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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.
Money is very essential to every individual since it is used as a medium of
exchange. It is considered as one of the most outstanding inventions in the entire
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
Credit is the ability of an individual to obtain goods, services, or money at the
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
should be given the opportunity to receive benefits of a credit system. It is this
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.
Many programs have been developed to improve the local community.
Microfinance which has the purpose of lending a sum certain amount of money was
established. It is the provision of financial services to low income clients, including
consumers and the self-employed, who traditionally lack access to banking and related

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services. More broadly, it is a movement whose object is a world in which as many poor
and near-poor households as possible have permanent access to an appropriate range
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
will help poor people out of poverty.
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
out impoverished communities and provide financial assistance.
The Social Action Center (SAC) of the Diocese of Legazpi is one of the service
oriented non-profit, non-government Catholic Organization that implement programs
through people's organization and Christian formation that will generate peoples
participation in the enhancement of the socio-economic and spiritual well-being of the
parishioners for a dynamic, dignified and self-reliant Christian communities.
It was established in 1972 as an offshoot of Vatican 11s call for the churchs
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.
Social-Economic Development Program (SEDP) Inc. has a vision for a dynamic
and pro-active financial foundation of the Diocese of Legazpi committed to the total
advancement of the poor. Their mission is commits to deliver sustainable financial

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services with training and foundation to marginalized women towards improved socioeconomic condition, political empowerment and enhance spiritual well-being.
The program components of Social-Economic Development Program (SEDP)
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
their organization and their respective projects. They also
offer Medical Mission, Marriage Validation and Counselling, Relief Assistance during
calamities, Scholarship, Advance Entrepreneurial Training, Parish Integration and Ongoing Formation and Current Events Updating through their media, such as SAC
operations, DSWBS Special Program for Social-Economic Development Program and
news brief by Social Action Center Operations or so-called Ang Bangraw.
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
increase members income and improve socio-economic status of their families. A
profound understanding and application of these beliefs have guided micro credit to
reach the poorest with service that are sustainable.

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Several reasons have prompted the researchers to select this topic and conduct
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
negative effects brought by it and to know their perception on SEDP Inc.
The researcher has to conduct this study for better understanding of cash
management of any individual and the benefits of the following:
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.
On the part Microfinance Institutions (SEDP of SAC)

it may serve as a

helping tool in developing and improving their program and to have suitable goal
regarding the effects of their program to its beneficiaries.
O n the part of the microfinance beneficiaries it may help out in determining
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
personal, economics, social and entrepreneurial development,
On the part of the community, it will be a way to erudite of the possible
effects that microfinance could bring on their lives and how people will be benefited from
it and of course to admonished poverty.

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On the part of the students/ readers , awareness is great benefit that they
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
for future studies with the same undertaking.
Statement of the Problem
This study aims to determine the perceive gains and negative effects of SocialEconomic Development Program Inc. of SAC to household beneficiaries of Ligao City.
Specifically, it attempted to answer the following problems:
1. What is the profile of the beneficiaries in terms of:

Educational background
Monthly income
Respondents membership status

2. What are the socio-economic factors that motivate households in availing the
3. What are the perceive gains of SEDP Inc. beneficiaries in availing loans and
services of the microfinance?

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4. What are the negative effects SEDP Inc. beneficiaries in availing loans and
services of the microfinance?
5. What are the ways in reducing the negative effects of Microfinance to its

In this study, the researcher presumes the following as answer to the identified
That Microfinance institution does not consider age, educational attainment,
occupation and monthly income of its beneficiaries in granting loans but on the
membership status and attitudes of its beneficiaries in repaying.
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
knowledge in managing business, the developed self-disciplined in apportioning money
and their financial status was elevated from poverty and the problems that are brought
in availing loans.
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 Ligaoeos,

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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
small settlement known as Cavasi in the 16th century. It grew in population as it
attracted natives from nearby settlements. Eventually, power struggles among ambitious
and aggressive leaders caused trouble as they created divisions among the settlement.
There arose five divisions led by maginoos (chieftains): Pagkilatan, Maaban,
Sampogan, 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
ceded to Oas in 1665, and finally becoming an independent municipality in 1666.

