If you are looking to fund your small business or microenterprise, the CARD Bank Inc. MF Sikap-1 loan is specially designed to help. Individuals seeking affordable business financing for operational needs, capital purchases, or inventory can take advantage of this program. Whether you need funds to buy raw materials, office supplies, or business equipment, and regardless if you are just starting or expanding, this microfinance loan could be the right option for you.
In this guide, you’ll learn everything you need to know about applying for the MF Sikap-1 loan, including eligibility, requirements, application steps, and how the loan is released.
What is the MF Sikap-1 Loan?
The MF Sikap-1 is one of CARD Bank Inc.’s microfinance loans offered specifically for business capital. It’s a practical financial product for members who need money for:
- Purchasing business equipment or tools
- Buying raw materials
- Restocking inventory
- Acquiring office supplies
- General business expansion
Members can borrow from ₱3,000 up to ₱150,000, depending on their capacity to pay and loan history. This loan is payable in weekly installments, with terms ranging from 1 month to 12 months.
Why Choose MF Sikap-1?
As a microfinance-oriented rural bank, CARD Bank Inc. which now operates over 329 Micro Banking Offices (MBOs) is known for offering the following:
Product Features:
- Designed for microenterprises: The MF-Sikap 1 loan is a microenterprise working-capital loan tailored for small business owners and entrepreneurs. It provides funds specifically for business-related needs (purchase of equipment, inventory, etc.).
- Generous loan amount: Borrowers can access significant funding, allowing entrepreneurs to invest meaningfully in growing their business operations.
- Flexible repayment terms: Repayment is structured in regular, manageable installments. Clients attend weekly center meetings in their community to pay their loan dues and make deposits or withdrawals. This group-based schedule makes budgeting easier and provides a supportive setting for timely payments.
- Competitive interest and terms: The loan carries interest rates that are competitive for microfinance, helping keep borrowing costs lower. CARD Bank emphasizes low interest rates and flexible payment terms for its microloans. (In practice, this means fixed, affordable rates rather than high short-term credit fees.)
- Integrated training and support: A key feature is the “Credit with Education” component. During weekly center meetings, borrowers receive short training sessions on business management, health, and development topics. This embedded education helps clients make the most of the loan funds by improving their business and life skills.
- Open membership basis: The product is offered through CARD Bank’s microfinance centers, making it accessible to community groups and cooperative members. Applicants typically join a local CARD center (often a group of women entrepreneurs) to qualify, keeping entry requirements straightforward (no traditional collateral needed).
Benefits:
- Eases access to capital: By offering substantial loan amounts with simple group-based application, MF-Sikap 1 makes it easier for small entrepreneurs to obtain financing. The high loan ceiling (up to ₱150,000) lets business owners purchase inventory or equipment they need to operate or expand.
- Low-cost financing: Borrowers benefit from CARD Bank’s focus on affordable lending. The loan’s competitive (low) interest rate and reasonable fees mean that entrepreneurs pay less for the funds compared to some informal moneylenders. This cost-effectiveness leaves more resources available for the business itself.
- Manageable repayment: Weekly installments in group meetings help borrowers fit loan repayment into their cash flow. Because payments are small and spread out (instead of one large monthly bill), clients can budget more easily and avoid payment shocks. This flexibility was highlighted by clients as making fund management more manageable.
- Community support and accountability: The center-meeting setup provides a support network. Regular gatherings create peer encouragement and accountability, which can boost repayment discipline. At the same time, the group environment (and CARD’S trained officers) offers guidance, helping borrowers overcome challenges.
- Business growth support: Beyond just money, MF-Sikap 1 clients gain access to training and advice at no extra cost. Learning sessions on entrepreneurship, health, and other topics equip borrowers with knowledge to run their businesses better. This holistic support helps ensure the loan contributes to sustainable business growth.
- Opportunity for further financing: Successful MF-Sikap 1 borrowers can later avail of additional funding through CARD Bank’s MF-Sikap Additional loan (designed for existing Sikap 1 clients needing more capital). In effect, the initial loan opens doors to larger or follow-on loans, allowing enterprises to scale up over time.
Together, these product features and benefits make the MF Sikap-1 loan an accessible, growth-oriented financing option for small entrepreneurs and low-income business owners.
How Much Can You Borrow?
- Loanable Amounts: The MF-Sikap 1 is a cycle-based microenterprise loan. Initial loans can be very small (around a few thousand pesos) and may be increased over successive cycles. In practice, CARD’s materials indicate members can borrow starting from roughly ₱2,000 and – after several successful cycles – up to ₱150,000. (For example, one CARD Bank case notes the loan “can reach up to PhP 150,000”.)
- Minimum: ~₱2,000 (first cycle).
- Maximum: up to ₱150,000 (later cycles).
- Repayment Terms & Schedule: MF-Sikap 1 loans are repaid on a weekly schedule. Borrowers attend weekly center meetings where they make payments. Each loan carries a term of several months: for example, a first-cycle loan of ~₱4,000 is repaid over 6–12 months (at roughly 20% annual interest plus fees). In general, installments are equal and collected weekly at the group meeting.
- Payment mode: Weekly installments at center meetings.
- Loan term: Typically 6–12 months per loan (e.g. first loan ~₱4,000 over 6 mo or 1 yr).
