Pursuant to the mandates stipulated in Title II of Republic Act 8425, the National Anti-Poverty Commission, through the Microfinance Unit (MFU), works toward the development of an enabling policy environment for the microfinance industry and ensure that microfinance services reach their target clientele -- the poor. The MFU was created as a separate unit of the NAPC Secretariat in June 2004 by virtue of Special Order No. 2004-22. Since then the Unit has made remarkable gains in the monitoring, policy review, gender mainstreaming, replication of best practices and educating the poor in microfinance.

NAPC’s Thrusts and Functions in Microfinance:

RA 8425 confers the following thrusts and functions of NAPC towards the development of the microfinance sector:

• Development of a policy environment, especially in the area of savings generation
  
• Rationalization of existing government programs for credit/guarantee
  
• Utilization of existing government financial entities for provision of MF products/ and services for the poor
  
• Promotion of mechanisms necessary for implementation of MF services, including indigenous MF practices

The law also mandates NAPC to monitor the utilization of the People’s Development Trust Fund (PDTF) and perform the following activities:

• Source funds for the establishment of/and augmentation of PDTF
  
• Recommend the accreditation of organizations/institutions acting as resource partners for institutional development
  
• Ensure that validation/monitoring activities are conducted for PDTF-funded projects
  
• Promote research and development work on livelihood & MF technology, publications/communications programs for poor beneficiaries