MICROFINANCE PLAN

I. INTRODUCTION

Caloocan Village Credit and Savings Cooperative operate on the principles

espoused by the whole cooperative movement. It values equity and
equality, self-help and autonomy. These values are translated into concrete
actions through the implementation of policies and programs in the various
facets of the coops activities. In doing so, the organization harnesses the
power of cooperation to work towards the uplift of the lives of its members
which can in turn, redound to the betterment of the lives of other people in
the community as well.

The PE Credit and Savings Cooperative implements the Microfinance Program

that directly responds to the issue of poverty by providing families from low
income communities, particularly the women, with opportunities to earn
added income through livelihood and enterprise development and widening
their access to savings and loan services, micro insurance, education
services and capital resources for their small business.

II. RATIONALE (STATEMENT OF JUSTIFICATION)

As poverty comes, the peoples in Caloocan Village suffer to the lack of job or
work. The poor people lives in the village need to have a source of income
for them to live.

We decided to organize a saving and credit cooperative inside the village, it

is nearly possible to maintain a sustainable life status if each and every one
will be given a chance to have enough source of income over the long term.
We make this cooperative to improve the quality of life of its members
through excellent financial and allied services.

III. GENERAL OBJECTIVE

 To empower people economically while ensuring that those who live in
poverty, particularly vulnerable women and children, are served in
body, mind, and spirit, to give them financial assistance.

SPECIFIC OBJECTIVES

To help them learn some significant things to their mind including this
microcredit that will help them to improve their life.
This involves small-business development, hands-on learning, technical
know-how culminating in self-employment, and life skills development.
Dynamic social network. This involves sharing resources, local and
global interdependence, and mobilization of social network

IV. PROGRAMS/SERVICE DESCRIPTION

1. MICRO-CREDIT

Microfinance is a range of financial services that CCT offers to poor and

low-income clients, particularly micro-entrepreneurs as platform for
sharing the Gospel. These financial services include business loans,
savings, and housing loans.

Typical clients (referred to as community partners) of CCT microfinance

services are self-employed, home-based micro-entrepreneurs in the
informal business sector such as sari-sari store owners, roadside eatery
owners, fish vendors, and fruit or vegetable stand owners. They use the
loans they receive to purchase supplies, merchandise, or equipment for
their micro enterprises. Ninety percent of these partners are women who
are assisted in their small-scale businesses by members of their families
or by less than five paid employees.

2. MICRO-INSURANCE

Workers in the developing world are more likely to experience hardships,

making it nearly impossible to rise out of poverty. The purpose of this
program is to deliver financial protection against flooding, drought,
hospitalization or a death in the family. To help entrepreneurs keep their
lives and businesses moving forward in the face of unexpected hardship.
 3. EDUCATION AND TRAINING SERVICES

Study Now Pay Later Program

The PE Savings and Credit Cooperative offers educational loans to

partner-entrepreneurs that would enable deserving children in the higher
levels of high school or college to complete their education. Graduates of
the courses find gainful employment in CCT ministries or partner
organizations that would enable them to repay the loans.

Financial Advice

In countries where there are low literacy rates and many people are
unfamiliar with banking services, access to microfinance may not be
enough to help clients lift themselves out of poverty. Clients must
also receive financial training to learn basic skills related to earning,
spending, budgeting and borrowing money.

This financial advice is designed to help clients:

Better understand the wide range of financial services available to

them

Increase their use of savings accounts and insurance products

Better manage their credit

Diversify their assets

V. REQUIREMENTS TO AVAIL THE SERVICES

Note: You must a member to avail the services.

Account Code : S1

Product Name : SHARE CAPITAL

Interest Rate : Surplus divided to members

Minimum Amount : P 500.00

Characteristics:

Cooperative is an autonomous association of persons united voluntarily to meet their common

economic, social, and cultural needs and aspirations through a jointly-owned and democratically-
controlled enterprise.

This product is the primary requirements for membership

The applicant shall subscribe for at least one hundred fifty shares with a total value of fifteen
thousand pesos (P15,000). Philippine currency payable in ten (10) years, of which at least five
hundred pesos (500) corresponding to five (5) shares shall be paid upon approval of application
for membership.

All members are encouraged to put religiously to this account for these have the benefits of the
following:

Requirements in loan application:

o Multiplier for loan amount

o Criteria for member in good standing

o Requirements for general assembly invitation

o Basis in giving income on capital and patronage refund every year or dividends

Only members who has completed the P15,000.00 share capital shall received a certificate of
share capital
 As a member/co-owner this is your share to the cooperative having one vote regardless of your
deposits.

Be an active member and be a part of the success of our beloved cooperative

Regular Lending Program

Aims to provide poor micro entrepreneurs and small business/ service owners with
operating capital to strengthen existing enterprises. There are graduated loan sizes
with interest rates of __% and corresponding terms of payment/ loan amortization.

Growth Enterprise Microfinance Loans (from PHP4,000 to PHP50,000)

Medium Business Loans (loans exceeding PHP50,000)
Generation of Local Capital through Savings Build-Up (SBU) wherein the
partner is strongly required to deposit at least five per cent of loan proceeds into
a Savings Account. The savings passbook is monitored by the Fellowship Group
to ensure that balances are not only maintained but also compounded over time
in order to serve as future capital for the borrowers or savers future enterprise
enhancement or expansion, thus weaning them from loan dependence. Partners
are strongly encouraged not to draw from this account unless considered
expedient.
Patronage Refund and Interest on Share Capital enjoyed by regular members
of Philippine cooperatives are distributed to partners at the close of the fiscal
year.