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Monday, September 11, 2006
Loans for the Poor
Short on budget? ABS-CBN's Bayan Foundation is offering loan assistance to the needy.
PANGKAT-BUHAYAN
This program provides group loans to poor micro-enterprenuers with an initial loan size of a maximum of P2,000 as supplemental capital for an established enterprise. The scheme is that five clients form a group who will guarantee each others' loans and make sure that each member complies with Bayan's policies and procedures. In succeeding loan cycles, a client is allowed a maximum of P2,000 more than her previous loan but not exceeding P19,000. The amount of loan in subsequent loan cycles is dependent on their previous loan performance measured by three factors: consistent & on-time repayments, attendance to weekly group meetings, and status of the business.
Client has two windows to choose: GAAN-HULOG and TODO-KAPITAL. Gaan-Hulog is for members who want a lower monthly amortization. Todo-Kapital is for members who want to receive their loan amount in full.
GAAN HULOG
* interest rate of 3% per month (add-on / flat)
* payment terms: 1-6 months
* weekly cash payment (thru deposit slips)
* 1% service fee
* penalty: 5% of the principal
* center meeting: one hour per week
TODO KAPITAL
* interest rate of 4% per month (add-on / flat)
* payment terms: 2.5 or 5 months
* weekly cash payment (thru deposit slips)
* no service fee
* penalty: 5% of the principal
* center meeting: one hour per week
CRITERIA FOR SELECTION
* 3 to 5 members with similar economic status
* 18 to 65 years old
* preferably a permanent resident in the area
* must undergo a 3-day orientation on rules, discipline, mission and values
* Loan Application form
* Community Tax Certificate
* Barangay clearance
PROCEDURE
* ABS-CBN Bayan introduces the program to an already identified area (where there is high poverty incidence)
* those interested approaches ABS-CBN Bayan and expresses his or her willingness to be a member
* groups of 3-5 members formed (each member should know all members of the group and should be familiar with the proposed microenterprise project of all group members)
* Microfinance Officer (MFO) conducts SOCIAL PREPARATION - Training on loan process, credit and collection process, peer pressure and mutual support, savings, group and center formation, responosibilities as ABS-CBN Bayan members (the whole process takes 3 weeks)
* Prospective clients fill out an application form
* ABS-CBN Bayan conducts Background/Credit Investigation
* Loan approval/disapproval
* Loan release- clients go to branch to pick up cheques
* Collection and done by MFOs weekly
ANGAT-BUHAY
This program provides the laboring and entrepreneurial poor with an initial minimum loan of P10,000 to a maximum amount of P150,000.00. This loan is for individuals who will use the money to support the expansion of his/her established business. In this type of loan, the client is required to issue post-dated checks (PDCs) for his/her weekly repayment for the duration of the amortization period. One can avail of several loan cycles. In succeeding loan cycles, a client is allowed a maximum of P5,000 more than her previous loan. The amount of loan in subsequent loan cycles is dependent on their previous loan performance measured by two factors: consistent & on time repayments, and status of the business. For loans amounts higher than P100,000, a Chattel Mortgage (CM) or Real Estate Mortgage (REM) is required.
Client has two windows to choose: GAAN-HULOG and TODO-KAPITAL. Gaan-Hulog is for members who wants a lower monthly amortization. Todo-Kapital is for members who wants to receive their loan amount in full.
GAAN HULOG
* interest rate of 3% per month (add-on / flat)
* payment terms: 1-6 months
* weekly cash payment thru post-dated checks
* 1% service fee
* penalty: 5% of the principal
TODO KAPITAL
* interest rate of 4% per month (add-on / flat)
* payment terms: 1-6 months
* weekly cash payment thru post-dated checks
* no service fee
* penalty: 5% of the principal
CRITERIA FOR SELECTION
* 18 to 65 years old
* preferably a permanent resident in the area
* must undergo a 3-day orientation on rules, discipline, mission and values
* Loan Application form
* Community Tax Certificate
* Barangay clearance
PROCEDURE
* Clients are identified through referrals and word-of-mouth
* Clients submit the following documents to pre-qualify:
* Barangay clearance/community tax certificate
* Mayor's Permit
* DTI Registration
* Bank statement (previous month) to show exsitence of checking account
* Business must have a minimm capitalization of PhP 20,000
* A more thorough brackground and credit investigation is required which includes authentication of submitted documents
* The co-maker or guarantor needs to be established by checking his/her background and credit profile as well
* The co-maker or guarantor needs to be established by checking his/her background and prospective client submits application form, and credit investigation form.
