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Components of CARD’s Microfinance Program

CARD’s microfinance program consists of four major components, each being equally important: credit programs, savings mobilization, micro-insurance and credit with education.

  1. Credit Programs. Our credit program is designed to provide financial assistance to microenterprises which do not possess the credit-worthiness that regular banks look for before extending a loan.

    By providing loans to these small businesses which our members undertake, we give these poor people an opportunity to save and build up their own capital, thereby enhancing their credit-worthiness.

    There are two (2) types of loans that we extend to our members: SIKAP LOAN and SAGIP LOAN.

    • Sikap 1 Loan: This is given to finance micro-enterprises such as vending, crop and livestock projects, hollow blocks making, bakery operation, dressmaking and fish drying. This may also be extended to finance larger business investments.

      SIKAP 1 LOAN
      Loan Cycle Maximum Loanable Amount Maturity Interest
      1st Loan PhP 5,000.00 6 mos.

      15% interest reate for 6 months, amortized weekly

      0.8% LRF, payable during center meeting prior to loan release.
      Succeeding Loans
       

      Increment of maximum P 3,000 (divisible by P 1,000)

      Maximum Loan of P30,000
      (up to a maximum of PhP 20,000 for new members and PhP 150,000 for old members)

    • SIkap 2 Loan: This is extended to address the consumption needs of our members. Members may loan an amount of PhP 2,000 in the first cycle, and may increase the loan amount by PhP 1,000 in every succeeding cycle.

      SIKAP 2 LOAN
      Maximum Loanable Amount Maturity Interest

      Minimum P 2,000 with P 1,000 increment per loan cycle.

      Maximum Loan:
      CARD 1 - P 10,000
      CARD 2 - P 1,000

      Note: Sikap 2 will only be providedon the 2nd year of unit establishment to members who have joined for at least 1 year.

      		 6mos.

      15% interest reate for 6 months, amortized weekly

      0.8% LRF, payable during center meeting prior to loan release.


    • The Small Entrepreneur Program (SEP)

      The Small Entrepreneur Program (SEP) is completely a new development approach by CARD. The program essentially turns the graduated center members (those center members who have reached above poverty line) as well as in some extent non-center members to small entreprenuer.

      Small Enterprise Program (SEP) is structed with a view to help the small entrepreneurs and support the businesses of rural, semi-rural and urban areas where SEP could have direct impact on employment creation and production process. Given the limitations of technology and resources of CARD, it is not possible to suddenly initiate large schemes or projects and hence, alternatively, the option is to provide financial support a large number of small entrepreneurs and businessmen through provision of loans to increase production, income and employment generation.

      PROGRAM COMPONENTS

      • Enterprise development program through graduated center members of CARD
      • Existing enterprise development program or businesses through non-center members
      • New enterprise creation from the small business Women entrepreneurship development program

      PROJECT COVERAGE

      All male and female small entrepreneurs and business people from the rural and urban villages and markets within the operaitonal areas of CARD Inc.

      LOAN SIZE, INCREMENT AND CEILING

      First Loan Min. PhP 31,000.00 to max. PhP 50,000.00
      Second Loan and above With loan increment of max 20,000.00 (Depending on the capacity and performance of members)
      Loan Ceiling Maximum Php 300,000.00

      LOAN TERMS AND INTEREST RATE Loan term is of two kinds:

      • 6 months term with an interest of 15%
      • 1 year (12 months) term with an interest of 30%

  2. Flexibe Capital Build Up (CBU)

    CARD subscribes to the view that the poor can save. The Center Fund represent the members' CBU which serve as the guarantee for loan beacause the loan are non collateralized. The amount of CBU deposit per week is P40 and the members can withdraw  twice a month but they have to maintain savings balance which is not lower than 20% of the loan amount.

  3. Micro Insurance (please refer to CARD-MBA for details)

  4. Credit with Education (CwE)

    For a long time since its inception in CARD, Credit with Education (CwE) proved to be a powerful tool in instilling credit discipline among its members. Anchored by CMDI, CwE includes modules on health and health insurance, business, CARD MRI products and services, microinsurance, and disaster preparedness.

  5. Microfinance and Health Protection (MAHP) Program

    The Microfinance and Health Protection (MAHP) CARD’s response to the health needs of its members is the health protection service package developed through its MAHP Program. This includes:

    • Health loan to cover the premium payment for health insurance or PhilHealth
    • Credit with Education on Health such as dengue prevention, planning for health, using health services and health insurance
    • Preferred Provider Network Program – a partnership with local health providers to offer discounted health services to members and their dependents
    • Access to cheaper medicines - with this health protection package, CARD aims for a healthy membership base.

    6. With the technical support from FFH, CARD will make every reasonable effort to reach at least 5,000 CARD members to avail the health protection package/s that CARD will offer. This collaboration is expected to end by December 31, 2009.

 

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