Casigayan Microfinance: A Feasible Project for the Poor Families of Northern Philippines

Abstract

One of the major socio-economic problems besetting the Philippine Economyis the widespread poverty. Based on the Family Income and Expenditure Survey(FIES), there are 4.7 million poor Filipino households translated to povertyincidence of 35.7%. Urban poverty incidence was 28.8%, while rural povertyincidence was 53.7%. This study determined the feasibility of establishing an economic program on Thrift and Savings scheme to households and individuals earning at least or below the standard wage either on daily basis, contractual,commission or seasonal. It assessed the possibility of developing microfinancewithin the marginalized sector as a self-help institution to provide financial assistance among themselves. Adopting a model on microfinance establishment, the study has identified respondents who have no stable job or permanent sourceof income. Policies on membership were strictly followed including savings, loans,and collection. Microfinance was set with agreed minimal regular savings and wasmaintained and pooled. Loans with minimal interest were granted. Trainings,workshops, and regular meetings were conducted. The study concludes that theestablishment of microfinance in the area was very feasible.Keywords: Business, Casigayan Microfinance, ingenuity, economic uplift, descriptivedesign, Kalinga-Apayao, Philippines