Microenterprise Access to Banking Services

RICHEL FERNANDEZ: Shaved Ice Turns a Hot Profit

Mrs. Richel Fernandez profits from the almost year-round warm climate in Sto. Tomas, Davao del Norte. She owns a refreshment parlor where halo-halo (a mix of gelatin, beans, sweetened bananas and jackfruit topped with shaved ice and milk) is the local favorite. Five years ago, however, Mrs. Fernandez and her two helpers used a manual ice shaver, taking several minutes to shave enough ice for one order. A line of impatient customers waiting for their halo-halo was a familiar, everyday sight in the refreshment parlor.

“Sometimes, people would just get tired of waiting and leave…We really needed an automatic ice shaver so we could serve everyone more quickly.” Mrs. Fernandez recounts. So when she heard about the Rural Bank of Sto.Tomas new microloan, the SUKÎ, she immediately applied for one. Mrs. Fernandez qualified for a 10,000-peso ($200) loan, which she used to immediately buy what she considered a business necessity – an automatic ice shaver.

The Rural Bank of Sto.Tomas first released the SUKÎ microloan in February 1999, after intensive training and on-site technical assistance from the Microenterprise Access to Banking Services Program. MABS assists rural banks in developing microloans that help microentrepeneurs expand and strengthen their existing businesses. Unlike the exorbitant rates charged by informal lenders and pawnshops, MABS-designed microloans are available at reasonable interest rates.

Now, Mrs. Fernandez can quickly serve all the customers who flock to her refreshment parlor, since preparing the ice topping only requires the push of a button. With sales growing, she has opened a second refreshment parlor and now employs seven more people, in addition to the two original employees who worked with her during the early manual ice-shaving days.

“The SUKÎ loans I received have helped me pay my suppliers and expand my business. I am now on my 5^th SUKÎ loan, grateful that the Rural Bank of Sto. Tomas is there to help my business grow.” she says. Her parlor is still teeming with halo-halo fans, but unlike before, they now spend more time enjoying their halo-halo than waiting in line.