Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
INTRODUCTION
RATIONALE
Poverty is one of the problems of our country today. Having a wide range of
population and low income in every household is the primary reason to consider our
country in poverty.
history of mankind. To poor people, money is equal to survival. Everyone needs money
to satisfy their wants and needs. Thus, people are engaged in credit
present time in exchange of a promise to pay at a definite future time. It enables people
to acquire money that could help them to finance their needs. The poorest of the poor
depressed group which needs credit most. People, who have been granted credit, have
the opportunity to improve their social and economic conditions as long as they use
credit properly.
Microfinance which has the purpose of lending a sum certain amount of money was
consumers and the self-employed, who traditionally lack access to banking and related
services. More broadly, it is a movement whose object is a world in which as many poor
of high quality financial services, including not just credit but also savings, insurance
and fund transfers. Those who promote microfinance generally believe that such access
The Microfinance institutions are providing easy access loans for everyone.
Unlike bank loans it is designed to help poor communities by the financial services and
intended to alleviate poverty in many countries. Here, in our country, there have been
many different Microfinance institutions in any forms and shapes. The goal is to reach
The Social Action Center (SAC) of the Diocese of Legazpi is one of the service
through people's organization and Christian formation that will generate people’s
It was established in 1972 as an offshoot of Vatican 11’s call for the church’s
greater involvement in social issues. As the social actions arm of the Bishop of Legazpi,
Most Rev. Jose C. Sorra, D.D is to coordinate, supervise, and implement community
projects of the Diocese whether initiated by the parish priest or the civic groups.
and pro-active financial foundation of the Diocese of Legazpi committed to the total
consist of credit services like production loan, housing loan and multi-purpose loan.
They also have savings mobilization which provides a good incentive for the program
participants to develop the saving habit. The Micro-insurance provides for debt
redemption and burial assistance or emergency medical assistance. They also have
formation and training in Spiritual and valued formation such as recollection, retreat,
team building, basic bible orientation, marriage enrichment, session, values clarification
and in skills training which provides the members improve their capability in managing
offer Medical Mission, Marriage Validation and Counselling, Relief Assistance during
going Formation and Current Events Updating through their media, such as SAC
Nowadays, the SEDP Inc. is adopting the Grameen Banking Scheme. Grameen
is a Bengali language which means “village” (barrio or barangay). This program aims to
profound understanding and application of these beliefs have guided micro credit to
it among the beneficiaries of the SEDP Inc. The researchers want to find out if these
people who are actively involved in this program are aware of the possible gains and
The researcher has to conduct this study for better understanding of cash
While doing the research the researcher had learned a lot of things from this
topic. It has been an eye-opener for them to finally realize on how poverty affected
millions of lives around the world and financial institution works especially the
Microfinance institution as one of the means they are using for fighting or alleviating
poverty today.
helping tool in developing and improving their program and to have suitable goal
whether availing loans from this microfinance lending institution is an advantage or may
cause to several problems. This will develop their awareness to value money for
effects that microfinance could bring on their lives and how people will be benefited from
could obtain in this research. They will be more knowledgeable on things that somehow
they are not familiar enough; probably students are aware of the poverty we are all
experiencing .This is not just additional information for them to know and to keep but to
enable them to be more socially responsible, for them to act and do something.
On the part of future researcher, this study will serve as a reference material
This study aims to determine the perceive gains and negative effects of Social-
a) Age
b) Educational background
c) Occupation
d) Monthly income
2. What are the socio-economic factors that motivate households in availing the
microfinance?
3. What are the perceive gains of SEDP Inc. beneficiaries in availing loans and
5. What are the ways in reducing the negative effects of Microfinance to its
beneficiaries?
HYPOTHESIS
In this study, the researcher presumes the following as answer to the identified
problems:
occupation and monthly income of its beneficiaries in granting loans but on the
That social factor that motivates households in availing loan can help them in
assuage in poverty.
In terms of benefits gained by the member from their loans they gained
and their financial status was elevated from poverty and the problems that are brought
in availing loans.
