Assessment on the Quality & Welfare

of the Financial Products and Services

Provided by the Microfinance
Institutions to their Clientele
Celada, Rey Anthony R. Palce, Ma. Vina B.
Lacdao, Ma. Victoria A. Pombo, Vanessa Jane O.
Palada, Jean Claudine P. Tabay, Andrew Francis A.
Ms. Katherine Añosa Researchers
Adviser
 Ambe Shu & Oney ( 2014) BSP (2013)

“Microfinance Institutions (MFIs) “The Philippines still has a long

have become the answer to those
who cannot benefit from the
financial services of the public
banks”
way to go in its journey towards
financial inclusion, which can
be reckoned in terms of the
following: access, usage,
quality, and welfare”

Microfinance council of the Philippines (2012)

“The Philippines “The potential clients NSCB

passed as one of of MFIs appeared to Eastern Samar
Southeast Asia’s more have been saturated Rank 4
mature microfinance in most municipalities 45.8 poverty incidence
sectors” of Negros Island and
Eastern Samar”
RESEAR PROBLE
CH Ms Perception of the clients of
microfinance institutions
Socio-economic PROFILE towards the
quality welfare
 HOUSEHOLD
SIZE Of their
 EDUCATIONAL financial
ATTAINMENT products/servic
 SOURCE OF es
Significant
INCOME association
 ESTIMATED
financial
MONTHLY problems
products/services
FAMILY INCOME accessing using

usage
CONCEPTU
framework
AL

Independent VARIABLES Dependent variables

Socio-economic Profile of the Clients

 Household Size Quality & Welfare
 Educational Attainment
 Source of Income of the Financial
 Estimated Monthly Family Income Products/Services
Provided by the
Microfinance
Financial Products/Services
Availed by the Clients from the
Institutions to their
Microfinance Institutions Clientele
RESEAR METH RESEAR
CH OD descriptive-correlational
CH
Cross-sectional survey design
Borongan City
120 respondents
Clients of MFI
Fraenkel, Wallen, & Hyun (2012)
Random sample
Camada
Self-structured questionnaire
Baybay 1
Bato

Balud
Frequency & Percentage Distribution
Tabunan
Measures of Central & Variability
Bugas Chi-square Test of Independence
 profile

Household Size
Source of income
01 4 to 6 30.8%
Small business
RESULT

Mean = 5
51.7%
S

Estimated monthly
Educational family income
attainment
P1,000-P6,000
HIGH SCHOOL 48.3%
GRADUATE Mean = P8,618.52
45.0%
RESULTS02 access

Agri & fisheries loan Educational assistance

Asset loan savings 11.7%

1.7%
31.7
% 85
.8
0.8% 80 % 66.7
%
Emergency
loan
%
insurance

Commercial loan

Financial products Financial services

RESULTS03 usage
Commercial loan Agricultural & fisheries loan
Business establishment 4 poultry farming 1
Business expansion 9 crop production 1
Business working capital 63 fisheries 3
Payment of debt 7 Educational assistance
Emergency loan primary education 9
Rehabilitation activities 1 secondary education 19
Asset loan tertiary education 12
Home improvement/acquisition 36 insurance
land 1 Life 48
vehicles 9 Health 27
appliances 1 Disability 1
gadgets 4 Business 3
Other use savings
Daily consumption of basic needs 8 Regular deposit 83
RESULTS 04 QUALI
TY Weighted
interpretation
sa a ma pa d mean
Easy access 108 8 3 1 0 4.86 excellent

On time provisions 104 12 4 0 0 4.83 excellent

Favorable interest rates 102 10 7 1 0 4.78 excellent

Premiums are bearable 102 6 10 1 2 4.73 excellent

Incentives are given 75 13 26 2 4 4.28 excellent

Services provided are satisfactory 103 10 6 0 1 4.78 excellent

RESULTS05 welfare Weighted
interpretation
mean

Business establishment 4.25 Extremely beneficial

Business expansion 2.67 Moderately beneficial
Business Working capital 3.70 Very beneficial
Payment of debt 3.57 Very beneficial
Rehabilitation activities 5.00 Extremely beneficial
Home improvement/acquisition 2.92 Moderately beneficial
land 5.00 Extremely beneficial
vehicles 4.00 Very beneficial
appliances 5.00 Extremely beneficial
Gadgets 4.78 Extremely beneficial
Daily consumption of basic needs 3.25 Moderately beneficial
RESULTS05 welfare Weighted
interpretation
mean

Poultry farming 5.00 Extremely beneficial

Crop production 5.00 Extremely beneficial
fisheries 4.00 Very beneficial
Primary education 3.89 Very beneficial
Secondary education 3.21 Moderately beneficial
Tertiary education 3.92 Very beneficial
life 3.38 Moderately beneficial
health 3.59 Very beneficial
disability 4.00 Very beneficial
business 4.00 Very beneficial
Regular deposit 3.63 Very beneficial
 06
RESULTS

5
Required documents
26

Required credit standing

Joint/Solidary

3
Obligation

No. of members

3
For obligation

2
Location

accessing
6
Interest rate required

Required regular
6

payments
Required
4

documents
16

Required credit standing

Problems encountered

Lack of understanding
8

of the information given

23

Management of FP/S availed

using

Quality/quantity of
6

FP/S availed
 Alpha level 0.05
RESULTS07 association
hh Educ. source income
Commercial Loan .684 .536 .375 .769

Emergency loan .815 .411 .992 .898

Asset loan .872 .234 .394 .192

Agricultural & fisheries loan .000 .055 .032 .704

Educational assistance .409 .367 .619 .112

insurance .654 .171 .536 .376

savings .189 .161 .766 .182

CONCLUSIONs

01 02 03

Financial Products Financial Products

Business Working capital
Commercial loan Rehabilitation activities
Home improvement/acquisition
Financial Services fisheries
5 persons / household
High school education savings Daily consumption of basic needs

Small business Financial Services

P8,618.52 monthly income Secondary education
life
Regular deposit
CONCLUSIONs

04 06 07
accessing There is significant association
excellent
between

Quality Required credit standing

Agricultural and
Fisheries Loan
using
05
Management of financial
Very beneficial products/services when grouped
according to their
Welfare household size
and source of
income
RECOMMENDATIO
NS

The microfinance
institutions should continue
to support the financial
needs of their borrowers as
their business grows
Increasing the amounts that Microfinance companies will expand
clients can avail for certain their services to producers and
financial products/services farmers in far-flung areas

Clients will be satisfied if this Relevant seminars or trainings Re-conduct of this research
requirement will be lessened may be conducted
Thank you