CARD MRI to implement Shari’ah financing program

The CARD Mutually Reinforcing Institutions (CARD MRI) has started its pilot implementation on Shari’ah-inspired microfinance program or the “Paglambo Project” (Development Project) in February 2018.

“After the intensive research period and the international study exposure and workshops we have participated in, CARD MRI has decided to start pilot-testing the project as part of its commitment of building a financially inclusive country,” said Dr. Jaime Aristotle B. Alip, founder and chairman of CARD MRI.

As of March 2018, through the CARD MRI’s microfinance NGO arm, the Center for Agriculture and Rural Development (CARD), Inc. (A Microfinance NGO), two units were established in Marawi, Lanao del Sur and in Shariff Aguak, Maguindanao. Initially, there were 56 families with whom CARD, Inc. started the project.

Moreover, Dr. Alip highlighted that the program is an offshoot of CARD MRI’s interaction with Peace and Equity Foundation (PEF), Ramon Magsaysay Award Foundation (RMAF), and Dompet Dhuafa Republika.

Financing services

Essentially, CARD, Inc. follows the standards of Murabahah, a cost plus margin sale agreement. In this type of financing, CARD, Inc. will provide cash to its clients that will be used to purchase goods for their respective businesses with a marked-up price (margin).

“These goods or items shall be pre-identified and shall be attached to the agreement,” said Flordeliza L. Sarmiento, managing director of CARD MRI, adding that the client shall pay the principal plus the margin on a weekly basis, which is the same with CARD MRI’s repayment practice.

Moreover, provision of Islamic life insurance, which is called “Panangga”, is also among the features of Murabahah.

Poverty eradication, the CARD MRI way

More than 30 years ago, CARD was established to provide financial and non-financial services to landless and economically challenged women in San Pablo City, Laguna.

The initiative, according to Dr. Alip, is to further empower the women in the community he lives in. “I believe that being empowered is already an innate attitude among women. They just need a support system that would ignite that ability to pursue it.”