Background
The name Ligao is derived from the local word "ticao", once an abundant tree
whose poisonous leaves were used to catch fish in rivers or creeks. Most Ligaoeños,
however, believe that the name Ligao was originally "licau" which means to take the
long way around or to turn away from the ordinary or usual route. Ligao started as a
ambitious and aggressive leaders caused trouble as they created divisions among the
settlement. There arose five divisions led by maginoos (chieftains): Pagkilatan, Maaban,
Sampoñgan, Makabongay and Hokoman. Peace was only restored when Chieftain
Pagkilatan was appointed supreme leader over the entire settlement with the approval
of the other chieftains. The town was founded as a barrio of Polangui in 1606, being
Magsaysay which is “An Act Regulating the Establishment and Operation of Lending
Companies in the Philippines and for Other Purposes.” The Declaration of policy
declared that the policy of the State to regulate the establishment and activities of
lending companies, placing their operations on a sound, efficient and stable basis to
derive the optimum advantages from them as an additional source of credit; to prevent
and mitigate, as far as practicable, practices prejudicial to public interest; and to lay
down the minimum requirements and standards under which they may be established
and do business.
R.A. 3779 known as the “Savings and Loan Associated Act” as amended:
Whereas savings and loans associated have prove to be effective instrument in
encouraging the savings habit of people, especially low and middle income groups and
The R.A. 6938 known as the Cooperative Code of the Philippines it enacted:
harness people towards economic development and social justice. This shall be the
guiding law of existing future cooperative in the country. It provides for the rules and
cooperatives. It also sets out the rights, privileges and responsibilities of cooperative as
well as the members. This act enjoins the private sector to undertake actual
provide technical guidance, financial assistance and other services for the development
of cooperatives.
founder of the Grameen Bank in Bangladesh and recipient of the 2006 Nobel Peace
Prize. Although microfinance was not his original idea, Yunus pioneered the
borrowing loans, and emphasized the role of women in managing credit and organizing
the destitute poverty that plagued his country. He believes that the poor possess an
“entrepreneurial drive” and are equipped with “survival skills” that allow them to become
successful microentrepreneurs .He also asserts that to develop tools and services that
would greatly benefit the poor, their limitations must be carefully considered by
institutions which fight poverty .As of now his Grameen Bank has more than 1,000
On the other hand, Bangko Sentral’s Circular 685 provides the rules for the
access to financing and capital as ratings have proven effective in enhancing the quality
This should also promote investments in the Philippine microfinance industry. These are
the circulars the Bangko Sentral issued this year to promote the further development of
our microfinance sector. With the support of all stakeholders, we should start seeing
positive results from these initiatives. I also look forward to the participation of more
banks in the microfinance sector. As of December 2009, there were more than 200
banks engaged in microfinance with total loans outstanding of about P6 billion lent out
to about 900,000 borrowers. By any yardstick, these are good numbers. However, with
better in spreading the gospel of microfinance and how it can uplift and transform
Whether we accept it or not, money is hard to make nowadays; at the same time,
expenses keep on increasing. If our ,money we are making is not enough and we bills
and expenses to pay, most often than not we end up in debt. There are two common
reasons why we get into debt: Spending tomorrow’s income today and unwilling to
change lifestyle when circumstances have changed. Getting out of debt is not fun; it is a
painful process but there are ways out of debt. Willingness to pay matters most not the
real amount, dealing with the root of the problem ( the attitudes and bad habits led us to
indebtedness) and lastly tough love, letting your family, friends and or relatives
borrowing habitually is not good not all because they forgot God in their life.
characteristics, the lender must be morally certain that borrowers has the ability to pay
debt and to pay debt when due. This ability to pay is evaluated through the
payment capacity loan and their capacity to pay debt. There are, however, other factors
that should be taken into accounts before credit is finally granted. Those factors are
commonly called the C’s of Credit: character, capacity, capital, collateral and conditions.
additional capital to the business people who are engaged with or it helps them to start
According to the World vision, the term microfinance refers to the practice of
Responses
The major causes of poverty in the Philippines fall into several broad categories(1)
(v) governance issues including corruption and a weak state; (vi) conflict and security
governments of the Philippines since 1985 have attached a high priority to poverty
reduction, but have had only moderate success in reducing the overall headcount, and
outright failure in reducing the absolute number of poor Filipinos. Targeting has been a
key problem, as have issues of budget, governance, and LGU capacity (particularly in
the context of decentralization, initiated with the 1991 Local Government Code). The
tendency to derail old programs and to launch new ones with each new President has
The stated goal is to reduce the poverty incidence of families from 28.4% in 200 to
17'9% in 2010. Similarly, the subsistence incidence of families is intended to drop from
13.10% of 1.93% per year for the period 2005-2010. However, it does not articulate a
ability to change life for the better rural areas. They also provide clients with their basic
financial services that they need to grow the money they earn, so that the business can
Related Studies
Many studies are conducted regarding credit and microfinance institutions that
Albay, that the primary effect of availing micro-credit financing services, gives impact to
be involved in the social activities as well as improved one’s values. The economic
effects of micro credit financing services generate income to sustain the needs of the
family.
