Content

Basic Information
Rationale
Objectives
Methodology
Budgetary Requirements
Business Title:
RICS Micro-Finance
Type of Business:
Lending
Business Proponent:
RICS Partnership
Address:
P-3 Justiniana Edera, San Jose, Dinagat Islands
Contact Person:
Riza A. Dano
Cellular Phone Number:
09103986027
E-mail Address:
riza_dano@ymail.com
Business Beneficiaries:
DJEMFCST Students
Date of Implementation:
June 1, 2014
Area of Implementation:
P-3 Justiniana Edera, San Jose, Dinagat Islands
Budget Requirement:
Php 50, 000.00
Source of Fund (Partners Contribution):
Php 12, 500.00
I. RATIONALE

RICS Micro-Finance is a partnership of four (4) BSAT students in Don

Jose Ecleo Memorial Foundation College of Science and Technology. This
partnership was formed to help the financial needs of the students in
DJEMFCST.

It’s a day to day hassle of every student to find an alternative

solution if their parents failed to send their allowances and tuition fee on
time.

In that case, RICS Micro-Finance serves as a God given gift because

it provides the needs of those students who don’t have enough money to
pay their tuition fees or other miscellaneous fees. It also gives the students a
very accessible and comfortable way to solve their financial problem.

Thus, RICS Micro-Finance find ways to help the students about their
financial problem since it only gives a lower interest rate than those other
lending firms.
II. OBJECTIVES

To help the students in their financial needs.

Provides the best alternative to the students about

their financial problem.

Provide comfort to the students that the interest is

lower than those other lending firms.
III. METHODOLOGY

RICS Micro-Finance is a lending business of the four (4) students.

This is a secured credit since it requires collateral from the debtor. It offers a
maximum loan of two thousand pesos only (Php 2,000.00) with an interest
rate of four percent (4%) per month. The duration of the loan would depend
upon the agreement between the debtor and creditor. The payment would
be an installment basis. It could be daily, weekly, or monthly.

If the debtor failed to pay the said amount on the exact date of
payment, RICS Micro-Finance has a sanction for them. They should pay a
penalty or surcharge intended for the amount he failed to pay.

For instance, if the debtor has a loan worth of two thousand pesos
(Php 2,000.00); the duration of the loan is good for two months; and the
agreement for installment basis is weekly, his weekly payment would be two
hundred seventy pesos only (Php 270.00). If ever, the debtor failed to pay for
the next collection period, he must be given a surcharge of ten pesos (Php
10.00) which is equivalent to four percent of his weekly installment payment.
IV. BUDGETARY REQUIREMENT
No. Description Amount Needed

1 Pre-operating Expenses (Office Supplies) Php 2,000.00

2 Transportation Php 1,000.00

3 Miscellaneous Expense Php 1,000.00

4 Micro-Finance Capital Php 45,000.00

5 Snacks and Refreshments Php 1,000.00

Total Amount Needed Php 50,000.00

• Sample Computation
– Php 2,000.00 loan good for 2 months
• Weekly Installment Payment

Description Amount
Weekly payment for the principal amount Php 250.00
((Php 2,000.00/2)/4)
Weekly interest Rate ((Php 2,000.00*4%)/4) Php 20.00
Total Weekly Payment Php 270.00
 – Php 2,000.00 loan good for 2 months
• Weekly Installment Payment with surcharge

Description Amount
Weekly payment for the principal amount ((Php Php 250.00
2,000.00/2)/4)
Weekly interest Rate ((Php 2,000.00*4%)/4) Php 20.00
Surcharge for 1 week (((Php 2,000.00/2)/4)*4%) Php 10.00
Total Weekly Payment Php 280.00
 – Projected Income

Description Monthly Annual Monthly Annual

Income Income Individual Individual
Profit Profit
50% of the Capital Amount Php 900 Php 10,800 Php 225 Php 2,700
(Php 22,500.00*4%)