FREQUENTLY
ASKED QUESTIONS |
- What is Microfinance?
Microfinance is a credit and savings mobilization program for
poor households that will help improve their asset base and expand
their access to savings. It involves the use of alternative credit
schemes and savings programs such as extension of collateral free
small loans (ranging from Php 1,000 to Php 150,000), simplified
loan application procedures, and minimum requirements for savings.
- Who are the clients of microfinance?
The clients of microfinance are the entrepreneurial poor, most
of them are low-income women who are self-employed and home-based
entrepreneurs.
- What is microfinance plus plus?
To sustain the gains of microfinance, several trainings are included
with the provision of credit. Since clients are primarily women,
modules on gender empowerment, women’s health, and responsible
parenthood are included. This kind of package is called microfinance
plus plus.
- How does microfinance help the poor?
If provided on a sustainable basis, microfinance has been proven
to help build viable businesses, increase income, and reduce vulnerability
to external shocks. It can also be a powerful instrument for self-empowerment
by enabling the poor, especially women to become economic and
social agents of change.
- What is a Microfinance Institution (MFI)?
Quite simply, a microfinance institution is an organization that
offers financial services to the very poor. MFIs are non-government
organizations, rural/thrift banks and cooperatives committed to
assisting low income households.
- What is the People’s Development Trust Fund (PDTF)?
It is a fund intended for developing and strengthening the capacities
of MFIs in order to become viable and sustainable, thus widening
outreach and providing quality products and services.
- What is the People’s Credit and Finance Corporation
(PCFC)?
PCFC is the government’s arm providing wholesale microfinance
funds and lends to the retailers of microfinance who are the microfinance
institutions.
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