Pagasenso as to its credit services in one Center of the Old Albay Branch. Her findings
showed that majority of the respondents were very satisfied on the credit services
offered by the institution. Majority of the respondents had an improved status of their
Microfinance-HELP were positive. That is, the client beneficiaries evaluated the whole
program as good because it helped them among other to improve their well-being,
achieve social aspiration and taught them how to save and appreciate the value of
saving. It also increased their family income and taught them wise budget management.
institution named as the UKNOWIT Cooperative. Her findings revealed that a majority of
the respondents believed that they have become more disciplined and more
responsible. All of them used the money borrowed for business. The income derived
from the business supported by the loan proceeds was used by the respondents for
their basic needs as well as the education of their children. The cooperative has exerted
efforts to solve those problems through review of policies and its operational
procedures, particularly in their dealing with the clienteles and the community.
The study entitled, the Effects of Borrowed Capital to the Daraga Public Market
the Daraga market, borrowing capital is their primary option to address unavailability of
funds for their business. It provides opportunity to transact business in exchange for the
goods and also it can provide opportunity for the borrowers to expand another line for
business.
Miraflor studied the effects of the informal lending sector on the profitability of the
Micro-Business establishments in the market site of Daraga, Albay. Her study revealed
that all micro business owners utilized loans to keep their business enterprise going. As
to their economic profitability, almost all agreed that the utilization of amount borrowed
some business activities of the borrowers has resulted to a positive outcome as shown
by the increase in the weighted average in terms of assets, sales and ultimately, profit.
The monthly income of the borrowers could hardly sustain the basic needs of the family.
Basic needs is still the main reason for diversion of funds initially intended for business
good system in the delivery of its program to the society. Wherein, The problems
Pag-Asenso, Inc. – SEDP Of The Social Action Center (SAC) Of Legazpi City”, some
measure recommend by the SEDP Inc. In Legazpi City to improve credit delivery were
to provide trainings and seminars which could help their clients to expand their business
and provide higher income, provide additional services and benefits to productive
clients. They also implemented rules and regulations on loan to prompt delinquent
clients and recovery of their accounts and consider safety of the worker assigned to
distant places in carrying big amount of money which is perilous for them.
Alaurin et al (2007) on their study, they found out that the great social and
economic benefits after the procurement of loans. Majority of them used the loaned
amount to meet their financial commitments. The loan availed furthermore added to the
Incorporated, Albay branch was the study conducted by Caraballo and Danisco ( 2007).
It was mentioned that all business need to control their cash efficiency as possible even
if your company has cash hand, cash need change a companies grow, cash needed for
expansion an expanding company requires cash, additional staff and new assets.
However, it may be taken several months or longer before the benefits of the expansion
generates higher revenue and eventually turned back into cash. Cash management
involves managing of the monies of firms in order to maximize cash availability and
interest on any idle funds. The firm’s effort to get customers to pay their bills at a certain
time fall within accounts receivable management, on the other hand the firms decision
about when to pay bills involves accounts payable and accrual management.
(PALFSI)” to its borrowers, the problems that the PALFSI clients have encountered in
the procurement of loans are not quite felt by most, except for some. The very problem
of the majority is the inability of their co-borrowers to pay back the borrowed amount
Synthesis
The reviewed studies revealed similarities and difference to the present study.
The similarities of the in dealt were the researcher would like to spot the perceived
tools for development with the ability to positively affect its participant’s economic and
social status
The study of Canada, Moral, Cate, Alcazar and Miraflor studied the effect of
well as improved one’s values and an improved status of their business, increased
Cresencio, Ereve, Neo, Manrique, Alaurin et al, Caraballo and Danisco and
delivery of its program to the society. Thus, the microfinance program also reflected its
socio-economic impact to its client, the service its personnel exerted and the extent of
the awareness and benefit its member-borrower derives from the program.
