CHAPTER IV

RESULTS AND DISCUSSIONS

This chapter discusses the information regarding the Calasiao Plant Cooperatives’s

Multi-Purpose Loan and identifies the effects of multi-purpose loan of Calasiao Plant

Cooperative to members’ socio-economic status based on their beliefs and perception and

thus serves as a basis to determine the necessary improvements for the betterment of the

lives of its members.

Calasiao Plant Cooperative and their Multi-Purpose Loan

This section discusses the data shared by the manager of Calasiao Plant Cooperative

about their multi-purpose loan.

As to Membership

Members comprised of employees from related companies to the Calasiao Plant

Cooperative. Members are allowed to apply relative limited to one for a membership. This

could be a child of the member, a parent or a sibling provided the age of a child must not

below 18 years old and the age of the parents and siblings must not be older than 65 years

old. The cooperative do not accept walk in membership applications nor applicants not

employed to companies related to the cooperative. The cooperative collects membership

fee.

As to Dividends

The cooperative issues dividends to its members through their contribution or share

capital in a certain percentage as to how the cooperative gained profit on its business and
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other incomes. Members receive the same percentage of dividend. The computed amount

of dividends varies because of the amount of contribution of the members.

As to Patronage Refund

With patronage refund, the members of Calasiao Plant Cooperative availing a

multi-purpose loan receives a percentage of amount from its paid interest. The percentage

varies, and minimum percentage of refund is from 20% and above.

As to Multi-Purpose Loan

The cooperative does not state how a member will be granted a multi-purpose loan

and the monetary range allowed, but their basis is the capacity of the member to pay

through its Net Disposable income. It is guaranteed that 50% of the loan is kept by the

member for his household and the other 50% may be used to pay its loan and others. It is

important to the cooperative to let its members save money from the proceeds of the 1st

50%.

As to Interest

Calasiao Plant Cooperative Multi-Purpose loan’s interest depend on how long the

member shall loan an amount. The shorter the term of loan the lower the interest and the

longer the term of the loan the higher the interest. As the term of the loan prolongs, the

higher is the interest. The minimum interest is .0968% for 1 year. The term of the loan

depends on the arrangement of the cooperative and the member.

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As to Contributions

The members give monthly contributions to the cooperative through the

cooperative's tie up with related companies. There is an agreement within each plant and

employees who are members whom signed and are aware of their contributions through

payroll deduction. The deduction will depend on how the member can pay for the

contribution and will serve as his savings in the cooperative. In agreement with the

member, weighing its capacity to pay and its salary, monthly contribution will be

determined. Each member has its capacity to state its contribution, but required minimum

amount of contribution is P400 per month. With this, employees do not need to directly

pay to the cooperative, instead the company belonged to are obliged to turn over the

deducted contributions.

As to Cost of Capital

The cooperative prioritize share capital as its way of financing. Seeking members

with high capacity to pay and has a high contribution to the cooperative to have an

additional contribution in terms of capitalization is the first step they consider in order to

increase its cost of capital. The cooperative shall first ask its members rather than to easily

outsource to other institutions. Some members who received high amount of separation

pay invest their money in the cooperative according to Ma’am Merly F. Molinar, Calasiao

Plant Cooperative Manager.

As to those who do not know about the multi-purpose loan, the cooperative

employees like Ma’am Merly visits members in their plants to inform them about the loans

offered by the cooperative. They do cascading and seminars. The cooperative do safety
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measures before visiting plants such as informing the Human Resource Manager of the

plant to ask permission on their conduct on giving information to its members. Calasiao

Plant Cooperative sees it members as equal regardless of their position in the company and

contribution.

Profile of the Members of Calasiao Plant Cooperative who Availed Multi-Purpose

Loan

This section presents the profile of the members of Calasiao Plant Cooperative who

availed multi-purpose loan in terms of age, gender, occupation and years as members.

Frequency counts and percentage method was used.

