YUCHENGCO-led Rizal MicroBank Inc. (RMB) introduced a loan facility targeting the underbanked agricultural sector.
The wholly-owned thrift bank of the Rizal Commercial Banking Corp. said that through the facility—called AgriBiz Production Loan—it will provide credit to individual farmers and farmer organizations to allow them to strengthen their agribusinesses.
RMB officials said the lender will also assist borrowers in applying for agricultural insurance from the Philippine Crop Insurance Corp. (PCIC), which guarantees that their farmlands are insured in case of natural calamities.
“A resilient agriculture value chain is crucial for the country not only in maintaining economic growth but also in ensuring Filipinos have adequate food on their plates,” said Janice V. Javerle, head of RMB’s agriculture value chain financing unit. “Gaps in the value chain, such as in financing, create new challenges, which may be more difficult to address later.”
Javerle said the lender is “creating a path in agriculture value chain financing towards the superior value of commodities and reasonable prices of raw materials.”
“It serves as our farmers’ reliable partner as we all strive to nurture the country’s agriculture sector.”
RMB said it will first conduct an assessment of the farmers’ capability to settle loans, offering them payment options during the assessment process.
One of the biggest challenges is capital, the lender quoted a corn farmer as saying.
Since then, funds for fertilizers, pesticides, chemicals, technologies, and other necessities have been a recurring issue. With financial inclusion at the core, RMB has made it its mission to widen its reach and provide credit to farmers, the lender said.
“We are making banking simpler for them—we try to speak their language to help eliminate their apprehension in going to financial institutions for help. This may be more difficult for us to get clients, but this is the most gratifying client-banker relationship. For the farmers, we are not just doing our jobs. They know that we believe in them,” said Javerle. Cai U. Ordinario