Cañada, Moral, Manrique who have studied the same microfinance institution is
different from the present study but it will focus on the beneficiary’s perceive gains and
negative effects.
From the various studies presented, some focused on microfinance. The other
research dealt with other microfinance institution. There are also some studies
concerning the same institution, however, this research is not a duplicate for it focuses
on a different scope. One of the previous studies has pointed on the delivery system of
the institution. The field of consideration of the other is the effect of microcredit financing
on Cabunturan, Malinao, Albay. And the other has made an assessment of performance
in Legazpi City.
This study gap the bridge in a way that this will focus on perception of
beneficiaries in Ligao City with regards to the gains and negative effects of SEDP Inc.
THEORETICAL FRAMEWORK
Theory. This model asserts that every individual is driven by their needs and wants.
These needs are found to be in altered degrees in every person and this mix of
The hierarchy of needs of Maslow was also be used in this study, people have
needs they wish to satisfy and that gratified needs are not as strongly motivating as
unmet needs. A fully satisfied need will not be a strong motivator. This model has
shown the human needs in the form of hierarchy that should be satisfied in order, from
the lowest to the highest needs. The needs that are stated in this model include
physiological, security, love and belongingness, self esteem, and self actualization.
need to uplift the economic and social life of people. To secure the welfare of every
individual most especially families who have children to be raised, some find out that the
Maslow’s
Hierarchy of Needs
Theory
Theoretical Paradigm
Figure 1
CONCEPTUAL FRAMEWORK
The researchers will use the following concepts to make the study more
successful. Figure 2 shows the conceptual paradigm of the study. This study will find
out the socio-economic factors that motivate the household to avail microfinance, SEDP
Inc, which the beneficiaries’ profile in terms of age, educational background, occupation,
and monthly income, respondent’s membership status. This will also determine the
The first box includes the profile of the beneficiaries that availed loan in
microfinance institution.
The second box also includes socio-economic factors and the third box includes
the perceive gains on availing microfinance. And the fourth box includes the negative
effects of availing microfinance services. And lastly the fifth box contains the possible
way of reducing the negative effects in availing loans in microfinance institution that if
Ways in
Reducing
Figure 2
Effects
DEFINITION OF TERMS
- in this study it refers to the person who have been benefited of the
including consumers and the self-employed, who traditionally lack access to banking
- In this study it refers to SEDP Inc. that offered help to the women of
Perceived gain – defined in this study as the advantages received by the members of
the institution
Negative effect - in this research it refers to the unhelpful results that the beneficiaries
institute providing microfinance services in the City of Ligao which in this study is
focused on.
Socio-economic factors- these are the social and economic experiences and realities
microfinance services.
Households- In this study, they are the beneficiaries of the microfinance institution.
CHAPTER II
METHODOLOGY
population and sample, data gathering, instruments and procedure and the statistical
treatment of data. This part of the research answers the questions on how study was
conducted.
I- Research Design
The total population or member was 928 record as July 12, 2010. The
n= N
1+ Ne2
N= Population size
284 beneficiaries.
After determining the sample size the researcher will use the random
study.
This study used the descriptive survey method. The survey method was a
respondents with questions that will help the researcher picture out how
conditions.
IV- INSTRUMENTATION
`The instrument used in this research was divided into five parts. The first part
On the other hand, the second part of the instrument answered the
second question in the problem, the socio- economic factors that motivate the
than once.
The next part was determining the perceived gains of the beneficiaries,
microfinance.
Lastly, is the ways on how to reduce the negative effects in availing loans
question.
Percentage - which refers to the ratio of the observable frequency over the
total population.
P= f/n × 100
Where P- percentage
f- Frequency
100-constant
studies
Framework
Checking
g. Revising 2 weeks
Recommendation
Table 2- Financial Plan
Expenditures Amount
b. Foods 750.00
c. Printing 1700.00
d. Encoding 500.00
e. Bookbinding 450.00
Alaurin, Raquel P., Armena, Ma. Kristina B., Azucena, Ann E., Frayna, Mayflor
A., Lopez, Kathrina Denesse L. “The Lending Operations of Social Welfare (SOWEL)
Legazpi City).
