Birth of Microfinance in the Philippines Flashcards
These are organizations that supply microfinance loans and other financial and non-financial services to the poor.
Microfinance Institutions (MFIs)
Advantages of MFIs
✓ Promotes self-sufficiency and entrepreneurship
✓ Collateral-free loan
✓ Disburse quick loans
Disadvantages of MFIs
✓ High Interest Rate
✓ Small loan amount
✓ Harsh Repayment Provisions
Types of Institutions
- Non-government Organizations (NGO’s)
- Rural Banks
- Cooperatives
This is a private, non-profit and development-oriented organization.
Non-Government Organizations (NGO’s)
NGO’s are registered with the _______________________________(PSEC).
Philippines Securities and Exchange Commission
This is a financial institutions mostly based in rural areas offering services to poor clients.
Rural Banks
Rural Banks are registered to _______________________________ (BSP).
Bangko Sentral ng Pilipinas
This is a registered association of individuals who have voluntarily joined to achieve a lawful common social or economic development objectives.
Cooperatives
Cooperatives are registered to _____________________________(CDA)
Cooperative Development Authority
Benefits of MFIs (OEFSEB)
✓ Opportunities expansion
✓ Easy access to credit
✓ Future investment
✓ Serves underserved
✓ Employment generation
✓ Brings economic gains
What specific year did these scenarios happened in the birth of Microfinance in the Philippines?
✓ Supply-led credit from rural banks and cooperatives for agricultural activities
✓ Low repayment rates
1960s
What year did these scenarios happened in the birth pf Microfinance?
✓ Subsidized credit from government
✓ Discontinue due to high arrears and corruptions in government
1970s
Year of Birth of Microfinance in the Philippines where:
✓ Adaptation of Grameen group methodology and village banking models in Philippines.
✓ NGO’s became the government’s strong partner in the fight against poverty.
1980s
Year of Birth of Microfinance in the Philippines:
✓ Microfinance was growing rapidly worldwide.
✓ Active entry of proliferation of small microfinance institutions (less than 3,000 clients) dependents on grant as capital.
1990s
