Monday, October 22, 2007


In my previous post, nhoi asked me what are the collateral I asked from farmers that acquire loans from my Agri-Credit Program. Nhoi, like me, is an OFW in KSA. His achievements on merely one year stint in the desert, is more or less, similar to mine. Let us track his progress by visiting his site every now and then.

OK, here is what I have been doing:

1. For small amounts, less than 20K (do not extend a loan less than 10K) , I just asked for an agreement that he would pay the interest every cropping, and pledge a piece of property, in case he failed to pay the amount. He must pay the full amount on the 24th month. A recommendation is needed. I do not asked for a land title, or tax declaration, photocopy or otherwise. The money is released on the day loan application was filed.

2. For amounts, ranging from 21 to 60K, I asked for a photocopy of the land title as pledge in the agreement, notarial fee is paid by the client. He must pay the full amount on the 24th month.

3. For 60K to 100 K (my maximum, only two client availed this amount, thus far). I get the land title as guarantee.

From my experience, number 1 and number 3 pays completely without arrears for the past three years. And for number 2, seventy five percent repayment rate has been achieved.

Good luck.