Alcazar, Roy M., Astor, Marian Pauline E., Deza, Rhaian B., Helis, Ervin L.,
Frayna, Ivy S., “The effects of Borrowed Capital to the Daraga Public Market Vendors”
Cañada, Shiela Mae. “The Effect of Micro credit Financing –Socio Economic
Daraga, Albay).
City).
Clutario, Evan Albert C., Logronio, Micheal John H., Perez, Ronald Jason H.,
Savings Bank: A Case study” (unpublished Thesis), 2006 (Divine Words College of
96
http://en.wikipedia.org/wiki/Microfinance
http://www.eHow.com/Microfinance
http://en.wikipedia.org/wiki/Ligao City
http://ifrm,acin/cmf/20060401/evaluatimh-microfinance-
randomize/yahoo.com,Microfinance
http://www.businessballs.com/davidmcclelland.htm
Manrique, Dennis. “An Analysis of the Credit Delivery System of Simbag sa Pag-
Miranda, Gregorio S., Essentials of Money, Credit and Banking (Philippines: Land G
Tetangco Jr, congratulated the microfinance sector for its robust growth(an excerpt),
Schelzig, Karen " Poverty in the Philippines: Income, Assets and Access" Copyright 2005 Asian
This chapter discusses the interpretation of the data gathered by the researchers
Inc. in Ligao City. The data are presented, analyzed and interpreted according to the
The first objective of the study is to know the profile of each beneficiary of the
SEDP. Inc. for it helped the researchers to determine the perceived gains and negative
effects of the microfinance to its beneficiaries. The profile of the respondents consist of
their age, educational attainment, civil status, occupation, number of children living with
The following tables show the data and information concerning the profile of the
a. AGE
Based from the results, the ages of the respondents are ranging from 26 to 61
and above.
Table 1.1
Table 1.1 shows that there are only 15 of the total respondents who have the age
of 26 to 30 and 39 of them were 31 to 35. There are also 59 has the age of 36 to 40 and
39 are 41 to 45. The number of respondents with 46 to 50 years old was 48 and 34
among them were at the age of 51 to 56. 34 respondents are at the age of 56 to 60 and
only 21 of the total respondents have the age of 61 and above. It was shown that the
most prominent among the ages was respondents having the age of 36 to 40.
b. EDUCATIONAL ATTAINMENT
According to the gathered data, the highest education of the beneficiaries which
they completed is stated in the table. This helped the researchers to determine whether
the beneficiaries were knowledgeable enough and has the ability to understand how the
Table 1.2
Educational Attainment Frequency Percent
Elementary Undergraduate 2 .7
Elementary Graduate 61 21.1
High School Undergraduate 60 20.8
High School Graduate 101 34.9
College Undergraduate 39 13.5
College Graduate 22 7.6
Vocational 4 1.4
Total 289 100.0
Educational attainment
Table 1.2 illustrated that majority of the beneficiaries attained high school
graduate with 34.9 percent (101 out of 289). It was followed by 61 of respondents who
undergraduate and 60 of them were high school undergraduate. There are also 39 of
the total respondents who were college undergraduate, 22 have graduated college and
tendency that most of them have less knowledge in handling the money that the
It was shown in table 1.3 that there are only 1.4 percent (4 out of 289) of
respondents were single and 98.6 percent of them were married. It only shows that the
majority of the respondents were in need of supporting their own family that’s why they
government employee wherein they can be a teacher, office clerks and others. Second
is self employed which can be a store owner, buy and sell, farm owner and others.
Table 1.4 shows that majority of the beneficiaries were self employed. Only 7
percent of the total respondents were government employee. There are 5 of them who
were teachers, 2 were office clerks and 14 have other jobs in the government. Majority
of the self- employed respondents were buying and selling different types of products.
There are also 73 of the beneficiaries who are able to have their own stores. 57 of them
were farm owners only 49 were having other types of business where they were
working.
Table 1.5
Number of children
children who were living with them. 92 of the total respondents have 2 children and 19
have 6 to 8. There are only 8 of them who were having 9 children and above.
able to borrow money to support the needs of their children especially on their
educations.
f. MONTHLY INCOME
In this study, the researchers find out the monthly income of the beneficiaries.
Respondents would like to increase their incomes. They believe that engaging in a
microfinance institution can solve their problem regarding their monthly income.