Profile of the respondents as to Age

Table 1 shown below presents the profile of the respondents as to age categories. It

is found out that respondents equivalent to 40% are 35-42 years old, 5% are 18-26 years

old, 35% are 27-34 years old and 18.33% are 45-51 years old. Generally, the age of workers

in the plant is 35-42 years old. It is because the people within this age are the most

experienced in labor extensive work compared to younger people who are more focused in

office and technology work.

Table 1
Profile of the respondents as to age
N=60
Age Frequency Percentage
18-26 y/o 3 5%
27-34 y/o 21 35%
35-42 y/o 24 40%
45-51 y/o 11 18.33%
52 and above 1 1.67%
Total: 60 100%
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Profile of the respondents as to Gender

Table 2 shows the profile of the respondents as to gender categories. It is found out

that 36 or 60% of the respondent are male and the rest are female. Majority are male

because the main work done in the plant requires extensive labor and they have more

strength compared to a female.

Table 2
Profile of the respondents as to Gender
N=60
Gender Frequency Percentage
Male 36 60%
Female 24 40%
Total 60 100%

Profile of the respondents as to Years as Memer

Table 3 shows that most of the respondents are members of the Calasiao Plant

Cooperative for 7-9 years with a rating of 36.67% and only 8.33 % of the respondents are

member of the cooperative for less than a year. Most of the members stayed for 7-9 years

because of the benefits they earned from the cooperative (ex. Low interest on loans, helped

provide education for families).

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Table 3
Profile of the Respondents as to their Years as Member
N=60

Years as members Frequency Percentage

Less than 1 year 5 8.33%
1-3 years 8 13.33%
3-6 years 21 35%
7-9 years 22 36.67%
10 years and above 4 6.67%
Total: 60 100%

Effects of Multi-purpose Loan to the Members of Calasiao Plant Cooperative

This section presents the effects of multi-purpose loan to the members of Calasiao

Plant Cooperative in terms of social status and economic growth. Social Status is an

economic and sociological combined total measure of a person’s work experience and of

an individual’s or family’s economic and social position in relation to others, based on

household income, earner’s education, and occupation are examined, as well as combined

income, whereas for an individual’s status only their own attributes are assessed. However,

social status is more commonly used to depict an economic difference in society as a whole.

It is typically broken into three levels such as high, middle and low class.

Economic Growth is an increase in the production of economic of goods and

services, compared from one period of time to another. Traditionally, aggregate economic

growth is measured in terms of gross national product (GNP) or gross domestic product

(GDP).

Using a simple random sampling which is best to give every member chance to

participate in the research. The researcher started surveying with a quick interview to the

members of Calasiao Plant Cooperative requesting them for a permission. 60 respondents

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were surveyed and interviewed for a week of staying in the cooperative during office hours.

Members were selected randomly while they visit the Calasiao Plant Cooperative for some

matters.

Frequency Distribution of the benefit of Calasiao Plant Cooperative multi-purpose

loan as to Social Status of the member

Table 4 presents the responses of the respondents on the benefits of Calasiao Plant

Cooperative multi-purpose loan as to their social status growth with an overall mean rating

of 3.80 or with a descriptive rating of favorable. It shows the responses of the selected

members of Calasiao Plant Cooperative who agreed to be surveyed and be guided by the

researchers who visited the cooperative and monitor the questionnaire.

Based on the findings presented in Social Status Assessment, having the highest

weighted mean of 4.10 or highly favorable, the multi-purpose loan helped respondents

gained positive feedback from community and 60% of the respondents agreed that the

multipurpose loan given by the Calasiao Plant Cooperative allowed them gained positive

feedback from the community and it also provided help to gain respect in the society.

According to Merly f. Molinar, Calasiao Plant Cooperative manager, with the multi-

purpose loan, they are able to finance their needs especially education and housing which

today is an important matter in the eye of the society.

Forty percent (40%) of the respondents agreed that multi-purpose loan helped them

provide their family a quality education and 50% of them also agreed that it was used to

secure their career in the future. Both were described as favorable effect of the multi-

purpose loan to the members responded.

