Financing Programs Loans and Financing Programs for Micro, Small and Medium Enterprises

Microfinance Program for Rural Workers

Program Title: Worker's Microfinance Program (KALINGA para sa mga Manggagawa Fund)
Program Objectives:

• To alleviate poverty among target workers through micro entrepreneurial activity:
• To support employment generation and promote entrepreneurship among workers; and
• To facilitate the access of workers to credit services to finance their livelihood and entrepreneurial activities.

Eligible Sub-Borrowers:

• Displaced workers in the formal, informal, and public sectors;
• Workers with existing micro-enterprise venture needing expansion; and
• Workers with no existing micro-enterprise but:
  • Are willing to engage in such endeavor; and,
  • Have participated in appropriate livelihood/entrepreneurial training.

General Criteria:

• At least one (1) year residency in the area;
• The micro-enterprise should have weekly or daily income;
• Must be 18-65 years old;
• One member per household can apply;
• Not presently employed or has no full-time employment;
• No existing loan with a microfinance institution (MFI)/People's Credit and Finance Corporation (PCFC); and
• Household monthly income of not more than P10,000 or below the poverty threshold.

Eligible Sub-Projects:

• Handicraft and small manufacturing (e.g. rug making, basket making, etc.);
• Services (e.g. tricycle operation, barber/parlor shop, repair shop, etc.)
• Food production/processing (e.g.. meat processing, candy making, bakery, etc.)
• Small agribusiness projects (e.g.. small piggery/poultry, cutflower production) and production loan for non-traditional crops (e.g.. vegetables) but should be supplemented by a business activity which yields a daily income; rice and corn and other traditional crops are excluded; and
• Market vending and small trading (e.g. sari-sari store, fish, vegetables vending)

Terms and Conditions

Loan Amount

• 1st loan - not more than P6.000.00
• 2nd loan to subsequent loans - upon evaluation of the MFIs, based on the previous performance of the sub-borrower
• A gradual increase may be given subject to the needs of the borrower and should be supported by a cash flow statement.
• The maximum loan amount is P150.000 00.

Interest Rate: Shall be based on market rate

Maturity: Shall be based on the sub-projects' cash flow and the sub-borrowers' overall repayment capacity.

Contact Details:

Bureau of Rural Workers
Phone (632) 527.5857 : 404.3336
Telefax: (632)527.5858
e-mail: brwmain@smartbroadband.net.ph
Web:  www.brw.dole.gov.ph