Related Non-Research Works

The Senate Bill No. 1180, section 2, introduced by Senator Ramon B.
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:

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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
providing additional credit facilities to household, consumers, small scale entrepreneurs
and home builders.
The R.A. 6938 known as the Cooperative Code of the Philippines it enacted:
This law encourages the growth of cooperatives to promote self-reliance and
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
procedures for the organization, administration, registration, dissolution and auditing of
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
organization of cooperatives. On the other hand, it commands the government to
provide technical guidance, financial assistance and other services for the development
of cooperatives.
Microfinances worldwide recognition can also be credited to Muhammad Yunus,
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
implementation of joint-liability groups as a substitute to tangible collaterals when
borrowing loans, and emphasized the role of women in managing credit and organizing
microenterprises. He founded the Grameen Bank in the 1970s as an effort to ameliorate
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

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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
branches and 6 million members, and boasts a 98 percent repayment rate.
On the other hand, Bangko Sentrals Circular 685 provides the rules for the
recognition of Microfinance Institution Rating Agencies or MIRAs. This should improve
access to financing and capital as ratings have proven effective in enhancing the quality
of microfinance institutions in terms of transparency, discipline, and overall governance.
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
millions of Filipinos still living in poverty, we should commit to do more together to do
better in spreading the gospel of microfinance and how it can uplift and transform
individuals, families, as well as communities.

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

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reasons why we get into debt: Spending tomorrows 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.
Credit is a very important tool in economic development. If it is sufficient and if it
is properly used, credit benefits all users, individuals, community, or country.
According to Estapa, the confidence in which credit is built in two fold in
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
requirements imposed before granting loan. This includes collateral, evaluation of
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 Cs of Credit: character, capacity, capital, collateral and conditions.
Microfinance is a tool designed to uplift the quality of life of people, it provides
additional capital to the business people who are engaged with or it helps them to start
a business. In addition, it is also a tool for community development and capability
building to people who had been engaged in business.
According to the World vision, the term microfinance refers to the practice of
providing financial services to people in impoverished countries who have no collateral,
credit history, or access to traditional lending service." Microfinance institutions manage

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and administer the loans and credit programs. These institutions are located near the
areas they serve.
According to Asian Development Bank: The Poverty and the Government Responses
The major causes of poverty in the Philippines fall into several broad categories(1)
weak macroeconomics management(ii)employment issues;(iii)high population growth
rates,(iv)an underperforming agricultural sector and an unfinished land reform agenda;
(v) governance issues including corruption and a weak state; (vi) conflict and security
issues , particularly in Mindanao; and (vii) disability. The 2004-2010 Medium-Term
Philippines Development Plan contains ambitious poverty reduction targets. Successive
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
resulted in duplication of efforts, wasted resources, and continuous state of transition.
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
clear population policy.
According to the Asia Society: Microfinance: the Seed of Change

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Microfinance institutions thrive in urban settings; they are also being having the
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
benefit the villagers who produce the items.
Related Studies
Many studies are conducted regarding credit and microfinance institutions that
are related to this study.
Caada (2008), on her study on the Effect of Microcredit financingSocioEconomic Development Program of Social Action Center in Cabunturan, Malinao, Albay,
that the primary effect of availing micro-credit financing services, gives impact to be
involved in the social activities as well as improved ones values. The economic effects
of micro credit financing services generate income to sustain the needs of the family.
Moral (2008) studied and assessed the performance of the Simbag sa
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
business, increased financial management capability and improved socio-economic
condition which had an equivalent rating of very effective as to the extent of
performance of SEDP in supporting the entrepreneurial activities of each member.









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,

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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.
Neo (2008) conducted a study to analyze a formal microfinance lending
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
vendors was conducted by Alcazar et al (2004). As to the effects of borrowed capital to
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
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
was economically profitable.

