CENTRE FOR SELF-HELP DEVELOPMENT

Institute of micro-finance and cooperative development.

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MFIs play pivotal role in microenterprise development - An exposure visit experience of the Philippines

The team observed that all the members are borrowers and strictly followed the basic fundamental of microfinance like conducting weekly meeting, implementing credit plus activities, providing health and crop insurance, health and sanitation awareness programs. The clients were found to be loyal to their mother institutions and did not feel the need to avail loans from other institutions. MFIs also provide loan according to member's requirement. Minimum loan size is 7,000 Peso, maximum is 1,50,000 Peso and average loan is 10,000 Peso. Moreover, MFIs in Philippines are not-for-profit organization where whatsoever profit is made is ultimately used in the capital building of the organization and for the welfare and development of their respective clients. Members are also represented in the board of their institution. All the staffs, from top to bottom level were found to be wholly committed for the well-being of their organization.

The team had an opportunity to visit head office of ASA Philippines Foundation, Inc and its branch office in Metro Manila. Mr. Kamrul H. Tarafder, President and CEO of ASA briefed on the program and policy of ASA's microfinance practice. The team viewed that ASA is a not-for-profit and self-sustained organization (NGO). ASA used to issue Corporate Bonds for fund raising to meet additional fund requirement. The target group of ASA are those families living on below USD 2 per day.

The team visited ASA's branch office which was established on Sept. 13, 2004 and currently serving 1,977 members of 75 centers. The team also visited one of the center meetings of the branch in Gabato Residence. The centre was in operation since nine years and comprised of 30 members. An interesting feature was that the center meeting started with life lesson and every week different topics were discussed on. The center had a total outstanding loan 637,000 Peso and saving mobilization 361,830 Peso.

During the visit, the team also visited the branch and head office of KMBI. In KMBI, there are two units in every branch and seven field staffs in each unit. Each field staff has to look after 2 centers daily and 10 centre in a week. There were 3,600 members and 120 centers in the branch. The centre status is displayed on the notice board with the smiling face of members indicating a good center and a sad face for poorly performing center. The team also grabbed the opportunity to visit one of the center meetings of the branch at Bernardino St. Ugong and visited the businesses of two borrowers.

The team visited Ahon Sa Hirap Inc. (ASHI) branch at Rizal Cogeo Markina where they were briefed by Ms. Deserie Gota and by Vice President Ms. Estrella S. Andres about microfinance activities of ASHI. ASHI was established in 1989. The term Hirap means rise from poverty. It is the first institution to replicate the Grameen model in the Philippines. However, It faced repayment and funding crisis in 1992-1994 and underwent a rehabilitation process in 1994. This event caused them to set strategies for growth to reach operational viability by 2000. ASHI now stands as a self-reliant institution and has been providing microfinance service to 74,855 members of destitute families through 60 branches, 14 area offices, 2,540 centers in 9 provinces of the Philippines with the help of 607 staff of which 74% are field staff. They also reiterate that they help farmers to link their products with related industries to flourish agriculture in the country.

The team members of the visit were: Mr. Tara Prasad Sanjel, Chairman and  Mr. Ishwor Prasad  Bhattarai, Senior Department Chief of Sahara Nepal SACCOS Ltd.; Ms. Shanti Devi Dhakal, Chairman and Ms. Laxmi KC, Supervisor of Upakar Laghubitta Bittiya Sanstha Ltd.; Mr. Santosh Phuyal, Board Member of Mirmire Laghubitta Bittiya Sanstha Ltd.; Mr. Dinesh Katuwal, Department Chief of Nerude Laghubitta Bittiya Sanstha Ltd.; Mr. Bishwo Shrestha, Secretary and Mr. Diwas Dhakal, Chief Manager of Shreejana Development Centre; Ms. Kamala Choudhary, Board Member and Ms. Mira Choudhary, Senior Officer of Grameen Mahila Utthan Kendra; and Ms. Renuka Kumari Poudel, Secretary of Grameen Swayamsewak Laghubitta Bittiya Sanstha Ltd. The team was led by Mr. Bechan Giri, Executive Chief of Centre for Self-help Development and was guided and supported by MCPI staffs throughout the visit period.

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