Table 1.6
Monthly Income
there are only 2 of the total respondents have the income of P 16, 000 and above. Many
of them have only P 4, 000 to P 6, 999 with the number of 100 respondents. There are
respondents have the income of P 7, 000 to P 9, 999, 31 respondents with P 10, 000 to
P 12, 999 and 14 respondents who have P 13, 000 to P 15, 999 monthly incomes.
g. MEMBERSHIP STATUS
This includes the number of years beneficiaries were availing the program of the
institution, their latest loans, and if they are still availing other microfinance other than
This states the number of years the beneficiaries are being part of the
institution.
Table 1.7
Table 1.7 illustrated that there are 63 of the total respondents were already 1 to 3
years as part of the institution. Majority of the respondents were 4 to 6 years in SEDP
Inc. as a member of the institution. 56 of the respondents spent 7 to 9 years and only 36
Latest Loan
Based from the responses of the beneficiaries, their latest loans are ranging from P 3,
000 as their initial loan to P 35, 000 as the highest loans which they acquired from the
institution. P 3, 000 as the smallest amount is the loan that a newly member can only
obtain and can be increased depending on cycle which they can continuously obtain a
loan. They can acquire loans every after their final payment of their current loan. P35,
000 as a loan can be attained if a member is already 12-15 years in SEDP Inc.
Table 1.8
Latest Loans
loan of P 3, 000 to P 5, 999 and only two respondents having a loan of P 6, 000 to
P 8, 999. There are also 42 of the respondents having their latest loan of P 12, 000 to
P 14, 999 and 38 respondents with P 15, 000. 6 of them have their latest loan of
P 22, 000, 2 respondents with P 22, 500, 27 respondents with P 25, 000, and only 6 of
Received other help from other microfinance rather than SEPD Inc.
Table 1.9.1
Frequency and percentage of beneficiaries who receives other help from other
microfinance
Frequency Percent
No 229 79.2
Yes 60 20.8
Total 289 100.0
Table 1.9 illustrated that majority of the total respondents does not receive any
other help from other microfinance institution rather than Socio- Economic Development
Program Inc. only 60 of them availed from other institutions such as Tulong sa Pag-
Unlad, Inc. (TSPI) Center for Agriculture and Rural Development (CARD), Happy
Table 1.9.2 shows the various other microfinance wherein some other
beneficiaries of SEDP, Inc. availed loans. There are 23 of the respondents who
borrowed money from TSPI, 21 respondents loaned from CARD Inc., only 4 of them
availed loans from ARDCI. There are also 7 of the total respondents borrowed from
AVAILING MICROFINANCE
This includes the socio- economic factors that could be the reason to motivate
Table 2
the socio-economic factors that motivated them to avail microfinance. It reveals that
most of the respondents who engage in availing of microfinance loan utilized the
amount loaned for their additional capital. They acquire loan in order to increase their
income through loans from lending institutions and adjoin the money to their capital on
business. It also shows that the amount loaned was used for capital for their new
business. According to them, they can build a new business through their loans from the
institution. It also revealed that they are encouraged to engage in microfinance so that
they can be able to renovate their house and construct their houses. One of the reasons
on availing a lending institution is that its loan is a long term and has a low interest loan.
They also utilized the amount loaned for the medical and emergencies on their family
and other said that they are not able to find a job. Through microfinance, they can earn
Table 3.1
are the following: there are 92 of the respondents believed that they were able to build
their own business through their loaned money from microfinance, 22 respondents said
that they were able to expand their business, and 197 believed that the amount loaned
from microfinance had helped them to increase their capital on their business.
Having a capital for their new business, beneficiaries were engage to businesses
such as buy and sell, handicraft, food production, services and others. Majority of them
used the borrowed money in buying and selling various types of products. There are
only 3 of the respondents who used loaned money for handicraft. Some of them used
Table 3.2
Table 3.2 shows that 70.6 percent of the beneficiaries developed their discipline.
