Unlocking the Potential: Islamic Finance in the Philippines

“We have Muslim brothers who avail (financial) services but the way they avail (these loans) is against our culture, against our beliefs.” ~Muslim leader, Davao, Mindanao
 
Islam first reached the southern shores of the Philippines during the 14^th century and played a critical role in unifying kinship groups in several Filipino communities. With stronger networks of brotherhood and newfound Islamic faith, these communities were able to resist colonization by Spain and America for over 400 years, preserving their culture and religion. Today, though the majority of Muslim communities are concentrated in the southern portion of the Philippines archipelago, some reside in pockets throughout the islands; Filipino Muslims comprise approximately 5% (4.7 million) of the Filipino population (Roces, 2009).

Recognizing the need for a loan product more suitable to Muslim borrowers, CEVI has recently developed and launched an Islamic Finance product that is being piloted in Davao, Mindanao.

To read more about CEVI's course in expanding outreach to Muslim clients, please visit the Kiva Fellows Blog. 

Bonus Photo!

The first 10 Muslim clients involved in the pilot alongside the local Muslim leader, Chairman of World Vision, and Head of DMI. Photo courtesy of the CEVI Davao Branch.