A new article highlighted the crucial role of the agriculture sector in the Philippines, emphasizing the significant contribution of farmers to the country’s economic growth. According to the Department of Budget and Management’s data, the agriculture sector accounted for 9.1 percent of the Philippines’ GDP in 2023.
Despite their importance, Filipino farmers faced challenges in securing financing to support their livelihoods. The Bangko Sentral ng Pilipinas’ 2021 Financial Inclusion Survey revealed that farmers or workers in the agriculture sector had the highest financial exclusion level, with 73 percent having no accounts. The survey identified the lack of sufficient funds and complex documentary requirements as the top reasons for not owning a bank account.
To address these challenges, BanKo, the microfinance arm of the Bank of Philippine Islands (BPI), introduced the Agri-NegosyoKo Loan Program. This program offers farmers access to loans ranging from P50,000 to P300,000 with a low-interest rate of 2.3 percent per month. The application process requires only one valid ID, a photo ID, and a cooperative membership certificate.
BanKo also partnered with Agrilever, an agri-tech company, to promote the loan facility. Through this partnership, farmers can apply for the Agri-NegosyoKo Loan to purchase essential supplies and upgrade their machinery. Additionally, the program aligns with the New Agri-Agra Law, which mandates banks to allocate 25 percent of loanable funds to the agriculture and fisheries sector.
In line with the government’s goal of financially empowering the agriculture sector, the Agri-NegosyoKo Loan program aims to strengthen farming communities, enhance livelihoods, and ensure food security. Through accessible and affordable financing options, farmers can maximize their capital and sustain their income, contributing to the country’s economic prosperity.