With their loans, they learned how to spend their money properly and wisely. 153 of the
total respondents also believed that they learned to save. By the amount they loaned,
they became aware on how to allocate their money so that they can repay their loans on
time. 59 of them said that they developed their self and group awareness. Through
weekly meetings, they were able to know each other better. 167 respondents became
more diligent. They became more industrious to be able to repay loans weekly. 200 of
them also became more responsible because of their obligation to pay amount loaned
and 17 of them said that they were able to develop their leadership skill. Every center
has center chief who is responsible for manage all group members and checking if
which member could not repay on the weekly meeting. There are also 98 who believed
that they learned to communicate with others. In some instances, some of the group
members could not repay weekly, by proper communication they were able to provide
money from their group mates and can pay for the weekly collection of loans.
c. IN THE FAMILY
There are also benefits in the family by availing of lending institution loan. These
The table illustrated the perceived gains in the family of the beneficiaries’ of
the microfinance. It revealed that many of them have increased their family income. By
investing the amount loaned, they were able to raise their family income. Others were
able to send their children to school. They utilized the money loaned for buying of
school materials, for allowances and most importantly for settling the tuition fees. Some
of them are able to renovate their houses. The institution also offered trainings and
seminars which enabled them to gain new ideas concerning business enhancement.
Other respondents were able to construct their houses and some has used for
There are some problems faced by the beneficiaries that lead to negative effects
of microfinance to the beneficiaries. Based from the data gathered, the negative effects
are consisted with the following: non- cooperation of group members, being dependent
on the SEDP, Inc., difficulty in repaying the loan and slow processing of loans.
Table 4
cooperation of group members and difficulty of repaying their loans. There are also 11
of them who revealed that they became dependent to SEDP, Inc.. they did not find other
source of capital or money rather than microfinance. There are only 7 respondents who
said that the institution was slow in processing of loans and 3 of them share other
negative effects.
CHAPTER IV
This chapter presents the summary, findings and conclusions from which the
SUMMARY OF FINDINGS
This study was conducted to determine the perceived gains and negative effects
of programs and practices of socio- economic Development program, Inc. in Ligao City.
f) Age
g) Educational background
h) Civil status
i) Occupation
j) Number of children
k) Monthly income
2. What are the socio-economic factors that motivate households on availing the
microfinance?
3. What are the perceived gains of the beneficiaries on availing the
microfinance?
microfinance?
gathering data. Two hundred eighty nine (289) were the key informants of this study.
The data gathered were analyzed using frequency count, percentage rating ad ranking
as statistical tools.
FINDINGS
Based on the results of the study, the following findings were revealed.
1. a. Age- The age of the respondents is ranging from twenty six (26) to sixty (60)
and above. Based from the responses, there are beneficiaries with the age of seventy
two (72). There are only fifteen of them were at the age of twenty six (26) to thirty (30)
and thirty nine (39) respondents were thirty one (31) to thirty five (35). Fifty nine (59) of
the respondents were thirty six (36) to forty ( 40) years of age and thirty nine (39) of
them with forty one (41) to forty five (45) ages. There are also forty eight (48)
respondents who were at the age of forty six (46) to fifty (50) and thirty four (34) among
them were fifty one (51) to fifty six (56) years of age.
graduate. There are sixty one (61) of the respondents who only graduated elementary
and two (2) respondents were elementary undergraduate. Thirty nine (39) of them were
college undergraduate and twenty two (22) respondents who completely attained their
c. Civil status- mostly, the respondents were married two hundred eighty five
(285). Only few of them which are four (4) respondents were single.
d. Occupation- majority of the respondents were self employed with the number
of 268. The remaining twenty one (21) of them were working in the government. Five (5)
of the respondents were teachers and two (2) of them wee office clerks. Fourteen (14)
of the government employed were barangay health worker and DSWD foster parent.
Ninety three (93) of the total number of respondents was buying and selling of various
types of products, seventy three (73) respondents having their stores and fifty seven
(57) respondents were farm owners (rice, corn, vegetables, etc.). The rest of the
respondents (49) were having employed to other types of business like direct selling,
ladies accessories, piggery, franchise dealer, food vending and vegetable vending.
e. Number of children living with you. One hundred seventy (170) of the
respondents have 3 to 5 children. Ninety two (92) of the total respondents have 2
children and below and 19 of them have 6 to 8 children. There are only eight (8) of them
16, 000 and above. Majority of the respondents (100) have only P 4, 000 to 6, 999
monthly income. There are 74 respondents revealed that they have P 1, 000 to 3, 999
respondents with P 10, 000 to P 12, 999 and 14 respondents who have P 13, 000 to 15,
institution. 56 of the respondents were 7 to 9 years and 36 of them are 10 years and
above in the institution. As to latest loan, there are 30 respondents who have a latest
them have P 12, 000 to 14, 999 latest loan and 38 respondents with P 15, 000. 6 of
them have P 22, 000, 2 respondents with P 22, 500, 27 respondents with P 25, 000,
and 6 of them having the latest loan of P 35, 000. Majority(78 %) of the respondents did
not avail other loans from other institutions. Only 22 % of them availed.