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Table 4
Frequency Distribution of the benefit of Calasiao Plant Cooperative multi-purpose loan
as to Social Status of the member
N=60
Social Status Aspect 5 4 3 2 1 WM DE
Helps provide family a quality 18 24 9 2 7
education (90) (96) (27) (4) (7) 3.73 F
12 22 21 2 3
Provide higher class of housing (60) (88) (63) (4) (3) 3.63 F
Increase range participation with 13 18 18 6 5
other organizations (65) (72) (54) (12) (5) 3.47 F
Provide accessibility to members of 12 24 24 0 0
capital extensive requirements. (60) (69) (72) (0) (0) 3.80 F
Provide security for career in the 12 30 12 6 0
future (60) (120) (36) (12) (0) 3.80 F
Gained positive feedback from 18 36 0 6 0
community (90) (144) (0) (12) (0) 4.10 HF
Provide help to gain respect in the 24 18 18 0 0
society (120) (72) (54) (0) (0) 4.10 HF
Overall Mean: 3.80 F
Legend: (5) 4.01-5.00 highly favorable (4) 3.01-4.00 favorable
(3) 2.01-3.00 neutral (2) 1.01-2.00 unfavorable (1) 0-1.00 highly unfavorable

According to Wilson Majee and Ann Hoyt (2011) cited in Cooperatives and

Community Development: The study suggested that cooperatives may be an option that

lifts groups, rather than individuals out of poverty as a result of their ability to create social

capital for the cooperative members. Through training and interaction, members acquire

skills that increase their ability to work, confidence and participation in business and social

activities, it also provided an opportunity for all members to do well to the extent that they

participate in the cooperative.

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Frequency Distribution of the benefit of Calasiao Plant Cooperative multi-purpose

loan as to Economic Growth of the member

Table 5 presents the responses of the respondents on the benefits of Calasiao Plant

Cooperative multi-purpose loan as to their economic growth with an overall mean rating

of 4.50 or with a descriptive rating of highly favorable.

Based on the graph presented in Economic Growth Assessment, 70% strongly agree

and 30% agreed that multipurpose loan helped finance their family needs which resulted

to a highest computed weighted mean of 4.7 or with a descriptive rating of highly favorable.

60% strongly agreed and 40% agreed that it helped them got engaged in business and other

sources of income which resulted to a 4.6 weighted mean. 50% strongly agreed and 50%

agreed that it helped them avoid bank loans, same with having reasonable credit and

interest which had a 4.46 weighted mean. 70% also agreed that it helped them lessened

their current debt having a 4.2 weighted mean which is still highly favorable.

Table 5
Frequency Distribution of the benefit of Calasiao Plant Cooperative multi-purpose loan
as to Economic Growth of the member
N=60
Economic Growth Assessment 5 4 3 2 1 WE DE
36 18 6 0 0
Increase thrift and savings (180) (72) (18) (0) (0) 4.50 HF
Help engage in business and provide 36 24 0 0 0
alternative source of income (144) (96) (0) (0) (0) 4.60 HF
42 18 0 0 0
Help finance family needs (210) (72) (0) (0) (0) 4.70 HF
30 30 0 0 0
Helps avoid loans to bank (150) (120) (0) (0) (0) 4.50 HF
Provides reasonable credit term and 30 30 0 0 0
interest rate (150) (120) (0) (0) (0) 4.50 HF
The loan availed met necessary 30 30 0 0 0
expenditures (150) (120) (0) (0) (0) 4.50 HF
6 42 12 0 0
Lessened current debt (30) (168) (36) (0) (0) 3.90 HF
Overall Mean: 60 4.46 HF
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Legend: (5) 4.01-5.00 highly favorable (4) 3.01-4.00 favorable

(3) 2.01-3.00 neutral (2) 1.01-2.00 unfavorable (1) 0-1.00 highly unfavorable

According to Ivana Catturani and Leanne Cutcher 2015 that financial credit co-

operatives are institutions whose members combine their deposits to create a local loan

pool. Members benefit from shared standard of reciprocity in this model of savings and

loans that is underpinned by the notion of mutuality. Financial co-operatives based on the

nineteenth century Raiffeisen principles of limitless liability and bonds of association can

be found in over 100 countries across the globe. Financial co-operatives all share a belief

that people have the right to affordable, reliable and accessible financial services. Catturani

and Cutcher added that financial credit cooperatives pool their members' savings deposits

and shares to finance their own loan portfolios rather than rely on outside capital. Members

benefit from the fact that any surpluses are returned to the members in the form of higher

returns on savings, lower rates on loans.

