Low-income households will be supported by more microfinance non-government organizations (MFI NGOs) with the signing of the Implementing Rules and Regulations (IRR) for Republic Act 10693 or the Microfinance NGOs Act.
“This law will encourage more MFI NGOs to help the poor through loans and training,” said Sen. Bam Aquino, who pushed for the law’s passage in the Senate as co-author and principal sponsor.
MFI NGOs give Filipinos access to low-interest, no collateral loans to pay for housing, medical, and educational needs as well as loans for small businesses.
“MFI NGOs aid our poor countrymen in times of inflation and price increases. They also provide financing and training for livelihood and small businesses so families can overcome poverty,” he added.
In 2013, MFI NGO members of the Microfinance Council of the Philippines, Inc. (MCPI) had a gross loan portfolio of over 15.26 billion pesos catering to more than 2.7 million micro-entrepreneurs.
According to Sen. Bam, the law incentivizes microfinance NGOs to continue helping Filipinos overcome poverty not just through financing but also through financial literacy, livelihood, and entrepreneurship training.
The law provides microfinance NGOs needed support and incentives that includes access to government programs and projects, technical assistance and exemption from taxes.
Republic Act 10693 was one of Sen. Bam’s 16 laws in the 16th Congress. It was passed under his watch as chairman of the Committee on Trade, Commerce and Entrepreneurship.
The law’s IRR is set to be signed today, August 16, 2016.