it revealed that most of the respondents need to increase their capital with 201
respondents and 182 of them revealed that they need money for the education of their
children. 131 said that it ia a long term loan and 128 revealed that the interest rate of
the institution is low.92 of them said that they used the loan for capital in a new
business and 87 said that they need to renovate their houses. 40 said that it would be in
medicines and emergencies, 23 are unemployed and 13 for the construction of their
amount loaned for additional capital of their existing business. 22 of the respondents
have used the money for business expansion and 92 of them said that they used it for
additional capital for their businesses such as buy and sell (62 %), handicraft (3%), food
production (5%), services (4%) and others (26 %). In terms o perceived gains to
attitude, 204 of them became more disciplined, 153 have learned to save, fifty nine (59)
respondents developed self and group awareness and 167 became more diligent.
There is also a lot of respondents who became more responsible, only seventeen (17)
developed their leadership skill and 98 of the respondents learned to communicate with
others. In the family, majority have increase their income, 206 used the loaned money in
education of children, one hundred sixteen (116) have renovated their house, one
hundred nineteen (119) said that institutions have offered trainings, twenty eight (28) of
them were able to built their new house, fifty seven (57) respondents have used amount
loaned for medicines and emergencies and 13 respondents used money borrowed in
other matters.
respondents revealed that their group members did not cooperate. Eleven (11) of them
became independent on microfinance, there are also 7 who said that their processing
5. There are a number of suggestions given by the respondents to reduce the effect of
microfinance of microfinance to their lives. 143 of the total respondents which are 49
percent gave their suggestions regarding the reduction of the effects of engaging in the
institution.
CONCLUSIONS
Based on the significant findings of the study, the following conclusions are
deduced:
1. Majority of the beneficiaries are at the age of 36 to 40. These ages are in need of
source of income because they were not able to find a job especially in rural
areas. They prefer to engage in this institution to be able to have fund for
Many of the respondents are only high school graduate. They are less
knowledgeable on how to handle their money borrowed and less aware of the
are married. They need to have a source of income in order to help and support
microfinance, they believe that they can support the needs of their children.
Mostly, the monthly income of the respondents is ranging P 4, 000 to 6, 999. This
is very small amount and not enough to support the needs of the family and one
of the reasons why beneficiaries availed the program. Most of the beneficiaries
have the latest loan of 9, 000 to 11, 999. It shows that it also increases the needs
the respondents who are still availing other microfinance. This shows that other
beneficiaries are not contented with the program that SEDP Inc. has provided for
them.
2. Most of the respondents stated that they need to have an additional capital. They
believe that availing of lending institution loan like Socio- Economic Development
Program Inc. is the easiest way to increase their capital in their existing business.
3. Mostly, additional capital is the primary gains that beneficiaries have perceived.
They have their own business, however, they still avail microfinance to increase
their capital. In their attitude, most of them have developed their discipline.
Because of the obligation they accepted, they now have to repay their loans.
4. The same number of respondents have affected by the non cooperation of group
5. Many of the respondents suggested different ways to reduce the negative effect
of microfinance to their lives. By suggesting such ways, they believed that this
RECOMMENDATIONS
process and add some qualifications for their incoming members so that it would
help to lessen the problems faced by the current members. They should improve
their program and services so that their beneficiaries will be contented on the
2. By the suggestions given, the institution should not recruit those who are not
capable of repaying a loan. They should make sure that the person to be
recruited is recognized by the current member from a certain center. And current
members should select their members that they really know that she is capable
of repaying loans.
3. Members should allocate their money properly and invest in profitable way to be
4. Problems from a various centers should be given attention by the office and
6. The institution must plan more seminars and trainings on how to improve the
livelihood of its beneficiaries and lecture them some tips on how to handle money
7. Force resignation or offset for those who are not repaying their loans regularly or
inactive members. They can cause problems and may affect active members
8. In case of difficulty, members should not make another loan from other
microfinance institution.
9. Before the loan should be released in a newly members, make sure that they
have a planned project to earned money from the borrowed amount and will be
10. Make the processing of loans faster because persons who are availing of it is