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Cresencio (2006) concluded that the loan availed have l increased profitability on
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
operation and thus results to unsuccessful operation.
On the study conducted by Ereve (2008), the microfinance program possessed a
good system in the delivery of its program to the society. Wherein, The problems
encountered by the respondents were based on the personal background and
experience being member-borrower of the microfinance program.
Manrique (2008) entitle analysis Of The Credit Delivery System Of Simbag Sa
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
income level of the family, thereby increasing their purchasing ability.

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The Cash Management System of Air Material Wing Savings Loan Association
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 firms 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.
According to Clutario et al ( 2006) in their study entitled The Social and
Economic Benefits of Peoples Alternative Livelihood Foundation of Sorsogon Inc.
(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
which in effect burdens the other members in terms of payment.
From the reviewed literature and studies.
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
gains member-borrower or beneficiaries in availing loans in microfinance institution/

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Socio- Economic Development Program Inc. The difference were the objectives and
focused of each study.
Microfinance programs are increasingly publicized as one of the most successful
tools for development with the ability to positively affect its participants economic and
social status
The study of Canada, Moral, Cate, Alcazar and Miraflor studied the effect of
availing micro-financing services, gives impact to be involved in the social activities as
well as improved ones values and an improved status of their business, increased
financial management capability and improved socio-economic condition.
Cresencio, Ereve, Neo, Manrique, Alaurin et al, Caraballo and Danisco and
Clutario et al concluded when microfinance program possessed a good system in the
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.
Caada, Moral, Manrique who have studied the same microfinance institution is
different from the present study but it will focus on the beneficiarys perceive gains and
negative effects.
Gap Bridged by the Study
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

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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
This study is anchored on David Mc Clellands Needs Based Motivational
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
motivational needs characterize a persons style and behaviour.
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.
Considering the present condition, it is an admitted fact that there is a strong
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
only way to minimize these problem is to resort in borrowing.

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Need BasedMotivational

People with needs and wants

in Relative
socio-economics status and

lows Hierarchy of Needs Theory

Theoretical Paradigm
Figure 1


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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, respondents membership status. This will also determine the
perceived gains and negative effects of SEDP to its beneficiaries.
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
not ended may lead to a serious problem.

Positive Effects
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e beneficiaries in terms of:


embership status

Socio Economic
Negative Effects

Ways in Reducing Negative Effects

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Conceptual Paradigm
Figure 2
Definition of terms
Beneficiaries a person who benefits or is expected to benefit from something.

in this study it refers to the person who have been benefited of the
programs and practices of Social Economic Development Inc.

Microfinance Institution - is the provision of financial services to low-income clients,

including consumers and the self-employed, who traditionally lack access to banking
and related services.

In this study it refers to SEDP Inc. that offered help to the women of
Ligao City in developing the socio-economic status.

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
observe as a member of microfinance institution that can cause problem.
SEDP Inc. /Socio Economic Development Program Incorporated- is one of the
institute providing microfinance services in the City of Ligao which in this study is
focused on.

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Socio-economic factors- these are the social and economic experiences and realities
that help mould one's personality, attitudes, and lifestyle.

In this study refers to the aspects that motivate household on availing

microfinance services.

Households- In this study, they are the beneficiaries of the microfinance institution.

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This chapter presents methodology engaged in this study, sources of data
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

Research Design
This study is engaged descriptive design of research in which it employed
survey questionnaires as the main gathering instrument. The records of
Simbag sa Pag-asenso, Inc. was looked over to cope up with necessary


information needed in completing the study.

Sampling Design
The population of this study was the members/beneficiaries of the institution.
The total population or member was 928 record as July 12, 2010. The
researcher used the Slovins formula to determine the sample. Hence:

1+ Ne2
Where: n= sample size
N= Population size
e= desired margin of error
The margin of error used was five percent (5%), which resulted to a sample of
284 beneficiaries.

