The PHP Foundation in Asia Inc. believes that there is a way to win the fight against poverty. It believes that the poor are capable of being productive and responsible citizens. More specifically, it targets itself among those living below the poverty line in various parts of the country.

Dialogue with community leaders in Las Pinas City

Visiting urban poor families in Quezon City

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LIVELIHOOD PROGRAMS

"To explore, develop and provide additional opportunities for income generation, employment and livelihood; and to conduct the necessary skills improvement and manpower development training..."

- 2nd Objective, Articles of Incorporation

Self-reliance and entrepreneurship will be encouraged and nurtured under the foundation’s Livelihood, Employment Assistance & Development Program. Success stories will be recognized and set as examples for others to emulate.

Although done on a selective basis, micro-lending services and the formation of cooperatives and livelihood initiatives will be supported. Assistance will be provided to deserving proponents in looking for fund-sources from both the government and the private sector. Collaboration with the government agencies concerned and non-government organizations will be established to extend maximum assistance to beneficiaries.

To help alleviate poverty, the PHP Foundation in Asia in cooperation with the government agencies concerned and other NGOs is directing its efforts at providing poor but enterprising Filipinos opportunities to engage in small income generating activities. Among the loan services it plans to offer are: Women's Loan, Family Enterprise Loan & Tricycle Loan.

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Micro-finance lending services

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Women's Loan

Group lending to women micro-entrepreneurs with initial loan size ranging from P 5,000.00 & below.

Description:

Group of 3 to 6 clients per account
Initial loan amount of P5,000 and below
Interest rate of 3% per month (add-on)
Weekly payments (4 to 25 weeks)
Cash payments
Savings amounting to 12% of loan amount
PHP Fund is P1.00 per P1,000 loan per month

Criteria for Selection of Clients:

3 to 6 members with similar economic status
18 to 60 years old
Preferably a permanent resident in the area
Must undergo a 3-day orientation on rules, discipline, mission and values

Documents Needed:

Loan application form
Endorsement by the PHP Community Coordinator in the area
Community tax certificate
Barangay clearance

Procedure:

PHP Community Coordinator introduces the program to an already pre-identified area (where there is high poverty incidence)
Those interested approach the local PHP Community Coordinator and express their willingness to become members
Group of 3-6 members formed (each member should know all members of the group and should be familiar with the proposed micro-enterprise project of all group members)
PHP Community Coordinator conducts SOCIAL PREPARATION – training on WOMEN loan process, credit and collection process, peer pressure and mutual support, savings, group and center formation, responsibilities as loan recipients (the whole process takes 3 weeks)
Prospective clients submit application form and accomplish MEMBERS’ FACT SHEET
PHP Community Coordinator conducts Background/Credit Investigation
Loan approval/disapproval
Loan release – clients go to PHP Foundation branch to pick up cheques
Collection is done by Foundation Micro Finance Officers weekly

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Family Enterprise Loan

Individual lending to deserving and entrepreneurial families with initial loan size ranging from P10,000.00 & above. .. Description:

1 client per account
Initial loan amount of P10,000 and above
Interest rate of 3% per month (add-on)
Weekly payments (4 to 25 weeks)
Cash payments or post-dated checks
Savings amounting to 12% of loan amount
PHP Fund is P1.00 per P1,000 loan per month

Criteria for Selection of Clients:

With existing business
18 to 60 years old
Preferably a permanent resident in the area
Must undergo a 3-day orientation on rules, discipline, mission and values

Documents Needed:

Loan application form
Community tax certificate
Barangay clearance
Business permit

Procedure:

Clients are identified through referrals and word-of-mouth
Clients must be endorsed by the PHP Community Coordinator in the area
Clients submit the following documents to pre-qualify:
- Barangay clearance/community tax certificate
- Mayor’s Permit
- DTI Registration
- Bank statement (previous month) to show existence of checking account
- Business must have a minimum capitalization of P 30,000
- A more thorough background and credit investigation is required which includes authentication of submitted documents
The co-maker or guarantor needs to be established by checking his/her background and credit profile as well.
Prospective client submits application form, MEMBER’S FACT SHEET and Credit Investigation Form.
Loan approval/disapproval by PHP Foundation
Loan release by PHP Foundation (upon submission of post-dated cheques
PHP Foundation Bookkeeper/Finance Officer deposits post-dated cheques weekly (every Monday)
Monitoring by PHP Foundation every 2 weeks

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Tricycle Loan

Group lending to tricycle drivers with an average loan size of P 70,000 .. Description:

Group of 4 to 6 clients per account
Initial loan amount of P70, 000
Interest rate of 27% per annum (add-on/diminishing annually)
Semi-monthly payments (2.5 to 3 years)
Cash payments or post-dated checks
Savings amounting to 12% of loan amount
PHP Fund is P1.00 per P1,000 loan per month

Criteria for Selection of Clients:

18 to 60 years old
Holder of a professional drivers license
Minimum 2 years tricycle driver
TODA member
Must undergo a 3-day orientation on rules, discipline, mission and values

Documents Needed:

Loan application form
Community tax certificate
Professional drivers license
TODA certificate/membership
Availability of franchise
Volunteer surrender
Deed of sale
Chattel Mortgage
Promissory note

Procedure:

Clients are identified through referrals
Prospective clients must be members/officers of TODA (Tricycle and Drivers’ Association) of their area of residence
Applicant must get a certification of membership from the TODA President
Applicants must be recommended and endorsed by the PHP Community Coordinator in the area
Group of 4 to 6 members formed
Prospective clients submit application form and MEMBER’S FACT SHEET
PHP Foundation buys tricycle units and assigns them to qualified groups
Clients submit official receipt (OR) and certificate of registration (CR) to PHP Foundation as chattel mortgage after paying a fee of P 1,200
Clients pay to the PHP Foundation branch every 7th and 21st of the month
Clients borrow OR/CR from the PHP Foundation branch every registration period and deposit a minimum amount of P 200.00 which is refundable upon return of OR/CR
PHP Foundation turns over to clients the OR/CR upon complete payment of loans

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