- Incremental Loan Policy: CARD’s MF-Sikap loans grow each cycle. Once a borrower fully repays a loan, the next loan ceiling is increased. CARD’s documentation shows a typical escalation by cycle. For example, successive loan caps might be roughly:
- 1st loan: ₱3,000 – ₱5,000 (after joining center)
- 2nd loan: ₱10,000
- 3rd loan: ₱15,000
- 4th loan: ₱30,000
- 5th loan: ₱50,000
- 6th loan: ₱80,000
- 7th (and higher): ₱150,000.
These figures illustrate the pattern: each repaid cycle roughly doubles or more the previous ceiling. (Exact increments may vary, but these examples show the loanable amount growing substantially after each successful cycle.)
Who Can Apply for the MF Sikap-1 Loan?
To qualify for an MF Sikap-1 loan, an applicant must first become a member of a CARD Bank center (a microfinance savings group). This entails attending weekly meetings and maintaining the compulsory pledge savings. Specifically, members must deposit about ₱50 per week and keep a minimum balance (around ₱100 or 15% of the loan principal). In practice, eligible clients are low-income entrepreneurs (often women) who have a viable micro-business or income-generating activity. New applicants typically join a center through CARD’s community program and meet its saving‐and‐meeting requirements.
Membership Requirements
To apply, you’ll need:
- One (1) valid government-issued ID
- Two (2) pcs. of 2×2 ID photos
- Duly accomplished application form
- Referral from a CARD Bank member within the same center
MF Sikap-1 Application Requirements
The MF Sikap-1 loan is open to existing and new CARD Bank Inc. members who meet the following requirements:
- Membership: Must join a CARD center (weekly meeting group).
- Savings: Required pledge savings (e.g. ₱50/week, maintaining ≥₱100 or 15% of loan).
- Other: Generally targeted at low-income micro-entrepreneurs (women) with a business to finance.
How to Apply for the CARD Bank Inc. MF Sikap-1 Loan
When you are ready to apply, here’s a simplified step-by-step guide that you can follow:
Step 1: Visit the Center
Bring your referring CARD Bank member to the nearest CARD Bank Center. This is where you’ll begin your application process.
Step 2: Submit Membership Requirements
Submit all required documents along with your completed membership application form.
Step 3: Accomplish the MF Sikap-1 Application Form
Get the official MF Sikap-1 loan application form from the center and fill it out completely. Make sure your details are accurate and consistent with your ID.
Step 4: Interview with Account Officer
An Account Officer (AO) will conduct a short interview to verify your application details, loan purpose, and repayment ability.
Step 5: Sign the Digital Loan Application Form
You and your spouse or co-maker (if applicable) will be asked to digitally sign the loan form.
Step 6: Wait for Loan Release
- For First-Time Borrowers: You’ll receive your loan proceeds two days after approval by visiting the CARD Bank Unit in your area.
- For Repeat Borrowers with konek2CARD App access: Loan proceeds are credited to your account within 2 days after approval.
- Without app access: Visit the nearest CARD Bank Unit two days after approval to get your funds.
Note: CARD Bank requires you to leave at least ₱750.00 as a holdout amount for your first loan. This can be paid in advance or deducted from your loan proceeds. Subsequent borrowing of higher amounts will require a higher holdout amount.
Other Services Offered by CARD Bank Inc.
Aside from microfinance loans, CARD Bank also provides the following:
- Savings Products: CARD Bank offers deposit accounts with low initial deposit requirements and competitive interest rates to help members grow their savings.
- Remittance Services: Members can send and receive money locally and internationally in partnership with other banks and remittance providers.
- Non-Financial Services: Members also benefit from:
- Microinsurance
- Business development support
- Educational assistance
- Health protection programs
- Franchise opportunities
Application Reminders
To ensure a smooth application, make sure to keep these things in mind:
- The minimum loanable amount is ₱3,000.
- The maximum is ₱150,000 depending on your repayment history and loan purpose.
- First-time borrowers must maintain a ₱750 holdout amount.
- Additional holdout amount of ₱1500 will apply for every additional ₱5,000 loan amount.
- Weekly repayments apply.
- Loan repayment is long-term, flexible, and can range from 1 month to 12 months adjusted according to the borrower’s preference.
Frequently Asked Questions (FAQs)
For your reference, here are some common questions and answers related to the CARD Bank Inc. MF Sikap-1 Loan Program:
1. Who can refer me to apply for MF Sikap-1?
An existing CARD Bank member from the same center.
2. How long before I receive the loan?
Within 2 days from approval.
3. Do I need a co-maker?
Yes, especially if you are married; your spouse or a co-maker must sign the form.
4. Is the loan only for women?
No, but CARD Bank’s programs often cater to women entrepreneurs.
5. Can I reloan?
Yes, but the loanable amount may remain the same or increase, subject to your payment history and capacity to pay.
6. What happens if I miss a payment?
Late payments may affect your future loan applications. Contact your Account Officer immediately.
Video: CARD Bank Inc. Loan Products
The CARD Bank Inc. MF Sikap-1 loan is a practical business loan designed for micro entrepreneurs who need quick access to capital with minimal requirements. Whether you’re just starting out or expanding your business, this microfinance loan offers the convenience, flexibility, and support you need to succeed. But, this is not the only product offered by CARD Bank. If you are interested to learn more about its other loan offerings, watch this video: