Microfinance Council of the Philippines

Bam: MFI NGOs provide lower-interest, no-collateral loans to poor, micro-businesses

Rather than be burdened by high-interest loans collected by loan sharks and other informal lenders, Sen. Bam Aquino encouraged the public to approach m​icrofinance non-government organizations (​MFI ​NGOs) for lower-interest and no-collateral financing.

“Madali nga ang proseso ng pangungutang sa 5-6 subalit pinapatay naman tayo sa laki ng interes sa kanilang mga pautang,” said Sen. Bam.

 “Upang hindi na tayo mabigatan sa malaking interes, subukan nating lumapit sa mga MFI NGOs sa iba’t ibang bahagi ng bansa na nagbibigay ng pautang sa mas mababang interes at walang kolateral,” added Sen. Bam.

Sen. Bam explained that some micro-business owners were forced to close shop due to the high interest being collected by loan sharks. But businesses flourished after obtaining loans and undergoing training from different MFI NGOs in the country.

 “Huwag sayangin ang kita sa malaking interes na sinisingil ng 5-6,” said Sen. Bam.

 Aside from low-interest loans, MFI NGOs also provide clients with trainings and other business development skills that they can use to grow their livelihood. MFI NGOs also help in community organizing and values formation and offer other services like insurance and education and health-related loans to their regular clients.

Before he was elected as senator, Sen. Bam worked with MFI NGOs as a social entrepreneur.

During his term as chairman of the Committee on Trade, Commerce and Entrepreneurship in the 16th Congress, Sen. Bam sponsored and co-authored Republic Act 10693 or the Microfinance NGOs Act to ensure MFI NGOs continue to operate and serve poor Filipino communities.

 Sen. Bam said the MFI NGOs Act will help eradicate 5-6 by giving Filipinos an alternative means to obtain low-interest, no-collateral loans.

Republic Act 10693 gives incentives to MFI NGOs to continue helping Filipinos overcome poverty not just through financing but also through financial literacy, livelihood, and entrepreneurship training.

The law also provides MFI NGOs needed support and incentives that includes access to government programs and projects, technical assistance and exemption from taxes.

 In addition to the MFI NGOs Act, Sen. Bam will be looking into other measures where government can further support the MFI sector.

 Microfinance NGOs have been operating in the country since 1986. According to latest data, MFI NGO members of the Microfinance Council of the Philippines, Inc. (MCPI) have five million active borrowers.

 For a full list of MFI NGOs in the country, please visit http://www. microfinancecouncil.org/ regular-members/.

Bam: Boost MFI NGOs to beef up campaign vs loan sharks

While it aggressively pursues abusive loan sharks, the government must also strengthen the country’s microfinance institutions (MFI) to help address the financing needs of the poor, according to Sen. Bam Aquino.

“As author of the Microfinance NGOs Act, we are supportive of eradicating 5-6 in the Philippines,” said Sen. Bam, referring to Republic Act 10693, which he pushed as co-author and principal sponsor during his term as chairman of Committee on Trade, Commerce and Entrepreneurship in the 16th Congress.

 The senator pointed out there are better alternatives to 5-6, like MFIs NGOs that provide alternative low-interest, no-collateral financing to the poor and would-be entrepreneurs who need loan to start their own business.

 “There are better alternatives to 5-6, whether these are government programs, or led by the private sector. Mas magandang masuportahan ang mga grupo at programang ito na regulated ng goberyno na makapagbibigay rin ng pautang na hindi kasintaas ng mga 5-6 ang interes,” he added.

 Sen. Bam called on the BIR to finalize tax regulation for MFI-NGOs for the law to be fully implemented and fulfill its mandate to give the poor low-interest financing.

 Microfinance NGOs provide Filipinos access to low-interest, no collateral loans to pay for housing, medical, and educational needs as well as loans for small businesses.

 Republic Act 10693 gives incentives to microfinance NGOs to continue helping Filipinos overcome poverty not just through financing but also through financial literacy, livelihood, and entrepreneurship training.

The law also provides microfinance NGOs needed support and incentives that includes access to government programs and projects, technical assistance and exemption from taxes.

 “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 said.

 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.

 At the same time, Sen. Bam called on concerned government agencies to expedite the release of the implementing rules and regulations for Republic Act 10744 or the Credit Surety Fund Act.

 Aquino, author and sponsor of the measure’s Senate version, said it will institutionalize the CSF program of the Bangko Sentral ng Pilipinas (BSP), which addresses loan requirements ranging from P200,000 to P5 million.

 

Bam: More support for poor Filipino families ​through Microfinance NGOs

Low-income households will be supported by more m​icrofinance 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​ NGO​s 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.
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