Today is April 25, 2019

Microfinance Non-Government Organizations (NGO)

  A nonstock, nonprofit organization duly registered with the Securities and Exchange Commission (SEC), with the primary purpose of implementing a microenterprise development strategy and providing microfinance programs, products, and services, such as microcredit and microsavings, for the poor and low-income clients.
  Features & Purposes
  a. Provide the poor direct access to reasonable and affordable credit and related, programs and services;
  b. Provide business development opportunities such as leadership training and entrepreneurial skills enhancement;
  c. Provide human development services to help the poor achieve a level of sustainability and empowerment, and adopts measures to promote a spirit of generosity and selfless giving among individuals and institutions that shall help support programs directly involved in poverty eradication;
  d. Collect compulsory savings or capital build-up (CBU) only from their clients for purposes of maintaining the compensating balance in relation to the same client’s loan. Acceptance of client savings shall not be deemed as deposit-taking;
  e. Prohibited from directly engaging in the insurance business. However, they may establish partnerships with authorized microinsurance agents and/or entities in the furtherance of their social protection objectives;
  f. Charge reasonable interest and collect such necessary fees and charges incidental to their microfinance operations;
  g. Borrow money or incur such obligations for the purpose of relending to microfinance borrowers. An MF-NGO shall not be deemed as engaged in quasi-banking activities if the proceeds of the borrowings are exclusively used for relending to microfinance borrowers;
  h. Accept donations or grants or contributions in accordance with existing laws and regulations;
  i. Invest their funds in sound, non-speculative enterprises and instruments, subject to rules and regulations of the relevant government regulatory agency;
  j. Maintain a transparent and comprehensive management information system; and
  k. Publish and disclose audited accounts at the end of every financial year.