Microfinancing is the answer to enhance a small or micro enterprises. It is lending of small amount to micro entrepreneurs or businessman. So what is the difference between ordinary loans to banks and microfinancing? First of all there is no collateral involved. The only requirement for assurance is the signature of four friends or acquaintance. Because of this the loan has a sharing responsibility, the signatories are responsible so the spirit of “bayanihan” becomes stronger.
According to the Monetary Board Resolution no. 40, the microfinancing loans is a “small unsecured loans” without collateral needed. The small loans are amounting to Php 2,000 to Php 5,000 and not more than php 150,000. This can be paid daily , weekly, bi-monthly or monthly. The interest will be not lower than the market rate and should be fare. Those who want to start a business but have no capital can borrow from selected banks and institutions.
Here are some of the details of micro financing:
A microfinance loan are used to fund many kinds of businesses. This can be used as a capital for a sari-sari store or buy and sell business. It can also be used to fund handicraft or small manufacturing business like basket making or rug making. Service oriented business can also be considered like barber shop, beauty parlor, repair shop or laundry shop.
The first thing to consider in micro financing is the kind of business to start. The entrepreneur should have a passion or at least a commitment to the type of business he is undertaking. And also the business should be suitable to the location. The second thing to consider are the conditions of the microfinancing institutions. Study their terms very well and consider if the type of business can cope up with their terms.
If you are interested or want to coordinate to a microfinancing institution, you can contact below:
CENTER FOR COMMUNITY TRANSFORMATION (CCT)
Contact Person: Ruth S. Callante, President
Address: 5/F Joshua Center, 1428 Taft Ave., Ermita, Manila
Phone: (623) 524-1819/524-1810/524-1835
Fax: (632) 400-6909/524-1809
Email: ho@cct.org.ph
Website: www.cct.org.ph
Source: Francisco j. Colayco – Masigasig
[tag]micro finance,CCT[/tag]
Posted by Manuel
Manuel Montala was an online entrepreneur who enjoys blogging about entrepreneurship and gathering information for his blog to help budding entrepreneurs. You can also reach him on twitter: http://twitter.com/mmontala
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{ 8 comments… read them below or add one }
ganda po ng program nyopo sana may evening show din po kau favor lang po ask ko lang kung san yung office ng abs-cbn na nag papautang pang capital para sa negosyo.yung micro finance po thanks GODBLESS AND moRE POwer
Sorry po. Hindi po ako connected sa ABS-CBN at KSNS.
good day po! how to avail po ba ng microfinancing loan? may sari-sari store na po ako pero gusto ko po ng additional na mapagkakakitaan, balak po sana kasi ng husband ko na mag duck raising paano po ba ako makaka avail, ano po ba ang mga requirements?
ano ano po b ang mga requirements para mg apply ng micro finance ?
@arceli fesalbon
@Jimmy Uy
Hello, I’m not sure about the requirements of applying for the micro finance but yo can contact CENTER FOR COMMUNITY TRANSFORMATION. See above post for details.
hi…your posting is quiet interesting and full of rich details, though this information have been redundant on all tv station talking topics about how to get through this financial crisis times which we are all encourage to get into business. but as encouraging it may sound you are right that to get involve to any loan such as from an microfinancing is a big responsibililty. but as they have said i takes a small step to get you somewhere, so get started in a small business then from there learn from your self if you have to be a businessman or woman.
Good day po. m from San Carlos City, Negros Occidental.
I’m interested to attend seminar on Junk Shop Operation,Micro Lending and Jewelry Appraisal and pawnshop Operation, I’d like to ask if you conduct seminars closer to us like Cebu or Bacolod. Manila is too far for me, I can’t leave my business for a long time.
thank you and more power!
@Riza C. Yap
As far as I know there is only one venue, their usual venue in San Juan City.
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