BPI Direct BanKo and Jollibee Group Foundation have launched a targeted microfinance loan programme to support Filipino onion farmers with accessible credit.

As first reported by Jollibee Group, the initiative operates under the Farmer Financing Program of the microfinance arm of the Bank of the Philippine Islands.

It aims to help agricultural workers secure capital for seeds, fertilisers, and farming equipment without relying on informal lenders who often charge high interest rates.

Eligible applicants must first be between 23 and 67 years old. They should also own a mobile phone and possess a clear credit bureau record.

Farmers can use the BPI BanKo funds to cover land preparation and harvesting activities. It can also be used to secure a stable corporate buyer through the Jollibee supply chain.

“Through this initiative with Jollibee Group Foundation, we continue to strengthen our commitment to supporting Filipino farmers by providing accessible and sustainable financing solutions tailored to their needs,” said Rodolfo K. Mabiasen Jr., President of BanKo.

The financial collaboration has disbursed PHP 24.8 million to over 200 agricultural workers across key farming regions in Nueva Ecija and Ilocos Sur.

The credit product features competitive interest rates and repayment schedules aligned with the natural crop production cycle.

This structure allows borrowers to harvest and sell their produce to a guaranteed market before the principal matures.

Previous pilot phases of the partnership saw 100% of participants repay their loans in full using profits from their seasonal harvest.

Both organisations plan to expand the credit facility to reach more provinces and include farmers cultivating other high value crops.

Featured image: Edited by Fintech News Philippines based on an image by Trend2023 via Magnific.