Farming Household Segmentation

With Collateral Big

commercial Have access to
farms financial institutions
May or may not
have collateral but
with other sources
of income
Small Have access to informal,
maybe MFIs/banks; but
access still a problem for
farms many

Income Malaking
dependent on
farm; maybe
mono culture
Small Pa Rin problema
 So, What is Agri Microfinance
• Targets small farming, low • And what are these
income households principles & practices?
• Targets farmers without – Character-and cash flow-
the usual hard collateral based lending
– Loan amount based on
• Includes financing for credit capacity
production, on-farm & – Considers other sources of
off-farm processing, household income
marketing & trading – Short-term tenor
• Basically follows – Substitute collateral
principles & practices of – Loan product Integrates
microenterprise finance savings
– Regularity of payments
Introducing Session 1 Panelists
Lyn Onesa
• Director, Social & Enterprise Dev. Services Dept., TSPI
• Luzon

Rontjin (Nonoy) Moratalla

• Head, Loans Dept.
• Rural Bank of Digos, Mindanao

Maria Fe Pineda
• GM, Sta Catalina Multi-Purpose Coop
• Mindanao