Significant Difference between the Effects of Multi-Purpose loan to the Members of

Calasiao Plant Cooperative along with their Profile

This section presents the significant difference between the effects of multi-purpose

loan to the members of Calasiao Plant Cooperative along with their profile with the use of

Chi-Distribution Test.
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Chi-Distribution of the Significant Difference between the Effects of Multi-Purpose

loan to the Members of Calasiao Plant Cooperative along with their Profile as to

Table 6 shows the tabulated value at 0.05 level of significance is 79.08 and the computed

chi-square value in terms of social status is 84.88 which is higher. Therefore, the hypothesis that

there is significant effect of the respondent age as to their social status benefits from the

multipurpose loan is rejected. Same with their Economic Growth benefits which is 151.78, there is

no significant difference of the respondents age as to their economic growth benefits.

Table 6
Chi-Distribution of the Significant Difference between the Effects of Multi-Purpose loan
to the Members of Calasiao Plant Cooperative along with their Profile as to Age
N = 60

Computed Df Tabulated Value at Decision

Chi-Square 0.05 level of
Value significance

Social Status 84.88 59 79.08 Reject the Hypothesis

Economic Growth 151.78 59 79.08 Reject the Hypothesis

Chi-Distribution of the Significant Difference between the Effects of Multi-Purpose

loan to the Members of Calasiao Plant Cooperative along with their Profile as to

Table 7 shows the tabulated value at 0.05 level of significance is 79.08 and the computed

chi-square value in terms of social status is .95 which is lower. Therefore, the hypothesis that there

is significant effect of the respondent Gender as to their social status benefits from the multipurpose

loan is accepted. Since, their Economic Growth computed Chi-Square Value is 550.76, there is no

significant difference of the respondents gender as to their economic growth benefits.

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Table 7
Chi-Distribution of the Significant Difference between the Effects of Multi-Purpose loan
to the Members of Calasiao Plant Cooperative along with their Profile as to Gender
N = 60

Computed Df Tabulated Value at Decision

Chi-Square 0.05 level of
Value significance

Social Status 0.95 59 79.08 Accept the

Hypothesis
Economic Growth 550.76 59 79.08 Reject the Hypothesis

Chi-Distribution of the Significant Difference between the Effects of Multi-Purpose

loan to the Members of Calasiao Plant Cooperative along with their Profile as to
Years as members

Table 8 shows the tabulated value at 0.05 level of significance is 79.08 and the computed

chi-square value in terms of social status is 84.88 which is higher. Therefore, the hypothesis that

there is significant effect of the respondent age as to their social status benefits from the

multipurpose loan is rejected. Same with their Economic Growth benefits which is 151.78, there is

no significant difference of the respondents age as to their economic growth benefits.

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Table 8
Chi-Distribution of the Significant Difference between the Effects of Multi-Purpose loan
to the Members of Calasiao Plant Cooperative along with their Profile as to Years as
members
N = 60

Computed Df Tabulated Value at Decision

Chi-Square 0.05 level of
Value significance

Social Status 84.88 59 79.08 Reject the Hypothesis

Economic Growth 151.78 59 79.08 Reject the Hypothesis

Recommended Measures/Interventions to Improve the Utilization of Multipurpose

Loan of Members of Calasiao Plant Cooperatives

This section presents the proposed measures/interventions can be recommended to

improve the utilization of multipurpose loan of members of Calasiao Plant Cooperatives

and improve their socio-economic status. The researchers had prepared a brochure which

will be used by the cooperative to inform its members:

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