Microlending body targets 20% hike in loan releases

The National Livelihood Support Fund (NLSF) expects to raise by 20.44 percent to P1.2 billion its loan releases to primary Agrarian Reform Communities (ARC) beneficiaries this year. Total releases last year reached P996.27 million.

In a press conference, NLSF executive director Gondelina G. Amata reported that in 2006, the NLSF was able to extend loans to 1,009 ARC beneficiaries, or 62 percent of the 1,621 total ARC beneficiaries.

A total of  85,936 end borrowers, Amata said, were served. More specifically, 69,684 small farmers availed of micro-loans while 16,252 marginalized households also availed of the NLSF funds.

For this year, Amata said, the NLSF hopes to increase its loan coverage to 1,300 ARC, or 80 percent of the total 1621 ARC beneficiaries.

What is even more notable about the NLSF’s performance last year, Amata said, is that its collection rate hit 96.73 percent from 93.51 percent in 2005.

Aside from its loan releases under the Livelihood Credit Assistance Fund (LCAP), Amata said, the NLSF, as a conduit,  also released P59.51million from the Overseas Workesr Welfare Administration (OWWA) Fund.

For this year, Amata said, the NLSF expects to increase its OWWA releases to P72 milion.

The NLSF, which was established in 1981and is attached to the Land Bank of the Philippines, focuses primarily on wholesale micro-lending to ARC beneficiaries.

The NLSF uses conduit rural banks and cooperatives to reach the end borrowers who are able to avail of loans as small as P500. – Marianne Go