* Loan approval/disapproval
* Loan release (upon submission of post-dated cheques)
* Bookkeeper/Finance Officer depostis post-dated cheques
* Monitoring every 2 weeks
MAGANDANG BUKAS and KALINGANG BAYAN
Integrated in the two loan products are the Magandang Bukas (savings fund) and Kalingang Bayan (insurance fund). The purpose of the MAGANDANG BUKAS is to finally liberate the client from being a perennial borrower and that the client will be able to sustain his/her income generating efforts. Savings is computed at 4% of loan amount for the first three months and 2% for the succeeding months. Bayan charges a 4% interest per annum for the savings deposited by clients. Furthermore, clients can only get his/her savings upon withdrawal from the program. The client can also withdraw half of the savings of his/her previous loan if his/her succeeding loan is equal or more than her previous loan.
The KALINGANG BAYAN serves as insurance, i.e., in case a borrower dies within the loan term, the balance of the loan is written off. In case of group loans, the group responsibility and accountability to the members are also lifted. In addition, the family of the deceased member also gets the principal amount of loan as life insurance. The Kalingang Bayan is computed as two peso per thousand of loan amount multiplied by the number of months of payment or amortization.
To renew access to the loan programs, the clients must have demonstrated proper use of previous loan and a good savings and credit performance. There has to be a 95% attendance to weekly group meetings and a 100% group repayment of loans. It is also important that there is a manifestation of trust, unity, discipline and responsibility among group members. This is ensured through active and continuing evaluation among group members and BAYAN.
LINGAP KAPAMILYA
The Lingap Kapamilya Program aims to provide protection to the members and their families in case of untimely death or accidental disability.
MULTIPURPOSE LOAN PROGRAM
This was designed to extend credit to support other family needs of Buklod members. This may include children's school fees, food/groceries, house renovation, and financial assistance in cases of calamity and/or other emergencies. The program is aimed to be an encouragement for Buklod members to strengthen credit discipline and improve repayment performance. It also helps members to avoid spending their Pangkat-Buhayan Loans to other non-business and livelihood activities.
LINANG BAYAN
Linang Bayan is the client development program of ABS-CBN Bayan. Linang Bayan aims to enhance values, leadership and business management capabilities of members/clients, promote unity, family-spirit among members/clients, and help and prepare clients in reaching Small Enterprise business level.
FAMILY STRENGTHENING COURSES
Value Formation Training
This one-day training aims to impart essential values of work, investing, and savings and enable them to apply the principles learned as they relate to their family, their community and with the way they manage their businesses.
Parenting Workshop
This whole-day training focuses special role of parenting. Participants are enabled to appreciate and develop positive parenting attitudes.
Leadership Training
This two-day training is designed to improve leadership capabilities of the participants. This focuses on communication, discipline, transactional skills, conflict management and resolution, and social responsibility.
BUSINESS-RELATED COURSES
Personal Effectiveness and Group Development
This training is premised on the framework that group development can be achieved if members and leaders share common values and beliefs in achieving group goals and objectives.
Business Management Training
The seminar provides participants with business management skills needed in ensuring profitability and growth of business. This training may come with hands-on
Product Development and Quality Improvement
The training aims to provide practical livelihood skills among its participants that may be used in their respective businesses.
MICROENTERPRISE DEVELOPMENT PROGRAM
The training shall provide relevant technical skills training for the participants. At the end of the module, the participants should be more prepared in establishing their respective micro-enterprises.
Contact information:
ABS-CBN Bayan Foundation
14- A Scout Borromeo St. South Triangle
Quezon City 1103 Philippines Tel # : +632 372-8577
Local Toll Free No.: 1800-10-69222926
Email: info@absbayan.pinoycentral.com
Website: http://www.abs-cbnfoundation.com/microfinance
Tags:
Funding & Finance
Posted on 11:40 PM | 3 Comments | Email Story To Friends | Subscribe Via Email
3 Comments:
It is so nice to have programs like these for the poor, and while reading the content is very interesting. These post is great and it will be an assistance.
loans philippines said this on Monday, December 06, 2010 10:11:00 AM
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I want to have this apportunity to add my mini store pls contact my brother alex 09391255857.
Unknown said this on Tuesday, October 20, 2015 10:40:00 AM
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Where can I approached this program
Unknown said this on Tuesday, October 20, 2015 10:49:00 AM
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