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Ercof – Philippines: NRBSL

ERCOF- NEW RURAL BANK OF SAN LEONARDO

The New Rural Bank of San Leonardo is located in San Leonardo, Nueva Ecija in the Philippines. In less than 6 years of operation, it has now expanded into 5 branches in Nueva Ecija and Tarlac.It has also been cited by no less than the Philippine Central Bank (BSP) as a model of rural banking practice, and a showcase of best practices in microfinance, boasting of a repayment rate of more than 98%, while serving a clientele of mostly agricultural and small rural entrepreneurs, many of whom are women.

1. Linking the services of the New Rural Bank of San Leonardo to overseas Filipino communities (with ERCOF serving as the link) in Europe, through ERCOF, similar to the Philsoven arrangement. The NRBSL offer certain products with a reintegrative perspective, and where migrants relatives could avail of loans against the savings accounts opened by the migrant worker that serves as a guarantee for the loan. ERCOF identifies potential depositors abroad, or verifies if a local borrower has relatives working abroad.
    

2. A returned migrant worker may also avail of such loans in accordance with a program called" Welcome back capital loan". Other programs are the People's Entrepreneur Loans, a semi collateralized credit facility involving a minimum of P30,000 to P100,000, for borrowers who may fall within the classification of what is known as "community entrepreneur", an upscale version for those needing beyond P100,000 but not more than 1.5 million, and beyond, subject to the condition that the enterprise will remain community based and will hire workers from the community .
    

3. Philanthropic Savings is a program where the migrant worker, usually one who does not intend to return to the Philippines, deposits his or her savings in the NRBSL. Earned interest is donated to a local enterprise development initiative in a community of choice. ERCOF is the link to the Overseas Filipino (OF) communities in Europe, while NRBSL acts as the fund manager and accountant for the funds.