Microfinancing enables people to establish microenterprises and thus, Kamrul said, social change is expected to follow.

“Poor communities are the last-mile challenge of the supply chain. I think the poor are major contributors of taxes on the goods that they buy. However, it is hard to reach them when there are tax credits or transfers to be made. So we decided to be committed to helping the poor through the women (who usually stay Women tend to have higher repayment rates compared to men. They are also inclined to be more risk-averse and committed to improving their households, more likely to invest their income in their children’s healthcare and education.

Collateral-free loans of as low as P5,000 are offered to women entrepreneurs.

The business grew and broke even in three years. That was when Kamrul decided to turn to the capital markets for funds. ASA Philippines employed a group lending model, which led to higher repayment rates.

Loans were extended to individuals, yet the responsibility to repay the loan was collectively assumed by the family of the borrower, particularly by those who were employed.

Individuals seeking loans had to connect with their families to form groups of 20 to 30 to apply collectively. ASA Philippines’s staff would usually meet with clients as a group within the neighborhood which also ensures smooth collection.

Each ASA Philippines branch handles roughly 60 to 75 groups of borrowers who are chosen through a rigid selection process.

It turned to capital markets for more sustainable funds by issuing bonds rather than relying on unpredictable donations.

Under Kamrul’s leadership, ASA Philippines became the leading micro-financing institution in the country with a mandate to empower women. It also recently floated a gender bond, a type of social bond that would attract socially conscious investors.

The non-profit foundation also received from the Asian Development Bank (ADB), a P1.658-billion loan which Kamrul said had a symbolic meaning with regard to the credibility of ASA Philippines.

“We were the first non-governmental organization in ADB’s entire history to receive a direct loan without a sovereign guarantee. That was a historical event for us,” he noted.

Even in difficult times, like the aftermath of the deadly typhoon “Yolanda” in 2013, ASA Philippines did not lose sight of its mission and took the bold step of freezing all loan collections for an indefinite period.

It even offered a five-step intervention strategy for those who suffered the worst damage to their homes.

The strategy included psychosocial intervention, food relief, grants of up to P3,500, malasakit (compassion) financing for home and business repairs, and business capital.

Kamrul said no collateral were seized as this could diminish the company’s goodwill. Instead, loan terms were extended and even waived when necessary.

In January 2016, ASA Philippines linked together all its 1,150 branches using a cloud-based system, helping it to rapidly expand in just two years to the remotest part of the country. With its extensive reach, its product offerings quadrupled.

Despite having a network of 2.2-million women beneficiaries, Kamrul chose not to implement wholesale credit scoring as he explained, “I did not want to lose the personal touch in our interactions with clients.”

Kamrul knew that the microlending model would be effective in the Philippine setting and could be adapted by any entrepreneur with the desire and the will to reach out to a larger population in the lower strata of society.

His deep knowledge of microfinancing and genuine heart to uplift individuals from the claws of poverty made the perfect combination for the acceptance of ASA Philippines, placing Kamrul on the pedestal alongside the leaders of the country’s war against poverty.