vegetables through the thick market crowd. Yet, stall owner Mrs. Vergie de la Rosa’s clothing, school supplies, and plastic goods business remained stagnant for many years.
|
|
|
After ten years of selling dry goods at the Cabadbaran Public Market, Mrs. Vergie de la Rosa was able to expand her business after borrowing MABS-designed microloans from the Greenbank of Caraga.
|
“In ten years of selling goods here, I was not able to have the growth that I achieved just last year” she said, referring to her recent business expansion. Mrs. Vergie de la Rosa’s business has been booming and she recently acquired an additional stall and hired five employees. “I thought I could never make my business grow…until I received my first microloan from the Greenbank of Caraga.”
A year ago, upon learning that the Greenbank of Caraga was offering microcredit, Mrs. de la Rosa applied for and received a PhP15,000 (US$286) microloan. She used the loan to stock her stall with more goods, even adding music CDs to her inventory. With the additional inventory and using her 10 years of hands-on business experience, she doubled her sales and profits within a year.
The Greenbank of Caraga, like other MABS participant banks, receives technical assistance from MABS microfinance specialists in offering microcredit and microdeposit services. Greenbank typically charges microentrepeneurs a two percent interest rate for a loan payable in three months, a rate far lower that the 10% - 20% monthly flat interest rate informal lenders usually charge. By working with Rural Banks like Greenbank to provide microentrepeneurs with ready and reasonably priced microfinance services, the MABS Program facilitates the growth of the underdeveloped microenterprise sector.
“I appreciate access to Greenbank’s microloans not only because they have given me funds for additional capital but also because they have made the terms of payment so convenient for small entrepreneurs like me” declared Mrs. de la Rosa. Greenbank’s loan officers make weekly visits to their clients to collect, making sure they don’t fall behind on payments.
The Cabadbaran Public Market is still the bustling place it has always been, but there is a marked difference for Mrs. de la Rosa. As her profits increase and her customer base grows, she feels she is now a real part of the busy, dynamic market.
|
|
|
|
Events / Announcements |
|
|
| |
Downloads |
|
|
|
|
