Microfinance Lending Program of Cooperatives in Cebu, Philippines: Realities, Benefits and Women’s Participation

The study examined the contributions of microfinance programs channelled through cooperatives for the government’s poverty alleviation thrust particularly among microcredit beneficiaries. We implemented the study through personal interviews with management representatives from sample cooperatives and randomly selected cooperative members who were microfinance program beneficiaries. The study used qualitative-quantitative descriptive survey design utilizing primary and secondary data from sample cooperatives and their members. Majority of the interviewed respondents were women. Government microfinance program have led to improved assets, capital build-ups and profits of cooperatives. As noted, income levels increased among microfinance program beneficiaries. Augmentation of family and household incomes subsequently improved the living standards of member recipients. There was expanded access to microcredit and education by children of program beneficiaries. Women empowerment was evident with strong participation of wives in leading micro-entrepreneurial activities. However, with relatively large household size, exits from the poverty threshold among member households were not substantial. The study also found that many member beneficiaries keep renewing their loans becoming habitual/perennial borrowers from micro-credit lending with availed loans not used anymore for microenterprise activities. We recommend that access to microfinance program should be strengthened and sustained especially for cooperative members in the low income groups.

 

Keywords - Economics poverty alleviation, microfinance program, cooperatives, credit assistance, cooperative member-borrower, women’s participation, descriptive design, Cebu, Philippines.