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After determining the sample size the researcher will use the random
sampling to determine the respondents who of will be the respondents of the

Research Strategies
This study used the descriptive survey method. The survey method was a
form of questionnaires. The questionnaires have guide and provided the
respondents with questions that will help the researcher picture out how
SEDP Inc, Ligao Branch helps it beneficiaries in their socio- economic


`The instrument used in this research was divided into five parts. The first part
answers the profile of the beneficiaries regarding name, age, educational
attainment, civil status, number of children, monthly income and most
importantly the membership status.
On the other hand, the second part of the instrument answered the
second question in the problem, the socio- economic factors that motivate the
beneficiaries in availing loans. It is a checklist that can be answered by more
than once.
The next part was determining the perceived gains of the beneficiaries,
which is divided into three categories: as a businesswoman, attitudes and
family. The fourth part of the questionnaire answers the negative effects of
Lastly, is the ways on how to reduce the negative effects in availing loans
in microfinance institution may brought in its beneficiaries


Data Collection Procedure

In gathering data, the researchers took the following steps:

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1. The researchers made a letter to the Branch Manager of SEDP Inc. to

ask permission to conduct the study undersigned by their professor,
department chairperson and assistant dean.
2. The researchers request the needed information in conducting of the
study such as the number of beneficiaries.
3. To look for related literatures and studies the researchers went to
different libraries and surf to the internet for additional information.
4. The researchers combined all information gathered.
5. The researchers went to the different places wherein the Socio
Economic Development Program Inc. have its centers.
6. The researcher personally distributed the instrument to their
respondents during weekends.


Analytical Tool
In analyzing the data the researcher used following statistical tools to
quantify the response and for proper interpretation:

Frequency Count - for tallying the actual number of response to an item or

Percentage - which refers to the ratio of the observable frequency over the
total population.
P= f/n 100
Where P- percentage
f- Frequency

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n- Total of number respondents

Frequency ranking- to denote importance of an item or response discussed to
strengthen the interpretation of percentage.


Work and Financial Plan

Table 1- Work Plan

a. Problem Formulation
b. Designing/ Making Questionnaire
c. Review of related literature/studies
d. Organizing the related literature /
e. Conceptual
f. Submission



Theoretical 4 weeks

Proposal Defense
Data Gathering
Data Analysis

Allocated Time ( weeks)

3 weeks
3 weeks
4 weeks
1 week

for 1 week
2 weeks
A day
2 months
3 weeks
and 2 weeks

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Table 2- Financial Plan

a. Transportation
b. Foods
c. Printing
d. Encoding
e. Bookbinding
f. Snacks for panel list
g. Editors Fee
h. Other expenses

Php. 1500.00
Php. 5, 950.00

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Work Cited
Alaurin, Raquel P., Armena, Ma. Kristina B., Azucena, Ann E., Frayna, Mayflor A.,
Lopez, Kathrina Denesse L. The Lending Operations of Social Welfare (SOWEL) Fund
of Department of Social Welfare and Development (DSWD)ROV (Unpublished
Undergraduate Thesis), 2007 (College of Business Administration, Aquinas University,
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
(Unpublished Undergraduate Thesis), 2004 (College of Business Administration,
Aquinas University, Legazpi City).
Caada, Shiela Mae. The Effect of Micro credit Financing Socio Economic
Development Program of Social Action in Cabunturan, Malinao, Albay: An Assessment
(Unpublished Undergraduate Thesis), 2008 (Bicol University College of Business,
Economics and Management, Daraga, Albay).
Chinkee Tan, Till Debt Do Us Apart ( Practical steps on Financial Problem)

Cate, Jerry Raffalo. Microfinance and Empowering through Livelihood Program

(HELP) of the Bango Santiago de Libon: an Anlysis (Unpublished Undergraduate
Thesis), 2003 (Bicol University College of Business, Economics and Management,
Daraga, Albay).

