Agricultural loans guaranteed by the Philippine Guarantee Corp. (Philguarantee) rose 42.96% in the first six months to P3.34 billion, the state-run corporation's Agricultural Guarantee Fund Pool status report showed. The growth was driven by increased lending activity by partner lending institutions supporting small farmers and fisherfolk, BusinessWorld reported.
Philguarantee provides credit guarantee programs that encourage banks and other financial institutions to extend loans to agricultural borrowers who typically lack collateral. The first-half figures reflect stronger participation from partner lending institutions, which helped expand credit access for small farmers and fisherfolk.
The guaranteed loan portfolio reached P3.34 billion from January to June, underscoring continued demand for government-backed agricultural financing. The report indicates progress in the state's efforts to boost rural lending and support food production.