Islamic Microfinance Sees Rising Momentum in Muslim-Majority Provinces in the Philippines: ASA Philippines Foundation

According to advocates, Islamic microfinance has strengthened its foothold in Muslim-majority provinces in the Philippines and can expand more if further support is extended by national government agencies. ASA Philippines Foundation Inc representatives stated that its total financing portfolio at end-Q1 2021 stood at PHP 23.3 billion. Of this, PHP 540.8 million accounted for outstanding loans to borrowers in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

Why it Matters?

Senior Director at ASA Philippines Foundation Inc, Ferdinand Jikiri, said that microfinance in BARMM is not as risky as is thought and that it is also self-sustainable. He referenced company data and showed that the average repayment rate for microfinance loans underwritten...