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Caraballo, M. R., Dansico, Johan D. The Cash Management System of Air

Material Wing Savings and Loan Association Incorporrated, Albay Branch (Unpublished
Undergraduate Thesis), 2007 (Divine Words College of Legazpi, Legazpi City).
Clutario, Evan Albert C., Logronio, Micheal John H., Perez, Ronald Jason H.,
The Social and Economic Benefits of Peoples Alternative Livelihood Foundation of
Sorsogon, Inc. (PALFSI) (Unpublished Undergraduate Thesis), 2006 (College of
Business Administration, Aquinas University, Legazpi City).
Consuelo B. Estapa, Ph. D Mercedes M. Leuterio, Ph. D. Economics of Money
and Banking ( Manila Phil: UST Publishing House, 2001), p. 92

Cresencio, Leslie Gaye A., The Microfinancing program of Bicol Friendly

Savings Bank: A Case study (unpublished Thesis), 2006 (Divine Words College of
Legazpi, Legazpi City).
Ereve, Archie E.Effectiveness of the Gubat St. Anthony Cooperatives
Microfinance Program as Perceived by its Member-Borrowers in Barangay Gabigaan,
Gubat, Sorsogon (Unpublished Undergraduate Thesis), 2008 (Bicol University College
of Business, Economics and Management, Daraga, Albay).
Espartinez, Junalyn B., Monreal, Jolibee L., Credit Management Practices of
Selected Financing Institutions in Legazpi City (Unpublished Undergraduate
Thesis), 2007 (Divine Words College of Legazpi, Legazpi City).

Nao, Quiamno 30

Fajardo, Feliciano, Economics Development, (National Bookstore Inc., 1985), p.

96 City
International year of micro- credit- http// Copyright 2007, May 7. 2004

Manrique, Dennis. An Analysis of the Credit Delivery System of Simbag sa PagAsenso, Inc.-SEDP, Legazpi City (Unpublished Undergraduate Thesis), 2008 (Bicol
University College of Business, Economics and Management, Daraga, Albay).
Michelle V. Remo, Philippine Daily Inquirer- November 11, 2009

Miraflor, J.P. The Effects of Informal Lending Sectors on the Profitability of

Microbusiness Establishment in the Market Site of Daraga, Albay (Unpublished
Undergraduate Thesis), 2002 (Bicol University, Daraga, Albay).
Miranda, Gregorio S., Essentials of Money, Credit and Banking (Philippines: Land G
Business House 1998), p. 107

Nao, Quiamno 31

Moderno, Kathryn, Microfinance: Path to Poverty alleviation ,The first Annual

Undergraduate Applied Social Justice Essay , April 10 ,2010
Moral, C.C. An assessment of the Performance of SEDP, Inc. in Legazpi City
(Unpublished Undergraduate Thesis), 2008 (Bicol University, Daraga, Albay).
Neo, Maria Cristina. A Case Analysis of a Formal Microfinance Lending
Institution. (Unpublished Undergraduate Thesis), 2008 (Bicol University College of
Business, Economics and Management, Daraga, Albay).
Organizational Behavior( Human Behavior at Work) john w. Newstorm Ph. D. university
of Minnesota Duluthmc graw. Hill interbational edition, 12 th edition p. 106
Philippines Microfinance Sector high on innovation :BSP Governor, Mr. Amando M
Tetangco Jr, congratulated the microfinance sector for its robust growth(an excerpt),
Microfinance Focus, May 27, 2010
Schelzig, Karen " Poverty in the Philippines: Income, Assets and Access" Copyright 2005 Asian
Development Bank, Microfinance in the Philippines

Websters Dictionary for students.(Federal Street Press), 2007

Vat II, Gaudium et Spes No. 1

Nao, Quiamno 32


This chapter discusses the interpretation of the data gathered by the researchers
regarding the perceptions of beneficiaries on Socio-Economic Development Program
Inc. in Ligao City. The data are presented, analyzed and interpreted according to the
statement of the research problem.


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
them, monthly income and membership status.
The following tables show the data and information concerning the profile of the
respondents of the study.


Nao, Quiamno 33

Based from the results, the ages of the respondents are ranging from 26 to 61
and above.
Table 1.1
Age of the respondents
61 & Above



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.
The aforementioned ages by the respondents were important to this study to
analyze which age has the least capability to repay a loan.


Nao, Quiamno 34

According to the gathered data, the highest education of the beneficiaries which

Educational Attainment

Elementary Undergraduate
Elementary Graduate
High School Undergraduate 60
High School Graduate
College Undergraduate
College Graduate
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
microfinance could help them especially to their socio economic development.

Table 1.2
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
only graduated elementary. Only 2 of the total respondents were elementary
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
4 who took vocational.

Nao, Quiamno 35

Since majority of the beneficiaries were only elementary graduates, there is a


Frequency Perce



tendency that most of them have less

knowledge in handling the money that
institution had provided.

Table 1.3
Frequency and percentage of the civil status of the beneficiaries

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 thats why they
are being encouraged to engage in microfinance institution.

Table 1.4 Occupations

Government employee and Self-Employed
t Employee



Office Clerk



Employed y
Store Owner 73
Buy and Sell 93
Farm Owner


Nao, Quiamno 36

The occupation of the beneficiaries is divided into two groups. First is
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

Table 1.5
Number of children

9 & Above

of Frequency Percent




Nao, Quiamno 37


It was revealed in table 1.5 that there are 170 of the respondents have 3 to 5
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.
The beneficiaries prefer to engage to microfinance institution wherein they are
able to borrow money to support the needs of their children especially on their


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

P 1, 000- 3, 74
4, 000- 6999
7, 000- 9, 999
10, 000- 12, 31
13, 000- 15, 14
& 2


Nao, Quiamno 38

Table 1.6 illustrated the monthly income of the beneficiaries. It was revealed that
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
74 respondents who have only P 1, 000 to P 3, 999 monthly incomes. 68 of the
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.
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
Socio- Economic Development Program Inc.

Number of Years in SEDP Inc.

This states the number of years the beneficiaries are being part of the
Table 1.7
No. Of Years in SEDP Inc.
No. of years
10 or more





Nao, Quiamno 39

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
of them are 10 years and above in the institution.
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
Latest Loan

P 3, 000- 5, 30
6, 000- 8, 2
9, 000- 11, 127
12, 000- 14, 42


Nao, Quiamno 40

As shown on Table 1.8, there are 30 of the total respondents who have a latest
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
the total respondents having the latest loan of P 35, 000.

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




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

Nao, Quiamno 41

Program Inc. only 60 of them availed from other institutions such as Tulong sa PagUnlad, Inc. (TSPI) Center for Agriculture and Rural Development (CARD), Happy
Lending Institution, Intertrade, Agricultural and Rural Development for Catanduanes,
Inc. (ARDCI), and others.

Table 1.9.2
Other Microfinance Institutions





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 on HLIP, 6 respondents borrowed money from INTERTRADE and 3 of them
availed loans from ARDCI. There are also 7 of the total respondents borrowed from
other microfinance not stated above.

Nao, Quiamno 42


This includes the socio- economic factors that could be the reason to motivate
the beneficiaries who obtained loan from microfinance.

Table 2
Frequency, percent and ranking distribution of respondents by the SocioEconomic Factors which motivated beneficiaries from availing microfinance


Socio-Economic Factors




Additional Capital
Education of children




Long-term loan



Low percent interest loan



new 92
Renovation of House



No job

and 40


new 13








frequency, percent and ranking distribution of respondents by the socio-economic

Nao, Quiamno 43

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 money by
investing it in a proper way.


Table 3.1
Perceived gains as a businesswoman of the beneficiaries on microfinance

Perceived Gains as
a businesswoman



for a
new 92
Business Expansion
Additional capital


Business Type


Buy and Sell

Food Production




Nao, Quiamno 44


As shown in table 3.1, the perceived gains of the beneficiaries on microfinance

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
the loaned money for food production, services and others.

Nao, Quiamno 45

Table 3.2
Perceived gains on attitudes

Became more disciplined
Leaned to save
Developed self and group
Became more diligent
Became more responsible












Developed leadership skill

Learned to communicate 98
with others

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

Nao, Quiamno 46

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.
There are also benefits in the family by availing of lending institution loan. These
are determined through the responses of the respondents.

Table 3.3
Perceived gains in the family
Perceived gains in the family



Increased family income


Used for education of children



Used for renovation of house



Offered trainings
Used for construction of new 28
Used for medicines and 57





Nao, Quiamno 47

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
medicines and emergency cases on their family.
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
Negative effects of the microfinance to the beneficiaries
Negative effects
Non- cooperation of group member




Difficulty in repaying loans




Being dependent to microfinance



Slow processing of loans





Nao, Quiamno 48

As shown in table 4, majority of the beneficiaries have affected by the noncooperation 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.


This chapter presents the summary, findings and conclusions from which the
recommendations were drawn to give value to the result of the study.


Nao, Quiamno 49

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.
Specifically, the study sought answers to the following questions:
1. What is the profile of the beneficiaries in terms of:

Educational background
Civil status
Number of children
Monthly income
Respondents membership status

2. What are the socio-economic factors that motivate households on availing the
3. What are the perceived gains of the beneficiaries on availing the
4. What are the negative effects of the beneficiaries on availing the
5. What are the ways to reduce the effect of microfinance?
This study used descriptive method in determining the perception of the
beneficiaries towards the effects of the programs and practices of Socio-Economic
Development Program, Inc. in Ligao City. The researchers used questionnaires in
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.

Nao, Quiamno 50

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.
b. Educational attainment- majority of the respondents (101) were high school
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
college degree. There are also 4 respondents who took vocational.
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)

Nao, Quiamno 51

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
who have 9 children and above.
f. Monthly income- only two of the total respondents have a monthly income of P
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
monthly incomes. 68 respondents have P 7, 000 to 9, 999 monthly income, 31
respondents with P 10, 000 to P 12, 999 and 14 respondents who have P 13, 000 to 15,
999 monthly incomes.
g. Membership status- in terms of number of years they were availing of the
microfinance, majority of the respondents were 4 to 6 years as a member of the
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
loan of P 3, 000 to 5, 999 and 2 respondents having P 6, 000 to P 8, 999 loan. 42 of
them have P 12, 000 to 14, 999 latest loan and 38 respondents with P 15, 000. 6 of

Nao, Quiamno 52

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.
2. As to socio economic factors that motivated beneficiaries on availing of microfinance,
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
house. Only 10 of them were having other motivators in availing loan.
3. Perceived gains- as a business woman, majority revealed that they have used the
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

Nao, Quiamno 53

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.
4. As to negative effects of microfinance to its beneficiaries, same number of
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
was slow and 3 other effects were revealed.
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
Based on the significant findings of the study, the following conclusions are
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
whatever they are planning 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
possible effect of lending institutions to their lives. Majority of the beneficiaries
are married. They need to have a source of income in order to help and support

Nao, Quiamno 54

their families. 170 of the respondents have 3 to 5 children. By availing of

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
were 4 to 6 years availing the loan. They preferred to stay as a member of
microfinance to continuously finance their businesses. Majority of respondents
have the latest loan of 9, 000 to 11, 999. It shows that it also increases the needs
of the respondents for financial of their activities or businesses. There are 60 of
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
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.
Majority of the respondents have increased their income. By investing their
amount loans practically, they can increase their loans.
4. The same number of respondents have affected by the non cooperation of group
members and difficulty in repaying of loans.

Nao, Quiamno 55

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
can help them to lessen the effects.
1. The Socio- Economic Development Program should improve their recruitment
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
institution and will not avail from other microfinance.
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
able to repay their loaned money.
4. Problems from a various centers should be given attention by the office and
concerned persons and immediately make actions to resolve the problem.
5. Beneficiaries should be responsible enough to carry their obligations and always
prepare for weekly payments.
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
rightly and how to invest their amount loaned properly.
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
who always pay on time.

Nao, Quiamno 56

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
able to repay loans regularly.
10. Make the processing of loans faster because persons who are availing of it is
really in need of money.